BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1386 (Hayashi)
Hearing Date: 08/27/2009 Amended: 06/23/2009
Consultant: Mark McKenzie Policy Vote: T&H 6-3
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BILL SUMMARY: AB 1386 would modify provisions authorizing a
local alternative transportation improvement plan (LATIP) in the
State Route (SR) 84 and 238 corridors. Specifically, this bill
would:
Expand the authorized uses of proceeds from the sale of excess
property in the SR 238 corridor to include any highway
purposes, rather than strictly state highways.
Require the Department of Transportation (Caltrans) to
establish segregated accounts in the continuously appropriated
Special Deposit Fund for the deposit of proceeds from the sale
of excess properties in the SR 84 and 238 corridors.
Authorize local agencies to enter into agreements with a
transportation planning agency, the California Transportation
Commission (CTC), and Caltrans to advance local funds for use
on an SR 84 or 238 LATIP project and receive reimbursement
from funds deposited in the special accounts, as specified.
Require reimbursements to be escalated by a factor based up on
the construction cost index from the time of construction
award through the reimbursement date.
Require CTC to develop and adopt guidelines governing the
allocation of LATIP funds for expenditure, and the
reimbursement of funds advanced by local agencies.
Authorize CTC to relinquish the portions of SR 92, 185, and
238 located within the city limits of Hayward, if the City and
Caltrans enter into an agreement for that purpose, and subject
to a CTC finding that the terms and conditions are in the best
interests of the state.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Caltrans administrationabsorbable costs to administer
accountsSpecial*
CTC guidelines $50-$100 Special*
Relinquishments Unknown one-time costs, potentially
hundreds Special*
of thousands, offset by long term
maintenance
____________ and repair savings
* State Highway Account
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STAFF COMMENTS: SUSPENSE FILE.
Under current law, whenever Caltrans determines that real
property acquired for highway purposes is no longer necessary,
that property may be sold or exchanged 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
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AB 1386 (Hayashi)
SR 238 bypass and improvements to SR 84 between SR 238 and
Interstate 880 but never built the facilities. 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 LATIP, subject to CTC approval, that addresses
transportation problems and opportunities in the area to be
served by the unbuilt facilities. Caltrans is working with the
county and affected cities to plan for the sale and reuse of
these properties. Proceeds from the eventual sale of the
parcels will be used to fund the approved LATIP. AB 1386 is
intended to facilitate the reuse of properties in the SR 84 and
SR 238 corridors for local housing and transportation purposes.
The Legislature has provided statutory authorization to CTC to
relinquish a number of state highway segments to local
jurisdictions under specified conditions. This typically
provides the recipient agency with greater control over local
streets and transportation projects and relieves the Department
of Transportation (Caltrans) of any further responsibility to
improve, maintain, or repair infrastructure related to the
relinquished segment of state highway. Relinquishments are
subject to terms and conditions of agreements between Caltrans
and a local jurisdiction seeking control of a local highway
segment and CTC must determine that the agreement for
relinquishment is in the best interests of the state. Caltrans
annually sets aside $12 million of State Highway Operations and
Protection Plan (SHOPP) funding for rehabilitation necessary for
highway relinquishments.
AB 1386 would authorize CTC, upon a determination that the terms
and conditions are in the state's best interest, to relinquish
the portions of SR 92, 185, and 238 located within the city
limits of Hayward. The relinquished portions would cease to be
a part of the state highway system, and would be ineligible for
future adoption as state highways.
Staff notes that 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." 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.
Proponents indicate that Hayward will be accepting these highway
segments "as is" since the planned SR 238 Corridor Improvement
Project would bring the roadway, sidewalks, street lights, and
traffic signals up to improved city standards. Caltrans
indicates, however, that a final agreement has not been reached
regarding a payment to the City of Hayward, so the one-time
costs associated with the relinquishment are unknown at this
time. The relinquishment of these segments would relieve
Caltrans of any future maintenance and repair costs, resulting
in unknown long-term annual savings.
AB 1386 would also authorize local agencies to advance projects
in an LATIP with their own resources and receive reimbursement
from proceeds derived from the sale of excess properties, as
specified. CTC would be required to develop and adopt
regulations governing the processes and requirements for
reimbursement, as well as the allocation of LATIP funds for
expenditure. One-time CTC costs related to these duties would
likely be in the range of $50,000 to $100,000.
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AB 1386 (Hayashi)
The bill also requires that amounts reimbursed to local agencies
that advance their own funds for LATIP projects be escalated to
include an amount equal to the actual construction cost index
between the time of construction award and the time of CTC
allocation of reimbursement funding, as specified. Staff is not
aware of precedent for escalating the reimbursement amounts by
an inflationary factor when local agencies advance project costs
with their own funds. Staff recommends an amendment to delete
the escalation factor to limit reimbursement to the actual
amount advanced by the local agency.