Report 2011-120 Recommendation 41 Responses

Report 2011-120: California Department of Transportation: Its Poor Management of State Route 710 Extension Project Properties Costs the State Millions of Dollars Annually, Yet State Law Limits the Potential Income From Selling the Properties (Release Date: August 2012)

Recommendation #41 To: Transportation, Department of

To pursue alternatives to its management of the SR 710 properties, Caltrans should perform an analysis to compare the cost of establishing a JPA to its current costs of managing the properties.

1-Year Agency Response

In light of the Cost-Benefit Analysis Study, which led to no clear preferred option,Caltrans and CalSTA continue to hold discussions with legislators topursue the goal of eliminating Caltrans' role in managing the SR 710 properties.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

Caltrans hired a consultant to perform an independent cost-benefit analysis of the following property management options for the SR 710 properties: hiring a private vendor, establishing a JPA, and transferring the properties to a local transportation entity. The consultant completed the analysis and concluded that none of the options would be deemed favorable to the State from a financial perspective. Caltrans and the agency are reviewing the final report and will work with the Legislature to determine the best option for Caltrans, the State, and the tenants.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

Caltrans stated it hired a consultant to perform an independent cost-benefit analysis of the following property management options for the SR 710 properties: hiring a private vendor, establishing a JPA, and transferring the properties to a local transportation entity. The local transportation entity would take over ownership and management of the properties and use the proceeds of the sale for local transportation improvements. Caltrans also stated that its first meeting with the consultant would be held in October 2012 to develop a work plan with target dates. (See 2013-406, p. 178)

California State Auditor's Assessment of 60-Day Status: Partially Implemented

All Recommendations in 2011-120

Agency responses received after June 2013 are posted verbatim.