Report 2011-120 Recommendation 39 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 #39 To: Transportation, Department of

To comply with the 2007 court ruling and the APA until such time as the Legislature may choose to act, Caltrans should establish regulations to govern the sales process for the SR 710 properties affected by the Roberti Bill.

Annual Follow-Up Agency Response From October 2016

The Affordable Sales Program regulations were approved by the Office of Administrative Law and filed in the office of the Secretary of State on July 26, 2016. For a copy of the approved regulations, please see Attachment 2.

In addition, Caltrans entered into a contract with Win Win Consulting, Inc. for the sale of 42 surplus residential properties under the Affordable Sales Program. The sales will be conducted in accordance with Government Code Sections 54235 - 54238.7, known as the Roberti Act, and the Affordable Sales Program regulations. For a copy of the agreement, please see Attachment 3.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Caltrans established regulations in July 2016 to govern the sale of SR 710 properties pursuant to the Roberti Bill. During our May 2017 review we found that Caltrans has initiated the sales process by issuing Conditional Offer Prior to Sale documents to current tenants.

Annual Follow-Up Agency Response From September 2015

Caltrans and CalSTA published the proposed Affordable Sales Program regulations in February 2015 for public review. Comments were considered and incorporated into the revised proposed regulations published in July 2015, and adoption of the final regulations is expected to take place at the end of the year. The proposed Affordable Sales Program regulations will allow Caltrans to implement the Roberti Bill and sell the affected properties.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From October 2014

Caltrans solicited public comment on the text of the proposed Affordable Sales Program regulations (Roberti Bill) and held three public hearings during the summer. Caltrans will submit the final regulations to the Office of Administrative Law (OAL) and anticipates they will be adopted in early 2015.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From October 2013

Please refer to our one-year response.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

Caltrans continues to finalize the text of the proposed Roberti Bill regulations. Due to the complexity of this issue, Caltrans and the California State Transportation Agency (CalSTA) have decided to hold two public workshops this fall for interested parties prior to finalizing the proposed regulations to be submitted to the Office of Administrative Law (OAL). After OAL approves the language, public hearings will be held as part of the regulation adoption process. Caltrans anticipates OAL adoption of the proposed regulations within the first half of 2014.

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

6-Month Agency Response

Caltrans stated it anticipates submitting its proposed regulations to OAL for approval by April 1, 2013.

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

60-Day Agency Response

Caltrans stated it anticipates submitting its proposed regulations to OAL for approval by the end of 2012. (See 2013-406, p. 177)

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.