Existing law provides that the Department of Transportation has full possession and control of the state highway system and associated property. Existing law generally requires proceeds from the sale of excess state highway property to be made available for other highway purposes. Existing law generally provides for the California Transportation Commission to program available funding for transportation capital projects, other than state highway rehabilitation projects, through the State Transportation Improvement Program process, with available funds subject to various fair share distribution formulas. Existing law, in certain cases, requires the commission to instead reallocate funds from canceled state highway projects to other projects within the same county and exempts those funds from the fair share distribution formulas that would otherwise be applicable.

This bill would require the net proceeds from the sale of any excess properties originally acquired for a replacement alignment for State Highway Route 101 in the County of Monterey, known as the former Prunedale Bypass, to be reserved in the State Highway Account for programming and allocation by the commission, with the concurrence of the Transportation Agency for Monterey County, for other state highway projects in the State Highway Route 101 corridor in that county. The bill would exempt these funds from the distribution formulas otherwise applicable to transportation capital improvement funds.

Existing law provides that the Department of Transportation has full possession and control of the state highway system and associated property. Existing law generally requires proceeds from the sale of excess state highway property to be made available for other highway purposes. Existing law generally provides for the California Transportation Commission to program available funding for transportation capital projects, other than state highway rehabilitation projects, through the State Transportation Improvement Program process, with available funds subject to various fair share distribution formulas. Existing law, in certain cases, requires the commission to instead reallocate funds from canceled state highway projects to other projects within the same county and exempts those funds from the fair share distribution formulas that would otherwise be applicable.

This bill would require the net proceeds from the sale of any excess properties originally acquired for a replacement alignment for State Highway Route 101 in the County of Monterey, known as the former Prunedale Bypass, to be reserved in the State Highway Account for programming and allocation by the commission, with the concurrence of the Transportation Agency for Monterey County, to for other state highway projects in the State Highway Route 101 corridor in that county. The bill would exempt these funds from the distribution formulas otherwise applicable to transportation capital improvement funds.

Existing law provides that the Department of Transportation has full possession and control of the state highway system and associated property. Existing law generally requires proceeds from the sale of excess state highway property to be made available for other highway purposes. Existing law generally provides for the California Transportation Commission to program available funding for transportation capital projects, other than state highway rehabilitation projects, through the state transportation improvement program State Transportation Improvement Program process, with available funds subject to various fair share distribution formulas. Existing law, in certain cases, requires the commission to instead reallocate funds from canceled state highway projects to other projects within the same county and exempts those funds from the fair share distribution formulas that would otherwise be applicable.

This bill would classify certain properties acquired by the department for a replacement alignment for State Highway Route 101 in the County of Monterey, known as the former Prunedale Bypass, and no longer required by the department for the alternative improvements undertaken by it in place of the bypass, known as the Prunedale Improvement Project, as excess property and would require the department to expeditiously dispose of those excess properties. The bill would require the net proceeds from the sale of the any excess properties originally acquired for a replacement alignment for State Highway Route 101 in the County of Monterey, known as the former Prunedale Bypass, to be reserved in the State Highway Account for programming and allocation by the commission, with the concurrence of the Transportation Agency for Monterey County, to other transportation state highway projects in the State Highway Route 101 corridor in that county. The bill would exempt these funds from the distribution formulas otherwise applicable to transportation capital improvement funds.

Existing law provides that the Department of Transportation has full possession and control of the state highway system and associated property. Existing law generally requires proceeds from the sale of excess state highway property to be made available for other highway purposes. Existing law generally provides for the California Transportation Commission to program available funding for transportation capital projects, other than state highway rehabilitation projects, through the state transportation improvement program process, with available funds subject to various fair share distribution formulas. Existing law, in certain cases, requires the commission to instead reallocate funds from canceled state highway projects to other projects within the same county and exempts those funds from the fair share distribution formulas that would otherwise be applicable.

This bill would classify certain properties acquired by the department for a replacement alignment for State Highway Route 101 in the County of Monterey, known as the former Prunedale Bypass, and no longer required by the department for the alternative improvements undertaken by it in place of the bypass, known as the Prunedale Improvement Project, as excess property and would require the department to expeditiously dispose of those excess properties. The bill would require the net proceeds from the sale of the excess properties to be reserved in the State Highway Account for programming and allocation by the commission, with the concurrence of the Transportation Agency for Monterey County, to other transportation projects in that county. The bill would exempt these funds from the distribution formulas otherwise applicable to transportation capital improvement funds.

GOVERNOR'S VETO

GV Bill Id:AB 2730

Author:(Alejo)

As Enrolled Ver:September 2, 2016

2/3 vote

SUMMARY: Directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass to the State Highway Account for highway projects in the State Highway 101 corridor in Monterey County, and exempts these proceeds from the north/south split and county share formulas.

