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 that county, as specified. 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, for other state highway projects in that county, as specified. 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, for other state highway projects in that county, as specified. 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, for other state highway projects in the State Highway Route 101 corridor in that county. county, as specified. 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, 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.

GOVERNOR'S VETO

GV Bill Id:AB 696

Author:(Caballero)

As Enrolled Ver:September 13, 2017

2/3 vote

Original Committee Reference: TRANS.

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.

The Senate amendments make technical, non-substantive changes.

EXISTING LAW:

1. Allows the California 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 and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds.

FISCAL EFFECT: According to the Senate Appropriations Committee, redirection of $5 million to $12 million to other transportation projects 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.

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 sponsoring this bill in the hopes 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 situations 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.

In 2016, I vetoed AB 2730, a virtually identical bill. My reasons then were:

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.

That is still my view.

Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093 FN: 0002461

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 696

Author:(Caballero)

As Amended Ver:September 6, 2017

Majority vote

Original Committee Reference: TRANS.

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.

The Senate amendments make technical, non-substantive changes.

EXISTING LAW:

1. Allows the California 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 and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds.

FISCAL EFFECT: According to the Senate Appropriations Committee, redirection of $5 million to $12 million to other transportation projects 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.

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 sponsoring this bill in the hopes 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 situations 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.

Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093 FN: 0002056

 THIRD READING  

Bill No: AB 696

Author:

Amended: 9/6/17 in Senate

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 11-1, 6/20/17

AYES: Beall, Cannella, Allen, Atkins, Bates, McGuire, Mendoza, Roth, Skinner, Wieckowski, Wiener

NOES: Morrell

NO VOTE RECORDED: Gaines

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 64-12, 5/31/17 - See last page for vote

SUBJECT:

SOURCE: Transportation Agency of Monterey County

DIGEST:

This bill

Senate Floor Amendments of 9/6/17 are technical in nature in order to add a coauthor.

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. According to the author, “the intent of this bill is 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 transportation improvements to projects in the US 101 state highway corridor in Monterey County.”
2. Priority shift. Initially planned in the 1950s, the Prunedale Bypass Project was 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 696 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 696 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 million to $12 million to other transportation projects 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 9/6/17)

Transportation Agency of Monterey County (source)

Association of Monterey Bay Area Governments

City of Carmel-by-the-Sea

City of Del Rey Oaks

City of Gonzales

City of King City

City of Marina

City of Monterey

City of Pacific Grove

City of Salinas

City of Sand City

City of Seaside

City of Soledad

County of Monterey

Farm Bureau

Fort Ord Reuse Authority

Grower-Shipper Association

Monterey Bay Aquarium

Monterey Bay Central Labor Council

Monterey County Hospitality Association

Monterey Peninsula Chamber of Commerce

Monterey-Salinas Transit District

Salinas Valley Chamber of Commerce

OPPOSITION: (Verified 9/6/17)

None received

ASSEMBLY FLOOR: 64-12, 5/31/17

AYES: Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Daly, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Lackey, Levine, Limón, Low, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NOES: Acosta, Bigelow, Dahle, Flora, Fong, Harper, Kiley, Mathis, Mayes, Obernolte, Patterson, Steinorth

NO VOTE RECORDED: Chen, Choi, Eggman, Melendez

Prepared by:

9/8/17 20:42:21

**** END ****

 THIRD READING  

Bill No: AB 696

Author:

:

Vote:

SENATE TRANS. & HOUSING COMMITTEE: 11-1, 6/20/17

AYES: Beall, Cannella, Allen, Atkins, Bates, McGuire, Mendoza, Roth, Skinner, Wieckowski, Wiener

NOES: Morrell

NO VOTE RECORDED: Gaines

SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/17

AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener

ASSEMBLY FLOOR: 64-12, 5/31/17 - See last page for vote

SUBJECT:

SOURCE: Transportation Agency of 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. 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. According to the author, “the intent of this bill is 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 transportation improvements to projects in the US 101 state highway corridor in Monterey County.”
2. Priority shift. Initially planned in the 1950s, the Prunedale Bypass Project was 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 696 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 696 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: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee, redirection of $5 million to $12 million to other transportation projects 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 9/1/17)

