SAN JOAQUIN REGIONAL RAIL COMMISSION

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1 Chair, Bob Johnson, City of Lodi Vice Chair, Steve Dresser, City of Lathrop Commissioner, Debby Moorhead, City of Manteca Commissioner, Christina Fugazi, City of Stockton Commissioner Bob Elliott, San Joaquin County Commissioner, Leo Zuber, City of Ripon Commissioner, Scott Haggerty, Alameda County Commissioner, John Marchand, City of Livermore Executive Director, Stacey Mortensen SAN JOAQUIN REGIONAL RAIL COMMISSION This Agenda shall be made available upon request in alternative formats to persons with a disability, as required by the Americans with Disabilities Act of 1990 (42 U.S.C ) and the Ralph M. Brown Act (California Government Code ). Persons requesting a disability related modification or accommodation in order to participate in the meeting should contact San Joaquin Regional Rail Commission staff, at (209) , during regular business hours, at least twenty-four hours prior to the time of the meeting. All proceedings before the Commission are conducted in English. The San Joaquin Regional Rail Commission does not furnish interpreters and, if one is needed, it shall be the responsibility of the person needing one. Any writings or documents provided to a majority of the Commission regarding any item on this agenda will be made available for public inspection at the Office of the Executive Director located at 949 East Channel Street, Stockton, California, during normal business hours or by calling (209) The Agenda is available on the San Joaquin Regional Rail Commission website: Robert J. Cabral Station South Hall Meeting Room 949 East Channel Street Stockton, CA August 4, :00 am Heritage House (Conference Call) County of Alameda 4501 Pleasanton Avenue Pleasanton, CA Call to Order, Pledge of Allegiance, Roll Call Chair Johnson Roll Call: Haggerty, Marchand, Elliott, Fugazi, Moorhead, Zuber, Vice Chair Dresser, Chair Johnson Ex- Officios: Agar, Chesley, DeMartino 2 Public Comments Persons wishing to address the Commission on ny item of interest to the public regarding rail shall state their names and addresses and make their presentation. Please limit presentations to five minutes. The Commission cannot take action on matters not on the agenda unless the action is authorized by Section of the Government Code. Materials related to an item on the Agenda submitted to the Board of Directors after distribution of the agenda packet are available for the public inspection in the Commission Office at 949 E. Channel Street during normal business hours. These documents are also available on the San Joaquin Regional Rail Commission website at subject to staff s ability to post the documents prior to the meeting.

2 3 Presentations and Recognitions 4 Consent Calendar Minutes of June 2, 2017 ACTION Minutes of June 19, 2017 Roundtable ACTION 4.2 Rail Commision/ACE/SJJPA Monthly Expenditure INFORMATION 4.3 ACE Monthly Fare Revenue INFORMATION 4.4 ACE Ridership INFORMATION 4.5 ACE On-Time Performance INFORMATION 4.6 Washington Update INFORMATION 4.7 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Supporting September as Rail Safety Month, Commending Efforts Being Made to Improve Railroad Crossing Safety, and Urging the Public to be Cautious and Safe Around Railroad Tracks and Property, and to Remember; SEE TRACKS? THINK TRAIN! ACTION 4.8 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing and Directing the Chair to Execute the FY 17/18 Measure K Project Cooperative Agreements 4.9 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Approving the Fiscal Year Transportation Development Act (TDA) Claim and Authorizing Submission by the Executive Director to the San Joaquin Council of Governments for Local Transportation Funds (LTF) And State Transit Assistance Funds (STA) for a Total of $2,690,885 ACTION ACTION 5 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Two-Year and Eleven-Month Contract with Two Oneyear Options for Financial Auditing Services to Kemper, CPA Group LLP for an Amount Not-To-Exceed $235,280 total from August 4, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement (Autumn Gowan) 6 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Two-Year and Eleven-Month Contract with Two Oneyear Options for Ticket Printing Services to Acme Decalcomania, Ltd. for an Amount Not-To-Exceed $228,000 total from August 4, 2017 through June 30, ACTION ACTION 2 of 59

3 2020, and Authorizing and Directing the Executive Director to Execute the Agreement (Autumn Gowan) 7 CLOSED SESSION: CONFERENCE WITH LEGAL COUNSEL ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Section : One case 8 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Finding that Immediate Action is Necessary to Prevent an Emergency and Authorize Filing the CEQA Notice of Exemption for the Emergency Demolition of the Western Pacific Depot Building Due to Imminent Threat to the Public of Bodily Harm or Damage to Adjacent Property and Authorize and Direct the Executive Director to Execute all Documents Related to the Notices (Bryan Pennino) DISCUSSION/ACTION INFORMATION/ACTION 9 Commissioner s Comments 10 Ex-Officio Comments 11 Executive Director s Report 12 Adjournment The next regular meeting is scheduled for: September 1, :00 am Robert J. Cabral Station 949 East Channel Street, Stockton 3 of 59

4 Item Minutes of June 2, 2017 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of August 4, 2017 The regular meeting of the San Joaquin Regional Rail Commission was held at 8:00 am, June 2, 2017 at the Robert J. Cabral Station, 949 East Channel Street Stockton, CA Call to Order/Pledge of Allegiance/Roll Call Chair Johnson called the meeting to order at 8:00 am and led the audience in the pledge of Allegiance. ACTION Commissioners Present: Chair Johnson Haggerty, Marchand, Dresser, Elliott, Fugazi, Moorhead, Zuber, Ex-Officio Members Present: Mr. Dumas, Mr. Knodt, Mr. Chesley 2 Public Comments None. 3 Presentations and Recognitions Stacey Mortensen introduced Kevin Sheridan, the newly hired Director of Capital Projects. Ms. Mortensen mentioned Mr. Sheridan s experience delivering large-scale transportation projects. Douglas Honn, General Manager at Herzog, discussed the record breaking ridership in May of 126,309. Chair Johnson mentioned the opportunity to utilize the high ridership in marketing efforts. 4 Consent Calendar 4.1 Minutes of May 5, 2017 ACTION 4.2 Rail Commission/ACE/SJJPA Monthly Expenditure INFORMATION 4.3 ACE Monthly Fare Revenue INFORMATION 4.4 ACE Ridership INFORMATION 4.5 ACE On-Time Performance INFORMATION 4.6 Washington Update INFORMATION Vice Chair Dresser elected to abstain from 4.1, as he was not present at the May 5 th meeting. M/S/C (Zuber/Fugazi) Approve the Consent Calendar. Passed and Adopted by the San Joaquin Regional Rail Commission on the 2nd day of June 2017 by the following vote to wit: 4 of 59

5 AYES: 8 Haggerty, Marchand, Dresser, Elliott, Fugazi, Moorhead, Zuber, Chair Johnson NOES: 0 ABSTAIN: 1 Dresser (4.1) ABSENT: 0 5 Public Hearing: Presentation and Approval of a Resolution Adopting the SJRRC/ACE/SJJPA Combined Fiscal Year 2017/2018 Work Program and Operating Budget of $75,638,917 and Capital Budget of $54,242,943 ACTION Chair Johnson opened the public hearing. Mr. Schmidt presented on the SJRRC/ACE/SJJPA combined Fiscal Year 2017/2018 work program and operating and capital budget. Commissioner Elliott asked if the five locomotives listed include the two locomotives being funded through BAAQMD. Mr. Schmidt confirmed this to be the case. Vice Chair Dresser asked what the ridership forecast level is once the new locomotives are acquired. Mr. Schmidt said operational constraints limit the number of cars that can be utilized with the current schedule. Vice Chair Dresser asked how many passengers can fit in each car. Mr. Schmidt responded 143 per car and 1,000 per train. Mr. Schmidt also said the locomotives will allow three additional cars to be pulled. Commissioner Marchand asked about the Minor Capital Projects line item. Mr. Schmidt explained that the San Joaquins receive $500,000 a year to conduct capital improvements, such as signage and lighting. Commissioner Haggerty asked whether the Sunol Quiet Zone project is still scheduled to be finished in October Mr. Schmidt and Mr. Leavitt said yes. Chair Johnson asked if other services are on schedule to implement Positive Train Control. Ms. Mortensen said the limited number of manufacturers of PTC equipment is making the process difficult. Mr. Schmidt said Metrolink, the Coaster, BNSF, and UPRR are currently testing PTC equipment. Vice Chair Dresser asked what has to take place before PTC can truly be implemented. Mr. Schmidt said the interoperability of making sure everyone s PTC equipment can communicate is the biggest issue. Ms. Mortensen pointed 5 of 59

