Existing law provides that the Department of Transportation has full possession and control of all state highways. Existing law describes the authorized routes in the state highway system and establishes a process for adoption of a highway on an authorized route by the California Transportation Commission. Existing law authorizes the commission to relinquish certain state highway segments to local agencies.

This bill would authorize the commission to relinquish to the County of Riverside that portion of State Highway Route 74 located in the unincorporated area east of the City of Lake Elsinore and west of the City of Perris under specified conditions.

Existing law provides that the Department of Transportation has full possession and control of all state highways. Existing law describes the authorized routes in the state highway system and establishes a process for adoption of a highway on an authorized route by the California Transportation Commission. Existing law authorizes the commission to relinquish certain state highway segments to local agencies.

This bill would authorize the commission to relinquish to the County of Riverside that portion of State Highway Route 74 located in the unincorporated area east of the City of Lake Elsinore and west of the City of Perris under specified conditions.

Existing law provides that the Department of Transportation has full possession and control of all state highways. Existing law describes the authorized routes in the state highway system and establishes a process for adoption of a highway on an authorized route by the California Transportation Commission. Existing law authorizes the commission to relinquish certain state highway segments to local agencies.

This bill would authorize the commission to relinquish to the County of Riverside that portion of State Highway Route 74 located in the unincorporated area east of the City of Lake Elsinore and west of the City of Perris under specified conditions.

 THIRD READING  

Bill No: AB 218

Author: Melendez (R)

Introduced: 2/2/15

Vote: 21

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 6/23/15

AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/27/15

AYES: Lara, Bates, Beall, Hill, Leyva, Mendoza, Nielsen

ASSEMBLY FLOOR: 80-0, 6/1/15 - See last page for vote

SUBJECT: State Highway Route 74

SOURCE: Author

DIGEST: This bill authorizes the California Transportation Commission (CTC) to relinquish to Riverside County a segment of State Route (SR) 74 between Lake Elsinore and Perris.

ANALYSIS:

Existing law:

1. Identifies the California state highway system through a description of segments of the state’s regional and interregional roads that are owned and operated by the Department of Transportation (Caltrans). Technically, a state highway is any roadway that Caltrans is legislatively authorized to acquire, lay out, construct, improve, or maintain. Existing law specifies that it is the intent of the Legislature for the routes of the state highway system to connect the communities and regions of the state and that they serve the state’s economy by connecting centers of commerce, industry, agriculture, mineral wealth, and recreation.

2. Provides a two-step process for the state to expand or delete a section of the state highway system that begins with the Legislature amending existing law and then CTC making findings that it is in the best interest of the state to include or delete a specified portion of roadway from the system. This is known as the state highway relinquishment process.

This bill:

1. Authorizes CTC to relinquish to Riverside County the portion of SR 74 within the unincorporated area east of the City of Lake Elsinore and west of the City of Perris, upon terms and conditions approved by the CTC.

2. Provides that the relinquishment will become effective immediately following the county recordation of the relinquishment resolution.

3. Specifies that following the effective date of relinquishment, the relinquished segment will no longer be a state highway and may not be considered for future adoption as a state highway.

4. Requires Riverside County to maintain signage directing motorists to the continuation of SR 74.

Comments

Purpose. Writing in support of this bill, the Southwest California Legislative Council notes that relinquishment of the specified portion of SR 74 would allow the County of Riverside to manage and maintain the segment, thereby reducing the state taxpayer burden as well as allowing for much-needed maintenance improvements along the route.

Relinquishments. Each session, the Legislature passes and the Governor signs numerous bills authorizing CTC to relinquish segments of the state highway system to local jurisdictions. Relinquishment transactions are generally preceded by a negotiation of terms and conditions between the local jurisdiction and Caltrans. Once an agreement has been established, the CTC typically approves the relinquishment and verifies its approval via a resolution.

Of interest, the Administration proposed budget trailer bill language this year intending to streamline the state’s relinquishment process. According to the Governor’s budget summary, a number of routes are still part of the state highway system that no longer serve an interregional purpose, and instead serve primarily regional or local purposes. The proposed trailer bill language broadens and streamlines the state process for relinquishing these portions of the statewide system that primarily serve regional or local purposes. This could be a win-win proposal, with both locals and the state benefiting. On one hand, shifting ownership of these segments, many of which run through a downtown area, will increase local flexibility to add stoplights and make better use of valuable real estate to support transit‑oriented development. Meanwhile, additional relinquishments reduce the state’s long‑term costs for ongoing maintenance and repair of the state system. There is merit in a proposal streamlining the relinquishment process; however, it seems that such a proposal should be considered through the policy bill process and not as an add-on to the state’s annual budget.

