BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 1386
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: Hayashi
VERSION: 6/23/09
Analysis by: Mark Stivers FISCAL: Yes
Hearing date: June 30, 2009
SUBJECT:
Transportation projects using funds from the sale of surplus
property in the State Route (SR) 84 and 238 corridors
DESCRIPTION:
This bill requires Caltrans to deposit proceeds from the sale of
surplus properties in the SR 84 and SR 238 corridors into a
special fund, provides greater flexibility with respect to the
funding of projects that use these funds, and relinquishes
portions of SR 84, SR 185, and SR 238 to the City of Hayward.
ANALYSIS:
Current law identifies the California state highway system
through a description of segments of the state's regional and
interregional roads that are owned and operated by the
Department of Transportation (Caltrans). The law also provides
that, in order to expand or delete any portion of the state
highway system, the California Transportation Commission (CTC)
shall make findings that the change is in the best interests of
the state.
The law further provides for the relinquishment of a portion of
a state highway to a city or county under an agreement between
the local jurisdiction and Caltrans, when an act of the
Legislature has deleted the portion of highway from the state
highway system.
Under current law, whenever Caltrans determines that any real
property acquired for highway purposes is no longer necessary,
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it may sell or exchange the property upon terms, standards, and
conditions established by the CTC. Proceeds from the sale are
returned to the State Highway Account.
Beginning in the 1970s, Caltrans purchased large amounts of
property in southern Alameda County to construct the SR 238
bypass and improvements to SR 84 between SR 238 and Interstate
880 but never built the facilities. Caltrans expects to declare
this property surplus and is now working with the county and
affected cities to plan for the sale and reuse of these
properties. Under current law specific to the SR 84 and SR 238
corridors, the county or cities may join with the local
transportation planning agency to develop a local alternative
transportation improvement program (LATIP) that addresses
transportation problems and opportunities in the area to be
served by the unbuilt facilities. This plan is subject to
approval by the CTC. Proceeds from the eventual sale of the
parcels will be used to fund the approved LATIP.
SB 791 (Corbett), Chapter 705, Statutes of 2008, allowed for two
separate LATIPs, one for the SR 238 corridor and one for the SR
84 corridor. In addition, the bill allowed for proceeds from
the sale of properties in the SR 84 corridor, subject to
approval by Caltrans, to be used for projects in the SR 84 LATIP
that are also in a local voter-approved transportation sales tax
measure, in addition to state highway projects.
This bill :
Allows proceeds from the sale of surplus property in the SR
238 corridor to be used for any highway purposes, as opposed
to just state highway purposes.
Requires Caltrans to deposit the excess proceeds from the sale
of surplus properties in the SR 84 corridor into a separate
account in the state's Special Deposit Fund, dedicates the
interest earned on this account back to the account, and makes
these funds available for expenditure by local agencies for
projects designated in the SR 84 LATIP.
Requires Caltrans to deposit the excess proceeds from the sale
of surplus properties in the SR 238 corridor into a separate
account in the state's Special Deposit Fund, dedicates the
interest earned on this account back to the account, and makes
these funds available for expenditure by local agencies for
projects designated in the SR 238 LATIP.
AB 1386 (HAYASHI) Page 3
Allows a city or other local agency, with the concurrence of
the appropriate transportation planning agency (the
Metropolitan Transportation Commission [MTC] in this case),
CTC, and Caltrans, to advance a project included in SR 84 or
SR 238 LATIP through the use of its own funds prior to the
availability of sufficient funds from the special accounts.
Allows a city or other local agency to enter into an agreement
with the appropriate transportation planning agency (MTC),
CTC, and Caltrans to use its own funds to develop, purchase
right-of-way for, and construct an SR 84 or SR 238 LATIP
project within its jurisdiction and later receive
reimbursement from the special accounts. Such agreements are
subject to the following conditions:
? Interest or other debt service costs incurred by the
local agency to finance right-of-way acquisition or
construction for the project are not reimbursable.
? The reimbursement shall cover the amounts expended by
the local agency for right-of-way and construction
escalated by the increase in the actual construction cost
index between the time of construction award and the time
of reimbursement, not to exceed the escalated amount
programmed for expenditure for the project in the LATIP in
the originally scheduled year. If the project is not
completed, reimbursement is limited to the actual amount
expended by the local agency for right-of-way or partial
construction, with no escalation factor.
? Reimbursement of project development costs shall not
exceed 20% of estimated construction costs.
? Reimbursements for expenditures of local voter approved
sales tax revenues must be used for sales tax eligible
purposes.
Requires CTC, at the same as it approves a LATIP and in
consultation with Caltrans, city, and regional transportation
agency representatives, to adopt guidelines to allocate LATIP
funds for expenditure.
Allows CTC to relinquish to the City of Hayward those portions
of SR 84, SR 185, and SR 238 that are located within the city
limits upon making a finding that the relinquishments are in
AB 1386 (HAYASHI) Page 4
the best interest of the state. The relinquishments shall be
subject to a cooperative agreement between the city and
Caltrans, including a requirement that city maintain signs
directing motorists to the continuation of these highways.
The relinquishment shall be effective upon the recordation of
CTC's resolution, at which time the relinquished portions
shall cease to be state highways and shall be ineligible for
future adoption as state highways.
COMMENTS:
1.Purpose of the bill . According to the author, in addition to
providing for the relinquishment of state highway segments,
this bill establishes an accounting mechanism to ensure that
the proceeds from the sale of surplus properties in the SR 84
and SR 238 corridors can be tracked. By facilitating the
reuse of the properties in these corridors, this bill will
also help close out two obsolete state highway projects and
allow local housing and transportation needs to be met.
2.A common practice . The authority that this bill provides for
local authorities to advance projects with their own funds and
obtain reimbursement is an accepted and common practice under
existing state transportation programs. With respect to State
Transportation Improvement Program (STIP), such an advance and
reimbursement is allowed under the so-called AB 3090 process.
For the Transportation Congestion Relief Program, local
agencies may advance funds and receive later reimbursements
with a "letter of no prejudice." This bill simply applies
this practice specifically to LATIP funds.
3.Numerous precedents for relinquishment . This bill is one of a
long line of highway relinquishments to local governments, and
the language conforms with the template used for all other
relinquishments. In this case, the relinquishments allow
Hayward to increase its control over these major thoroughfares
while maintaining the routes as major transportation
corridors. The state, in turn, is relieved of the costs of
maintaining the highways.
Assembly Votes:
Floor: 55-21
Appr: 12-4
Trans: 11-3
POSITIONS: (Communicated to the Committee before noon on
AB 1386 (HAYASHI) Page 5
Wednesday,
June 24, 2009)
SUPPORT: City of Hayward (sponsor)
Alameda County Transportation Improvement
Authority
OPPOSED: None received.