BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           146 (Cox)
          
          Hearing Date:  05/28/2009           Amended: A.I. 02/11/2009
          Consultant: Mark McKenzie       Policy Vote: T&H 11-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 146 would authorize the California  
          Transportation Commission (CTC) to relinquish a segment of State  
          Highway Route (SR) 49 in the Town of Downieville to the County  
          of Sierra.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Caltrans maintenance   unknown long-term maintenance andSpecial*
                                   repair costs (see staff comments)

          Property transfer      unknown foregone revenue by      Special*  
           transferring property free of charge.
          ____________
          *State Highway Account
          _________________________________________________________________ 
          ____

          STAFF COMMENTS:  SUSPENSE FILE.
          
          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.











          SB 146 would authorize CTC, upon a determination that the terms  
          and conditions are in the state's best interest, to relinquish  
          to the County of Sierra the portion of SR 49 located within the  
          Town of Downieville.  The relinquished portion would cease to be  
          a part of the state highway system, and would be ineligible for  
          future adoption as a state highway.

          In the winter of 1937, a two-year-old bridge on SR 49 crossing  
          the Downie River in Downieville washed out in a flood.  Traffic  
          was rerouted onto two county-owned streets and across the river  
          on a county-owned bridge.  In 1940, Caltrans entered into an  
          agreement with Sierra County that permits the state to use and  
          maintain the county owned bridge and connecting streets as a  
          detour until a new bridge is constructed, which has never  
          happened.  The existing right-of-way has been used by the County  
          for 
          Page 2
          SB 146 (Cox)

          the operation of several parking areas, a public visitor center,  
          parks, flood control facilities, historic interpretive  
          facilities, landscaping, road, and drainage systems.  Sierra  
          County has requested that Caltrans relinquish the right-of-way  
          without cost or compensation from the County and further  
          requested that Caltrans continue to maintain the county road and  
          bridge that has served as a detour through Downieville in  
          perpetuity.  The County proposes to use the property to provide  
          more recreational activities and enhance the visitor's center.

          Typically a relinquishment provides local entities with control  
          of a roadway within its boundaries while relieving Caltrans of  
          further costs associated with maintenance and repair costs.  The  
          relinquishment envisioned in this bill, however, would transfer  
          right-of-way that is not currently being used as a traversable  
          state highway to Sierra County, while continuing Caltrans'  
          responsibility to maintain and repair the detour roadway and  
          bridge within the Town of Downieville.  The costs related to the  
          continued maintenance and repair of the roadway are unknown, but  
          likely minor in the near term.  Any costs associated with future  
          repair and maintenance of the bridge, however, could be  
          significant, depending on the nature of the improvements.  

          At the time of this analysis, Caltrans was unable to provide  
          information relative to the acquisition costs or current value  
          of parcels located within the segment of SR 49 right-of-way that  
          would be relinquished.  Several parcels are owned in fee title,  










          some of which are currently leased to the County, and other  
          parcels are held under easement rights.  The current value of  
          these parcels is unknown.  None of these parcels have been  
          deemed surplus because they are technically still part of the  
          state highway system.  By relinquishing these parcels to Sierra  
          County at no cost, however, this bill would result in unknown  
          foregone revenue since Caltrans would not be able to sell the  
          property in the future.