EXISTING LAW:

1. Allows Caltrans to acquire any real property that it considers necessary for state highway purposes.
2. Allows Caltrans, whenever it determines that any real property acquired by the state for highway purposes is no longer necessary for those purposes, to sell or exchange it in the manner and upon terms, standards, and conditions established by the California Transportation Commission (CTC).
3. Requires Caltrans, to the greatest extent possible, to offer to sell or exchange excess real property within one year from the date that it determines the property is excess.
4. Generally requires state and local agencies, prior to disposing of excess lands, first to offer property for sale or lease to local public agencies, housing authorities, or redevelopment agencies within whose jurisdiction the property is located. Requires Caltrans to give priority first to entities agreeing to use the land for low- or moderate-income housing then to entities for open-space purposes, school facilities construction, enterprise zone purposes, and infill opportunities, in that order.
5. Directs the proceeds from the sale of excess property to be deposited first to the State Highway Account and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds.

FISCAL EFFECT: According to the Assembly Appropriations Committee, one-time revenue from the property sales, earmarked for projects on the State Highway 101. Caltrans indicates that there 112 parcels, totaling 304 acres, that would be disposed. The estimated value of these properties is between $5 million and $12 million. Absent this bill, these revenues would be deposited into the State Highway Account and allocated as per current law.

COMMENTS: The author introduced this bill on behalf of Transportation Agency for Monterey County (TAMC). TAMC is responsible for developing and maintaining a multimodal transportation system in Monterey County. TAMC is hopeful that the proceeds from the sale of properties related to the Prunedale Bypass can be directed to "much-needed and long-deferred highway improvements."

The Prunedale Bypass, a project to re-route State Highway 101 around the community of Prunedale, has been on the books since the 1950s. In an effort to preserve right-of-way related to the planned project, Caltrans bought over 140 parcels totaling 353 acres. The Prunedale Bypass has since been abandoned and is no longer in the area's long-range plans.

In the meantime, the area has moved forward with incremental improvements to address growing congestion and safety concerns. The Prunedale Improvement Project is the most ambitious of these incremental improvements. The purpose of the project is to improve safety along State Highway 101 and intersecting local roadways, improve traffic flow along the corridor, and improve accessibility to area homes, businesses, and services. The Prunedale Improvement Project represents only a portion of the broader improvements envisioned in the Prunedale Bypass project.

Like the bypass project, other projects elsewhere in the state have similarly languished and similarly left property unused for decades. In two of these cases, legislation was enacted to facilitate the sale of the property and the return of the proceeds to the corridor for which the properties were originally purchased. Specifically, SB 791 (Corbett), Chapter 705, Statutes of 2008, authorized the use of revenues from sales of excess properties for projects in a local alternative transportation improvement program that replaced the long-planned Hayward Bypass on State Route (SR) 238 and improvements to SR 84. More recently, SB 416 (Liu), Chapter 468, Statutes of 2013, directed the revenue from the sale of surplus properties in the SR 710 corridor in Los Angeles County to local transportation improvements.

This bill gives Caltrans the opportunity to fully vet the potential use of unused properties and to hold on to properties that it may use in the near future. Furthermore, this bill directs the proceeds from any of the Prunedale Bypass properties it does sell to improvement projects within the State Highway 101 corridor, similar to situation presented in SB 791 and SB 416. This will ensure that this bill does not set precedent beyond closing the books on these decades' old projects.

GOVERNOR'S VETO MESSAGE:

This bill directs the Department of Transportation to use the revenues from surplus property sold in Monterey County towards local highway projects in the county, rather than transfer the proceeds to the General Fund.

These revenues are used to pay existing debt service on transportation construction projects statewide, which is an important purpose. Maintaining this funding stream to the General Fund is even more necessary when the state's budget remains precariously balanced.

Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093 FN: 0005063

 THIRD READING  

Bill No: AB 2730

Author:

:

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 11-0, 6/28/16

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

SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/11/16

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

ASSEMBLY FLOOR: 55-23, 6/2/16 - See last page for vote

SUBJECT:

SOURCE: Transportation Agency for Monterey County

DIGEST: This bill directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass to various other highway projects in the State Highway 101 corridor in Monterey County, as specified.

ANALYSIS:

Existing law:

1. Allows the State Department of Transportation (Caltrans) to acquire any real property that it considers necessary for state highway purposes.
2. Allows Caltrans, whenever it determines that any real property acquired by the state for highway purposes is no longer necessary for those purposes, to sell or exchange it in the manner and upon terms, standards, and conditions established by the California Transportation Commission.
3. Requires Caltrans, to the greatest extent possible, to offer to sell or exchange excess real property within one year from the date that it determines the property is excess.
4. Requires, generally, state and local agencies, prior to disposing of excess lands, first to offer property for sale or lease to local public agencies, housing authorities, or redevelopment agencies within whose jurisdiction the property is located. Requires Caltrans to give priority first to entities agreeing to use the land for low- or moderate-income housing, then to entities for open-space purposes, school facilities construction, enterprise zone purposes, and infill opportunities, in that order.
5. Directs the proceeds from the sale of excess property to be deposited first to the State Highway Account (SHA) and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds.