6 out the need for seamless interoperability, in order to ensure no service is disrupted in keys parts of the corridor. Commissioner Elliott asked for clarification on the failures that have occurred with PTC testing. Mr. Schmidt described the process of verifying engineers, which is where delays oftentimes take place. Commissioner Haggerty asked if the budget includes Measure BB funds. Mr. Schmidt said SJRRC receives both Measure B and Measure BB funds, but are combined into one line item in the budget. Commissioner Haggerty requested the B and BB funds be separated in future budgets. No comments were received from the public. Chair Johnson closed the public hearing. M/S/C (Marchand/Zuber) Approval of a Resolution Adopting the SJRRC/ACE/SJJPA Combined Fiscal Year 2017/2018 Work Program and Operating Budget of $75,638,917 and Capital Budget of $54,242,943. Passed and Adopted by the San Joaquin Regional Rail Commission on the 2nd day of June 2017 by the following vote to wit: AYES: 8 Haggerty, Marchand, Dresser, Elliott, Fugazi, Moorhead, Zuber, Chair Johnson NOES: 0 ABSTAIN: 0 ABSENT: 0 6 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Three-Year Contract with Two One-year Options for Insurance Brokerage Services to John L. Wortham & Son, LP for an Amount Not-To-Exceed $457,500 total from July 1, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement ACTION Mr. Schmidt presented on the solicitation process for procuring insurance brokerage services for SJRRC and SJJPA. Commissioner Zuber asked if the proposer s cost was known before or after the interview process. Mr. Schmidt said it was a sealed bid process, therefore the cost was not known until after a firm was selected. 6 of 59

7 M/S/C (Zuber/Dresser) Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Three-Year Contract with Two One-year Options for Insurance Brokerage Services to John L. Wortham & Son, LP for an Amount Not-To-Exceed $457,500 total from July 1, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement. Passed and Adopted by the San Joaquin Regional Rail Commission on the 2nd day of June 2017 by the following vote to wit: AYES: 8 Haggerty, Marchand, Dresser, Elliott, Fugazi, Moorhead, Zuber, Chair Johnson NOES: 0 ABSTAIN: 0 ABSENT: 0 7 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Three-Year Contract with Two One-year Options for Security Services to Allied Universal for an Amount Not-To-Exceed $867,305 total from July 01, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement ACTION Mr. Schmidt presented on the solicitation process for procuring security services. There was no Board discussion on this item. M/S/C (Marchand/Zuber) Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Three-Year Contract with Two One-year Options for Security Services to Allied Universal for an Amount Not-To-Exceed $867,305 total from July 01, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement. Passed and Adopted by the San Joaquin Regional Rail Commission on the 2nd day of June 2017 by the following vote to wit: AYES: 8 Haggerty, Marchand, Dresser, Elliott, Fugazi, Moorhead, Zuber, Chair Johnson NOES: 0 ABSTAIN: 0 ABSENT: 0 7 of 59

8 8 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Approving Ongoing and Multi-Year Professional and Contracted Services Agreements for Fiscal Year 2017/2018 and Authorizing and Directing the Executive Director to Execute All Agreements Not to Exceed the Following Amount: ACTION a. Neumiller and Beardslee - for Agency Legal Services - $535,000 i. General Services - $140,000 ii. Claims - $70,000 iii. Capital Projects - $75,000 iv. ACE Forward - $250,000 b. Diesel Fuel - $1,579,217 c. Ops & Safety Consulting Services - $100,000 d. Federal Legislative Advocacy Services $100,000 Mr. Schmidt presented on the ongoing multi-year professional and contracted services agreements for Fiscal Year 2017/2018. Commissioner Haggerty asked when the last bid was received for legal services. Mr. Schmidt said it was Commissioner Haggerty asked when the next time a bid would be requested. Mr. Schmidt said whenever the Board requests. Chair Johnson asked whether this should take place now or in the future. Commissioner Haggerty suggested a vote occur today, but the services be bid on next year. M/S/C (Haggerty/Zuber) Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Approving Ongoing and Multi-Year Professional and Contracted Services Agreements for Fiscal Year 2017/2018 and Authorizing and Directing the Executive Director to Execute All Agreements. Passed and Adopted by the San Joaquin Regional Rail Commission on the 2nd day of June 2017 by the following vote to wit: AYES: 8 Haggerty, Marchand, Dresser, Elliott, Fugazi, Moorhead, Zuber, Chair Johnson NOES: 0 ABSTAIN: 0 ABSENT: 0 8 of 59

9 9 Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing Shuttle Services for the Altamont Corridor Express (ACE) Service for Fiscal Year 2017/2018 and Authorizing and Directing the Executive Director to Execute All Agreements with the following Agencies: ACTION a. Santa Clara Valley Transportation Authority $828,080 b. Livermore-Amador Valley Transportation Authority $182,486 c. Contra Costa County Transportation Authority $120,277 Mr. Schmidt presented on the shuttle service agreements for ACE for Fiscal Year 2017/2018. Mr. Schmidt described all the routes associated with the shuttle service agreements, including the Great America shuttles, Routes 53 and 54 in Pleasanton, and the Bishop Ranch shuttles. There was no Board discussion on this item. M/S/C (Haggerty/Fugazi) Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing Shuttle Services for the Altamont Corridor Express (ACE) Service for Fiscal Year 2017/2018 and Authorizing and Directing the Executive Director to Execute All Agreements. Passed and Adopted by the San Joaquin Regional Rail Commission on the 2nd day of June 2017 by the following vote to wit: AYES: 8 Haggerty, Marchand, Dresser, Elliott, Fugazi, Moorhead, Zuber, Chair Johnson NOES: 0 ABSTAIN: 0 ABSENT: 0 10 Commissioner s Comments Commissioner Fugazi discussed comments she received about the last two trains only being 25 minutes apart. Mr. Schmidt explained that ACE is given specific track slots that fit between Caltrain and Capitol Corridor services. Mr. Schmidt said discussions are in place to explore the possibility of moving the slot ahead 30 minutes. Commissioner Moorhead said this explanation was relayed to the individual in question. Vice Chair Dresser applauded Ms. Mortensen for her creative input during meetings in Washington D.C. during the One Voice visit. 9 of 59

10 Commissioner Fugazi thanked Dan Leavitt and Chris Kay for providing feedback for her Op Ed piece in the Stockton Record. Chair Johnson reminded everyone that the ACEforward Draft EIR is now available for review. Ms. Mortensen mentioned hard copies are available at some locations. Commissioner Fugazi asked if the open houses will be advertised. Ms. Mortensen said yes. 11 Ex-Officio Comments Mr. Dumas expressed his pleasure in seeing the Wayside Power project move forward and gave his congratulations on the ridership. Mr. Chesley reiterated the experience Mr. Sheridan has with advancing large transportation projects. Mr. Knodt discussed the draft plans for converting some RTD routes to electric buses and the implementation of new Metro Express routes. 12 Executive Director s Report Ms. Mortensen reported: A roundtable is being organized between SJRRC and SJCOG Board members in order to understand how the ACE expansion will impact funding and Board composition. The meeting will be held on June 19 th from 10:00 am to 12:00 pm. Assembly Bill 758, the legislation for the San Joaquin Tri-Valley Working Group, has passed out of the Assembly and has moved on to the Senate. 14 Adjournment The meeting was adjourned at 8:43 am. The next regular meeting is scheduled for: July 7, :00 am Robert J. Cabral Station 949 E. Channel Street, Stockton CA 10 of 59

11 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of August 4, 2017 Item Minutes of June 19, 2017 Roundtable ACTION A joint roundtable on Altamont Corridor Express (ACE) expansion and operations was held at 10:00 am, June 19, 2017 at the Robert J. Cabral Station, 949 East Channel Street Stockton, CA Call to Order/Pledge of Allegiance/Roll Call Chair Johnson called the meeting to order at 10:00 am and led the audience in the pledge of Allegiance. Present: Miller, Rickman, Vargas, Winn, Haggerty, Marchand, Dresser, Elliott, Fugazi, Chair Johnson 2 ACE Financing Opportunities and challenges with existing and new agency partnerships INFORMATION Chair Johnson briefly discussed the history and function of ACE service. Chair Johnson also mentioned the efforts to connect BART and ACE. The ACE extension into Stanislaus County was also mentioned. Ms. Mortensen expanded on the history of ACE service by discussing the governing bodies that would eventually become the Rail Commission. The history of the cooperative services agreement and cost sharing protocol was also discussed, as well as how this will be impacted by ACE expansion. Commissioner Haggerty pointed out the amount being paid by some counties over others. Commissioner Haggerty mentioned some strategies to make up for the amount paid by SJRRC and ACTC for Santa Clara County. Ms. Mortensen said it s possible to find a sensible solution and will work towards that end. Commissioner Marchand said part of the issue is Santa Clara County is creating a lot of the jobs for the region, but is not providing the housing. Ms. Mortensen said Santa Clara County has made it up in other ways, such as providing free transfers to VTA light-rail. Councilmember Vargas reiterated the need to bring Santa Clara County to the table as true partners. Commissioner Haggerty mentioned Regional Measure 3 and his desire to involve the Rail Commission in the process. Commissioner Haggerty asked if capital project contributions have been included in the list of each counties contributions to ACE. Ms. Mortensen said these have not been included. 11 of 59

