SMART BORDER COALITION

Transcription

1 SMART BORDER COALITION San Diego-Tijuana ENVISION THE BORDER AS IT SHOULD BE MID-YEAR PROGRESS REPORT The Impossible Railroad or the Key to Regional Prosperity SMART BORDER COALITION Members of the Board 2015 Malin Burnham/Jose Larroque, Co-Chairs Francisco Aguirre Raymundo Arnaiz Lorenzo Berho Malin Burnham Frank Carrillo Rafael Carrillo John Chaparro James Clark Salomon Cohen Alberto Coppel Jose Fimbres Jose Galicot Dave Hester Pradeep Khosla Pablo Koziner Jorge Kuri Elias Laniado Jose Larroque Jeff Light Gaston Luken A. Gaston Luken G. Matt Newsome JC Thomas Mary Walshok Steve Williams Honorary Jorge Astiazaran Greg Cox Kevin Faulconer Remedios Gomez Arnau William Ostick Mary C. Salas

2 ONE REGION, ONE PEOPLE, ONE ECONOMY OPPORTUNITY COMES FROM A SEAMLESS INTERNATIONAL REGION WHERE ALL CITIZENS WORK TOGETHER FOR MUTUAL ECONOMIC AND SOCIAL PROGRESS MID-YEAR PROGRESS REPORT 2015 Secure and efficient border crossings are the primary goal of the Coalition. The Coalition works with existing stakeholders in both the public and private sectors to coordinate regional border efficiency efforts not duplicate them. BOARD PRIORITIES 2015: THE BI-NATIONAL RAILROAD Goal: The Coalition has expressed its support for unified, bi-national approach to oversight of a single, professionally-staffed railroad company to operate the San Diego-Tijuana connection to BNSF railway, Tijuana-Tecate-Campo-Plaster City connections to Union Pacific Railway and an extension to the Port of El Sauzal in Ensenada to be built. The Coalition has also expressed its concern to the San Diego Metropolitan Transit System to conduct due diligence to assure the financial and operational capabilities of Pacific Imperial Railroad, the current lease holder on the United States side. Mid-Year Status. Construction has begun on the Mexico side. No construction on the United States side. Payment to the Metropolitan Transit System (MTS) was made by July 1. In Mexico, land acquisition has begun on the line to El Sauzal. The railroad is a priority of Baja California Governor Francisco Vega de Lamadrid. Fuzzy future or potential economic engine?

3 In an attempt to bring the project into focus, SBC brought the principals together at the May 8 SBC Working Committee Roberto Romandia, BC Railroad, Arturo Alemany, Victor Concertino and Don Stoecklein from Pacific Imperial Railroad as well as Paul Jablonski and Karen Landers from MTS to begin collaborating. (Roberto Romandia also presented the BC Rail story at the April 13 SBC Board Meeting at CETYS Universidad Tijuana). Efforts culminated on June 24, when an MOU of cooperation was signed between the two railroad companies. Arturo Alemany, Fernando Beltran and Don Stoecklein sign MOU PIR and BJRR Sign a Memorandum of Understanding On June 24, Pacific Imperial Railroad (PIR) announced that a Memorandum of Understanding (MOU) has been signed between Pacific Imperial Railroad and Baja California Railroad (BJRR). The signing of this agreement took place at the San Diego Metropolitan Transit System headquarters in downtown San Diego. Several representatives from public and private entities from both the U.S. and Mexico were present at this historic signing including Karen Landers, MTS General Council and Andrew Erickson, U.S. General Consul of Tijuana. The MOU was signed by Fernando Beltran, President of BJRR; Donald Stoecklein, CEO of PIR; and Arturo Alemany, Executive Board Member of PIR. The signing of this agreement is historically significant, officially signaling the beginning of a new era of binational cooperation aiming to rehabilitate the entire freight rail system serving the Cali- Baja border region. This agreement comes at a time when existing freight corridors are strained and the bottlenecks at the commercial Ports of Entry in Tijuana cause unpredictable wait times for truckers. Not only will a unified binational rail line be a boon for the regional economy, but will also help reduce negative externalities such as traffic and pollution.

4 Additionally, improvements to the Port of Ensenada will further increase the demand for freight shipping alternatives in the region. The line on the Mexico side starts near the San Ysidro border crossing in Tijuana, and winds its way through the city s maquiladora clusters, which include nearly 570 world class manufacturing facilities. Leadership from both PIR and BJRR acknowledged the tremendous potential associated with serving Tijuana s maquiladoras. The future of shipping freight across the border is greatly enhanced by the partnership between Pacific Imperial Railroad and Baja California Railroad. The SBC continues to believe that a single professional rail operators, reporting to both PIR and BCRR is the best way to provide the service required for the region. The San Diego Union-Tribune, July 9, 2015 New desert rail line deadlines proposed Key deadlines set for later this year for reviving the Desert Line railroad would be pushed back under a new proposal to be discussed Thursday at the Metropolitan Transit System executive committee meeting. The agency has a 99-year lease with the Pacific Imperial Railroad company to resurrect the dormant line that runs from the border near Campo east to the Imperial County town of Plaster City. Under terms of the lease, the company was supposed to have some initial repairs completed by Sept. 1 and run a test train a locomotive pulling three rail cars over the length of the 70-mile line by Oct. 1. Since getting the lease, the company has made limited progress in repairing the line. There was management turmoil in 2014 and allegations of financial fraud from former managers, which the company denied and MTS found no evidence of. Rail line officials also spent time trying to make a deal with the Baja California Railroad in Mexico, which operates a stretch of the track that runs from Tijuana east near the maquiladora industry, to join the rail lines. On June 22, the companies signed an agreement pledging to work out a deal in six months. MTS is now proposing a new schedule. It would divide repair work into two sections of the track with separate deadlines for each. The first would focus on the eastern 9.5 miles of track and be completed by March 1, 2016, with a test train running by April The second is the remaining 60 miles that would be completed by April 2017, with a test train set to run in May The new time frame will not push back the deadline of getting full-scale repairs done and operations under way by January 2018, according to an MTS staff report outlining the new deadlines.