Luckily, Senator Allen has authored SB 254, which proposes a similar streamlining process and is progressing as a regular policy bill. SB 254 is pending in the Assembly Transportation Committee.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, this bill will likely incur unknown one-time costs ranging from minor up to several million dollars to Caltrans prior to the relinquishment of the designated segment of SR 74 to Riverside County (State Highway Account). These costs would be offset in future years due to avoided maintenance costs on the relinquished segment.

SUPPORT: (Verified 8/28/15)

None received

OPPOSITION: (Verified 8/28/15)

None received

ASSEMBLY FLOOR: 80-0, 6/1/15

AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins

Prepared by: Eric Thronson / T. & H. / (916) 651-4121

8/31/15 16:31:43

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 218 (Melendez) - State Highway Route 74

This bill meets the criteria for referral to the Suspense File.

Bill Summary:

AB 218 would authorize the California Transportation Commission (CTC) to relinquish a specified segment of State Highway Route (SR) 74 to Riverside County.

Fiscal Impact:

Unknown one-time costs ranging from minor up to several million to the Department of Transportation (Caltrans) prior to the relinquishment of the designated segment of SR 74 to Riverside County (State Highway Account). These costs would be offset in future years due to avoided maintenance costs on the relinquished segment.

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 has typically involved 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. In recent years, however, Caltrans has not set aside funding to rehabilitate relinquished highways.

Proposed Law:

AB 218 would authorize CTC to relinquish to Riverside County the portion of SR 74 located in the unincorporated area east of the City of Lake Elsinore and west of the City of Perris, pursuant to the terms of a specified cooperative agreement and upon a determination that the relinquishment is in the state’s best interest. This segment of SR 74 would cease to be a part of the state highway system, and would be ineligible for future adoption as a state highway. The bill would require Riverside County to maintain signs along the relinquished portion directing motorist to the continuation of SR 74.

Related Legislation:

AB 1915 (Jeffries), Ch. 635/2008, authorized CTC to relinquish the portions of SR 74 within the city limits of Lake Elsinore and Perris to those respective jurisdictions.

Staff notes that the Governor proposed budget trailer bill language this year that is intended to broaden and streamline the state process for relinquishing state highway routes that are deemed to no longer serve an interregional purpose, and instead operate primarily as regional or local routes. The Senate Budget Subcommittee #2 rejected the trailer bill proposal at its hearing on April 16, 2015, without prejudice, so that it could be considered instead by the Senate Transportation and Housing Committee.

SB 254 (Allen), currently pending in the Assembly Transportation Committee, is the legislative vehicle for the trailer bill language. That bill would establish procedures for the administrative relinquishment of state highway segments that do not serve an interregional purpose.

Staff Comments:

Relinquishment of this segment would allow Riverside County to assume direct control of the roughly 6 miles of roadway in the unincorporated area between the eastern border of Lake Elsinore and the western border of Perris. Transferring control of the roadway to the County allows for the construction of 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 has not identified 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 74 specified in the bill is approximately 6 miles long, so initial costs could be minimal but may be as high as several million dollars. 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 authorize relinquishment followed, rather than preceded, the completion of the cost-benefit analysis and an agreement between Caltrans and Riverside County. However, Caltrans does not typically conduct the analysis and enter into negotiations until legislative authority for relinquishment has been provided.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: AB 218 Hearing Date: 6/23/2015

SUBJECT: State Highway Route 74.

DIGEST: This bill authorizes the California Transportation Commission (CTC) to relinquish to Riverside County a segment of State Route (SR) 74 between Lake Elsinore and Perris.

ANALYSIS:

Existing law:

1. Identifies the California state highway system through a description of segments of the state’s regional and interregional roads that are owned and operated by the Department of Transportation (Caltrans). Technically, a state highway is any roadway that Caltrans is legislatively authorized to acquire, lay out, construct, improve, or maintain. Existing law specifies that it is the intent of the Legislature for the routes of the state highway system to connect the communities and regions of the state and that they serve the state’s economy by connecting centers of commerce, industry, agriculture, mineral wealth, and recreation.

2. Provides a two-step process for the state to expand or delete a section of the state highway system that begins with the Legislature amending existing law and then CTC making findings that it is in the best interest of the state to include or delete a specified portion of roadway from the system. This is known as the state highway relinquishment process.

This bill:

1. Authorizes CTC to relinquish to Riverside County the portion of SR 74 within the unincorporated area east of the City of Lake Elsinore and west of the City of Perris, upon terms and conditions approved by CTC.

2. Provides that the relinquishment will become effective immediately following the county recordation of the relinquishment resolution.

3. Specifies that following the effective date of relinquishment, the relinquished segment will no longer be a state highway and may not be considered for future adoption as a state highway.