12 3 Impacts of SB 132 SJRRC capital and operations expansion plans before SB 132 compared to after INFORMATION Ms. Mortensen presented on the improvements underway for the existing ACE service, including track improvements, platform/parking expansion, and rolling stock. Ms. Mortensen also mentioned the funding for incremental expansion to Ceres and Merced. Commissioner Fugazi asked for an example of operating support for improved service. Ms. Mortensen said it depends on how a new improvement is presented, citing the example of adding shuttles to the later train. Ms. Mortensen then presented on ACE s increased funding under SB 1. Mr. Leavitt mentioned the funding available through the Transit and Intercity Rail Capital Program (TIRCP). Councilmember Vargas asked for clarification on the rail connection mentioned. Ms. Mortensen clarified that the connection in question is between the current ACE trunk line and the line through Manteca, Ripon, and Modesto. 4 Focus on ACE plans in key communities in San Joaquin Ripon, Tracy, Manteca INFORMATION Mr. Leavitt presented on the various options for ACE expansion included in the environmental document, and the associated costs. Mr. Leavitt also discussed the ridership forecasts for future extensions. Commissioner Elliott asked if the track into Stanislaus County would be a new track. Mr. Leavitt said it would be a new single track in the existing Union Pacific right-of-way. Councilmember Vargas asked if an overpass would have to be built for a potential station at Lammers Road. Mr. Hartman said the Tracy Hills developers would be responsible for building a connection between I-580 and the development. Councilmember Vargas asked if the Mountain House Board of Directors have been contacted. Mr. Leavitt said they have been contacted, and many of the options in the Tracy area are a result of these discussions. 12 of 59

13 Councilmember Vargas commented on the possibility of utilizing existing track for a DMU service from Tracy to Greenville. Mr. Leavitt said these comments should be submitted as part of the formal environmental process. Commissioner Fugazi asked if there is a possibility to have solar panels at any of the new parking lots. Mr. Leavitt said this is not included in the environmental document, but can certainly be explored. Commissioner Haggerty recommended discussing the potential construction of parking structures, in conjunction with mixed-use development and housing, to better utilize land. Ms. Mortensen said it may be possible to leverage state money for these efforts. Commissioner Haggerty said this would be a great opportunity to pursue public-private partnerships. Chair Johnson said this is an important point for discussion, as well as a required comment for the environmental document. Supervisor Miller said this type of policy would work best with downtown stations and transit-oriented developments, as opposed to rural stations. Commissioner Haggerty said it s important to build stations that can attract housing and mitigate the amount of car usage needed to reach them. Ms. Mortensen said it has not been easy in the past to pursue publicprivate partnerships, but is a great idea nonetheless that should be addressed. Councilmember Vargas agreed with the need to address land use planning and the impact on long-term growth. Commissioner Haggerty brought up the Union City option and expressed his concerns. Ms. Mortensen said more will be known after the environmental review process is complete. Mr. Leavitt recommended comments be submitted through the environmental review process. Mr. Leavitt then mentioned the potential extension of both ACE and the San Joaquins to Sacramento. Mr. Leavitt also discussed DMU options between BART and West Tracy. Councilmember Vargas asked about the DMU options in the draft EIR. Mr. Leavitt said the draft EIR examines the various options at Greenville between ACE and BART service. Commissioner Marchand asked if the preliminary cost contains the price of the maintenance yard and other facilities. Mr. Leavitt says it does. Commissioner Marchand asked if ACE would operate the DMU. Mr. Leavitt said that has not been decided yet. Commissioner Haggerty thanked Mr. Leavitt for his hard work on the draft EIR. Ms. Mortensen said it would be a good idea to hold these types of forums and discussions in the future. Ms. Mortensen discussed the market demands in 13 of 59

14 various areas of the Bay Area and the transportation restrictions and opportunities. Director Miller pointed out the high demand for a connection between the San Joaquin Valley and San Francisco International Airport. Commissioner Haggerty said connecting BART to ACE is the best way to service the Oakland/San Francisco market. Councilmember Vargas agreed with the comments from Commissioner Haggerty and Director Miller. Commissioner Fugazi encouraged those in attendance to ask people to provide comments on the draft EIR. 5 Adjournment The meeting was adjourned at 11:57 am. The next regular meeting is scheduled for: July 7, :00 am Robert J. Cabral Station 949 E. Channel Street, Stockton CA 14 of 59

15 Item 4.2 San Joaquin Regional Rail Commission Altamont Corridor Express Operating and Capital Expense Report June % of Budget Year Elapsed SJRRC EXPENSE % ACE EXPENSE % FY TO SPENT FY TO SPENT OPERATING EXPENSES ALLOCATION DATE TO DATE ALLOCATION DATE TO DATE Project Management, Services & Supplies Subtotal 623, ,700 77% 4,435,184 3,460,948 78% Contracted Services Subtotal 466, ,285 58% 15,895,814 13,038,600 82% Shuttle Services 1,262,232 1,262, % TOTAL OPERATING EXPENSES 1,090, ,985 69% 21,593,230 17,761,780 82% CAPITAL EXPENSE % FY TO SPENT CAPITAL PROJECTS ALLOCATION DATE TO DATE 1 ACE Forward (Project Manager approves invoices for ACEforward - Project funded directly by State) 9,900,000 6,718,988 68% 2 Cabral Track Extension 11,863, ,418 2% 3 A1 & A2 Bond Repayment 3,034,762 3,034, % 4 SJ COG Loan Repayment 1,200, ,012 27% 5 UPRR Capitalized Maintenance Projects 4,000,000 4,000, % 6 UPRR Capital Access Fee 3,242,516 3,242, % 7 Positive Train Control 2,800,000 1,617,924 58% 8 Mid Life Overhaul of 1 Locomotive 1,500, ,721 33% 9 Capital Spares/Upgrades for Passenger Cars and Locomotives 500, ,448 46% 10 San Joaquin Intercity Minor Capital Project ( Funded by State of California) 1,800, % 11 eticketing 1,000,000 51,712 5% 12 ACE Maintenance & Layover Facility 1,020, ,447 20% 13 Sunol Quiet Zone Project 800,000 5,696 1% 14 East Channel Street Improvements 173,410 34,836 20% TOTAL CAPITAL PROJECTS 42,834,613 20,166,044 47% 15 of 59

16 Status of Capital Projects 1 ACE Forward For FY 16-17, the primary tasks for ACEforward between July 1 and June 30 have been the environmental work necessary to develop the Administrative Draft EIR (which will be completed by May) and the completion of the 15% Preliminary Engineering. These tasks accounted for nearly 2/3 of the hours billed. The additional ACEforward expenses have been predominately for project management, public outreach to support the environmental process, the ridership analysis needed for the environmental document, planning work for a potential ACE extension to Sacramento, and additional study of the DMU/EMU alternative for connecting to BART in the Tri-Valley. 2 3 Bond Repayments - Bond repayments are made bi-annually. Second payment paid on 4/04/17. 4 SJ COG Loan Repayment - Annual payment made July 1, 2016 per SJCOG amended loan agreement. 5 6 UPRR Capital Access Fee - Annual payment made January 23, 2017 for FY Positive Train Control -Multi-year project is currently ongoing. 8 Mid Life Overhaul of 1 Locomotive - Project is currently in the preliminary phase. 9 Capital Spares/Upgrades for Passenger Cars and Locomotives - Preventative Maintenance is currently ongoing ACE Maintenance & Layover Facility - Ballast project completed in February Cabral Track Extension Phases Cabral Track Extension is currently under negotiation with Union Pacific for final design and is scheduled to be completed over several fiscal years. UPRR Capitalized Maintenance Projects - Multi-year project is budgeted at $4,000,000 for the year. FY 16/17 payments have been made. San Joaquin Intercity Minor Capital Project (Funded by State of California) - Agreements have been executed with Amtrak. eticketing Project - SJRRC is soliciting information from potential vendors to develop the scope of work for eticketing. Sunol Quiet Zone - Project has transitioned to a Quiet Zone project sponsored by Alameda County and is in the design and approval phase. East Channel Street Improvements - The project will be built by the development company Ten Space and the SJRRC would provide funds to Ten Space as an Economic Development Subsidy. 16 of 59

17 San Joaquin Joint Powers Authority Operating Expense Report June % of Budget Year Elapsed SJJPA EXPENSE YTD FY TO PERCENT OPERATING EXPENSES ALLOCATION DATE EXPENDED Project Management, Services & Supplies Subtotal Contracted Services Subtotal TOTAL OPERATING EXPENSES 1,625,410 1,279, % 47,268,270 39,526, % 48,893,680 40,806, % 17 of 59

