BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 1386|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 1386
Author: Hayashi (D)
Amended: 6/23/09 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 6-3, 7/7/09
AYES: Lowenthal, DeSaulnier, Kehoe, Pavley, Simitian, Wolk
NOES: Huff, Harman, Hollingsworth
NO VOTE RECORDED: Ashburn, Oropeza
SENATE APPROPRIATIONS COMMITTEE : 8-5, 8/27/09
AYES: Kehoe, Corbett, Hancock, Leno, Oropeza, Price, Wolk,
Yee
NOES: Cox, Denham, Runner, Walters, Wyland
ASSEMBLY FLOOR : 55-21, 6/1/09 - See last page for vote
SUBJECT : Transportation projects using funds from the
sale of surplus
property in the State Router 84 and State Route
238 corridors
SOURCE : Author
DIGEST : This bill requires the Department of
Transportation to deposit proceeds from the sale of surplus
properties in the State Route 84 and State Route 238
corridors into a special fund, provides greater flexibility
with respect to the funding of projects that use these
funds, and relinquishes portions of State Route 84, State
CONTINUED
AB 1386
Page
2
Route 185, and State Route 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, 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 State
Route (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, allows for
two separate LATIPs, one for the SR 238 corridor and one
for the SR 84 corridor. In addition, the bill allows for
proceeds from the sale of properties in the SR 84 corridor,
subject to approval by Caltrans, to be used for projects in
AB 1386
Page
3
the SR 84 LATIP that are also in a local voter-approved
transportation sales tax measure, in addition to state
highway projects.
This bill:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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:
A. Interest or other debt service costs incurred by
the local agency to finance right-of-way
AB 1386
Page
4
acquisition or construction for the project are not
reimbursable.
B. 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.
C. Reimbursement of project development costs shall
not exceed 20 percent of estimated construction
costs.
D. Reimbursements for expenditures of local voter
approved sales tax revenues must be used for sales
tax eligible purposes.
E. 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.
F. 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 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.
AB 1386
Page
5
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis:
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12
Fund
Caltrans administration absorbable costs to administer
accounts Special*
CTC guidelines $50-$100
Special*
Relinquishment Unknown one-time costs, potentially
Special*
Hundreds of thousands offset by long
term
Maintenance and repair savings
*State Highway Account
SUPPORT : (Verified 8/27/09)
Alameda County Congestion Management Agency
Alameda County Transportation Improvement Authority
City of Hayward
ARGUMENTS IN SUPPORT : According to the author's office,
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.
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Arambula, Beall, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
AB 1386
Page
6
Emmerson, Eng, Evans, Feuer, Fong, Fuentes, Furutani,
Galgiani, Hall, Hayashi, Hernandez, Hill, Huber, Huffman,
Jones, Krekorian, Lieu, Bonnie Lowenthal, Ma, Mendoza,
Monning, Nava, John A. Perez, V. Manuel Perez,
Portantino, Price, Ruskin, Salas, Saldana, Skinner,
Smyth, Solorio, Swanson, Torlakson, Torres, Torrico,
Yamada, Bass
NOES: Anderson, Tom Berryhill, Blakeslee, DeVore, Duvall,
Fletcher, Fuller, Gaines, Garrick, Gilmore, Hagman,
Harkey, Jeffries, Knight, Logue, Nestande, Niello,
Nielsen, Silva, Audra Strickland, Villines
NO VOTE RECORDED: Bill Berryhill, Block, Miller, Tran
JJA:do 8/28/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****