This bill directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass to the SHA for highway projects in the State Highway 101 corridor in Monterey County, and exempts these proceeds from the north/south split and county share formulas.

Comments

1. Purpose. The author introduced AB 2730 “to dedicate the revenues from the Prunedale Bypass right-of-way to serve their original purpose, which was to make transportation-safety and congestion-relief improvements in Monterey County. If this measure is signed into law, it will provide important funding for state highway improvements to the U.S. 101 or State Route (SR) 156 corridors in Monterey County.”
2. Priority shift. Initially planned in the 1950s, the Prunedale Bypass Project intended to re-route State Highway 101 around the community of Prunedale to alleviate congestions caused by local and transient traffic. In preparation for the project and in an effort to preserve right-of-way related to the project, Caltrans purchased over 140 parcels of land totaling 353 acres. However, the Prunedale Bypass has since been abandoned and is no longer in the area’s long-range plans.

Over the past several years, transportation agencies in this region have moved forward with incremental improvements to address growing congestion and safety concerns. The Prunedale Improvement Project is the most ambitious of these incremental improvements. The purpose of the project is to improve safety along State Highway 101 and intersecting local roadways, improve traffic flow along the corridor, and improve accessibility to area homes, businesses, and services. The Prunedale Improvement Project represents only a portion of the broader improvements envisioned in the Prunedale Bypass project. This bill aims to utilize revenue from any excess property sold from the original Prunedale Bypass project to transportation improvement projects along the same corridor. Total revenue that could be generated from property sales could total anywhere from $5 million to $12 million.

1. Prior allocations. In prior years, the Legislature has taken action to retain funds in certain corridors from the sale of property from another transportation project within the same region. Specifically, SB 791 (Corbett, Chapter 705, Statutes of 2008) authorized the use of revenues from the sale of excess properties for projects in a local alternative-transportation improvement program that replaced the long-planned Hayward Bypass on SR 238 and improvements to SR 84. More recently, SB 416 (Liu, Chapter 468, Statutes of 2013) directed the revenue from the sale of surplus properties in the SR 710 corridor in Los Angeles County to local transportation improvements.

It is important to note that AB 2730 provides Caltrans the opportunity to fully vet the potential use of unused properties and to hold on to properties that it may use in the near future. AB 2730 merely directs the proceeds from any of the Prunedale Bypass properties Caltrans does in fact sell to improvement projects within the State Highway 101 corridor.

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

According to the Senate Appropriations Committee, redirection of $5 to $12 million to projects in a specific highway corridor in Monterey County. Proceeds from the sale of excess Caltrans properties are currently used to offset General Fund payments for transportation-related debt service, so the redirection would result in a commensurate increase in General Fund costs.

SUPPORT: (Verified 8/12/16)

Transportation Agency for Monterey County (source)

Association of Monterey Bay Area Governments

City of Del Rey Oaks

City of Gonzales

City of Greenfield

City of Marina

City of Monterey

City of Pacific Grove

City of Salinas

City of Sand City

City of Seaside

County of Monterey

Grower-Shipper Association of Central California

Monterey Bay Central Labor Council, AFL-CIO

Monterey County Farm Bureau

Monterey County Hospitality Association

Monterey-Salinas Transit District

Salinas Valley Chamber of Commerce

OPPOSITION: (Verified 8/12/16)

Department of Finance

ASSEMBLY FLOOR: 55-23, 6/2/16

AYES: Achadjian, Alejo, Arambula, Atkins, Bloom, Bonilla, Bonta, Brown, Burke, Calderon, Campos, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Daly, Dodd, Eggman, Frazier, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Roger Hernández, Holden, Irwin, Jones-Sawyer, Levine, Lopez, Low, Mathis, McCarty, Medina, Mullin, Nazarian, O'Donnell, Olsen, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Mark Stone, Thurmond, Ting, Weber, Williams, Wood, Rendon

NOES: Travis Allen, Baker, Bigelow, Brough, Chang, Chávez, Dahle, Beth Gaines, Grove, Hadley, Harper, Jones, Kim, Lackey, Maienschein, Mayes, Melendez, Obernolte, Patterson, Steinorth, Wagner, Waldron, Wilk

NO VOTE RECORDED: Gallagher, Linder

Prepared by:

8/15/16 20:30:03

**** END ****

SENATE COMMITTEE ON

Senator Ricardo Lara, Chair

2015 - 2016 Regular Session

AB 2730 (Alejo) - Department of Transportation: Prunedale Bypass: County of Monterey: disposition of excess properties

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

Bill Summary:

AB 2730 would reserve proceeds from the sale of any excess properties originally acquired by the Department of Transportation (Caltrans) for the Prunedale Bypass in Monterey County and require that the funds be used for other state highway projects in the State Route (SR) 101 Corridor in Monterey County.