18 900, Fare Revenue Item , , , , , , Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 FY Fare Revenue 646, , , , , , , , , , , ,791 8,901,962 FY Fare Revenue 691, , , , , , , , , , , ,497 8,560,441 FY TOTAL % of Budget Year Elapsed: 100% FY % of Budgeted Fare Revenue Received to Date: % Projected Annual Fare Revenue: $8,500, of 59

19 Ridership Item , , , ,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 FY TOTAL FY 16/17 Ridership 99, , , , ,241 90, ,595 74, , , , ,393 1,299,717 FY 15/16 Ridership 105, , , , ,515 91,386 99, , , , , ,988 1,290, of 59

20 ACE ON TIME PERFORMANCE OTP % Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Monthly OTP % YTD OTP % of 59

21 San Joaquin Regional Rail Commission Monthly Report July 2017 SJRRC and VSA Items VSA participated in several conference calls with SJRRC. VSA sent a letter of support from UP to DOT regarding SJRRC s FASTLANE grant application. VSA provided information on the shifting of FASTLANE grants to INFRA grants. VSA provided a memo regarding the SAFER TRANSIT Act. VSA provided information regarding new DOT nominations, including at the FRA. VSA provided information regarding both the House and Senate FY18 THUD Appropriations bills. DOT Leadership Elaine Chao was nominated by the President to serve as Secretary of Transportation. Chao is a former Secretary of Labor (President George W. Bush) and a former Deputy Secretary of DOT and former Chairman of the Federal Maritime Commission. She is also married to Senate Majority Leader Mitch McConnell. Her nomination was reported out of the Senate Commerce Committee on January 24, 2017, by a voice vote. She was confirmed by the full Senate on January 31, 2017, by a vote of On May 16, 2017, the Senate confirmed Jeffrey Rosen to be Deputy Secretary of Transportation. Rosen was previously general counsel at DOT under President George W. Bush. As Deputy Secretary for DOT he will be second in command to Secretary Chao. The President nominated Derek Kan to be Undersecretary of Transportation for Policy. His nomination was approved by the Senate Commerce Committee on June 29 th by voice vote. Kan was a Lyft general manager working in Los Angeles and a member of Amtrak s board. From 2008 to 2010 he was a policy advisor for Senate Majority Leader Mitch McConnell. Additionally, Michael Britt has been tapped to be senior advisor for FAA modernization and James Ray (previously a principal at KPMG) has been tapped to lead DOT s task force on infrastructure. Geoff Burr will replace Britt becoming acting chief of staff. Matt Kopko will be counselor to the deputy secretary. Heath Hall, former president of Strategic Marketing Group, has been sworn in as FRA Deputy Administrator. He is currently serving as Acting Administrator. The President has stated his intent to nominate Roy Batory, formerly President and COO of Conrail, as Administrator of FRA. Batory has over 40 years of experience working for Class 1 freight railroads or enterprises owned by them. 21 of 59

22 VSA will monitor for additional DOT nominations. DOT remains lightly staffed, especially regarding political appointments. There is currently only one modal administrator FAA which is a termed position (the term expires in January 2018). Fiscal Year 2018 Budget and Appropriations FY18 Congressional Budget: The House Budget Committee passed an FY18 budget resolution out of committee on July 19 th by a party line vote of Passage of the budget resolution is a step toward a major tax overhaul as the budget resolution includes reconciliation instructions for tax reform. The resolution sets a limit on discretionary spending for FY18 of $621.5 billion for base discretionary defense programs and $511 billion for nondefense discretionary spending. It would allow up to $75 billion in war funding for the military and $12 billion for the State Department and other civilian agencies. The war funds are outside of the constraints of the statutory caps which are $549 billion for defense and $516 billion for nondefense. The budget includes reconciliation instructions directing 11 authorizing committees to craft legislation to reduce the deficit by at least $203 billion over 10 years. The Ways and Means Committee is expected to produce both a comprehensive tax overall as well as legislation to cut mandatory programs. It is all but certain that the House will not consider the budget resolution on the floor until after the August recess. Leadership believes that they are still dozens of votes short of successful passage of the measure. However, the ability to use the budget resolution as a method for passing tax reform under reconciliation is attractive to many Republicans and may keep the budget resolution relevant after the August recess. The Senate has yet to consider a budget resolution in committee or on the Senate floor. FY18 Congressional Appropriations: The Congressional Appropriations process is underway for FY18, despite the lack of a budget resolution. The House Appropriations Committee marked up and passed out of committee the FY18 Transportation, Housing and Urban Development (THUD) Appropriations bill on July 17, The bill includes the following items that may be of interest: o $17.8 billion for discretionary funding at DOT ($646 million below FY17 level and $1.5 billion above the President s request) o The FRA is funded at $2.2 billion ($360 million over FY17 level and $1.1 billion above the President s request) 22 of 59

23 $1.4 billion for Amtrak, of which $328 million is for the northeast corridor grants and $1.1 billion is to support the national network Prohibits funding for HSR in CA, the CA High Speed Rail Authority and for FRA to Administer a grant agreement with the Authority that contains a tapered match. Federal-State partnership for State of Good Repair program is funded at $500 million and will go toward the $38 billion backlog for state of good repair improvements in the Northeast Corridor. o $11.75 billion for the FTA ($662 million below FY17 level and $526 million above the President s request) Transit formula grants total $9.7 billion, $4.75 billion of which is for Capital Investment Grants Core capacity projects receive $145 million Small Starts receive $182 million $400 million is for new projects that provide both public transportation and inner-city passenger rail service The federal match for New Start projects is limited to 50% o The bill eliminates the TIGER grant program ($500 million in FY17) The Senate Appropriations Committee marked up and passed out of committee the FY18 Transportation, Housing and Urban Development (THUD) Appropriations bill on July 27, The bill includes the following items that may be of interest: o $19.47 billion in discretionary appropriations for DOT ($978 million above FY17 levels) o The FRA is funded at $1.974 billion ($122 million over FY17 level) $1.6 billion for Amtrak, continuing service for all current routes $250 million for FRA safety and operations and research and development activities $92.5 million for the Consolidated Rail Infrastructure Safety Improvement grants program, of which $35.5 million is for initiation or restoration of passenger rail, $26 million is for Federal-State Partnership for State of Good Repair grants and $5 million is for Restoration and Enhancement grants o $ billion for the FTA ($285 million below FY17 enacted level) Transit formula grants total $9.733 billion, consistent with the FAST Act $2.133 billion for Capital Investment Grants (New Starts), fully funding all current Full Funding Grant Agreement transit projects o Funds the INFRA grant program (new FASTLANE grant program) at $900 million (level authorized in FAST Act) o The TIGER grant program is funded at $550 million ($50 million over FY17 levels) 23 of 59

24 The House is currently considering a security-bus on the floor. This package of bills includes four appropriations bills Defense, Military Construction/VA, Energy and Water, and Legislative Branch (member security) along with $1.6 billion in funding for the southwest border wall. While this package of bills may pass in the House, it is unlikely to pass in the Senate as drafted. The measure defies the statutory spending levels, includes funding for the border wall, and removes language in the defense spending bill that would have sunset the existing authorization for military operations abroad (which passed with broad bipartisan support in committee). All of these issues will be problematic for getting the package through the Senate. There is no concrete strategy at this point for passing the THUD Appropriations bill on the House or Senate floor. Many in Washington are betting on a Continuing Resolution to keep the government operational while Congress carves out a path forward on top-line budget and appropriations issues. FY18 Administration Budget: The Administration released their full budget proposal to Congress on May 23 rd. This is in follow up to the release of the skinny budget that was submitted to Congress from the Administration in March The President s $4.1 trillion budget for the federal government proposes to eliminate the federal deficit in 10 years through spending cuts and new revenue generated by economic growth. The budget also proposes a $54 billion increase in base discretionary defense spending in FY 2018, offset by an equal cut to nondefense discretionary spending. The President s budget includes $76 billion for the Department of Transportation (DOT). In total, this is roughly the same funding level as FY However, DOT s discretionary budget would be $16.2 billion which is a 12.4% decrease from the FY17 enacted level. The FY 2018 budget request also includes $200 billion to support President Trump s infrastructure proposal. This funding was not included in the DOT request, but was included in the overall budget request. Below are some items contained in the FY18 DOT budget proposal that may be of interest: o Eliminates the TIGER grant program o The President s budget requests $1.05 billion for the Federal Railroad Administration (FRA), which is $802 million below FY 2017 levels. $199 million for FRA safety and operations. This includes resources to monitor compliance with the implementation of positive train control, and enable FRA to improve its automated track inspection program. $39.1 million for research and development $760 million in subsidies for Amtrak, $735 million less than FY 2017 levels. This includes elimination of subsidies for all long-distance routes, and $235 million for the Northeast corridor, which is $93 million less than the FY 2017 level 24 of 59

