BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 1572 (Fletcher) - Service authorities for freeway 
          emergencies: San Diego County.
          
          Amended: August 6, 2012         Policy Vote: T&H 9-0
          Urgency: Yes                    Mandate: Yes
          Hearing Date: August 6, 2012                           
          Consultant: Mark McKenzie       
          
          This bill does not meet the criteria for referral to the 
          Suspense File.
           
          
          Bill Summary: AB 1572 would dissolve the existing service 
          authority for freeway emergencies (SAFE) in San Diego County on 
          January 1, 2013, and transfer responsibility for administering 
          the program to the San Diego Association of Governments 
          (SANDAG).

          Fiscal Impact: 
              Redistribution of approximately $8 million in SAFE reserves 
              to cities and San Diego County in proportion to the amount 
              of fees paid by vehicle owners in the jurisdiction of each 
              local agency  in 2010-11 (local surcharge revenue).

              Moderate state-mandated costs (not reimbursable) to develop 
              a transition plan, redistribute excess reserve revenues, and 
              post budget information on the call box fee revenues on a 
              website (local surcharge revenue).

              SANDAG administrative costs of up to $440,000 and 
              operations costs of up to $700,000 annually, fully covered 
              by local surcharge revenues, to continue call box and 
              freeway emergency programs.

          Background: Existing law authorizes the governing boards of a 
          county and a majority of the cities with a majority of the 
          population in the county to establish a service authority for 
          freeway emergencies.  SAFE programs may be administered either 
          by a council of governments, a country transportation 
          commission, or a designated seven-member board comprised of 
          local officials.  Once established, a SAFE may impose a $1 
          surcharge on the registration of vehicles in the county and use 








          AB 1572 (Fletcher)
          Page 1


          the revenues for the implementation, operation, and maintenance 
          of a system of call boxes on freeways, expressways, county 
          roads, and state highways.  Excess funds may be used to provide 
          additional motorist aid services, including changeable message 
          signs, call box lighting, freeway service patrols, and support 
          for traffic operations centers.

          San Diego County was the first county to implement a SAFE.  At 
          its height, the San Diego call box system had almost 1,800 call 
          boxes on state highways and county roads.  Since then, the 
          number of call boxes in place has declined to approximately 
          1,240, and the SAFE is considering further reductions that would 
          bring the total down to 700, due in part to the high cost of 
          maintaining the call boxes and the drop in motorists' usage of 
          the call boxes.

          SANDAG is the regional transportation planning agency under 
          state law for San Diego County, and the metropolitan planning 
          organization for the region under federal law.  SANDAG also 
          manages a local, voter approved half-percent transportation 
          sales tax.  Central to all its activities is the $214 billion 
          regional transportation plan that it intends to implement 
          between now and 2050.

          Proposed Law: AB 1572 would dissolve the SAFE in San Diego 
          County on January 1, 2013 and designate SANDAG as the successor 
          agency to assume responsibility for all operational, 
          administrative, and maintenance tasks for the callbox system.  
          During the transition period prior to dissolution, the SAFE 
          would be required to develop a plan in consultation with SANDAG 
          to transfer responsibilities and would be prohibited from 
          expending funds or entering into contracts without SANDAG's 
          approval.  Any reserves in excess of $4 million held by the SAFE 
          on the dissolution date would be distributed by SANDAG by March 
          31, 2013 to cities and the county in proportion to the amount of 
          specified fees paid by residents of each local agency in the 
          2010-11 fiscal year.  Following the transition, SANDAG would be 
          required to post on its website a detailed budget related to 
          collection and expenditure of revenues derived from the $1 
          surcharge on vehicle registrations in San Diego County.  The 
          bill would also authorize SANDAG to continue to fund specified 
          local helicopter programs.

          Staff Comments: The call box vehicle surcharge in San Diego 








          AB 1572 (Fletcher)
          Page 2


          County generates approximately $2.7 million annually.  In 
          2011-12, the SAFE spent approximately $441,000 on administration 
          costs, $411,000 of which went to the contract management 
          company, while approximately $761,000 was spent on operations 
          costs and about $2.4 million was set aside for project costs.  
          Over the years, the SAFE has accumulated unallocated reserves of 
          approximately $12 million.

          This bill is intended to correct perceived problems of 
          mismanagement of SAFE programs and revenues by dissolving the 
          current governance structure and transferring responsibility for 
          administration of the programs and revenues to SANDAG.  Naming 
          the regional transportation planning agency as the successor to 
          San Diego's SAFE is consistent with how other SAFEs are 
          administered throughout the state.

          AB 1572 would require SANDAG to redistribute approximately $8 
          million from the existing SAFE reserves to cities and the county 
          in proportion to the amount of fees paid by residents of each 
          jurisdiction in 2010-11, and require those funds to be used 
          consistent with existing law.  SANDAG would incur some moderate 
          costs related to the transition from the existing authority, and 
          ongoing administrative and operations costs related to managing 
          the SAFE programs.  All costs incurred by SANDAG would be 
          covered by vehicle surcharge revenues.

          Currently, the SAFE spends $750,000 annually on regional 
          helicopter funding.  AB 1572 would authorize SANDAG to continue 
          to allocate this amount from vehicle registration surcharge 
          revenues to fund ongoing police, fire, and rescue helicopter 
          programs.