BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           545 (Cedillo)
          
          Hearing Date:  05/11/2009           Amended: 04/20/2009
          Consultant: Mark McKenzie       Policy Vote: T&H 9-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 545 would require any proposed extension of  
          the I-710 freeway from its existing terminus to the I-210  
          freeway, as specified, to be constructed using tunnel-boring  
          technology.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           Limiting construction options     potentially hundreds of  
          millions in cost       Special*
                                 pressures to the extent that a less  
          expensive
                                 option is available and feasible
          ____________
          *State Highway Account
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill may meet the criteria for referral to  
          the Suspense File.
          
          Existing law establishes State Highway Route 710 (I-710) from  
          Highway 1 to I-210 in Pasadena.  The 4.5 mile segment between  
          the City of Los Angeles border just north of Interstate 10 and  
          the I-210 freeway in Pasadena has never been constructed due to  
          vehement community opposition.  Over nearly fifty years,  
          alternative concepts have been proposed and evaluated to  
          complete the I-710 freeway and Caltrans has purchased around 450  
          properties in the corridor.  To date, none of the previously  
          proposed and evaluated surface alternatives has successfully  
          addressed community concerns.  These traditional freeway  
          conceptual alignments would have traversed highly developed  
          urbanized neighborhoods in Los Angeles, Alhambra, South  
          Pasadena, and Pasadena.  The Department of Transportation  
          (Caltrans) and the Los Angeles County Metropolitan  
          Transportation Authority (MTA) are currently studying  










          geophysical data to determine the feasibility of a bored tunnel  
          project to complete the I-710 corridor.  The study will be  
          completed in the fall of this year, and after that benchmark is  
          met, Caltrans and MTA will decide whether to proceed with the  
          environmental analysis.

          SB 545 would prohibit the construction of the I-710 "gap"  
          between its existing terminus in the City of Los Angeles and the  
          I-210 freeway in Pasadena as a surface or above-grade highway,  
          thereby limiting any future construction to a tunnel.  This bill  
          would also revise an existing exemption that allows Caltrans to  
          construct the I-710 freeway project without an agreement with an  
          affected city or county by authorizing Caltrans to construct the  
          segment of freeway solely as a tunnel if an impasse has existed  
          for at least 20 years because an agreement cannot be reached  
          with affected local agencies.

          This bill would remove from future consideration any potential  
          surface or above-grade alignment as an option for the completion  
          of the I-710 gap closure, effectively requiring construction of  
          a tunnel by using tunnel boring technology should a decision be  
          made to 
          Page 2
          SB 545 (Cedillo)

          close the gap.  Staff notes that even without this bill it is  
          highly unlikely that this project would be constructed as a  
          traditional surface or above-grade highway since numerous  
          options have been explored and rejected over the past decades.   
          A bored tunnel, however, is likely the most costly option for  
          constructing this project; Caltrans indicates that preliminary  
          estimates of project costs for constructing a tunnel to close  
          the I-710 gap are approximately $6 - $8 billion.  To the extent  
          that this bill removes the possibility that this project could  
          be constructed using a less expensive option, this bill would  
          create cost pressures potentially in the hundreds of millions of  
          dollars.  Due to the potential costs of the I-710 gap closure,  
          and difficulties in reaching consensus with affected local  
          agencies, it is unclear if this project will ever be  
          constructed.

          Last November, Los Angeles County voters approved Measure R, a  
          thirty-year local transportation sales tax.  These revenues are  
          dedicated for allocation to specified projects in an expenditure  
          plan, which includes $780 million for the I-710 "North Gap  
          Closure" tunnel project.  The approval of the sales tax placed  










          the project into MTA's thirty-year county transportation plan.   
          The completion of this segment of I-710 has been included in the  
          regional transportation plan since 1989 and in the regional  
          transportation improvement program, the multimodal  
          transportation capital outlay program for the region, since  
          1991.