25 The budget request eliminates funding for restoration and enhancement grants which were funded at $5 million in FY 2017 o The President requests $11.2 billion for the Federal Transit Administration (FTA). This includes the full $9.733 billion in spending from the mass transit account (MTA) of the HTF, but drastically reduces spending from general fund transit programs. $9.7 billion for transit formula grants, this is equal to the FAST Act funding level $1.2 billion for Capital Investment Grants, which includes New Starts, Small Starts, and Core Capacity projects. This is a decrease from the FY 2017 level of $2.4 billion. The budget request only funds projects that currently have a full funding grant agreement (FFGA) and proposes to phase out the program stating that future investments in new transit projects would be funded by the localities that use and benefit from these localized projects. The budget eliminates funding for transit research programs. The budget proposal eliminates general funds for the FTA s technical assistance and training account. Tax Reform Tax reform has been slower to come to fruition than originally anticipated, largely due to the delay in dealing with healthcare. The most realistic timeframe at this point is that conversations will continue between senior Congressional leaders and the Administration over the August recess. Additional hearings and mark ups should begin in September. There are ongoing meetings between senior Republicans (McConnell, Ryan, Hatch, Brady, Cohn and Mnuchin) to discuss potential reforms. On Wednesday, April 26 th, the Trump Administration outlined principles for tax cuts. These include moving from seven to three tax brackets for individuals with a top rate of 35% for individuals. The proposal also calls for a 15% rate applied to both large corporations and small businesses. The outline proposes to double the standard deduction and eliminates the AMT and the estate tax. It does NOT include a controversial border adjustment tax that is included in the House GOP tax blueprint. The proposal maintains the mortgage interest deduction and the charitable deduction but all other tax deductions/exclusions are eliminated, including municipal and private activity bonds. VSA will continue to follow developments on tax reform and will keep SJRRC updated as more information becomes available. Infrastructure Investment There is no significant infrastructure investment proposal being considered by Congress. While the Administration and Congress continue to discuss the issue 25 of 59

26 publicly, most in DC expect infrastructure to be congressionally-driven and considered in the fall, at the earliest. Administration: The Trump Administration has made bold promises to invest $1 trillion in infrastructure over ten years. The President s budget request does include a blueprint for a $1 trillion infrastructure investment funded through a combination of $200 billion of new federal funding, incentivized non-federal funding, and newly prioritized and expedited projects. Key principles of the infrastructure proposal include: o Make targeted federal investments focusing federal dollars on the most transformative projects (stresses the use and benefit of taxpayer funds) o Encourage self-help support more communities moving toward a model of independence o Align infrastructure investment with entities best suited to provide sustained and efficient investment Administration will look for opportunities to appropriately divest from certain functions, which will provide better services for citizens, and potentially generate budget savings o Leverage the private sector P3s will not be solution to all infrastructure projects, they can help advance the most important, regionally significant projects In addition to the $200 billion in federal funding, these proposals are also included in the FY 2018 budget to support the infrastructure initiative: air traffic control (ATC) corporatization; increase infrastructure flexibility at the Department of Veterans Affairs (VA); divestiture of the Power Marketing Administration s (PMA) transmission assets; reform laws governing the inland waterways trust fund. The infrastructure proposal includes the following policy proposals: o Expand the Transportation Infrastructure Finance and Innovation Act (TIFIA) increase TIFIA subsidies by $1 billion annually for 10 years, leveraging $140 billion in credit assistance and expand TIFIA eligibility o Lift cap on private activity bonds (PABs) and expand eligibility to other nonfederal infrastructure o Incentivize innovative approaches to congestion mitigation this includes congestion pricing, enhanced transit services, increased telecommuting and flex scheduling, and deployment of advanced technologies o Liberalize tolling policy and allow private investment in rest areas o Fund the Water Infrastructure Finance and Innovation Act (WIFIA) program o Encourage the use of Army Corps of Engineers contributed/advanced funding authorities o Establish a federal capital revolving fund this mandatory revolving fund would help finance federally-owned civilian capital assets 26 of 59

27 o Partnership grants for federal assets a private partner may wish to build or improve a federal facility and donate it to the government in exchange for the right to retain revenue from the associated activities. The Administration is developing a proposal to offer those partners grants in lieu of loans to buy down the cost of a federal asset improvement. o Environmental review and permitting process enhancements Secretary Chao made comments in April about moving an infrastructure package more quickly than previously suggested. Chairman Shuster and others in Congress still think that a late fall timeframe is more realistic. Congress: In late January, Senate Democrats outlined an ambitious proposal to spend $1 trillion on a broad range of infrastructure projects over the next ten years. Since the announcement, neither the President nor Congressional Republicans have responded in any significant way to the Democrats offer. The proposal suggests the following investments: Reconstruct Roads & Bridges $100B Improve Airports $30B Revitalize Main Street $100B Address Ports & Waterways $10B Expand TIGER $10B Build Resilient Communities $25B Rehabilitate Water and Sewer $110B 21st Century Energy Infrastructure $100B Modernize Rail Infrastructure $50B Expand Broadband $20B Repair & Expand Transit $130B Invest in Public Lands & Tribal Infrastructure $20B Vital Infrastructure Program $200B Modernize VA Hospitals $10B Rebuild Public Schools $75B Provide Innovative Financing Tools $10B Congressional Republicans continue to discuss a desire to provide more funding for infrastructure, but have not offered a formal proposal or a specific time as to when they may draft a proposal. Some continue to look at repatriation of corporate foreign income as a (at least partial) funding source, while others suggest those funds should be used for tax reform. There is little to no talk of Congress simply using deficit spending to fund infrastructure. FY17 Appropriations On May 5 th, the President signed into law an omnibus package for the remainder of FY17. The omnibus included legislation for the remaining 11 appropriations bills (Military Construction/VA was enacted in September). 27 of 59

28 In terms of DOT, the bill includes $58.58 billion for FY17 (the FY16 enacted level was $57.60 billion). Below are some items that may be of interest to SJRRC: o $2.4 billion for Capital Investment Grants for subways, light rail and commuter rail transit systems ($236 million more than FY16 enacted level) o $1.5 billion for Amtrak ($105 million more than FY16 enacted) o $500 million for TIGER grants (level with FY16 enacted) o $218 million for FRA Safety and Operations ($19 million more than FY16 enacted) o $199 million for PTC on commuter railroads o The bill does NOT include a rider that prevents the FRA from administering a grant agreement for high speed rail in CA 28 of 59

29 Item 4.7 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of August 4, 2017 STAFF REPORT ACTION Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Supporting September as Rail Safety Month, Commending Efforts Being Made to Improve Railroad Crossing Safety, and Urging the Public to be Cautious and Safe Around Railroad Tracks and Property, and to Remember; SEE TRACKS? THINK TRAIN! September is Rail Safety Month in California. Each year, support is requested for California Rail Safety Month. The SJRRC would like to be able to show this support in advance of September by approving the attached Resolution. Background: In 2009 the State of California, in support of California Operation Lifesaver (CAOL), proclaimed September as Rail Safety Month. CAOL partners ACE, Amtrak, BNSF, Caltrain, Caltrans, CFNR, Metrolink, Modesto & Empire Traction Company, North County Transit District, Operation Lifesaver Inc., OCTA, Richmond Pacific Railroad, Santa Clara VTA, SJVR, UP, and Veolia continue to support Rail Safety Month efforts and related educational activities/events each September to promote rail safety awareness. The Northern and Southern Rail Safety Teams, that include many of these same CAOL partners, support the mission of Operation Lifesaver and work with CAOL to promote Rail Safety Awareness in September and throughout the year. The teams and CAOL are active throughout the ACE corridor working to increase rail safety messaging to educate the public in cities and communities in this corridor. Each September, California Operation Lifesaver presentations and events are planned and executed in these cities and other communities throughout the entire month. CAOL utilizes many different methods to deliver the rail safety message which include: Rail Safety Presentations, Community Event Outreach, Rail Safety Blitz s, Media Outreach, PSA s and more. CAOL collaborates with railroads and transit providers, city governments, school districts, public service agencies, private industry organizations, and area businesses to raise awareness about safety among the groups and communities that need it most. 29 of 59

30 Fiscal Impact: There is no fiscal impact. Recommendation: Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Supporting September as Rail Safety Month, Commending Efforts Being Made to Improve Railroad Crossing Safety, and Urging the Public to be Cautious and Safe Around Railroad Tracks and Property, and to Remember; SEE TRACKS? THINK TRAIN! 30 of 59

