BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 1957 (Dickinson) - State Highway Route 16: relinquishment.
Amended: March 6, 2014 Policy Vote: T&H 11-0
Urgency: No Mandate: No
Hearing Date: June 30, 2014
Consultant: Mark McKenzie
This bill meets the criteria for referral to the Suspense File.
Bill Summary: AB 1957 would authorize the California
Transportation Commission (CTC) to relinquish specified portions
of State Highway Route (SR) 16 to the City of Sacramento and the
County of Sacramento.
Fiscal Impact: Unknown one-time costs ranging from minor up to
$2.5 million to the Department of Transportation (Caltrans)
prior to the relinquishment of the designated segments of SR 16
(State Highway Account). These costs would be offset in future
years due to avoided maintenance costs on the relinquished
segments.
Background: The Legislature has provided statutory authorization
to CTC to relinquish a number of state highway segments to local
jurisdictions under specified conditions. Relinquishment
provides the recipient agency with greater control over local
transportation projects and relieves Caltrans of any further
responsibility to improve, maintain, or repair infrastructure
related to the relinquished segment of state highway.
Generally, relinquishments are subject to terms and conditions
of agreements between Caltrans and a local jurisdiction seeking
control of a local highway segment. CTC must determine that the
agreement for relinquishment, which typically involves a
one-time payment of State Highway Account funds to the local
entity, is in the best interests of the state. Historically,
Caltrans has annually set aside $12 million of State Highway
Operations and Protection Plan (SHOPP) funding for
rehabilitation necessary for highway relinquishments. Some
relinquishments occur at no costs to the state.
Proposed Law: AB 1957 would authorize CTC, upon a determination
that the terms and conditions are in the best interests of the
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state, to relinquish to the City of Sacramento the portion of SR
16 within the city limits and to relinquish to the County of
Sacramento the portion of SR 16 within the unincorporated area
of the county that is east of the city boundary and west of Watt
Avenue. The relinquished segment would cease to be a part of
the state highway system, and would be ineligible for future
adoption as a state highway. The City and County would be
responsible for maintaining the Surface Transportation
Assistance Act truck route designation, for installing signs
directing motorists to the continuation of SR 16, and for
applying for approval of a business route designation for the
relinquished segments, as specified.
Staff Comments: Relinquishment of this segment would allow
Sacramento city and county governments to assume direct control
of the roadway and pursue any improvements and enhancements
without the constraints of Caltrans' state highway design
standards, encroachment permit processes, and other state
requirements.
Caltrans usually provides State Highway Account funding to a
local entity that is assuming control over state highway
segments in order to bring the roadway up to a "state of good
repair," although there is no statutory obligation to do so.
The actual amounts vary for each relinquished highway segment
and are determined by a negotiation of terms and conditions
between Caltrans and the local jurisdiction, but those costs are
based upon a cost-benefit analysis covering a ten-year period,
which is included in a Project Scope Summary Report prepared for
legislative relinquishments.
Caltrans does not currently have a specific cost estimate for
the relinquishment of this segment, but based on other
relinquishments, one-time costs may range from minimal up to $1
million per centerline mile of roadway depending on numerous
factors such as roadway condition, projected maintenance costs,
and any planned capital projects. The segment of SR 16
specified in the bill is approximately 2.52 miles long, so
initial costs could be minimal but may be as high as $2.5
million. The relinquishment of these segments would relieve
Caltrans of any future maintenance and repair costs, resulting
in unknown long-term annual savings.
Actual costs and savings would be more certain if legislation to
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authorize relinquishment followed, rather than preceded, the
completion of the cost-benefit analysis and an agreement between
Caltrans and the City of Sacramento and the County of
Sacramento, respectively. However, Caltrans does not typically
conduct the analysis and enter into negotiations until
legislative authority for relinquishment has been provided.
Staff notes that this bill simultaneously authorizes
relinquishment of the specified segments of SR 16 and revises
the description of SR 16 in the Streets and Highways Code.
Typically, the official parameters of a highway route are not
amended until after the effective date of the relinquishment,
which is subject to negotiations between Caltrans and a local
agency and approval by the CTC.