BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1102
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  SB 1102 (DeSaulnier) - As Amended:  May 31, 2012 

          Policy Committee:                              
          TransportationVote:13-0 (Consent)

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:               

           SUMMARY  

          This bill modifies Caltrans' project delivery reporting 
          requirements and requires project-specific allocations of 
          construction support costs. Specifically, this bill:

          1)Requires Caltrans, beginning with its 2014 annual project 
            delivery report, to display the difference between the 
            California Transportation Commission's (CTC's) original 
            allocation and the actual construction capital and support 
            costs for all State Transportation Improvement Program (STIP) 
            projects completed in the previous fiscal year.

          2)Includes construction support as a category of project costs 
            subject to allocation by the CTC, and requires this allocation 
            at the time construction capital costs are allocated.

          3)Requires the CTC to require a supplemental allocation request 
            if a project experiences construction support costs exceeding 
            120% of the original allocation.

           FISCAL EFFECT  

          Minor and absorbable costs to Caltrans and the CTC for 
          additional reporting and review requirements.

           COMMENTS  

           Background and Purpose  . Caltrans' Capital Outlay Support (COS) 
          Program is responsible for allocating funds and resources 
          necessary to design highway projects and oversee those projects 
          through construction.  Typical support functions including 








                                                                  SB 1102
                                                                  Page  2

          engineering, design, environmental studies, right-of-way 
          acquisition, and construction management.  This year, Caltrans' 
          budget for COS totaled $1.8 billion for 2,500 projects, 
          involving 9,300 positions throughout the department.

          Caltrans' management of its COS function has been criticized in 
          recent years, primarily regarding its difficulty in tying 
          projected workload to budget requests and because of COS-related 
          cost overruns. In a 2011 report on the program, the State 
          Auditor recommended that Caltrans take several steps to improve 
          accountability and transparency. SB 1102 intends to implement 
          some of these recommendations.

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