4. Requires Riverside County to maintain signage directing motorists to the continuation of SR 74.

COMMENTS:

1. Purpose. Writing in support of this bill, the Southwest California Legislative Council notes that relinquishment of the specified portion of SR 74 would allow the County of Riverside to manage and maintain the segment, thereby reducing the state taxpayer burden as well as allowing for much-needed maintenance improvements along the route.

2. Relinquishments. Each session, the Legislature passes and the governor signs numerous bills authorizing CTC to relinquish segments of the state highway system to local jurisdictions. Relinquishment transactions are generally preceded by a negotiation of terms and conditions between the local jurisdiction and Caltrans. Once an agreement has been established, CTC typically approves the relinquishment and verifies its approval via a resolution.

Of interest, the administration proposed budget trailer bill language this year intending to streamline the state’s relinquishment process. According to the governor’s budget summary, a number of routes are still part of the state highway system that no longer serve an interregional purpose, and instead serve primarily regional or local purposes. The proposed trailer bill language broadens and streamlines the state process for relinquishing these portions of the statewide system that primarily serve regional or local purposes. This could be a win-win proposal, with both locals and the state benefiting. On one hand, shifting ownership of these segments, many of which run through a downtown area, will increase local flexibility to add stoplights and make better use of valuable real estate to support transit‑oriented development. Meanwhile, additional relinquishments reduce the state’s long‑term costs for ongoing maintenance and repair of the state system. There is merit in a proposal streamlining the relinquishment process; however, it seems that such a proposal should be considered through the policy bill process and not as an add-on to the state’s annual budget.

Luckily, Senator Allen has authored Senate Bill 254, which proposes a similar streamlining process and is progressing as a regular policy bill. SB 254 is pending in the Assembly Transportation Committee.

Related Legislation:

SB 254 (Allen) – streamlines the state’s highway relinquishment process to not include legislative approval of each relinquished segment.

SB 461 (Hernandez) – authorizes the CTC to relinquish to Los Angeles County a segment of SR 164 south of Temple City.

AB 652 (Cooley) – authorizes the CTC to relinquish segments of SR 16 in the City of Rancho Cordova as well as in the unincorporated portion of Sacramento County.

Assembly Votes:

Floor: 80-0

Appr: 17-0

Trans: 16-0

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

POSITIONS: (Communicated to the committee before noon on Wednesday,

June 17, 2015.)

SUPPORT:

None received

OPPOSITION:

None received

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 218

Author:(Melendez)

As Introduced Ver:February 2, 2015

Majority vote

SUMMARY: This bill authorizes the California Transportation Commission (CTC) to relinquish a portion of State Route (SR) 74 to the County of Riverside. Specifically, this bill:

1. Authorizes CTC to relinquish the portion of SR 74, located within the unincorporated area east of the City of Lake Elsinore and west of the City of Perris, upon terms established by the California Department of Transportation (Caltrans) and the County of Riverside.

2. Specifies that the relinquishment will become effective immediately after the county recorder records the relinquishment resolution that contains CTC approval.

3. Provides that, on the effective date of the relinquishment, the relinquished portion of SR 74 will cease to be a state highway and may not be considered for future re-adoption as a state highway.

4. Requires that the County of Riverside maintain signs directing motorists to the continuation of SR 74.

EXISTING LAW:

1. Defines a "state highway" as any roadway that is acquired, laid out, constructed, improved, or maintained as a state highway pursuant to constitutional or legislative authorization.

2. Statutorily identifies state highway system routes.

3. Specifies that it is the intent of the Legislature that the prescribed routes of the state highway system connect communities and regions of the state and that they serve the state's economy by connecting centers of commerce, industry, agriculture, mineral wealth, and recreation.

FISCAL EFFECT: According to the Assembly Appropriations Committee:

1. Potentially significant one-time costs (State Highway Account) depending on the outcome of negotiations between Caltrans and the County and a determination by Caltrans that the relinquishment is in the best interest of the state.

2. Significant long-term maintenance and repair savings to Caltrans, if the CTC exercises its authority to relinquish the highway segment.

COMMENTS: Each session, numerous bills authorizing CTC to relinquish segments of the state highway to local jurisdictions are passed by the Legislature and signed by the Governor. Relinquishment transactions are generally preceded by a negotiation of terms and conditions between the local jurisdiction and Caltrans. Once an agreement has been established, the Legislature authorizes CTC to relinquish the segment and CTC then approves the relinquishment and verifies its approval via resolution. The final step is for the Legislature to delete these segments from current law.

State highway relinquishments provide the recipient agencies with greater control over a local transportation segment and relieve Caltrans of any further responsibility to improve, maintain, or repair the segment.

Writing in support of this bill, the Southwest California Legislative Council notes that relinquishment of the specified portion of SR 74 would allow the County of Riverside to manage and maintain the segment thereby reducing the state taxpayer burden as well as allow for much needed maintenance improvements along the route.

Please see the policy committee analysis for full discussion of this bill.

