BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1572
                                                                  Page  1

          Date of Hearing:   May 2, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1572 (Fletcher) - As Amended:  April 23, 2012 

          Policy Committee:                              
          TransportationVote:14-0

          Urgency:     Yes                  State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill:

          1)Dissolves the San Diego County Service Authority for Freeway 
            Emergencies (SAFE) and names the San Diego Association of 
            Governments (SANDAG) as the successor agency.

          2)Requires SANDAG, by January 1, 2013, to distribute any 
            existing reserves of San Diego County SAFE in excess of $4 
            million to the county and the cities within the county, to be 
            used for motorist aid services.

           FISCAL EFFECT  

          No state costs. Any costs for SANDAG to assume administration of 
          the SAFE program will be covered by existing SAFE resources. The 
          SAFE's annual expenditures are currently about $1.2 million 
          ($440,000 for administration and the balance for operations) and 
          annual revenues, which will continue under SANDAG, are around 
          $2.8 million.

           COMMENTS  

              1)   Background  . Current law authorizes the establishment of 
               SAFEs in any county for the placement and maintenance of 
               call boxes along California freeways to enable motorists in 
               need of aid to obtain assistance. Since SAFE programs were 
               authorized in the late 1980s, California has installed over 
               15,000 call boxes on 6,300 miles of highway. Call boxes 
               provide a direct communication link to the California 
               Highway Patrol and are available to motorists to seek 








                                                                  AB 1572
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               assistance for, for example, mechanical breakdowns, flat 
               tires, traffic accidents, or other incidents.


            San Diego County was the first county to implement a SAFE. The 
            San Diego SAFE is governed by a seven-member board of 
            directors appointed by the County board of supervisors and the 
            18 cities within the county. The SAFE contracts with 
            TeleTranTek Services (T-Cubed) for its staffing requirements. 
            This is the only stand-alone SAFE-all other SAFEs are 
            administered by a transportation planning agency. From a peak 
            of 1,800 call boxes, there are currently about 1,400 call 
            boxes countywide, and SAFEs board is considering reducing the 
            total to just over 900, due in part to high maintenance costs 
            and declining use. (A recent article published in the U-T San 
            Diego cited a drop in the San Diego call box usage of over 90% 
            between 1990 and 2010.)

              2)   Purpose  . According to the author, AB 1572 responds to 
               what he believes is "a reckless disregard of taxpayer 
               money" by the SAFE. The author offers as evidence of this 
               the fact that the SAFE contracted with a private company 
               (T-Cubed) to manage the county's call boxes and renewed the 
               contract six times "without once having a fair and 
               competitive bid process" and that, in spite of a dramatic 
               decline in call box use, the SAFE has consistently 
               increased annual payments to the managing firm. 
               Furthermore, the SAFE has approximately $12 million sitting 
               in reserves.

            This bill therefore dissolves the SAFE and names SANDAG-the 
            regional transportation planning agency-as the successor 
            agency, and directs SANDAG to distribute all but $4 million of 
            SAFE's existing reserves to its client cities and the county.

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