5 The rail line, also known as The Impossible Railroad, was built in It s been owned by MTS since greg.moran@utsandiego.com NORTHBOUND KEY PROGRAMS 1. ISSUE: INFRASTRUCTURE AND STAFF FUNDING San Ysidro and Otay Mesa Ports of Entry border infrastructure and staffing. a. Funding in 2014 federal budget for completion of the San Diego /San Ysidro POE Phases 2 and 3 b. Funding in 2014 federal budget to complete renovation of the San Diego/Otay Mesa Port of Entry. c. Funding in 2014 federal budget to adequately fund Customs and Border Protections staffing of the San Ysidro and Otay Mesa ports of entry. President Obama included more than $2 Billion in the 2014 budget for border infrastructure. Funding for Phase 2 ($216, ) was approved in the 2015 federal budget thanks to the work of San Diego County Members of the Senate and House of Representatives, as well as the support of our members. Phase 3 funding was included in the FY 2014 budget. Phase 3 will enhance crossings even more as Mexico s old southbound gates (Puerta Mexico) will be converted to northbound lanes. Phase 2 includes a new Administration Building and renovation of the east-side pedestrian crossing. The approved 2015 Budget also contained the requested $98,062,000 for modernization of the Calexico West (downtown Mexicali) border crossing.

6 There was funding in 2014 to hire 200 new CBP officers for San Ysidro/Otay Mesa as well as 70+ to staff the new Cross Border Terminal at Tijuana International Airport. CBP Commissioner Gil Kerlikowske has unveiled a new app to track border wait times at both northern and southern ports of entry. U.S. Customs and Border Protection (CBP) Border Wait Time app is designed to make it easier for travelers to plan their trip across the border. The app provides estimated wait times and open lane status at land ports of entry allowing travelers to make an informed decision of where and when to cross the border. Wait times for pedestrian and passenger and commercial vehicle crossings are broken down by lane type (standard, SENTRI/Global Entry, NEXUS, FAST, Ready Lane, etc.). Travelers can download the app for free from Apple s App Store and Google Play. ACTION TAKEN: 1. CUSTOMS AND BORDER PROTECTION. Senator Barbara Boxer, Senator Dianne Feinstein as well as Congress members, Susan Davis, Duncan Hunter, Darrell Issa, Scott Peters and Juan Vargas signed a letter to former Secretary of Homeland Security Janet Napolitano asking for assured funding for CBP staffing. 2. PHASE 3 AND 2 INFRASTRUCUTRE FUNDING. The Coalition has led the funding efforts by working through Congress for financial approval. Phase 3 has been approved in the 2014 budget and Phase 2 in the 2015 budget. 3. JOINT EFFORTS. We are working with the United States Chamber of Commerce to frame the support for needed infrastructure as vital to the economy of the United States. Secretary of Commerce Penny Pritzker visited the border during the October 2013 North American Competitiveness and Innovation Conference and pledge support for both funding and increased efficiency. Additional support was announced at the October 2014 NACIC in Toronto. NACIC 2015, to be hosted by Mexico has been postponed due to elections. It is tentatively planned for February PUBLIC/PRIVATE EFFORTS. The Smart Border Coalition Working Committee brings the key members of the San Diego-Tijuana public and private sectors to explore innovative solutions to assuring infrastructure funding. In addition, the SBC Stakeholders Working Committee is exploring ways for the private sector to fund needed infrastructure through a system on revenue enhancements, including tolling of selected lanes. 2. ISSUE: SEGMENTED TRAVELER PROGRAMS. Increased efficiency of segmented traffic lanes cost, time, convenience, recourse. a. Adequate staffing to reduce wait times for SENTRI approvals and renewals to 30 days. b. Approval of SENTRI with Passengers lane for the San Diego/San Ysidro and San Diego/Otay Mesa Ports of Entry. c. Assure separate lane for SENTRI travelers in Secondary Inspection. d. Improve marketing of program. e. Improve ease-of-use of on-line registration website. f. Request that Green Card holders who live up to 25 miles into Mexico be allowed apply for SENTRI. g. Open west side pedestrian lane at San Diego/San Ysidro Port of Entry. ACTION TAKEN:

7 SENTRI vehicle lanes now average less than 15 minutes at both San Diego/San Ysidro and San Diego/Otay Mesa POEs. However, they have been known to be 45 minutes of longer during peak holiday and commute periods. SENTRI/Global Entry and READY pedestrian lanes have been segmented from the regular passenger lanes on the Mexico side. The San Diego/San Ysidro west side pedestrian lane should be completed by the end of 2016 linking with El Chaparral. Although this lane is part of Phase 1, it is also an integral part of the Phase 3 rerouting of the I-5 entrance into El Chaparral. Ready Lanes are now in place at both San Ysidro and Otay Mesa cutting auto crossing time approximately in half. More than 70 percent of crossings now are by SENTRI or Ready Lane card holders. SENTRI has preference in Secondary Inspections (ask for a green cone). SENTRI WITH PASENGERS now has support of the United States Department of Commerce as well as regional economic development groups. It would serve to help create jobs in the United States. A formal proposal will be made by the Smart Border Coalition to the US Customs and Border Protection Commissioner Gil Kerlikowske in the autumn of There has been no action on permitting Green Card workers to live in Mexico. This would require Congressional action and is very unlikely with the Congress. However, Resident Aliens who choose to live in Mexico and who are not concerned with building time towards United States citizenship--may apply for Commuter Status. Commuter Status allows those working in the United States to be eligible to apply for SENTRI status. 3. ISSUE: REDUCTION OF GENERAL VEHICLE AND PEDESTRIAN BORDER CROSSING TIME TO 30 MINUTES OR LESS. ACTION TAKEN a. SENTRI and READY Lanes for pedestrians has reduced crossing time to the stated goal or less for the most part. Staffing by Customs and Border Protection (see Issue 1) is still inadequate during holiday and peak crossing times. b. CBP has agreed to provide staffing for Cross-Border Terminal at Tijuana International Airport. Cross Border Xpress, the operators of the Cross Border Terminal, have given notice to CBP that they intended to open the crossing in December This allows CBP to begin hiring and training officers for the facility. c. Pedestrian border crossings for those not holding SENTRI or READY Lane cards renewed Foreign National Visas with laser chips or Enhanced Drivers licenses from those states which issue them continues to be a serious problem. Often wait times can reach two hours. There is a southbound pedestrian crossing on the east side at San Diego/San Ysidro; however, the west side pedestrian crossing is closed until a new gate and crossing is completed by d. The Smart Border Coalition Working Committee hosts bi-monthly stakeholder meetings to discuss progress and enlist support. Next meetings are July, September and November 2015 as set by the Co-Chairs. e. Ready lanes have improved crossings for general vehicles in those lanes to an average of one hour or less. This is still not good enough. f. Bus crossing continues to be a major problem with long lines. Buses also idle next to pedestrians, especially at Otay Mesa causing a major health hazard.