Analysis Prepared by: Victoria Alvarez / TRANS. / (916) 319-2093 FN: 0000584

Date of Hearing: April 15, 2015

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Jimmy Gomez, Chair

ABPCA Bill Id:AB 218

Author:(Melendez) – As Introduced Ver:February 2, 2015

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

SUMMARY:

This bill authorizes the California Transportation Commission (CTC) to relinquish, to the County of Riverside, the portion of State Route (SR) 74 in the unincorporated area east of the City of Lake Elsinore and west of the City of Perris.

FISCAL EFFECT:

1. Potentially significant one-time costs (State Highway Account [SHA]) depending on the outcome of negotiations between Caltrans and the County and a determination by Caltrans that the relinquishment is in the best interest of the state. (See Comment #1)
   
   

2. Significant long-term maintenance and repair savings to Caltrans, if the CTC exercises its authority to relinquish the highway segment.

COMMENTS:

1. Background. Legislation is required before any segment of state highway can be relinquished to another governmental entity. Relinquishment provides the recipient agency with more control over a local transportation project and relieves Caltrans of any further responsibility to improve, maintain, or repair infrastructure related to the relinquished segment of state highway.
   
   

According to Caltrans, in recent years the initial cost of relinquishments has ranged from $0 to over $1 million per centerline mile. These costs are driven by a number of factors, including roadway condition, projected maintenance costs and any planned capital projects.

The actual cost of a particular relinquishment is negotiated directly with the local agency, but must be based on a cost-benefit analysis using a 10-year analysis period. Prior to this analysis, the baseline cost is assumed to be $0. All proposed costs beyond the baseline are subject to review and approval by the Department's Relinquishment Advisory Committee to ensure statewide consistency in application of the established evaluation criteria.

2. Purpose. In support of this bill, the Southwest California Legislative Council notes that relinquishment of the specified portion of SR 74 would allow the County to manage and maintain the segment thereby reducing the state taxpayer burden as well as allow for much needed maintenance improvements along the route.

3. Related Legislation. The administration is proposing budget trailer bill language establishing an administrative process for relinquishing state highways and requiring Caltrans to report to the CTC biannually on which regional state highways routes are the best candidates for relinquishment.

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

Date of Hearing: March 23, 2015

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 218

Author:(Melendez) – As Introduced Ver:February 2, 2015

SUBJECT: State Highway Route 74

SUMMARY: This bill authorizes the California Transportation Commission (CTC) to relinquish a portion of State Route (SR) 74 to the County of Riverside. Specifically, this bill:

1. Authorizes CTC to relinquish the portion of SR 74, located within the unincorporated area east of the City of Lake Elsinore and west of the City of Perris, upon terms established by the California Department of Transportation (Caltrans) and the County of Riverside.

2. Specifies that the relinquishment will become effective immediately after the county recorder records the relinquishment resolution that contains CTC approval.

3. Provides that, on the effective date of the relinquishment, the relinquished portion of SR 74 will cease to be a state highway and may not be considered for future re-adoption as a state highway.

4. Requires that the County of Riverside maintain signs directing motorists to the continuation of SR 74.

EXISTING LAW:

1. Defines a "state highway" as any roadway that is acquired, laid out, constructed, improved, or maintained as a state highway pursuant to constitutional or legislative authorization.

2. Statutorily identifies state highway system routes.

3. Specifies that it is the intent of the Legislature that the prescribed routes of the state highway system connect communities and regions of the state and that they serve the state's economy by connecting centers of commerce, industry, agriculture, mineral wealth, and recreation.

FISCAL EFFECT: Unknown

COMMENTS: Each session, numerous bills authorizing CTC to relinquish segments of the state highway to local jurisdictions are passed by the Legislature and signed by the Governor. Relinquishment transactions are generally preceded by a negotiation of terms and conditions between the local jurisdiction and Caltrans. Once an agreement has been established, the Legislature authorizes CTC to relinquish the segment and CTC then approves the relinquishment and verifies its approval via resolution. The final step is for the Legislature to delete these segments from current law.

State highway relinquishments provide the recipient agencies with greater control over a local transportation segment and relieve Caltrans of any further responsibility to improve, maintain, or repair the segment.

Writing in support of this bill, the Southwest California Legislative Council notes that relinquishment of the specified portion of SR 75 would allow the County of Riverside to manage and maintain the segment thereby reducing the state taxpayer burden as well as allow for much needed maintenance improvements along the route.

Related legislation: The administration is proposing a budget trailer bill to, among other things, establish an administrative process to relinquish state highways.

REGISTERED SUPPORT / OPPOSITION:

Support

Riverside County Board of Supervisors

Southwest California Legislative Council

Opposition

None on file

Analysis Prepared by: Victoria Alvarez / TRANS. / (916) 319-2093