Fiscal Impact:

• Redirection of $5 -$12 million to projects in a specific highway corridor in Monterey County. Proceeds from the sale of excess Caltrans properties are currently used to offset General Fund payments for transportation-related debt service, so the redirection would result in a commensurate increase in General Fund costs.

Background:

Under existing law, whenever Caltrans determines that real property acquired for highway purposes is no longer necessary, that property may be sold or exchanged upon terms, standards, and conditions established by the California Transportation Commission (CTC). If a proposed state highway route location is rescinded, existing law requires Caltrans to sell any excess real property acquired for the rescinded route location and use the proceeds to fund the state highway project that is proposed as the alternative to the rescinded route. Proceeds from the sale of excess properties are deposited into the State Highway Account, and historically these funds have been programmed for use on other state highway projects. Existing law currently requires proceeds to be transferred to the Transportation Debt Service Fund to pay debt-service on transportation-related general obligation bonds, offsetting General Fund costs for debt service.

Initially planned in the 1950s, the Prunedale Bypass Project intended to re-route State Highway 101 around the community of Prunedale to alleviate congestions caused by local and transient traffic. In preparation for the project and in an effort to preserve right-of-way related to the project, Caltrans purchased over 140 parcels of land totaling 353 acres. However, the Prunedale Bypass has since been abandoned and is no longer in the area’s long-range plans. Caltrans indicates that there are currently 112 parcels totaling 304 acres that do not have a planned use.

Proposed Law:

SB 2730 would require the net proceeds from the sale of excess properties acquired by Caltrans for a replacement alignment for SR 101, known formerly as the Prunedale Bypass, to be reserved in the State Highway Account for programming and allocation by CTC through the State Transportation Improvement Program (STIP) for other state highway projects in the SR 101 corridor in Monterey County. These funds would be exempt from the existing “north/south split” and county share formulas that otherwise apply to STIP funding.

Related Legislation:

SB 791 (Corbett), Chap. 705/2008, directed proceeds from the sale of surplus properties in the SR 84 and SR 238 corridors that were originally purchased to construct the Hayward Bypass to “local alternative transportation improvement projects” within the same area, as specified.

Staff Comments:

Caltrans estimates the fair market value of the parcels subject to the bill’s requirements could be $5 million to $12 million. Actual values would depend upon future appraisals and the sales prices realized at auction. Any administrative and appraisal costs incurred by Caltrans would be reimbursed from sales proceeds.

-- END --

SENATE COMMITTEE ON TRANSPORTATION AND HOUSING

Senator Jim Beall, Chair

2015 - 2016 Regular

Bill No: Hearing Date: 6/28/2016

SUBJECT:

DIGEST: This bill directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass to various other highway projects in the State Highway 101 corridor in Monterey County, as specified.

ANALYSIS:

Existing law:

1. Allows the State Department of Transportation (Caltrans) to acquire any real property that it considers necessary for state highway purposes.
2. Allows Caltrans, whenever it determines that any real property acquired by the state for highway purposes is no longer necessary for those purposes, to sell or exchange it in the manner and upon terms, standards, and conditions established by the California Transportation Commission (CTC).
3. Requires Caltrans, to the greatest extent possible, to offer to sell or exchange excess real property within one year from the date that it determines the property is excess.
4. Generally requires state and local agencies, prior to disposing of excess lands, first to offer property for sale or lease to local public agencies, housing authorities, or redevelopment agencies within whose jurisdiction the property is located. Requires Caltrans to give priority first to entities agreeing to use the land for low- or moderate-income housing then to entities for open-space purposes, school facilities construction, enterprise zone purposes, and infill opportunities, in that order.
5. Directs the proceeds from the sale of excess property to be deposited first to the State Highway Account (SHA) and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds.

This bill directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass to the SHA for highway projects in the State Highway 101 corridor in Monterey County, and exempts these proceeds from the north/south split and county share formulas.

COMMENTS:

1. Purpose. The author introduced AB 2730 “to dedicate the revenues from the Prunedale Bypass right-of-way to serve their original purpose, which was to make transportation safety and congestion relief improvements in Monterey County. If this measure is signed into law, it will provide important funding for state highway improvements to the US 101 or State Route 156 corridors in Monterey County.”
2. Priority shift. Initially planned in the 1950s, the Prunedale Bypass Project intended to re-route State Highway 101 around the community of Prunedale to alleviate congestions caused by local and transient traffic. In preparation for the project and in an effort to preserve right-of-way related to the project, Caltrans purchased over 140 parcels of land totaling 353 acres. However, the Prunedale Bypass has since been abandoned and is no longer in the area’s long-range plans.