8 g. Tecate Border Crossing. Until volume builds to warrant a full-time SENTRI/Global Entry lane, the SBC recommends that CBP build a swing gate that can process both SENTRI and general passenger traffic. SBC sponsored booth for US Customs and Border Protection at Tijuana Innovadora ISSUE: REDUCTION OF CARGO CROSSING TIME TO 30 MINUTES OR LESS ACTION There is no funding for construction on government-acquired 9.63 acres. a. The Smart Border Coalition has initiated talks with Customs and Border Protection on approval of pre-clearance away from the border. b. Construction of an Agriculture Pre-Clearance facility has been completed by Mexico for use by both US Customs and Border Protection and Mexico Aduanas together on Mexican soil. The Mexican Congress passed a special law permitting US Customs and Border Protection to carry their weapons and wear uniforms on Mexican soil at this facility. c. We need to continue to lobby Washington for adequate staffing required assuring maximum usage of the Otay Mesa Commercial Crossing. d. The Smart Border Coalition was in discussion with the North American Development Bank for a $200,000 grant to conduct a study of the economic impact of the San Diego/San Ysidro and San Diego/Otay Mesa (general and cargo) on the United States targeting specific Congressional districts. However, SANDAG has requested that the study wait until at least the completion of Phase 1 at the San Diego/San Ysidro POE.

9 e. A Cargo Efficiency Task Force has been formed to concentrate on cargo issues. The base for the Committee is SBC members Kyocera, Solar Turbines/Turbotec, CXubic Corporation as well as INDEX (formerly Asociación Industrial Maquiladora, Otay Mesa Chamber of Commerce, DEITAC Tijuana EDC, CDT-Tijuana EDC and the Smart Border Coalition. Monthly meeting are held with CBP at Otay Mesa. f. The Otay Mesa Chamber of Commerce has identified three major goals for 2015: a. Progress on the building of Otay II, including purchase of land on the Mexico side. b. Access to the OMPOE from La Media and Britannia Roads c. Elimination of the vehicle process for SENTRI/Global Entry card holders. This program is supported by the San Diego-area US Customs and Border Protection and must be approved by CBP Headquarters in Washington. The SBC plans to meet with CBP Commissioner Gil Kerlikowske in Washington inthe autumn of SOUTH BOUND KEY PROGRAMS 1. ISSUE: SAN YSIDRO/EL CHAPARRAL PORTS OF ENTRY ACTION a. The Smart Border Coalition supported the Mexican government which completed the El Chaparral border crossing which was opened by former-president Felipe Calderon on October 31, b. The Smart Border Coalition supported the temporary opening of Virginia Street crossings until construction of I-5 redirection is completed in Phase 3 of San Ysidro renovation. This was rejected by federal and municipal authorities. However, Phase l does allow for the construction of a west side pedestrian crossing to connect with El Chaparral. This should be completed by 2016 c. The Smart Border Coalition does not support any Mexico plans to charge border crossing fees at El Chaparral unless limited to two or fewer lanes. d. The Smart Border Coalition and other stakeholders were unsuccessful in lobbying for joint United States-Mexico southbound inspections to avoid redundancy. There will be a southbound inspection facility on Mexico territory and another on United States territory. US General Services Administration has added southbound inspection booths to Phase 3 at the San Diego/San Ysidro Port of Entry. US Customs and Border Protection has assured that the United States facility will not be staffed 24/7 at this time ). Current pulse and surge checks by CBP at San Diego/San Ysidro have resulted in long back-ups during the afternoon southbound commute. Note: The United States Congress has passed a bill requiring all persons leaving the United States be checked. This has not been implemented at all land borders, but could happen at any time. e. The Smart Border Coalition has lobbied in Mexico City for INAMI (Mexico Immigration) to drop FMN visa requirement for foreign nationals attending one-day meetings at local businesses and maquiladora installations. The fee, but not the requirement for the visas, has been waived 2. ISSUE: SIGNAGE AND INFRASTRUCTURE REQUIRED IN TIJUANA SECTOR

10 ACTION a. There is still no adequate signage leading from Playas de Tijuana as well from the Tijuana/Rosarito Libre road to direct drivers to Ready and SENTRI lanes. b. There have been no signs on the Mexico side directing Ready Lane travelers to the proper lanes. c. Through the Stakeholders Working Committee, the Smart Border Coalition is leading the effort revamp and renew signage at all ports of entry on the Mexican side. d. We have suggested the utilization of electronic signage in the Zona Rio area (CECUT and Cuauhtémoc/Paseo de los Heroes intersection for border crossing information for both San Diego/San Ysidro and San Diego/Otay Mesa. e. The Smart Border Coalition recommends that the Mexican authorities re-align the connection from eastbound Ave. Bellas Artes to the Otay Mesa SENTRI/Global Entry lane eliminating the awkward and confusing semi-u-turn to access the SENTRI lanes. This is particularly important for the night hours as lighting is also poor in that area. f. We have requested the Mexican authorities re-pave and repair the streets leading to the SENTRI gates at San Diego/ Otay Mesa Port of Entry from Ave. Bellas Artes. g. We have requested that Mexican federal authorities determine the source and eliminate the foul orders emanating along the access road to El Chaparral POE. Collapsed Road and Reopened Ensenada Toll Road Reopened-December Photo courtesy of Baja Travel Club.