31 RESOLUTION SJRRC-R-17/18- RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION SUPPORTING SEPTEMBER AS RAIL SAFETY MONTH, COMMENDING EFFORTS BEING MADE TO IMPROVE RAILROAD CROSSING SAFETY, AND URGING THE PUBLIC TO BE CAUTIOUS AND SAFE AROUND RAILROAD TRACKS AND PROPERTY, AND TO REMEMBER; SEE TRACKS? THINK TRAIN! WHEREAS, the San Joaquin Regional Rail Commission places a priority on rail safety and supports the rail safety efforts of California Operation Lifesaver and our rail partners efforts to improve railroad safety and to educate people of the dangers of not obeying the signs and signals around railroad property; and WHEREAS, September is historically back to school month for most children and college students where many must cross railroad tracks to attend school, and it is important to reinforce rail safety with both children and their caretakers; and WHEREAS, California Operation Lifesaver, the Federal Rail Administration, the California Department of Transportation, the California Public Utilities Commission, and freight and passenger railroads are working together to improve railroad safety and to educate children and adults of the dangers of not obeying the signs and signals around railroad property; and WHEREAS, railroad operators, motor vehicle operators, and pedestrians will benefit from a combined effort by local, state, and Federal Government, industry and citizen efforts to promote safety around railroad tracks and crossings and reduce the likelihood of train related incidents; and WHEREAS, September is Rail Safety Month in the State of California; and WHEREAS, the See Tracks? Think Train! campaign by Operation Lifesaver, and its federal partners aims to help reduce pedestrian and driver injuries and fatalities around railroad tracks by highlighting behaviors that put people at great risk; and WHEREAS, California Operation Lifesaver supports the See Tracks? Think Train! effort by conducting on-the-ground law enforcement trainings, safety presentations, and public awareness activities to help reduce train related incidents; and NOW THEREFOR BE IT RESOLVED, the Board of Commissioners of the San Joaquin Regional Rail Commission do hereby support September as Rail Safety Month, commend efforts being made to improve railroad crossing safety, and urge the public to be cautious and safe around railroad tracks and property and to remember; SEE TRACKS? THINK TRAIN! 31 of 59

32 PASSED AND ADOPTED, by the Board of Commissioners this 4 th day of August 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION STACEY MORTENSEN, Secretary BOB JOHNSON, Chair 32 of 59

33 Item 4.8 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of August 4, 2017 STAFF REPORT ACTION Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing and Directing the Chair to Execute the FY 17/18 Measure K Project Cooperative Agreements Background: At SJCOG s request the San Joaquin Regional Rail Commission annually prepares Measure K Project Cooperative Agreements (PCA) to be consistent with the Commission s adopted Budget. The PCA is a funding mechanism to allocate Measure K revenues to the Rail Commission work activities. Each PCA identifies the work tasks of each major category, the overall project timeline, cost, and the Measure K funding share of each component. PCAs are jointly developed with SJRRC & SJCOG and are consistent with the Commission s adopted Budget and projections. The agreements have been reviewed by SJCOG staff and their comments have been incorporated into the Agreements, which will be presented to the SJCOG Board for approval. The draft Measure K Project Cooperative Agreements are on file at the SJRRC offices for review upon request. Fiscal Impact: Costs identified in the Measure K Project Cooperative Agreements are consistent with the approved 2017/2018 SJRRC/ACE Operating and Capital Budgets and projections. Recommendation: Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing and Directing the Chair to Execute the FY 17/18 Measure K Project Cooperative Agreements. 33 of 59

34 RESOLUTION SJRRC-R-17/18- RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION AUTHORIZING AND DIRECTING THE CHAIR TO EXECUTE THE FY 17/18 MEASURE K PROJECT COOPERATIVE AGREEMENTS WHEREAS, the San Joaquin Regional Rail Commission is an eligible recipient of Measure K Renewal fund; and WHEREAS, the SJRRC Measure K Renewal funds for FY 17/18 are expected to total $3,594,986; and WHEREAS, the Measure K Renewal program require recipients enter into cooperative agreements to allocate revenue; and WHEREAS, the San Joaquin Regional Rail Commission has prepared a program of capital and operating projects consistent with the Measure K Renewal program; NOW THEREFORE BE IT RESOLVED, the Board of Commissioners of the San Joaquin Regional Rail Commission, hereby authorizes and directs the Chair to execute the FY17/18 Measure K Project Cooperative Agreements. PASSED AND ADOPTED, by the Board of Commissioners this 4 th day of August 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION STACEY MORTENSEN, Secretary BOB JOHNSON, Chair 34 of 59

35 Item 4.9 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of August 4, 2017 STAFF REPORT ACTION Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Approving the Fiscal Year Transportation Development Act (TDA) Claim and Authorizing Submission by the Executive Director to the San Joaquin Council of Governments for Local Transportation Funds (LTF) And State Transit Assistance Funds (STA) for a Total of $2,690,885 Background: At the September 2013 Rail Commission meeting, the Board directed staff to work with SJCOG to achieve an increased LTF allocation more consistent with the statutory priorities of this state funding program. Since the September 2013 Rail Commission Board directive, Rail Commission staff worked with SJCOG staff to provide numerous pro-forma budgets, cash flow analysis, justification of costs, and an assessment of all available revenue options. SJCOG staff vetted this information fully and came to the conclusion to support a Rail Commission funding request of $4M (an increase of $3.3M) for LTF funding. This effort resulted in SJCOG proposing a multi-year compromise in TDA funding to allow the Commission to meet its funding needs. The compromise provided the Rail Commission with stepped up increases in TDA funding, in combination with amendments to the SJCOG Measure-K Note. As a direct claimant for both LTF and STA funding from the San Joaquin Council of Governments, the San Joaquin Regional Rail Commission has prepared a TDA Claim for FY funding and unclaimed funds from previous years for the following amounts: Local Transportation Funds $2,209,394 State Transit Assistance Funds $481,491 Total Gross TDA Claim Amount $2,690,885 Less fees for SJCOG Administrative $76,464 Net 2016/2017 SJRRC TDA Funds $2,614,421 The 2016/2017 TDA funds will be used for Operations consistent with the Approved FY2016/2017 SJRRC/ACE Operating Budget. Fiscal Impact: This TDA claim is consistent with the approved FY SJRRC/ACE Operating Budget. 35 of 59

36 Recommendation: Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Approving the Fiscal Year Transportation Development Act (TDA) Claim and Authorizing Submission by the Executive Director to the San Joaquin Council of Governments for Local Transportation Funds (LTF) And State Transit Assistance Funds (STA) for a Total of $2,690, of 59

37 RESOLUTION SJRRC-R-17/18- RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION APPROVING THE FISCAL YEAR TRANSPORTATION DEVELOPMENT ACT (TDA) CLAIM AND AUTHORIZING SUBMISSION BY THE EXECUTIVE DIRECTOR TO THE SAN JOAQUIN COUNCIL OF GOVERNMENTS FOR LOCAL TRANSPORTATION FUNDS (LTF) AND STATE TRANSIT ASSISTANCE FUNDS (STA) FOR A TOTAL OF $2,690,885 WHEREAS, the San Joaquin Regional Rail Commission is the owner operator of the Altamont Corridor Express Service; and WHEREAS, the State of California enacted the Transportation Development Act (TDA) in 1972 to provide funds for transportation needs each fiscal year; and WHEREAS, the San Joaquin Regional Rail Commission is an eligible claimant of Transportation Development Act funds administered by the San Joaquin Council of Governments; and WHEREAS, the San Joaquin Regional Rail Commission incorporates the Transportation Development Act funds into the approved FY operating and capital budgets; NOW THEREFORE, BE IT RESOLVED that the FY TDA Claim is hereby approved and authorized for submission to the San Joaquin Council of Governments by the Executive Director, or designee, for LTF and STA funds. NOW THEREFORE, BE IT FURTHER RESOLVED that the Executive Director is hereby authorized to make the necessary budget amendments, transfers, accounting adjustments, and claim amendments necessary to carry out the Commission s policies and directives pertaining to this action. PASSED AND ADOPTED, by the Board of Commissioners this 4 th day of August 2017, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION STACEY MORTENSEN, Secretary BOB JOHNSON, Chair 37 of 59

38 Item 5 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of August 4, 2017 STAFF REPORT ACTION Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Two-Year and Eleven-Month Contract with Two One-year Options for Financial Auditing Services to Kemper CPA Group LLP for an Amount Not-To-Exceed $235,280 total from August 4, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement Background: On April 11, 2017, SJRRC released a Request for Proposals for the solicitation of Financial Auditing Services with proposals due on May 09, As a result of the solicitation, the Rail Commission received proposals from the following firms: Brown Armstrong Bakersfield, CA James Marta & Company Sacramento, CA Kemper CPA Group LLP Merced, CA Maze & Associates Pleasant Hill, CA Sotomayor & Associates, LLP Pasadena, CA The Pun Group Santa Ana, CA Vavrinek, Trine, Day & Company, LLP Sacramento, CA A panel consisting of Robert Schiffler (SJRRC), Nila Cordova (SJRRC), and Angela Miller (SJRRC) reviewed the proposals. Based on the proposers responsiveness to the scope of work, Kemper CPA Group LLP was selected as the most responsive proposer. Kemper CPA Group LLP s price proposal for the initial two-year and eleven-month period is $235,280 of which $188,830 is for SJRRC/ACE and $46,450 is for SJJPA. The Two, One- Year options are at the sole discretion of the Rail Commission and the cost for the optionyear will be negotiated in advance. Fiscal Impact Costs associated with the first year of this Agreement are identified in the approved SJRRC/ACE/SJJPA Fiscal Year 2017/2018 Operating Budget in the Contracted Services Category in the Audits/Regulatory Reporting line. Future year s costs will be brought before the Board as part of the annual Budget approval process for consideration. Recommendation Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Two-Year and Eleven-Months Contract with Two One-year Options for Financial Auditing Services to Kemper CPA Group LLP for an Amount Not-To- Exceed $235,280 total from August 4, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement. 38 of 59