Over the past several years, transportation agencies in this region have moved forward with incremental improvements to address growing congestion and safety concerns. The Prunedale Improvement Project is the most ambitious of these incremental improvements. The purpose of the project is to improve safety along State Highway 101 and intersecting local roadways, improve traffic flow along the corridor, and improve accessibility to area homes, businesses, and services. The Prunedale Improvement Project represents only a portion of the broader improvements envisioned in the Prunedale Bypass project. This bill aims to utilize revenue from any excess property sold from the original Prunedale Bypass project to transportation improvement projects along the same corridor. Total revenue that could be generated from property sales could total anywhere from $5 million to $12 million.

1. Prior allocations. In prior years, the Legislature has taken action to retain funds in certain corridors from the sale of property from another transportation projects within the same region. Specifically, SB 791 (Corbett, Chapter 705, Statutes of 2008) authorized the use of revenues from the sale of excess properties for projects in a local alternative-transportation improvement program that replaced the long-planned Hayward Bypass on State Route (SR) 238 and improvements to SR 84. More recently, SB 416 (Liu, Chapter 468, Statutes of 2013) directed the revenue from the sale of surplus properties in the SR 710 corridor in Los Angeles County to local transportation improvements.

It is important to note that AB 2730 provides Caltrans the opportunity to fully vet the potential use of unused properties and to hold on to properties that it may use in the near future. AB 2730 merely directs the proceeds from any of the Prunedale Bypass properties Caltrans does in fact sell to improvement projects within the State Highway 101 corridor.

Related Legislation:

SB 416 (Liu, Chapter 468, Statutes of 2013) — among other things, directed the proceeds from the sale of properties in the SR 710 corridor to the SR 710 Rehabilitation Account for the purpose of making required repairs to homes being purchased by income-qualified residents in the corridor.

SB 791 (Corbett, Chapter 705, Statutes of 2008) — among other provisions, authorized proceeds from the sale of surplus property to be used to develop the local alternative transportation improvements in the SR 84 and SR 238 corridors.

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

Assembly Votes:

Floor: 55-23

Appr: 14-3

Trans: 9-2

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

June 22, 2016.)

SUPPORT:

Transportation Agency for Monterey County (Sponsor)

Association of Monterey Bay Area Governments

City of Del Rey Oaks

City of Greenfield

City of Gonzales

City of Marina

City of Monterey

City of Pacific Grove

City of Salinas

City of Sand City

City of Seaside

County of Monterey

Grower-Shipper Association of Central California

Monterey Bay Central Labor Council, AFL-CIO

Monterey County Farm Bureau

Monterey County Hospitality Association

Monterey-Salinas Transit District

Salinas Valley Chamber of Commerce

OPPOSITION:

Department of Finance

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 2730

Author:()

As Amended Ver:6

Majority vote

SUMMARY: Directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass to the State Highway Account for highway projects in the State Highway 101 corridor in Monterey County, and exempts these proceeds from the north/south split and county share formulas.

EXISTING LAW:

1. Allows Caltrans to acquire any real property that it considers necessary for state highway purposes.
2. Allows Caltrans, whenever it determines that any real property acquired by the state for highway purposes is no longer necessary for those purposes, to sell or exchange it in the manner and upon terms, standards, and conditions established by the California Transportation Commission (CTC).
3. Requires Caltrans, to the greatest extent possible, to offer to sell or exchange excess real property within one year from the date that it determines the property is excess.
4. Generally requires state and local agencies, prior to disposing of excess lands, first to offer property for sale or lease to local public agencies, housing authorities, or redevelopment agencies within whose jurisdiction the property is located. Requires Caltrans to give priority first to entities agreeing to use the land for low- or moderate-income housing then to entities for open-space purposes, school facilities construction, enterprise zone purposes, and infill opportunities, in that order.
5. Directs the proceeds from the sale of excess property to be deposited first to the State Highway Account and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds.

FISCAL EFFECT: According to the Assembly Appropriations Committee, one-time revenue from the property sales, earmarked for projects on the State Highway 101. Caltrans indicates that there 112 parcels, totaling 304 acres, that would be disposed. The estimated value of these properties is between $5 million and $12 million. Absent this bill, these revenues would be deposited into the State Highway Account and allocated as per current law.

COMMENTS: The author introduced this bill on behalf of Transportation Agency for Monterey County (TAMC). TAMC is responsible for developing and maintaining a multimodal transportation system in Monterey County. TAMC is hopeful that the proceeds from the sale of properties related to the Prunedale Bypass can be directed to "much-needed and long-deferred highway improvements."

The Prunedale Bypass, a project to re-route State Highway 101 around the community of Prunedale, has been on the books since the 1950s. In an effort to preserve right-of-way related to the planned project, Caltrans bought over 140 parcels totaling 353 acres. The Prunedale Bypass has since been abandoned and is no longer in the area's long-range plans.

