BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 254 (Allen) - State highways: relinquishment
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|Version: April 22, 2015 |Policy Vote: T. & H. 11 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: May 11, 2015 |Consultant: Mark McKenzie |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: SB 254 would establish procedures for the
administrative relinquishment of state highway segments that do
not serve an interregional purpose.
Fiscal
Impact:
Unknown substantial costs to Department of Transportation
(Caltrans), likely in the millions annually, to bring each
segment in a state of good repair prior to relinquishment.
Some of these new costs would be offset by reductions in
negotiated payments to local agencies taking possession of
relinquished segments. (State Highway Account) See staff
comments.
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Caltrans staffing costs: approximately $90,000 in ongoing
staff time to develop additional cost-benefit analyses, and an
additional $96,000 in 2016-17 and 2017-18 to conduct a
thorough assessment of relinquishment candidates and estimate
future maintenance costs. These limited-term costs may be
extended depending on requirements specified in guidelines.
(State Highway Account)
California Transportation Commission (CTC) costs of
approximately $120,000 annually to adopt guidelines, review
and evaluate more relinquishment proposals, and adopt those
proposals in a public hearing. (State Highway Account)
Background: Existing law identifies the California state highway system
(SHS) through a description of segments of the state's regional
and interregional roads that are owned and operated by Caltrans.
Existing law requires the CTC to relinquish to cities and
counties segments of state highways that have been deleted from
the SHS by legislative enactment. The CTC is prohibited from
relinquishing a segment of state highway to a city or county
that has been superseded by relocation until Caltrans has placed
the highway into a "state of good repair," which includes litter
removal, weed control, and tree and shrub trimming, but does not
obligate Caltrans for widening, new construction, or major
reconstruction, unless directed by the CTC.
The Legislature has provided statutory authorization to CTC to
relinquish a number of state highway segments to local
jurisdictions under specified conditions. Relinquishment
provides the recipient agency with greater control over local
transportation projects and relieves Caltrans of any further
responsibility to improve, maintain, or repair infrastructure
related to the relinquished segment of state highway.
Generally, relinquishments are subject to negotiated agreements
between Caltrans and a local jurisdiction seeking control of a
local highway segment. CTC must determine that the agreement
for relinquishment, which has typically involved a one-time
payment of State Highway Account funds to the local entity, is
in the best interests of the state. The actual amounts vary for
each relinquished highway segment and are determined by a
negotiation of terms and conditions between Caltrans and the
local jurisdiction, but those costs are based upon a
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cost-benefit analysis covering a ten-year period, which is
included in a Project Scope Summary Report prepared for
legislative relinquishments. Historically, Caltrans has
annually set aside $12 million of State Highway Operations and
Protection Plan (SHOPP) funding for rehabilitation necessary for
highway relinquishments. In recent years, however, Caltrans has
not set aside funding to rehabilitate relinquished highways.
Proposed Law:
SB 254 would establish procedures for the relinquishment of
portions of the state highway system without explicit
legislative authorization. Specifically, this bill would:
Authorize CTC to relinquish a portion of a state highway to a
city or county, if the segment is within the boundaries of the
local agency, and the segment is not an interstate highway or
a part of the interregional road system, as specified.
Prohibit CTC from relinquishing a segment of state highway
until Caltrans has entered into an agreement with the
recipient agency and has placed the highway in a state of good
repair.
Require Caltrans, by April 1, 2016, and every two years
thereafter, to report to CTC on which highway segments
primarily serve regional travel rather than facilitating
interregional movement of people and goods. From this report
Caltrans must identify which routes and segments are the best
candidates for future relinquishment and include aggregate
costs of future maintenance and preservation of each route.
CTC must develop guidelines for this report in consultation
with Caltrans.
Require CTC to compile a list of relinquished highway and
segments in the previous 12 months and include this
information in its annual report to the Legislature.
Related
Legislation: SB 461 (Hernandez), currently on this Committee's
Suspense File, would authorize the CTC to relinquish a specified
segment of State Highway Route 164 to the County of Los Angeles.
Staff
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Comments: Staff notes that the Governor has proposed budget
trailer bill language this year that is intended to broaden and
streamline the state process for relinquishing state highway
routes that are deemed to no longer serve an interregional
purpose, and instead operate primarily as regional or local
routes. The Senate Budget Subcommittee #2 rejected the trailer
bill proposal at its hearing on April 16, 2015, without
prejudice, so that it could be considered instead by the Senate
Transportation and Housing Committee. SB 254 is the vehicle
containing a legislative proposal for relinquishments in
response to the Subcommittee's action.
Existing law only requires Caltrans to bring a segment of
highway proposed for relinquishment up to a "state of good
repair" if the segment has been superseded by relocation.
Caltrans may at times find it to be in the state's best interest
to negotiate with the local agency a level of work or
contribution of funds to facilitate the relinquishment to ensure
that the facility is safe and drivable, but the department is
under no statutory obligation to bring the roadway up to a state
of good repair for relinquishments by legislative enactment.
This bill would prohibit CTC from relinquishing any segment of
state highway until Caltrans has entered into an agreement with
the recipient agency and placed the highway in a state of good
repair. This new requirement, combined with the likelihood that
there will likely be an increase in highway relinquishments due
to the streamlined process, will result in the expenditure of
additional State Highway Account maintenance funds, potentially
in the millions annually. There would likely be reductions of
payments to local agencies in the negotiated agreements as a
result of the mandatory maintenance expenditures, which would at
least partially offset those additional maintenance costs. In
either case, relinquishing a segment of state highway will
eventually result in long-term savings in terms of reduced
maintenance and liability.
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