BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
SB 1397 (Huff) - Highway safety and information program
-----------------------------------------------------------------
| |
| |
| |
-----------------------------------------------------------------
|--------------------------------+--------------------------------|
| | |
|Version: April 21, 2016 |Policy Vote: T. & H. 6 - 2 |
| | |
|--------------------------------+--------------------------------|
| | |
|Urgency: No |Mandate: No |
| | |
|--------------------------------+--------------------------------|
| | |
|Hearing Date: May 27, 2016 |Consultant: Mark McKenzie |
| | |
-----------------------------------------------------------------
Bill
Summary: SB 1397 would authorize the Department of
Transportation (Caltrans), subject to federal approval, to enter
into an agreement with a contractor to construct and operate a
system of changeable message signs (CMS) on the state highway
system that provides for the placement of advertisements on the
signs when not in use by Caltrans. The bill would provide for
an initial demonstration phase with reporting requirements prior
to full implementation.
*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 27, 2016
SB 1397 (Huff) Page 1 of
?
Fiscal
Impact:
Estimated Caltrans up-front administrative costs in the range
of $100,000 to seek federal waivers and adopt guidelines and
regulations. These costs would be incurred prior to preparing
any procurement materials. (State Highway Account)
Estimated additional costs of up to $150,000 to prepare
procurement materials, evaluate proposals, and negotiate
agreements. These costs would be reimbursed from certified
funds provided by bidders. (State Highway Account)
Unknown ongoing administrative costs to Caltrans, likely
reimbursable from advertising revenues, subject to the terms
of an agreement. Caltrans would incur costs for oversight,
and contracts with both an advertising consultant for business
and marketing advice and an independent consultant to review
safety and operational data. (State Highway Account)
Unknown, significant revenue gains during the term of the
agreement, potentially in the tens of millions annually, and
possibly over $100 million annually in out years of a
long-term contract with a maximized build-out of the CMS
system. It could be several years before the state realizes
any revenue gains as vendor costs to construct or upgrade CMS
displays would be recovered from advertising revenues.
Revenues would depend upon parameters of the agreement,
including the number of CMS displays that are part of the
program, the projected revenues anticipated from each display,
the term of the contract, and revenue sharing agreements
specified in the contract. (State Highway Account)
Author
Amendments:
Require bidders to provide a certified check in an amount
determined by Caltrans to cover the reasonable costs of
preparation of best value procurement materials, review and
evaluation of the proposal, and the negotiation of an
agreement with the selected entity. Caltrans would be
required to return checks accompanying proposals not accepted
for consideration.
SB 1397 (Huff) Page 2 of
?
Require the agreement to specify that the entity will bear all
reasonable costs of the project, including costs for
installation, maintenance, and operation of the project, and
to provide for reimbursement of any Caltrans costs incurred in
procuring the agreement that are not covered by the check
submitted with the bid.
Prohibit the display of political messages or advertisements
on the changeable message signs.
Clarify that all evaluation materials must be submitted to the
Legislature for review prior to full implementation, including
the independent consultant's report and any Caltrans
recommended revisions to the project.
Make clarifying changes.
-- END --