Transportation Agency of Monterey County (source)

Association of Monterey Bay Area Governments

City of Carmel-by-the-Sea

City of Del Rey Oaks

City of Gonzales

City of King City

City of Marina

City of Monterey

City of Pacific Grove

City of Salinas

City of Sand City

City of Seaside

City of Soledad

County of Monterey

Farm Bureau

Fort Ord Reuse Authority

Grower-Shipper Association

Monterey Bay Aquarium

Monterey Bay Central Labor Council

Monterey County Hospitality Association

Monterey Peninsula Chamber of Commerce

Monterey-Salinas Transit District

Salinas Valley Chamber of Commerce

OPPOSITION: (Verified 9/1/17)

None received

ASSEMBLY FLOOR: 64-12, 5/31/17

AYES: Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bloom, Bocanegra, Bonta, Brough, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Cunningham, Dababneh, Daly, Frazier, Friedman, Gallagher, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Lackey, Levine, Limón, Low, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Quirk, Quirk-Silva, Reyes, Ridley-Thomas, Rodriguez, Rubio, Salas, Santiago, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon

NOES: Acosta, Bigelow, Dahle, Flora, Fong, Harper, Kiley, Mathis, Mayes, Obernolte, Patterson, Steinorth

NO VOTE RECORDED: Chen, Choi, Eggman, Melendez

Prepared by:

9/2/17 15:43:59

**** END ****

SENATE COMMITTEE ON APPROPRIATIONS

Senator Ricardo Lara, Chair

2017 - 2018 Regular Session

AB 696 (Caballero) - 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 696 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 County.

Fiscal Impact:

• Redirection of $5 million to $12 million to other transportation projects 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 Route (SR) 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.

Proposed Law:

AB 696 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 Monterey County, including a specified express lane project on SR 156 and improvements to the SR 101 corridor. These funds would be exempt from the existing “north/south split” and county share formulas that otherwise apply to STIP funding.

Related Legislation:

AB 810 (Gallagher), which is currently pending on this Committee’s Suspense File, would authorize the proceeds from the sale of excess property acquired by Caltrans for specified transportation facilities crossing the Feather River to be used for local alternative transportation improvement projects, as specified.

AB 2730 (Alejo), which was vetoed by the Governor last year, was nearly identical to AB 696. The veto message noted that the bill would prevent the transfer of revenues from surplus properties to the General Fund, and stated the following:

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.

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 in the $5 million to $12 million range. 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

2017 - 2018 Regular

Bill No: AB 696 Hearing Date: 6/20/17

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

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. According to the author, “the intent of this bill is 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 transportation improvements to projects in the US 101 state highway corridor in Monterey County.”
2. Priority shift. Initially planned in the 1950s, the Prunedale Bypass Project was 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 696 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 696 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:

AB 2730 (Alejo, 2016) — identical to this bill, would have directed 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. This bill was vetoed by the Governor.

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.

Assembly votes:

Floor: 64-12

Approps: 12-5

Trans: 10-2

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

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

June 14, 2017.)

SUPPORT:

Transportation Agency of Monterey County (sponsor)

Association of Monterey Bay Area Governments

City of Carmel-by-the-Sea

City of Del Rey Oaks

City of Gonzales

City of King City

City of Marina

City of Monterey

City of Pacific Grove

City of Salinas

City of Sand City

City of Seaside

City of Soledad

County of Monterey

Farm Bureau

Fort Ord Reuse Authority

Grower-Shipper Association

Monterey Bay Aquarium

Monterey Bay Central Labor Council

Monterey County Hospitality Association

Monterey Peninsula Chamber of Commerce

Monterey-Salinas Transit District

Salinas Valley Chamber of Commerce

OPPOSITION:

None received.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 696

Author:(Caballero)

As Introduced Ver:February 15, 2017

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 the California 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 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 redirection of revenues in the range of $5 million to $12 million from the sale of properties related to the Prunedale Bypass. In directing the proceeds as described above, this bill would reduce the amount of funding from the sale of highway properties that goes to the General Fund. Absent this bill, these revenues would be directed to offsetting General Fund debt service costs on transportation bonds.

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 sponsoring this bill in the hopes 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 situations 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.

Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093 FN: 0000739

Date of Hearing: April 5, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 696

Author:(Caballero) – As Introduced Ver:February 15, 2017

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

SUMMARY:

Directs proceeds from the sale of property originally purchased for the Prunedale Bypass on Highway 101 in Monterey County (that was not built) to the State Highway Account for other highway projects in the Highway 101 corridor as determined by the Transportation County for Monterey and programmed by the California Transportation Commission (CTC).

FISCAL EFFECT:

One-time redirection of revenues in the range of $5 million to $12 million from the sale of properties related to the Prunedale Bypass. In directing the proceeds as described above, this bill would reduce the amount of funding from the sale of highway properties that goes to the GF. Absent this bill, these revenues would be directed to offsetting GF debt service costs on transportation bonds.

COMMENTS:

1. Background. The Prunedale Bypass project on Highway 101 in Monterey County was initially planned by the Department of Transportation (Caltrans) in the 1950s. In an effort to preserve right-of-way for the planned project, Caltrans bought over 140 parcels totaling 353 acres. However, the project was never built and is no longer included in the long-range transportation plan.
2. Purpose. According to the author, the Transportation Agency for Monterey County is sponsoring the bill in the hopes that the proceeds from the sale of properties related to the Prunedale Bypass can be directed to “much-needed and long-deferred highway improvements.”
3. Prior Legislation. This bill is nearly identical to AB 2730 (Alejo) of the 2015-16 Legislative Session, that was passed by the Legislature, but vetoed. In his veto message, the Governor stated that the revenues from the sale of highway properties are used to pay debt service on transportation bonds and maintaining funding for the repayment of transportation bonds is important when the state’s budget “remains precariously balanced.”

In two prior instances legislation was enacted to direct the proceeds from the sale of highway properties that were not needed to specific transportation improvements in the project corridor. SB 416 (Liu), Chapter 468, Statutes of 2013, directed revenue from the sale of surplus properties in the State Route (SR) 710 corridor to local transportation improvements. SB 791 (Corbett), Chapter 705, Statutes of 2008, directed revenues from the sale of surplus properties in the SR 238 and SR 84 corridors to a local alternative transportation improvement program.

1. Staff Comments. On the one hand, this bill will allow funding previously allocated to the Highway 101 corridor in Monterey County to remain in that corridor upon the sale of properties related to the Prunedale Bypass. Allowing funds to remain in the corridor after the sale of surplus properties has been authorized in certain other cases. On the other hand, directing the revenues from the sale of properties to other projects in the highway corridor bypasses the existing process that dedicates these funds to the repayment of debt service on transportation bonds. As such, this bill reduces revenues available to offset GF debt service costs by between $5 million and $12 million, thereby increasing GF costs by the same amount.

Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081

Date of Hearing: March 20, 2017

ASSEMBLY COMMITTEE ON TRANSPORTATION

Jim Frazier, Chair

ABPCA Bill Id:AB 696 (

Author:Caballero) – As Introduced Ver:February 15, 2017

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 the California 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 and then transferred to the Transportation Debt Service Fund to pay debt service on general obligation transportation bonds.

FISCAL EFFECT: AB 696 is identical to last session's AB 2730 (Alejo), which was vetoed by Governor Brown. According to the Appropriations Committee analysis of AB 2730, the bill would have 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.

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 sponsoring this bill in the hopes 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 situations 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.

Previous legislation: This bill is identical to last year's AB 2730 (Alejo). AB 2730 passed the Legislature but was vetoed by Governor Brown. In his veto message, the Governor stated, "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."

REGISTERED SUPPORT / OPPOSITION:

Support

Transportation Agency for Monterey County (Sponsor)

Association of Monterey Bay Area Governments

City of Carmel-by-the-Sea

City of Gonzales

City of King

City of Monterey

City of Sand City

City of Seaside

County of Monterey

Fort Ord Reuse Authority

Grower-Shipper Association of Central California

Monterey Bay Aquarium

Monterey County Farm Bureau

Monterey County Hospitality Association

Monterey Peninsula Chamber of Commerce

Monterey-Salinas Transit District

Salinas Valley Chamber of Commerce

Opposition

None on file

Analysis Prepared by: Janet Dawson / TRANS. /