Legislative Policy Committee Reviews State’s Planned Audit of State Route 710 Extension Project

Pasadena’s Legislative Policy Committee is set to review the California State Auditor’s announced audit of the California Department of Transportation’s administration of the State Route 710 Extension Project when the committee meets Tuesday.

The committee, which serves in an advisory capacity to the City Council, will discuss the audit scope as an information item. Any formal response or action by the committee would constitute a recommendation to the full City Council, which retains final authority on the city’s position regarding state matters.

The State Auditor’s office, in a report numbered 2026-133, has outlined a sweeping audit that will provide independently developed and verified information related to Caltrans’ administration of the SR-710 Extension Project. The audit’s scope includes evaluating whether Caltrans has administered the SR-710 Sales Program in accordance with the Roberti Act and other applicable laws, including its prioritization of sales to current occupants, income-eligible buyers, Housing-Related Entities and nonprofit entities.

The audit will also assess the timeliness of the sales process for both vacant and occupied properties and determine whether Caltrans properly defined and applied affordability criteria for prospective purchasers and tenants. Specifically, auditors plan to review the methodology Caltrans used to calculate affordability of home purchase prices for eligible tenants, evaluate the consistency, accuracy, transparency and documentation supporting cost inputs used in affordability calculations, and assess whether Caltrans applied affordability calculations equitably.

The audit scope further includes examining Caltrans’ appraisal process for properties included in the SR-710 Sales Program, assessing the timeliness, accuracy and adequacy of property appraisals, and determining whether Caltrans has procedures for occupants or prospective purchasers to appeal or dispute appraisal findings. Auditors will also review the roles and responsibilities of Caltrans and its real estate agents, evaluate reports of inconsistent communications and potential misconduct, and determine whether sales contracts contain appropriate terms, conditions and restrictions.

Additional areas of the audit include assessing the accuracy and support for accounting records of rent owed and paid, evaluating the processes Caltrans uses to procure and manage contracts for property maintenance services including repairs and pest control, and assessing the process for addressing needed improvements at vacant or hazardous properties that may pose a significant danger to nearby residents.

The audit will also follow up on the status of prior audit findings and recommendations from the California State Auditor’s 2012 audit report on the SR-710 Extension Project, and review any other issues significant to the audit.

The Legislative Policy Committee is scheduled to meet at 5 p.m. on Tuesday, April 7, in the Council Chamber, Room S249, Pasadena City Hall, 100 North Garfield Avenue, in Pasadena. For more information call (626) 744-7311 or visit https://www.cityofpasadena.net/commissions/agendas/.