In the meantime, the area has moved forward with incremental improvements to address growing congestion and safety concerns. The Prunedale Improvement Project is the most ambitious of these incremental improvements. The purpose of the project is to improve safety along State Highway 101 and intersecting local roadways, improve traffic flow along the corridor, and improve accessibility to area homes, businesses, and services. The Prunedale Improvement Project represents only a portion of the broader improvements envisioned in the Prunedale Bypass project.

Like the bypass project, other projects elsewhere in the state have similarly languished and similarly left property unused for decades. In two of these cases, legislation was enacted to facilitate the sale of the property and the return of the proceeds to the corridor for which the properties were originally purchased. Specifically, SB 791 (Corbett), Chapter 705, Statutes of 2008, authorized the use of revenues from sales of excess properties for projects in a local alternative transportation improvement program that replaced the long-planned Hayward Bypass on State Route (SR) 238 and improvements to SR 84. More recently, SB 416 (Liu), Chapter 468, Statutes of 2013, directed the revenue from the sale of surplus properties in the SR 710 corridor in Los Angeles County to local transportation improvements.

This bill gives Caltrans the opportunity to fully vet the potential use of unused properties and to hold on to properties that it may use in the near future. Furthermore, this bill directs the proceeds from any of the Prunedale Bypass properties it does sell to improvement projects within the State Highway 101 corridor, similar to situation presented in SB 791 and SB 416. This will ensure that this bill does not set precedent beyond closing the books on these decades' old projects.

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

Analysis Prepared by: Toni Zupan / TRANS. / (916) 319-2093 FN: 0003178

Date of Hearing: May 11, 2016

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez, Chair

ABPCA Bill Id:AB 2730

Author:(Alejo) – As Amended Ver:April 25, 2016

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

SUMMARY:

This bill directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass (Monterey County) to the State Highway Account for highway projects in the State Highway 101 corridor within that county, and exempts these proceeds from the north/south split and county share formulas.

FISCAL EFFECT:

One-time revenue from the property sales, earmarked for projects on the State Highway 101. Caltrans indicates that there 112 parcels, totaling 304 acres, that would be disposed. The estimated value of these properties is between $5 million and $12 million. Absent this bill, these revenues would be deposited into the State Highway Account and allocated as per current law.

COMMENTS:

1. Purpose. The Prunedale Bypass, a project to re-route State Highway 101 around the community of Prunedale, has been on the books since the 1950s. In an effort to preserve right-of-way related to the planned project, Caltrans bought over 140 parcels totaling 353 acres. The Prunedale Bypass has since been abandoned and is no longer in the area's long-range plans.

In the meantime, the area has moved forward with incremental improvements to address growing congestion and safety concerns. The Prunedale Improvement Project is intended to improve safety along State Highway 101 and intersecting local roadways, improve traffic flow along the corridor, and improve accessibility to area homes, businesses, and services.

1. Prior Legislation. Like this bypass project, other projects in the state have similarly languished and left property unused for decades. In two recent cases, legislation similar to AB 2730 was enacted to facilitate the sale of the property and the return of the proceeds to the corridor for which the properties were originally purchased. SB 791 (Corbett), Chapter 705, Statutes of 2008, authorized the use of revenues from sales of excess properties for projects in a local alternative transportation improvement program that replaced the long-planned Hayward Bypass on State Route (SR) 238 and improvements to SR 84 in Alameda County. SB 416 (Liu), Chapter 468, Statutes of 2013, directed the revenue from the sale of surplus properties in the SR 710 corridor in Los Angeles County to local transportation improvements.

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

Date of Hearing: April 18, 2016

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 2730 (

Author:Alejo) – As Introduced Ver:February 19, 2016

SUBJECT: Department of Transportation: Prunedale Bypass: County of Monterey: disposition of excess properties

SUMMARY: Declares properties originally purchased for the Prunedale Bypass in Monterey County as excess; directs the California Department of Transportation (Caltrans) to sell the properties and direct the proceeds from the sale of the properties to highway projects in Monterey County. Specifically, this bill:

1. Declares as excess properties that were originally acquired by Caltrans for the Prunedale Bypass and no longer required by Caltrans for the alternative project undertaken in place of the bypass. These alternative improvements are referred to as the Prunedale Improvement project.
2. Directs Caltrans to expeditiously dispose of these excess properties.
3. Directs proceeds from the sales of the excess properties, less any reimbursements due to the federal government and all costs associated with selling the properties, to be reserved in the State Highway Account (SHA) for programming and allocation by the California Transportation Commission (CTC), with the concurrence of the Transportation Agency for Monterey County (TAMC), to other state highway projects in Monterey County.
4. Exempts these proceeds from north/south split and county share formulas.