11 SBC Stakeholders Working Committee Luncheon Meeting at El Trompo Museo Interactivo Tijuana sponsored by Jorge Kur1. Catered by Javier Plascencia! ACTION Work in Progress a. Quantify federal and state tax dollars lost due to excessive border wait times and propose application of recovered taxes for border infrastructure enhancement and staffing. b. Augment the study of United States Congressional District destinations of cargo shipped through Otay Mesa and Calexico Ports of Entry, to include destinations and dollar amounts of shipped cargo to respective Congressional Districts. Note: Items a. and b. Require funding for research of up to $200,000. This funding has been requested from the North American Development Bank based on the negative environmental impact of border delays. c. Extend the I-94 Border Crossing Cards for 150 miles (past Los Angeles). There is no movement on this issue. d. Research Public/Private Partnerships for Border Infrastructure Funding and Construction. e. Consult with the United States Embassy in Mexico City and the United States Consulate General in Tijuana to eliminate unnecessary fear aspects of travel warnings while assuring that United States citizens have the knowledge to help assure their safety while traveling in Baja California. The current travel warning

12 went into effect in October 10, It is the position of the Smart Border Coalition that the warnings about Baja California and much of Mexico are unwarranted. Travel warnings are now regionally specific, but still caution travel to Tijuana. Current Warning issued May 5, 2015: Baja California: Tijuana, Rosarito, Ensenada and Mexicali are major cities/travel destinations in the state of Baja California - Exercise caution in the northern state of Baja California, particularly at night. Criminal activity along highways is a continuing security concern. According to the Baja State Secretariat for Public Security, from January to October 2014 Tijuana and Rosarito experienced increasing homicide rates compared to the same period in the previous year. While most of these homicides appeared to be targeted criminal organization assassinations, turf battles between criminal groups have resulted in violent crime in areas frequented by U.S. citizens. Shooting incidents, in which innocent bystanders have been injured, have occurred during daylight hours. The SBC feels that these travel warnings for Baja California are too alarmist and severe for those engaging in legitimate business and tourism travel in the state. f. Cross Border Terminal at Tijuana International Airport. The Coalition supports the Cross Border Terminal as a vital part of the region s air transportation system. Work has begun at the Tijuana International Airport and in San Diego Otay Mesa for the terminal which should be completed by the end of In San Diego it will be called Cross Border Xpress. g. Railroad. The Coalition supports the reactivation of rail service between Tijuana/Tecate and Plaster City, California, as well as a new extended route to the Port of Ensenada. Rail service is essential for the regional economy and attraction of foreign direct investment. Progress: The Coalition has urged MTS to review its agreement with Pacific Imperial Railroad to determine if that entity has the necessary fund and expertise build and operate the required rail system between California and Baja California. Baja California Governor Francisco Vega has pledged to make the railroad a priority of the Administration. Baja California is acquiring land to connect the current railroad to the port of El Sauzal in Ensenada. The Governor has said that rail service to San Diego will begin in See page 2 of this report. SMART BORDER COALITION BOARD OF DIRECTORS PRIORITIES Railroad from Tijuana-Tecate and Ensenada to the United States both west and east (USA/MEX) See page 2 of this report 2. Relieving Pedestrian Wait Times at San Ysidro and Otay Mesa (USA) Key part of Envision 2020 plan 3. Envision 2020/Envision the Border technology for a 21st Century Border (Private) Preliminary paper to be delivered on September Elimination new auto inspections for SENTRI card holders (USA) Meeting in autumn at CBP headquarters, Washington. 5. Mexican Requirement that All Persons Entering Mexico Must have Visas even day tourists (MEX). Meeting in Mexico City planned for autumn. 6. United States Congress Requirement that all Persons Leaving the United States must be checked out by US Customs and Border Protection (USA) Key part of Envision 2020 plan.

13 7. Otay II project to relieve cargo and auto congestion (USA) Key part of Envision 2020 plan 8. Improved Visa Processing Time (USA) To be determined 9. Improved signage and lane alignment (MEX) Ongoing meetings with Mexican federal, state and municipal officials. Also of SBC Board Importance 1. Funding to complete Phase 2 of the San Ysidro Port of Entry Modernization. (USA) a. House or Representatives Congressman Juan Vargas led the drive for Phase 2 funding. All five San Diego County Members of Congress supported the efforts which were included in the 2015 federal budget. The construction should be compled in late b. Senators Diane Feinstein and Barbara Boxer (D-California) led the Senate campaign. c. SBC member companies with lobbyists in Washington used their good services to support our efforts. 2. Otay II project to relieve cargo and auto congestion (USA) a. SANDAG and Caltrans are the lead agencies for the building of SR-11 connecting I-905 with the new Port of Entry as well as building the POE. Construction has begun. There will be tolls to use SR-11 which will be collected by the United States and shared with Mexico. b. The SBC has had presentations at the Working Committee on the best utilization of the POE through segmented cargo processing. Caltrans will make a presentation to the Working Committee at the January 13 meeting on the Border Master Plan incorporating Otay II. 3. Better utilization of pre-clearance facility at Tijuana Mesa de Otay (USA/MEX) a. This facility will be primarily used for agricultural pre-clearance with both Mexican and United States officers working together. b. The Mexican Congress of the Union approved CBP officers to be armed at the facility which is on Mexican soil. 4. Adequate staffing for maximum usage of current facilities. (USA) a. CBP has received 200 additional officer slots for San Ysidro and Otay Mesa. This does not include replacements for current officers who resign or retire. b. CBP will also place and additional approximately 70 officers at the Tijuana International Airport Cross Border Terminal when it opens in December. 5. California Enhanced Drivers Licenses (State) Senator Ben Hueso (D-CA 40 th ) is the lead on SB 397: Enhanced Drivers Licenses Creates a new type of California Drivers License that will allow for faster travel across the U.S./Mexico border. This will reduce border wait times and increase economic gain produced by efficient and secure cross-border travel. 6. Studies that support need for border efficiency (Private) a The Coalition helped to fund the Creative Class survey From Border Barriers to Bi-National Promise. The survey, which was debuted on May 1, 2015 at the San Diego Foundation is scheduled to be presented in both Washington and Mexico City in the autumn of The study looks at what the future could be with a frictionless border. See later in this report for key recommendations on which the Coalition can help.