39 RESOLUTION SJRRC-R-17/18- RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION AUTHORIZING A TWO-YEAR AND ELEVEN-MONTHS CONTRACT WITH TWO ONE-YEAR OPTIONS FOR FINANCIAL AUDITING SERVICES TO KEMPER CPA GROUP LLP FOR AN AMOUNT NOT-TO-EXCEED $235,280 TOTAL FROM AUGUST 4, 2017 THROUGH JUNE 30, 2020, AND AUTHORIZING AND DIRECTING THE EXECUTIVE DIRECTOR TO EXECUTE THE AGREEMENT WHEREAS, SJRRC requires Financial Auditing Services; and WHEREAS, a Request for Proposal for Financial Auditing Services was issued on April 11, 2017 with a due date of May 9, 2017; and WHEREAS, on May 9, 2017, seven proposals were received for Financial Auditing Services; and WHEREAS, the seven proposals received were deemed responsive to the RFP and evaluated as part of the procurement process; WHEREAS, the Rail Commission came to agreement on the terms and price with Kemper CPA Group, LLP for Financial Auditing Services; NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the San Joaquin Regional Rail Commission hereby Authorize a Two-Year and Eleven-Months Contract with Two One-year Options for Financial Auditing Services to Kemper CPA Group LLP for an Amount Not-To-Exceed $235,280 total from August 4, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement PASSED AND ADOPTED, by the Board of Commissioners this 4 th day of August 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION STACEY MORTENSEN, Secretary BOB JOHNSON, Chair 39 of 59

40 Item 6 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of August 4, 2017 STAFF REPORT ACTION Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Two-Year and Eleven-Month Contract with Two One-year Options for Ticket Printing Services to Acme Decalcomania, Ltd. for an Amount Not- To-Exceed $228,000 total from August 4, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement Background: On April 18, 2017, SJRRC released a Request for Proposals for the solicitation of Ticket Printing Services with proposals due on June 14, As a result of the solicitation, the Rail Commission received proposals from the following firms: Acme Decalcomania Ltd. Canada Ticket A panel consisting of Andrea Kenworthy (SJRRC), Steve Walker (SJRRC), and Ricky Brown (SJRRC) reviewed the proposals. Based on the proposers responsiveness to the scope of work, Acme Decalcomania Ltd. was selected as the most responsive proposer. Acme Decalcomania Ltd. s price proposal for the initial two-year and eleven-month period is $228,000. The Two, One-Year options are at the sole discretion of the Rail Commission and the cost for the option-year will be negotiated in advance. Fiscal Impact Costs associated with the first year of this Agreement are identified in the approved SJRRC/ACE Fiscal Year 2017/2018 Operating Budget in the Contracted Services Category in the Ticket Services line. Future year s costs will be brought before the Board as part of the annual Budget approval process for consideration. Recommendation Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Two-Year and Eleven-Months Contract with Two One-year Options for Ticket Printing Services to Acme Decalcomania Ltd. for an Amount Not-To- Exceed $228,000 total from August 4, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement 40 of 59

41 RESOLUTION SJRRC-R-17/18- RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION AUTHORIZING A TWO-YEAR AND ELEVEN-MONTHS CONTRACT WITH TWO ONE-YEAR OPTIONS FOR TICKET PRINTING SERVICES TO ACME DECALCOMANIA LTD. FOR AN AMOUNT NOT-TO-EXCEED $228,000 TOTAL FROM AUGUST 4, 2017 THROUGH JUNE 30, 2020, AND AUTHORIZING AND DIRECTING THE EXECUTIVE DIRECTOR TO EXECUTE THE AGREEMENT WHEREAS, SJRRC requires Ticket Printing Services; and WHEREAS, a Request for Proposal for Ticket Printing Services was issued on April 11, 2017 with a due date of June 14, 2017; and WHEREAS, on June 14, 2017, two proposals were received for Ticket Printing Services; and WHEREAS, the two proposals received were deemed responsive to the RFP and evaluated as part of the procurement process; WHEREAS, the Rail Commission came to agreement on the terms and price with Acme Decalcomania Ltd. for Ticket Printing Services; NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the San Joaquin Regional Rail Commission hereby Authorize a Two-Year and Eleven-Months Contract with Two One-year Options for Ticket Printing Services to Acme Decalcomania Ltd. for an Amount Not-To-Exceed $228,000 total from August 4, 2017 through June 30, 2020, and Authorizing and Directing the Executive Director to Execute the Agreement PASSED AND ADOPTED, by the Board of Commissioners this 4 th day of August 2017, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION STACEY MORTENSEN, Secretary BOB JOHNSON, Chair 41 of 59

42 Item 8 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of August 4, 2017 STAFF REPORT ACTION Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Finding that Immediate Action is Necessary to Prevent an Emergency and Authorize Filing the CEQA Notice of Exemption for the Emergency Demolition of the Western Pacific Depot Building Due to Imminent Threat to the Public of Bodily Harm or Damage to Adjacent Property and Authorize and Direct the Executive Director to Execute all Documents Related to the Notices Background: In September of 2008, the Commission purchased the Western Pacific (WP) Depot and immediate parcels for $1.3M ($1.2M with an additional $100,000 in transaction costs). At the time, the Commission s intent was to renovate the structure and relocate some administrative office staff to the building, potentially using the location as an additional transit station. At the time of purchase, no funding was available to renovate the building, therefore the Commission retained the property in its existing condition. In December of 2015, a fire occurred inside the building on the second floor. The conclusion was that trespassers had broken into the building and started the fire either intentionally or by accident. Stockton Fire Department responded to the fire and had a difficult time entering the structure due to the heavily reinforced entry points which had been installed to prevent trespassers from gaining access to the building. The fire damaged all of the second floor and most of the center section of the first floor. After the fire in 2015, staff posted No Trespassing signs on the exterior walls of the building in various locations to deter trespassers from entering the site and building. Since the 2015 fire, the WP Depot has become a haven for vagrants and trespassers. Commission staff continually secure and re-secure the building, removing trespassers frequently. Regardless of how good staff secures the building, trespassers continue to break into the building. In one instance a staff member was assaulted by a trespasser. Since 2015, seventeen (17) incident reports have been filed, resulting in requests for service from the Stockton Police Department. During those seventeen (17) incidents, the Stockton Police Department arrested three (3) trespassers and issued trespass warnings to another five (5). These incident reports are only a representation of the problem and trespassers continue to be a daily problem at the property. Police have responded multiple times to calls to address trespassers on the property since staff do not feel safe dealing with vagrants without Police presence. Security continues to patrol the site on a daily basis, frequently confronting trespassers leaving the structure. Attempting to deter vagrants from accessing the building even further, in the middle of 2016 staff removed the utility services from the WP Depot to prevent further risk of fire/damage/injury. In August of 2016, Pacific Gas and Electric Company confirmed that all utilities had been removed. 42 of 59

43 In December of 2017, the Commission engaged Siegfried Engineering, a local engineering firm to evaluate the structural integrity of the building. On January 3 rd, 2017 Siegfried Engineering visited the building to conduct their evaluation. Siegfried Engineering provided their findings on January 6 th, 2017, concluding that the building was not salvageable for reuse. Since the March 2017 Board Meeting, staff has been reviewing multiple options involving the reconstruction and demolition of the historic WP Depot Building. This included meetings and discussions with local preservation groups, citizens, and the City of Stockton. David Kwong, Director of Community Development for the City of Stockton, provided a letter on June 12 th, 2017 in response to a Planning Application submitted for demolition of the structure and a subsequent site visit by the Community Development Department. The letter states: As a result of this review and investigation, City staff confirmed that the building is in very poor condition and would require significant repairs and reconstruction to provide a safe, usable space. Because the site and building are unsafe and dangerous, the application for the demolition or relocation of this historic resource is approved. This decision allows the property owner to pursue a building permit/demolition permit should the property owner desire to demolish rather than restore the building. As the building is now considered to be unsafe given the state of disrepair, the demolition can proceed with the application of a demolition permit. However, because this building is a State Historic Resource, [SJRRC] is encouraged to preserve any structurally sound and architecturally distinctive portions of the building The building permit/demolition permit is considered a ministerial permit not subject to CEQA, particularly give the circumstances of this site/building posing an unsafe situation. Unfortunately, on Sunday June 18 th, 2017, the structure was once again subject to another major fire which damaged much of the structure on the south side. When firefighters arrived, they found one transient who had trespassed into the building who responded that no one else was in the building as he was being evacuated. However, moments later fire personnel heard another trespasser in the building and quickly removed him. One of the trespassers was transported to the hospital to be treated. Due to the fire damage, the structure is impossible to fully secure and transients continue to frequent the structure. The day after the fire, there was evidence that trespassers had once again broken into the building and were occupying it. Trespassers continue to break into the building despite substantial efforts to deter them. On June 30 th, 2017, staff met with the Save Downtown Stockton Foundation (SDSF) and Dr. Wes Swanson on site to review the damage and determine if any historic elements were salvageable. On July 5 th, 2017 (posted to the structure on June 30 th, 2017), the Rail Commission received a Notice of Violation from the City of Stockton Police Department (Case No TS) stating that the structure was unsafe to enter. The violation stated the following: 43 of 59