EXISTING LAW:

1. Allows Caltrans to acquire any real property that it considers necessary for state highway purposes.
2. Allows Caltrans, whenever it determines that any real property acquired by the state for highway purposes is no longer necessary for those purposes, to sell or exchange it in the manner and upon terms, standards, and conditions established by the CTC.
3. Requires Caltrans, to the greatest extent possible, to offer to sell or exchange excess real property within one year from the date that it determines the property is excess.
4. Generally requires state and local agencies, prior to disposing of excess lands, first to offer property for sale or lease to local public agencies, housing authorities, or redevelopment agencies within whose jurisdiction the property is located. Requires Caltrans to give priority first to entities agreeing to use the land for low- or moderate-income housing then to entities for open-space purposes, school facilities construction, enterprise zone purposes, and infill opportunities, in that order.
5. Directs the proceeds from the sale of excess property to be deposited first to the SHA and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds.

FISCAL EFFECT: Unknown

COMMENTS: The author introduced AB 2730 on behalf of TAMC. TAMC is responsible for developing and maintaining a multimodal transportation system in Monterey County. TAMC is hopeful that the proceeds from the sale of properties related to the Prunedale Bypass can be directed to "much-needed and long-deferred highway improvements."

The Prunedale Bypass, a project to re-route State Highway 101 around the community of Prunedale, has been on the books since the 1950s. In an effort to preserve right-of-way related to the planned project, Caltrans bought over 140 parcels totaling 353 acres. The Prunedale Bypass has since been abandoned and is no longer in the area's long-range plans.

In the meantime, the area has moved forward with incremental improvements to address growing congestion and safety concerns. The Prunedale Improvement Project is the most ambitious of these incremental improvements. The purpose of the project is to improve safety along State Highway 101 and intersecting local roadways, improve traffic flow along the corridor, and improve accessibility to area homes, businesses, and services. The Prunedale Improvement Project represents only a portion of the broader improvements envisioned in the Prunedale Bypass project.

Like the bypass project, other projects elsewhere in the state have similarly languished and similarly left property unused for decades. In two of these cases, legislation was enacted to facilitate the sale of the property and the return of the proceeds to the corridor for which the properties were originally purchased. Specifically, SB 791 (Corbett), Chapter 705, Statutes of 2008, authorized the use of revenues from sales of excess properties for projects in a local alternative transportation improvement program that replaced the long-planned Hayward Bypass on State Route (SR) 238 and improvements to SR 84. More recently, SB 416 (Liu), Chapter 468, Statutes of 2013, directed the revenue from the sale of surplus properties in the SR 710 corridor in Los Angeles County to local transportation improvements.

Committee comments and suggested amendments: Although Caltrans is supposed to declare unneeded properties as surplus as soon as is practicable, it is reportedly holding onto the Prunedale Bypass properties in anticipation that it may be able to use them for future project mitigation purposes. This bill could force Caltrans to sell these properties before fully understanding whether or not they may be needed for future, planned improvements in the State Highway 101 corridor.

Moreover, this bill strays some from situations addressed in SB 791 and SB 416 in that, in those bills, the proceeds from the sale of surplus properties were directed back into the corridor for which they were originally purchased. AB 2730, on the other hand, provides that the proceeds should be reserved for other highway improvement projects anywhere in Monterey County.

AB 2730 could be improved with amendments to delete the requirement that Caltrans declare the properties as surplus and sell them immediately. This will give Caltrans the opportunity to fully vet the potential use of the properties and to hold on to properties that it can potentially use in the foreseeable future. Furthermore, AB 2730 should direct the proceeds from any of the Prunedale Bypass properties it does sell to improvement projects within the State Highway 101 corridor, similar to the other legislation. This will ensure that AB 2730 does not set precedent beyond closing the books on these decades' old projects.

Related legislation: AB 2411 (Frazier), limits the use of miscellaneous revenue generated by Caltrans, for example, from the sale of surplus property, to transportation purposes only.

Previous legislation: SB 416 (Liu), Chapter 468, Statutes of 2013, among other things, directed the proceeds from the sale of properties in the SR 710 corridor to the SR 710 Rehabilitation Account for the purpose of making required repairs to homes being purchased by income-qualified residents in the corridor.

SB 791 (Corbett) Chapter 705, Statutes of 2008, among other provisions, authorized proceeds from the sale of surplus property to be used to develop the local alternative transportation improvements in the SR 84 and SR 238 corridors.