14 b. Envision The Coalition is partnering with the Jacobs School of Engineering, UC San Diego, and the Schools of Engineering at the Ensenada, Mexicali and Tijuana campuses of CETYS Universidad along with Cubic Transportation Systems and the advice and counsel of United States Customs and Border Protection and General Atomics to re-envision a border technologies for the 21 st Century. The initial report is scheduled to be delivered at the September 22 SBC Board of Directors luncheon meeting at the Institute of the Americas. 7. Railroad from Tijuana-Tecate and Ensenada to the United States both west and east (USA/MEX) See page 2 of this report. a. The Coalition has expressed its support for unified, bi-national approach to oversight of a single, professionally-staffed railroad company to operate the San Diego-Tijuana connection to BNSF railway, Tijuana-Tecate-Campo- Plaster City connections to Union Pacific Railway and an extension to the Port of El Sauzal in Ensenada to be built. b. The Coalition has also expressed its concern to the San Diego Metropolitan Transit System to conduct due diligence to assure the financial and operational capabilities of Pacific Imperial Railroad, the current lease holder on the United States side. 8. Improved directional signage on the Mexico side. (MEX) a. Tijuana has relocated the SENTRI lane access road from the Via Rapida to Avenida Padre Kino. Directional signage to the new access has been greatly improved since the change. b. The Coalition has recommended that Tijuana also improve the directional signs to both the SENTRI and Ready Lanes from the Calle Internacional connection from Playas de Tijuana and south from Ensenada. Signage needs to be totally redone at the Otay Mesa/Mesa de Otay port of entry as it is inadequate. 9. Envision 2020 technology for a 21st Century Border (Private). Please see item 6b above. 10. Elimination new auto inspections for SENTRI card holders (USA). a. US Customs and Border Protection field office in San Diego agrees that auto inspections could be eliminated. b. A simple transfer from one car to another at the SENTRI office in Otay Mesa would suffice. c. However, this must be approved by CBC Commissioner Gil Kerlikowske in Washington. d. We recommend that this be a priority for the next SBC visit to Washington 11. Cross Border Terminal at Tijuana International Airport. (Private) a. The SBC fully supports the Cross Border Terminal as built by Cross Border X- press. b. Construction is nearing completion on both sides of the border. The goal is a December 2015 opening. c. CBP has made an agreement with the operators of Cross Border X-press that the operators will pay for building US Customs facility as well as pay the salaries and benefits for officers assigned to the facility.

15 d. There are two pending issues as of June 30, ). Concern by INAMI (Mexico Migration) that international and domestic passengers using the facility be separated and their processing adequately staffed. 2). Continued dispute between the operators of the airport (Grupo Aeroportuarios Pacifico) and the Municipio of Tijuana regarding taxes. 12. Commercial buses of less than 30 passengers from United States to Mexico (MEX) a. This issue is critical to the tourism industry in Baja California particularly for Ensenada, Rosarito and San Felipe. b. Baja California Secretary of Tourism Oscar Escobedo is dealing with the proper authorities in Mexico City to allow United States registered buses of less than 30 passengers enter Baja California. 13. Improved Visa Processing Time (USA) a. There has been no action on this at this time. b. The complexity of United States visas is a hindrance. c. The SBC should concentrate on the B1 and B2 visas that are intended for temporary business travel, including travel for negotiating contracts, attending exhibitions and conferences, short-term training, and consultations with suppliers and customers, etc. The B2 visa is intended for tourist activities, such as sightseeing, visiting friends and relatives, obtaining medical treatment, etc. The B1 and B2 visa is not valid for employment in the United States. d. The SBC advocates for enhanced movement and restriction free transfers of employees among branch offices of Canadian, Mexican and United States companies to other branch offices of NAFTA companies 14. Fast Pass for Company Employees (USA) a. The SBC advocates for special lanes dedicated auto and passenger lanes for employees of United States companies that live and work on opposite sides of the border. b. This program would be similar to the US Citizens only lines at airports. 15. Speed Truck Crossing (USA/MEX). a. The SBC supports the SANDAG/Caltrans proposals for segmented truck crossing lanes at the planned Otay Mesa/Mesa de Otay 2 border crossing. The SBC also supports Project 21/Projecto 21 plans for a similar system at the current Otay Mesa/Mesa de Otay 1 cargo border crossing. b. The SBC supports pre-clearance for all cargo away from the border to help eliminate congestion. 16. Immigration Reform, The Smart Border Coalition supports and advocates for comprehensive immigration reform and a path to citizenship for the undocumented who have met strict requirements for a change of status to legal immigrant. SMART BORDER RECOMMENDATIONS FOR 2015/2016 In cooperation with the United States Customs and Border Protection (CBP), Smart Border Coalition offers several solutions to reduce border crossing delays to 15 minutes or less. Among these are:

16 1. SENTRI (Secure Electronic Network for Travelers Rapid Inspection). SENTRI already has a goal of 15 minutes or less. However, there needs to be several adjustments to include more people in this trusted traveler program. a. SENTRI with Passengers. The San Diego-Tijuana region attracts foreign direct investment from many companies around the world to the region. However, investors from countries that are not eligible for Global Entry (such as United Kingdom, Germany, France, Japan, etc.) cannot use the SENTRI/Global Entry lanes. The solution is pre-registering these potential investors to be able to ride with SENTRI card holders for a specific period of days. b. Automobile inspections. Autos that SENTRI card holders use currently must be registered and registration currently takes days. We recommend dropping the auto inspections (people smuggle not autos), and re-assigning agents to border crossing lanes, where autos are always subject to inspection in any case. c. Status Change for Resident Aliens working in the United States and living in Mexico by choice. There are an estimated 10,000 or more Resident Aliens living in the Tijuana metro area. They are not eligible for SENTRI and must endure daily long crossing waits. Changing their status to Commuter, would allow these workers to apply for SENTRI. (They would no longer accumulate time toward US citizenship, which, for many, is not as important as working in the United States. d. SENTRI Rejection by Association and an expeditious appeal process. SENTRI cards may be pulled for all family members when one family member has a border infraction. This can also happened when there is a mistake of identity. US Customs and Border Protection does not have to give a reason for the revocation. However, appeals may be made to SENTRI headquarters in Williston, Vermont. We recommend that a local CBP ombudsman be appointed with the power to review requested revocations for possible reinstatement. e. SENTRI Gate at Tecate Border Crossing. We recommend that a SENTRI lane be dedicated at the Tecate Port of Entry. The lane could be equipped with a swing gate that could process other lanes when no SENTRI card holders are waiting (This is already done in pedestrian lanes at San Ysidro and Otay Mesa). 2. Combined United States/Mexico inspection booths at all border crossings. Inspectors of both countries could work from the same booths. This would allow selected lanes to be reversed depending on the northbound- or southbound flow of traffic. This would likely require the relocation of double booths on the exact border, with the northern booth used by United States (under U.S. law) and the southern booth used by Mexico (under Mexican law). This would like require the relocation of double booths on the exact border with the northern booth used by the United States (under U.S. law) and the southern booth used by Mexico (under Mexican law). These would be similar to the current double-stacking booths, but would allow both countries to undertake their inspection and enforce their own laws on their own sovereign territory while expediting the crossing process and saving money through joint construction of booths. 3. Pedestrian Crossings at San Ysidro/El Chaparral. a. All pedestrian lanes should be fully staffed during the busiest hours of the day. b. To protect northbound pedestrians from rain, sun, cold and standing in line for excessive amounts of time, Mexico should develop a waiting room for pedestrians that is a clean indoor facility with restaurants, duty-free shopping, clean restrooms and comfortable table and bench seating. A take-a-number system could then process 50 persons at a time. (This program has been developed by a private investor but not implemented at the San Ysidro Port of Entry).