44 These conditions pose such an immediate threat to the life, limb, health, safety, and welfare of the public at large and the occupants of this property as to constitute an emergency. Therefore, notice is hereby given that this property must not be entered, Uniform Code for the Abatement of Dangerous Buildings, Section et seq.: unless all violations are corrected and approved. Based on the environmental analysis, staff has prepared the following description of the proposed Project, which includes a detailed Project Description and a review of the Qualifications for a Statutory Exemption. Staff also contacted the State Historic Preservation Office (SHPO), however a return call had not been received at the time of preparation of this staff report. Projects that qualify for a statutory exemption are not required to prepare additional CEQA documentation such as a Mitigated Negative Declaration or an Environmental Impact Report. There is no requirement for a Notice of Exemption (NOE) to be publicly circulated for comment or review and no requirement that a notice must be filed, but if one is filed, it can only be filed after project approval. When a NOE is not filed after project approval, there is a 180-day period in which the filing can be legally challenged. When a NOE is filed after project approval, there is a 35-day legal appeal period. The Commission would act as the Lead Agency in the adoptions of this Notice. The California Office of Planning and Research (OPR) NOE template has been completed for the Project. Should the Board approve the Project and authorize the filing of this exemption, a NOE for the project will be filed with the State Clearinghouse and the San Joaquin County Clerk. Based on staff observations and on documentation provided by SDSF, the following items may be able to be salvaged: Fireplace Mantle Fireplace brick Exterior Western Pacific logo Women s Restroom Ceiling Women s Restroom Floor Tile Door Hardware Windows Corner Guards Roof Tiles (full tiles and pieces) Project Description Demolish the Western Pacific Railway Depot, a historical resource previously recorded as Resource P at 1025 E. Main Street. The depot is listed on the California Register of Historical Resources (CRHR) and meets the criteria for listing in the National Register of Historic Places (NRHP), CRHR, and City of Stockton Landmark criteria. 1 Salvage as much historically significant items as reasonable and feasibly possible. At the direction of the Board, the Executive Director is authorized to determine historic items to be 1 The Depot was found eligible for listing on the CRHR and the NRHP prior to two fires. Given the level of damage resulting from the fires, the Depot may no longer qualify as a California or National historic resource. 44 of 59

45 salvaged and determine a plan for their storage or reuse. The purpose of the Project is to eliminate the immediate threat to the life, limb, health, safety, and welfare of the public at large and the occupants of this property. Project Qualification for a Statutory Exemption: Per the California Environmental Quality Act (CEQA) Guidelines Section 15269(c), CEQA does not apply to Specific actions necessary to prevent or mitigate an emergency to prevent or mitigate an imminent threat to the public of bodily harm or of damage to property. The proposed Project qualifies for a statutory exemption under the CEQA Guidelines Section 15269(c) and Public Resource Code Section (b)(4) because immediate action is necessary to prevent or mitigate the emergency situation for the following reasons: 1. The Notice of Violation received from the City of Stockton Police Department confirms that the structure poses an immediate threat to the life, limb, health, safety, and welfare of the public at large and the occupants of this property as to constitute an emergency. 2. As experienced during the recent fire, there is an immediate threat to human life, wherein two trespassers had to be evacuated from the structure during the fire, one of which had to be treated at a local hospital and trespassers continue to break into the building. 3. The City of Stockton Community Development Department has deemed the building unsafe and dangerous, concluding it is eligible for demolition. 4. Due to the fire damage, the building cannot be secured because of the damage to the exterior and interior walls, load bearing walls, windows, and doors. 5. Substantial attempts to keep people out of the building have been unsuccessful due to the determination of trespassers to enter and occupy the building. The Stockton Fire Marshall noted that trespassers returned to the structure a day after the most recent fire. 6. The building is no longer safe for occupancy, another incident could occur at any time further comprising the building and endangering any trespassers that are occupying it illegally. Another fire, earthquake, or structural failure could result in serious injury or death to trespassers occupying the building illegally. 7. There is an immediate threat to the welfare and safety of the Commission staff. Facilities personnel, operations personnel, and security staff are at risk daily as they continually try to re-secure the building and confront trespassers. One employee has already been assaulted in an incident with a trespasser. 8. The southern portion of the building, which included the second-floor office space, lobby (waiting area), and first floor offices, was totally consumed by the fire. However, the remainder of the structure is unsafe due to the extensive fire damage and structural integrity of the remaining structure. 45 of 59

46 9. An asbestos survey conducted prior to the second fire noted the presence of Asbestos Contain Materials in the walls and roofing mastic. The current state of the structure could lead persons to come in contact with these regulated materials posing an immediate threat to human health. 10. The roof collapsed into the center of the building and the interior wall framing does not appear salvageable. 11. Some of the exterior walls have been damaged by the fire and now have water damage from the firefighting activities; their structural integrity is questionable. 12. The northern portion of the building, which still remains, is still in jeopardy of collapse, consistent with the existing Structural Engineer s report prior to the June 18 th, 2017 fire. This Project constitutes a single and complete project and functions independently of any other improvements to meet the stated purpose. For the reasons stated above, this Project is statutorily exempt from CEQA. Fiscal Impact Minimal fiscal impact for recording of the Notice of Exemption ($50.00), future actions will be required for demolition and/or salvage activities. Recommendation Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Finding that Immediate Action is Necessary to Prevent an Emergency and Authorize Filing the CEQA Notice of Exemption for the Emergency Demolition of the Western Pacific Depot Building Due to Imminent Threat to the Public of Bodily Harm or Damage to Adjacent Property and Authorize and Direct the Executive Director to Execute all Documents Related to the Notices. 46 of 59

47 RESOLUTION SJRRC-R-17/18- RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION FINDING THAT IMMEDIATE ACTION IS NECESSARY TO PREVENT AN EMERGENCY AND AUTHORIZE FILING THE CEQA NOTICE OF EXEMPTION FOR THE EMERGENCY DEMOLITION OF THE WESTERN PACIFIC DEPOT BUILDING DUE TO IMMINENT THREAT TO THE PUBLIC OF BODILY HARM OR DAMAGE TO ADJACENT PROPERTY AND AUTHORIZE AND DIRECT THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS RELATED TO THE NOTICES WHEREAS, the San Joaquin Regional Rail Commission ("Commission") is the property owner of the Western Pacific Depot ( Depot ) building located at 1025 E. Main Street ( Property ); and WHEREAS, the Depot, is a historical resource previously recorded as Resource P at 1025 E. Main Street; and WHEREAS, the Depot is listed on the California Register of Historical Resources (CRHR) and meets the criteria for listing in the National Register of Historic Places (NRHP), CRHR, and City of Stockton Landmark criteria; and WHEREAS, the Commission wishes to eliminate the immediate threat to the life, limb, health, safety, and welfare of the public at large and the occupants of this Property by demolishing the Depot ( Project ); and WHEREAS, the Project qualifies for a Statutory Exemption under the Public Resources Code Section (b)(4); and WHEREAS, the Staff Report provides reason why immediate action is necessary to prevent or mitigate the emergency situation; and WHEREAS, the Commission can act as the Lead Agency for these applications; and WHEREAS, the Commission wishes to salvage as much historically significant items as reasonable and feasibly possible. NOW, THEREFORE, the Commission hereby resolves as follows: 1. The Staff Report provided for this Resolution (Item 8 on August 4 th, 2017) is hereby incorporated into this Resolution by reference. 2. A Notice of Exemption shall be filed for the Demolition of the Depot citing the California Environmental Quality Act (CEQA) Guidelines Section 15269(c) and the Statutory Exemption as Public Resource Code 20180(b)4). 3. The Executive Director is authorized and directed to salvage as much historically significant items as reasonable and feasibly possible. 47 of 59

48 4. The Executive Director is authorized and directed to execute said Notice of Exemption and any and all related documents. PASSED AND ADOPTED, by the Board of Commissioners this 4 th day of August 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION STACEY MORTENSEN, Secretary BOB JOHNSON, Chair 48 of 59

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