BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2098 (Miller)
Hearing Date: 08/30/2010 Amended: 08/20/2010
Consultant: Mark McKenzie Policy Vote: T&H 9-0
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BILL SUMMARY: AB 2098, an urgency measure, would authorize the
Riverside County Transportation Commission (RCTC) to use the
design-build procurement method for the State Highway Route (SR)
91 Corridor Improvement Project, and require the Department of
Transportation (Caltrans) to be the agency responsible for
construction inspection services. The bill would also require
Caltrans to ensure that public safety and convenience is
maintained whenever work is performed under an encroachment
permit within the state highway right-of-way, as specified. The
bill would require Caltrans' capital outlay program in the
annual Budget Act to include any resources necessary for the
performance of workload related to this bill. The bill would
also require RCTC to submit an annual report to the Legislature
on the progress of the SR 91 project, beginning two years after
a design-build contract is awarded.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Design-build authority unknown project costs or savings
Special*/
Federal/Local
Caltrans staff unknown significant costs Special*
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* State Highway Account
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STAFF COMMENTS: This bill meets the criteria for referral to the
Suspense File.
Existing law, pursuant to SBx2 4 (Cogdill), Chapter 2 of 2009,
authorizes Caltrans to use the design-build procurement method
for 10 state highway, bridge, or tunnel projects, and authorizes
a local transportation entity to use design-build for up to five
local street or road, bridge, tunnel, or public transit
projects, with the approval of the California Transportation
Commission (CTC).
AB 2098 would authorize RCTC to use design-build for the SR 91
Corridor Improvement Project, a $1.2 billion project that would
extend two tolled express lanes eight miles from the
Orange/Riverside county line to SR 15 in Riverside County,
reconstruct six interchanges with major arterial roads in the
City of Corona, a system of roads that run parallel to the
freeway lanes to facilitate vehicles merging on and off the
freeway, improvements to SR 15 between the Ontario Avenue
interchange and SR 91, and direct connectors from SR 91 to
southbound SR 15. SB 1316 (Correa), Chapter 714 of 2008,
authorized RCTC to develop this project and to use issue bonds
to finance the costs of the project, and specified that the
bonds are payable from toll revenues, sales tax revenues,
development impact fees, state and federal grant funds, and any
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AB 2098 (Miller)
other source of revenues available to RCTC that may be used for
these purposes. After bonds are paid off, the facility would
revert to Caltrans.
The design-build procurement method is an alternative method for
procuring design and construction services for the delivery of
public works projects from a single entity. This procurement
method is designed to save time in the delivery of projects, but
may result in increased costs or savings because it has not been
evaluated for purposes of state-highway project use and it
requires a substantially higher level of project management.
This bill would require Caltrans staff (or those contracted by
Caltrans) to perform all construction inspection services, as
specified, as well as ensuring all safety and convenience is
maintained in the state rights-of-way. All Caltrans costs
related to this bill are to be included in the annual Caltrans
capital outlay program in the Budget Act. These costs are
unknown, but likely significant. The bill does not provide for
reimbursement of Caltrans costs from project revenues available
to RCTC.