BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 254 (Allen) - State highways: relinquishment ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: April 22, 2015 |Policy Vote: T. & H. 11 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 28, 2015 |Consultant: Mark McKenzie | | | | ----------------------------------------------------------------- SUSPENSE FILE. AS AMENDED. Bill Summary: SB 254 would establish procedures for the administrative relinquishment of state highway segments that do not serve an interregional purpose. Fiscal Impact (as approved on May 28, 2015): Unknown costs to Department of Transportation (Caltrans), from minor to low millions for each relinquishment, depending on the terms of agreements with local agencies. Any one-time costs for each relinquishment would be offset in future years due to avoided maintenance costs on the relinquished segment. (State Highway Account) See staff comments. SB 254 (Allen) Page 1 of ? 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 The CTC is prohibited from relinquishing a segment of state highway to a city or county that has been superseded by relocation until Caltrans has placed the highway into a "state of good repair," which includes litter removal, weed control, and tree and shrub trimming,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 cost-benefit analysis covering a ten-year period, which is SB 254 (Allen) Page 2 of ? 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 Comments: Staff notes that the Governor has proposed budget SB 254 (Allen) Page 3 of ? 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. Committee amendments (as adopted on May 28, 2015): Committee amendments would remove the requirement that Caltrans bring a segment of highway up to a state of good repair prior to relinquishment, unless the relinquished segment has been superceded by relocation. -- END -- SB 254 (Allen) Page 4 of ?