BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 461 (Hernandez) - State Highway Route 164:  relinquishment
          
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          |Version: April 6, 2015          |Policy Vote: T. & H. 10 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 4, 2015       |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File.







          Bill  
          Summary:  SB 461 would authorize the California Transportation  
          Commission (CTC) to relinquish a specified segment of State  
          Highway Route (SR) 164 to the County of Los Angeles (LA County).


          Fiscal  
          Impact:  Unknown one-time costs ranging from minor up to several  
          million to the Department of Transportation (Caltrans) prior to  
          the relinquishment of the designated segment of SR 164 to LA  
          County (State Highway Account).  These costs would be offset in  
          future years due to avoided maintenance costs on the  
          relinquished segment.









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          Background:  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 terms and conditions  
          of 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.  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 461 would authorize CTC to relinquish to LA County the  
          portion of SR 164 (Rosemead Boulevard) from Gallatin Road near  
          Pico Rivera to the southern city limit of South El Monte in the  
          vicinity of Grand Avenue, pursuant to the terms of a specified  
          cooperative agreement and upon a determination that the  
          relinquishment is in the state's best interest.  This segment of  
          SR 164 would cease to be a part of the state highway system, and  
          would be ineligible for future adoption as a state highway.  The  
          bill would require LA County to maintain signs along the  
          relinquished portion directing motorist to the continuation of  
          SR 164.


          Staff  
          Comments:  Relinquishment of this segment would allow LA County to assume  
          direct control of the roadway and pursue a community-driven  
          vision for a "complete streets" corridor project.  The project  
          would also enhance recreation opportunities and access to the  
          Whittier Narrows Recreational Area.  Transferring control of the  
          roadway to LA County allows for the construction of improvements  
          and enhancements without the constraints of Caltrans' state  
          highway design standards, encroachment permit processes, and  
          other state requirements.  








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          Caltrans usually provides State Highway Account funding to a  
          local entity that is assuming control over state highway  
          segments in order to bring the roadway up to a "state of good  
          repair," although there is no statutory obligation to do so.   
          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 included in a Project Scope Summary Report prepared for  
          legislative relinquishments.  

          Caltrans has not identified a specific cost estimate for the  
          relinquishment of this segment, but based on other  
          relinquishments, one-time costs may range from minimal up to $1  
          million per centerline mile of roadway depending on numerous  
          factors such as roadway condition, projected maintenance costs,  
          and any planned capital projects.  The segment of SR 164  
          specified in the bill is approximately 2.6 miles long, so  
          initial costs could be minimal but may be as high as several  
          million dollars.  The relinquishment of these segments would  
          relieve Caltrans of any future maintenance and repair costs,  
          resulting in unknown long-term annual savings.  

          Actual costs and savings would be more certain if legislation to  
          authorize relinquishment followed, rather than preceded, the  
          completion of the cost-benefit analysis and an agreement between  
          Caltrans and LA County.  However, Caltrans does not typically  
          conduct the analysis and enter into negotiations until  
          legislative authority for relinquishment has been provided.

          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.


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