BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2098
                                                                  Page  1

          Date of Hearing:   August 26, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 2098 (Miller) - As Amended:  August 20, 2010 

          Policy Committee:                               
          TransportationVote:12-0

          Urgency:     Yes                  State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill authorizes the Riverside County Transportation  
          Commission (RCTC) to award a design-build contract for design  
          and construction of the State Highway Route 91 Corridor  
          Improvements Project, subject to the following conditions:

          1)Stipulates that Caltrans is responsible for construction  
            inspection services on the project, and prescribes a direct  
            reporting relationship between project inspectors and senior  
            Caltrans engineers, who are responsible for acceptance or  
            rejection of the construction work.  

          2)Stipulates that Caltrans retains authority to stop the  
            contractor's operations and take appropriate actions if public  
            safety is jeopardized, and requires the department to ensure  
            that public safety and convenience is maintained when work on  
            the project is performed within the state highway  
            right-of-way.

          3)Prescribes the process by which Caltrans is to document  
            project deficiencies and direct their remedy.  

          4)Provides that Caltrans may use employees or consultants to  
            perform prescribed services, consistent with the State  
            Constitution.  

          5)Requires RCTC to report to the Legislature biennially on the  
            project's progress and on compliance with the above  
            provisions.  

           FISCAL EFFECT  








                                                                  AB 2098
                                                                  Page  2


          The responsibilities assigned in this bill to Caltrans generally  
          represent normal project-related oversight activities whose  
          costs are included in the project budget.

           COMMENTS  

           Background and Purpose  . SB 1316 (Correa)/Chapter 714 of 2008  
          authorized RCTC to develop the State Highway Route 91 Corridor  
          Improvements Project. This $1.2 billion project, between the  
          Orange County line to Interstate 15 in Riverside County,  
          includes a general purpose traffic lane in each direction,  
          improved ramps and intersections at major city streets that  
          intersect the freeway in Corona, better connections between  
          Interstate 15 and Route 91 and the extension of the Route 91  
          Express Lanes, which are currently located in Orange County to  
          Interstate 15.  

          Proponents assert that the project's financing plan-a mix of  
          federal innovative financing loan guarantees and revenue  
          bonds-is only viable if RCTC can provide cost and schedule  
          certainty via the use of a design-build procurement. Proponents  
          contend that failure to secure design-build contracting  
          authority, and instead using the traditional design-bid-build  
          approach, will result in a three- to five-year delay to  
          accommodate project design and right of way acquisition.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081