17 c. Mexico needs to police those who cut in line. d. Bicycle lanes should be developed at all ports of entry e. There should be adequate airport-style cell phone lots in both San Diego and Tijuana for those who pick up pedestrians. f. San Diego Trolley should have both express and local service. A trolley connection into and through Tijuana should be implemented as soon as possible. Cyrille Erickson, Andrew Erickson, Brenda Raucho de Vega, Governor Francisco Vega de Lamadrid, Elia Manjares de Astiazaran and Presidente Municipal (Mayor) Jorge Astiazaran Orci. 4. Mexico Issues and Solutions: a. SRE should be established as the coordinating agency for all border issues/matters. b. The bridge at Puerta Mexico has been demolished in order to make room for new northbound lanes. c. As with El Chaparral, there should be recinto fiscal secure zone on the south side of the San Ysidro POE as a non-commercial, non-pedestrian zone to clean up the shops, informal commerce and people that are in the active traffic lanes and create a safety, security and public health hazard. d. Signage directing motorists to the SENTRI, Ready and General Traffic lanes should be improved. (There has been no new directional signage at Mesa de Otay for 20 years).

18 5. United States Issues and Solutions. a. Pilot program for United States Citizen lane. This would make it easier for US citizens to return to their country and foster more of them to visit Mexico for business, health care and tourism. Most international airports have citizen lanes. b. Pilot program for 1-2 lanes to be cash-only lanes. Amount charged would depend on time of day and volume of traffic. c. All gates at all border crossings should be properly staffed. Lack of adequate staffing causes a high-price in regional competitiveness, jobs creation, tax generation and makes the investment in infrastructure under perform. d. Approve and implement California Enhanced Drivers Licenses. This would allow enhanced drivers license-holders to use the Ready Lanes. California State Senator Ben Hueso is carrying this bill through the California legislature. 6. Both countries a. Create C/S/T. Construction (C) has to be backed up with proper staffing. (S) To make the hundreds of millions of dollars and pesos invested (not spent), work at efficient levels. Insufficient staffing does the opposite of proving savings as it hinders the productivity and maximum use of tax money. Additional staffing costs more money, but studies prove that an efficient border is a money-maker and not a cost center. Saving on staffing results in a huge price in competitiveness, job creation, tax generation and makes construction investment under perform. We also need to follow-up on a regular basis on technological (T) solutions that make the border work better. The Smart Border Coalition is the convener to bring technological solutions from both academia and the private sector to the governments of Mexico and the United States. Initial recommendations will be presented at the UC San Diego/Institute of the Americas/Smart Border Coalition luncheon event 20/Envision 2020 on September 22, 2015, at the Institute of the Americas. b. Combine United States and Mexico inspections at adjacent booth for autos, pedestrians and cargo. (See recommendation 2). c. Activate pre-clearance facilities away from the border. d. Maximize the agricultural pre-clearance facility in Tijuana at the Otay Mesa cargo crossing. e. Congestion of Mexican cities-tijuana, Tecate, Mexicali along the border requires the federal, state and municipal authorities find the best way to route cargo traffic to the border with the minimum congestion of city streets. 7. New Initiative Envision 2020: Innovation in Transportation with minutes goals for passenger autos, pedestrians and cargo. In cooperation with United States Customs and Border Protection, the Engineering Departments of UC San Diego and CETYS Universidad along with private sector defense and high-technology companies such as Cubic Transportation Systems to Re-Envision a Frictionless Border with 15- minutes of less crossing. In many ways, this is basic research; however with nearly a $1 billion combined United States and Mexico spending on San Ysidro-El Chaparral renovations we will still have best 20 th century-style border our countries can buy. Doing the same things and expecting a different result is not the way to 21 st Century border management. Envision 2020 is under the auspices of Chancellor Pradeep Khosla, UC San Diego in cooperation with the Governors of California and Baja California. The initial report

