BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1386|
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THIRD READING
Bill No: AB 1386
Author: Hayashi (D)
Amended: 9/2/09 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 : Surplus property in the State Route 84 and 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 (SR) 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 92, State
Route 185, and State Route 238 to the City of Hayward.
CONTINUED
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Senate Floor Amendments of 9/2/09 alter procedures for
disposing excess properties within the SR 238 corridor.
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,
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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:
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:
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A. 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.
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.
6. 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.
7. 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.
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8. Repeal the current housing-related requirements of
the SR 238 LATIP as of the effective date of a
court-approved settlement agreement between Caltrans,
the City of Hayward, and representatives for members
of the class of residents and instead requires that
the LATIP include the following:
A. A program to provide monetary assistance for
eligible tenant households occupying a corridor
property on or before December 31, 2009.
B. A program to provide 237 units of affordable
housing in the corridor.
C. A program to provide home purchase assistance
to eligible tenant households.
9. Subject to the court's approval of the settlement
agreement described above:
A. Maintain the prohibition on using proceeds from
the sale of SR 238 surplus properties to fulfill
these housing obligations but clarifies that such
proceeds may be used for specified administrative
costs relating to the sale of the properties.
B. Provides that any person commencing initial
occupancy or entering into a new rental or lease
agreement for an excess property after January 1,
2010 is not eligible for any relocation assistance
and must be notified that the occupancy will be
temporary.
C. Authorize Caltrans to sell those excess SR 238
properties not needed to implement the LATIP in an
"as is" condition at fair market value.
D. Exempt the disposition of excess SR 238
properties from the California Environmental Quality
Act (CEQA) but clarifies that the new property owner
is subject to any local governmental land use
entitlement approval requirements and to CEQA.
E. Require Caltrans to offer each excess
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single-family residence in the SR 238 corridor
determined to be eligible for sale to residential
tenants pursuant to the settlement agreement
described above first to any tenant who is current
in rent and has occupied the home for at least two
years. If the occupant tenant does not purchase his
or her unit, Caltrans must offer the tenant other
excess single-family residences within the corridor.
CTC is required to approve such sales provided that
it determines the sale to be "as is" at fair market
value.
F. Authorize Caltrans to hire an appraiser to
determine the "as is" fair market value of any
single-family residence contemplated for sale to a
residential tenant and to conduct an appraisal
review of any such appraisal. CTC is required to
approve the appraisal or appraisal review provided
that it determines that the appraisal accurately
reflects the "as is" fair market value of the
property.
G. Combine transportation-related provisions
allowing local jurisdictions to advance LATIP
projects under specified conditions into a single
new section.
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
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Special*
Hundreds of thousands offset by long
term
Maintenance and repair savings
*State Highway Account
SUPPORT : (Verified 9/3/09)
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,
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 9/3/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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