REGISTERED SUPPORT / OPPOSITION:

Support

Transportation Agency for Monterey County (Sponsor)

Association of Monterey Bay Area Governments

City of Del Rey Oaks

City of Greenfield

City of Marina

City of Pacific Grove

City of Salinas

City of Sand City

City of Seaside

County of Monterey

Grower-Shipper Association of Central California

Monterey County Farm Bureau

Monterey County Hospitality Association

Monterey-Salinas Transit District

Salinas Valley Chamber of Commerce

Opposition

None on file

Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093

Date of Hearing: April 18, 2016

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 2730 (

Author:Alejo) – As Amended Ver:April 25, 2016

SUBJECT: Department of Transportation: Prunedale Bypass: County of Monterey: disposition of excess properties

SUMMARY: Directs proceeds from the sale of surplus property originally purchased for the Prunedale Bypass to the State Highway Account for highway projects in the State Highway 101 corridor in Monterey County, and exempts these proceeds from the north/south split and county share formulas.

EXISTING LAW:

1. Allows Caltrans to acquire any real property that it considers necessary for state highway purposes.
2. Allows Caltrans, whenever it determines that any real property acquired by the state for highway purposes is no longer necessary for those purposes, to sell or exchange it in the manner and upon terms, standards, and conditions established by the CTC.
3. Requires Caltrans, to the greatest extent possible, to offer to sell or exchange excess real property within one year from the date that it determines the property is excess.
4. Generally requires state and local agencies, prior to disposing of excess lands, first to offer property for sale or lease to local public agencies, housing authorities, or redevelopment agencies within whose jurisdiction the property is located. Requires Caltrans to give priority first to entities agreeing to use the land for low- or moderate-income housing then to entities for open-space purposes, school facilities construction, enterprise zone purposes, and infill opportunities, in that order.
5. Directs the proceeds from the sale of excess property to be deposited first to the SHA and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds.

FISCAL EFFECT: Unknown

COMMENTS: The author introduced AB 2730 on behalf of TAMC. TAMC is responsible for developing and maintaining a multimodal transportation system in Monterey County. TAMC is hopeful that the proceeds from the sale of properties related to the Prunedale Bypass can be directed to "much-needed and long-deferred highway improvements."

The Prunedale Bypass, a project to re-route State Highway 101 around the community of Prunedale, has been on the books since the 1950s. In an effort to preserve right-of-way related to the planned project, Caltrans bought over 140 parcels totaling 353 acres. The Prunedale Bypass has since been abandoned and is no longer in the area's long-range plans.

In the meantime, the area has moved forward with incremental improvements to address growing congestion and safety concerns. The Prunedale Improvement Project is the most ambitious of these incremental improvements. The purpose of the project is to improve safety along State Highway 101 and intersecting local roadways, improve traffic flow along the corridor, and improve accessibility to area homes, businesses, and services. The Prunedale Improvement Project represents only a portion of the broader improvements envisioned in the Prunedale Bypass project.

Like the bypass project, other projects elsewhere in the state have similarly languished and similarly left property unused for decades. In two of these cases, legislation was enacted to facilitate the sale of the property and the return of the proceeds to the corridor for which the properties were originally purchased. Specifically, SB 791 (Corbett), Chapter 705, Statutes of 2008, authorized the use of revenues from sales of excess properties for projects in a local alternative transportation improvement program that replaced the long-planned Hayward Bypass on State Route (SR) 238 and improvements to SR 84. More recently, SB 416 (Liu), Chapter 468, Statutes of 2013, directed the revenue from the sale of surplus properties in the SR 710 corridor in Los Angeles County to local transportation improvements.

AB 2730 gives Caltrans the opportunity to fully vet the potential use of unused properties and to hold on to properties that it may use in the near future. Furthermore, AB 2730 directs the proceeds from any of the Prunedale Bypass properties it does sell to improvement projects within the State Highway 101 corridor, similar to situation presented in SB 791 and SB 419. This will ensure that AB 2730 does not set precedent beyond closing the books on these decades' old projects.

Related legislation: AB 2411 (Frazier), limits the use of miscellaneous revenue generated by Caltrans, for example, from the sale of surplus property, to transportation purposes only.
AB 2411 is currently in Assembly Appropriations Committee.

Previous legislation: SB 416 (Liu), Chapter 468, Statutes of 2013, among other things, directed the proceeds from the sale of properties in the SR 710 corridor to the SR 710 Rehabilitation Account for the purpose of making required repairs to homes being purchased by income-qualified residents in the corridor.

SB 791 (Corbett) Chapter 705, Statutes of 2008, among other provisions, authorized proceeds from the sale of surplus property to be used to develop the local alternative transportation improvements in the SR 84 and SR 238 corridors.

REGISTERED SUPPORT / OPPOSITION:

Support

Transportation Agency for Monterey County (Sponsor)

Association of Monterey Bay Area Governments

City of Del Rey Oaks

City of Greenfield

City of Marina

City of Monterey

City of Pacific Grove

City of Salinas

City of Sand City

City of Seaside

County of Monterey

Grower-Shipper Association of Central California

Monterey Bay Central Labor Council, AFL-CIO

Monterey County Farm Bureau

Monterey County Hospitality Association

Monterey-Salinas Transit District

Salinas Valley Chamber of Commerce

Opposition

None on file

Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093