19 will be presented at the 20/Envision 2020 luncheon meeting on September 22. This will also be the SBC September Board of Directors meeting. SBC SCHEDULED MEETINGS 2015 Working Committee, Friday, July 17, Tijuana Board of Directors, Friday, July 24, Tijuana Working Committee, Friday, September 18, San Diego Board of Directors, Tuesday, September 22, San Diego Working Committee, Friday, November 20 Tijuana Board of Directors, Wednesday, December 9 Tijuana SMART BORDER COALITION AND EXECUTIVE DIRECTOR MEETINGS 2015 January 8: Tijuana EDC Bi-monthly Meeting, Tijuana January 8: Chula Vista City Council Presentation January 9: SBC Executive Committee Meeting January 13: US Customs and Border Protection Meeting, SANDAG, San Diego January 13: SBC Stakeholders Working Committee Meeting, San Diego Foundation January 13: Chula Vista City Council Presentation January 14: Mayor Kevin Faulconer State of the City Address, Balboa Theatre January 15: CONNECT to Tijuana Day January 16: Tijuana Innovadora Advisory Board at SANDAG, San Diego January 16: Envision the Border Meeting with Chancellor Pradeep Khosla at UC San Diego January 16: New Americans Museum Reawakening at Liberty Station, San Diego January 20: Olivewood Gardens and Learning Center Meeting, National City January 22: ULI San Diego/Tijuana Advisory Meeting at Downtown San Diego Partnership January 27: Office of Governor Jerry Brown, MOU with President Peña Nieto Meeting at San Diego Foundation January 29: Dinner with Mexico Supreme Court Justice at Deborah Szekely Home January 30: Smart Border Coalition Board of Directors Luncheon Meeting at San Diego Foundation February 3: Ambassador Jeffrey Davidow Luncheon at Berta Latin American, Old Town San Diego February 3: COBRO Meeting at SANDAG, San Diego February 4: 20 Planning Meeting with Lynn Schenk and Rudy Murillo at Estancia, La Jolla February 5: SIMNSA Meeting with Frank Carrillo, Tijuana February 10: Olivewood Gardens and Learning Center Meeting February 10: Canada Dinner with Consul General James Villaneuve, US Grant Hotel, San Diego February 11: SIMNSA Stem Cell Procedure, Tijuana February 12: SBC Executive Committee Meeting February 12: Envision the Border Meeting with Chancellor Pradeep Khosla, Dean Al Pisano and Matt Newsome, Cubic Transportation Systems at UC San Diego February 13: Meeting at San Diego Central Library February 16: Meeting at Mexico Secretariat of Economy regarding North American Competitiveness and Innovation Conference 2015 February 17: Meeting with Federico Quizaños, International Relations Director, State of Queretaro, Queretaro February 17: Meeting with Jorge Lopez, regarding Ciudad Maderas Queretaro and Leon February 18; San Miguel de Allende, Guanajuato February 18: Presentation by Nobel Peace Prize Recipients Rigoberta Manchu, and Oscar Arias at Teatro Metropolitano Queretaro February 19: University Presidents Meeting and Reception, United States Consulate General Tijuana February 23: San Diego County Community Enhancement Fund Request Submitted February 25: Mexico X Meeting at San Diego Regional Chamber of Commerce February 25: Fonna Forman/Teddy Cruz, UC San Diego Meeting, Liberty Station February 26: Aron Davidson, US Department of Commerce Meeting, Liberty Station February 27: John McNeece, Pillsbury Law Meeting, Liberty Station March 2: San Diego Central Library/Newport Beach Library Foundation Tour and Meeting March 3: US Olympic Training Center pre-board meeting, Chula Visa

20 March 5: Sam Dychter, Olivewood Gardens and Learning Center, National City March 5: March 9: Conference Call with Gaston Luken Garza regarding SBC Working Committee Agenda March 5: Pierre Alarie named next Canadian Ambassador to Mexico Biography: Pierre Alarie: (MA [Public Administration], College of Europe, Bruges, 1982) joined the Department of External Affairs in While in Ottawa, Mr. Alarie served as a trade desk officer with the European bureau. He served abroad as second secretary in Lagos and as first secretary in Santiago. After his assignment in Chile, Mr. Alarie joined the private sector. Between 1991 and 1993, Mr. Alarie was vice-president, business development of Bombardier s transportation group, and in 1994 he became vice-president, business development, for SNC-Lavalin International in Mexico City. Subsequently, Mr. Alarie was the managing director, Latin America, for the real estate subsidiary of the Caisse de Dépôt et Placement du Québec. In 1998, he joined the Bank of Nova Scotia as country representative in Mexico City, a position he held until In 2004 and 2005, Mr. Alarie was director, mergers and acquisitions, with Hydro-Québec International. He then acted as adviser for the mergers and acquisitions team of Brookfield Renewable Energy Group and worked out of both Montréal and Santiago. From 2007 to 2008, Mr. Alarie was vice-president of mergers and acquisitions with National Bank Financial in Montréal. In 2009, Mr. Alarie became vice president, business development and sales, with the Canadian Commercial Corporation in Ottawa. Mr. Alarie is a certified corporate director and a certified administrator. He will be accompaniedto Mexico City by his spouse, Catherine Genois, and his three children, Philippe, Jack Santiago and Eloïse. Mr. Alarie succeeds Sara Hradecky. March 10: US Customs and Border Protection SANDAG March 11: HUB Center Opening of Chula Vista Library at Otay Town Center, Chula Vista March 12: SBC Stakeholders Working Committee Hospital Infantil de las Californias, Tijuana March 17: State of the City Address by Mayor Mary Casillas Salas, City Hall, Chula Vista March 18: Luncheon with Canadian Ambassador to Mexico Sara Hradecky, and Consuls General of Canada, Mexico and the United States San Diego Regional Chamber of Commerce March 19: Olivewood Gardens and Learning Center Board Meeting, National City March 19: South County EDC Tijuana River Estuary, Imperial Beach March 24: Meeting with UC San Diego Chancellor s office regarding 20, La Jolla March 24: Reception for Sean Jones, Director, USAID Mexico US Consular Residence, Tijuana March 25: Meeting with Jessica Ibarra and Francisco Reyes regarding April 13 SBC Board of Directors Luncheon Meeting, CETYS Universidad Tijuana Campus March 26: Meeting at Chula Vista Civic Center Library regarding books donation March 26: Meeting with Chula Vista Economic Development team-eric Crockett and Mariana Garcia- regarding cross-border relationships and Bajío program March 26: US Customs and Border Protection Meeting with Mexico officials on San Ysidro/El Chaparral border crossing alignment, lanes and signage, San Ysidro Port of Entry March 27: La Mision, Ensenada March 29: Meeting with Nico Saad, Hotel San Nicolas, regarding Ensenada tourism issues, Ensenada March 30: Congressman Xavier Becerra luncheon meeting, San Diego April 1: Meeting with Sherry White regarding 20, Institute of the Americas, La Jolla April 6: SDRCC Mexico X Working Committee meeting April 9: SDRCC Executive Committee Meeting April 9: San Diego International Affairs Board Presentation, Civic Center Plaza, San Diego April 10: Frontera Environmental Resources Bi-National Efforts for Ecological Restauration Event, Imperial Beach

21 April 13: SDRCC Board of Directors Luncheon CETYS Universidad Tijuana Campus. Host: Rodrigo Valle, Grupo Tersa April 13: UCSD Blum Cross-Border Initiative Event with Robert Reich, La Jolla April 14: US Customs and Border Protection meeting at SANDAG April 15: DEITAC (Tijuana EDC) Toma de Protesta swearing in ceremony for new officers. April 15: Cerveceria Tijuana 15 th Anniversary Celebration. April 19-22: San Diego Regional Chamber of Commerce Mission to Mexico X, J.W. Marriott, Mexico, D.F. April 23: Mexport Trade Show, Otay Mesa, San Diego April 25: LEAD San Diego Ceremony at Stone Brewing, Liberty Station April 25: El Pasado Nunca Se Termina (The Past is Never Finish) with Mariachi Vargas De Tecalitlán, San Diego Opera April 27: North American Development Bank Conference call regarding air pollution at the border and Envision 2020 April 28: US Customs and Border Protection Cargo Meeting, Otay Mesa April 29: Meeting at SIMNSA Health Care, Tijuana April 30: Malin Burnham, Jose Larroque, James Clark meeting with Pete Flores, Director of Field Operations, US Customs and Birder Protection April 30: Malin Burnham, Jose Larroque, Steve Williams, James Clark meeting with Pablo Koziner, President, Solar Turbines/Caterpillar. May 1: Labor Day Holiday in Mexico May 5: South County EDC Meeting May 5: COBRO Meeting at SANDAG May 6: Mayor Mary Casillas Salas, Albert Velasquez, James Clark meeting at Centro de Alto Rendimiento, Tijuana May 8: SBC Stakeholders Working Committee Meeting, San Diego Foundation May 8: Jeanette Le Borgne, High Court of Paris tour of the border at San Ysidro and Otay Mesa. May 10: US San Diego Leadership Dinner May 12: US Customs and Border Protection Meeting at SANDAG May 12: German-American luncheon meeting regarding Ukraine at Duane Morris

22 May 13: North American Development Bank luncheon meeting at US Grant Hotel, San Diego. Geronimo Gutierrez speaker May 14: Smart Border Coalition Board of Directors Luncheon Meeting at United States Olympic Training Center, Chula Vista. May 14: SBC Presentation to North American Development Bank Board of Directors, CECUT Tijuana May 14: Deborah Szekely 93 rd birthday celebration, San Dieg May 18: Immigration Presentation at Museum of Man, Balboa Park, San Diego May 21: Olivewood Gardens and Learning Center Board of Directors Luncheon Meeting, National City May 21: LEAD San Diego Visionary Awards at Hilton Bayfront, San Diego May 22: Rosibel Ochoa, Katie Busch-Sorensen and James Clark meeting with Pete Flores, DFO, US Customs and Border Protection, San Diego May 25-June 10: Vacation in Germany, Czech Republic, Austria, Slovakia and Hungary June 15: International Community Foundation Luncheon meeting with Anne McEnany and Alejandra Mier y Teran. June 16: Meeting with Consul General Remedios Gomez Arnau and staff at Consulate General of Mexico June 16: Meeting with Bob Watkins, Cali-Baja Initiative June 18: State of California Economic Development meeting at Caltrans June 19: Alan Bersin at OSAC Farewell Reception for CG Andrew Erickson at Consular Residence June 23: Meeting with Steve Padilla June 25: International Community Foundation Board of Directors Meeting June 25: Meeting with David Perfect, Purolator (Canada/San Diego) June 25: Smart Border Coalition Farewell Reception for United States Consul General Andrew and Cyrille Erickson as well as Canada Consul Lisa Stockley at Residence of Malin and Roberta Burnham Consul of Canada Lisa Stockley, Consul General of the United States Andrew Erickson, Consul General of Mexico Remedios Gomez Arnau at Farewell Reception for Stockley and Erickson at the home of Malin and Roberta Burnham, June 25, 2015 June 26: Meeting between Malin Burnham, SBC Co-Chair, and James Clark, SBC Executive Director July 1: United States Independence Celebration, United States Consulate General Tijuana. SBC Board Members Malin Burnham and Gaston Luken honored

23 SBC Board Members Malin Burnham and Gaston Luken Aguilar honored at US Independence Celebration at US Consulate General Tijuana with Cyrille and Andrew Erickson and Perla del Socorro Ibarra, Attorney General (Procuraduria General de Justicia del Estado) of Baja California. PROCURADURÍA GENERAL DE JUSTICIA DEL ESTADO Lic. Perla del Socorro Ibarra Leyva Border Barriers to Bi-National Promise Executive Summary In today s borderless economy, the management expert Kenichi Ohmae declared in 1993, the wealth-generating region states that lie within or across nation states are the globe s natural economic zones. A year later, the U.S., Canada, and Mexico formalized the North American Free Trade Agreement (NAFTA), which created the largest free trade area in the world. Twenty years on, the political mood in the U.S. is more protectionist and anti-immigrant than it s been since the 1920s and its borders, though officially open to Canadian and Mexican trade, are administered by the U.S. Customs and Border Patrol, a police agency which is under the auspices of the Department of Homeland Security. NAFTA is clearly working up to a point the volume of truck traffic is high in both directions but the militarization of the border has created impediments that slows down the passage of people and goods, significantly limiting both the quantity of bilateral trade and the informal interactions between citizens that are so productive of entrepreneurial company formation. Recognizing the urgency of this issue, we set out to understand the economic and social/cultural challenges posed by excessive border friction, to reframe the narrative about the border, demonstrating How it can be utilized to promote economic and cultural development, and to offer a set of concrete recommendations for improvements, among them:

24 A formal severance between security and policy considerations in the governance of U.S. border operations, and the inclusion of the Department of State and/or the Department of Commerce in its management. Significant investment in better border technologies and governmanagement systems. Investment in more efficient transportation infrastructure, from bi-national airports to high-speed trains. Improved data collection and the development of shared data- bases of regional demographics and economic trends. An expanded commitment to cross border civic and networking initiatives. The private sector needs to be brought in to assist in all of the above. SBC Stakeholders Working Committee Meeting (left to Right), Consul General Remedios Gomez Arnau, INAMI BC Director Rodulfo Figueroa, Committee Co-Chair Steve Williams, Congressman Scott Peters, and Committee Co-Chair Gaston Luken Garza.Eighty-three participants attended SBC Stakeholders Working Committee meeting at World Trade Center Tijuana SMART BORDER COALITION SAN DIEGO-TIJUANA ONE PEOPLE/ONE REGION/ONE ECONOMY SAN DIEGO-TIJUANA