San Joaquin Regional Rail Commission

SAN Commissioner, Bob Johnson, Chair, City of Lodi Commissioner, Vince Hernandez, City of Manteca Commissioner, Christina Fugazi, City of Stockton Commissioner, Mike Maciel, City of Tracy Commissioner, Steve Dresser, City of Lathrop Commissioner, Scott Haggerty, Alameda County JOAQUIN Commissioner, Tom Blalock, Bay Area Rapid Transit (BART) Executive Director, Stacey Mortensen REGIONAL RAIL COMMISSION

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. § 12132) and the Ralph M. Brown Act (California Government Code § 54954.2). 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) 944-6220, 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, 95202 during normal business hours or by calling (209) 944-6220. The Agenda is available on the San Joaquin Regional Rail Commission website: www.acerail.com.

AGENDA March 4, 2016 – 8:00 am Robert J. Cabral Station Heritage House South Hall Meeting Room (Conference Call) 949 East Channel Street County of Alameda Stockton, CA 95202 4501 Pleasanton Avenue Pleasanton, CA 94566

1 Call to Order, Pledge of Allegiance, Roll Call Chair Johnson Roll Call: Blalock, Haggerty, Fugazi, Dresser, Hernandez, Maciel, Chair Johnson Ex-Officios: Agar, Chesley, DeMartino

2 Public Comments Persons wishing to address the Commission on any 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 54954.2 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 www.acerail.com/about-ace/sjrrc-board.html subject to staff’s ability to post the documents prior to the meeting.

3 Presentations and Recognitions

949 East Channel Street Stockton, CA 95202 (800) 411-RAI L (7245) www .acerail.com

4 Consent Calendar

4.1 Minutes of February 5, 2016 ACTION 5 4.2 Rail Commission/ACE Monthly Expenditure Report INFORMATION 10 4.3 ACE Monthly Fare Revenue INFORMATION 12 4.4 ACE Ridership INFORMATION 13 4.5 ACE On-Time Performance INFORMATION 14 4.6 Washington Update INFORMATION 15 4.7 2016/2017 San Joaquin Regional Rail Commission ACTION 21 Meeting Calendar

5 Approve a Resolution of the Board of Commissioners of the ACTION 22 San Joaquin Regional Rail Commission Authorizing the Opening of the Public Comment Period Until May 6, 2016, for a Proposed 5.25% Fare Increase for All ACE Service Fare Media Rounded Up to the Nearest 25¢, Effective October 3, 2016, and Setting a Public Hearing for Adoption of the ACE Fare Increase at the May 6, 2016 Rail Commission Meeting (Brian Schmidt)

6 Approve a Resolution of the Board of Commissioners of the ACTION 25 San Joaquin Regional Rail Commission Authorizing the Executive Director to Submit and Execute Any and All Grant Applications, Agreements, Certifications and Assurances and Any Other Documents Necessary to Obtain Financial Assistance Provided by the California State Transportation Agency (CalSTA) Under the Cap and Trade Program (Dan Leavitt)

7 Approve a Resolution of the Board of Commissioners of the ACTION 28 San Joaquin Regional Rail Commission Certifying the Notice of Exemptions for “Early Action” Projects Associated with the ACEforward Program and Authorize and Direct the Executive Director to Execute all Documents Related to the Notices After Project Approval (Bryan Pennino)

8 Approve a Resolution of the Board of Commissioners of the ACTION 32 San Joaquin Regional Rail Commission Authorizing a Contract with Summit Signal, Inc. for the Construction and Installation of the Sunol Wayside Horn System (16-R-29-00) in an Amount Not-To-Exceed $547,100.89 and Authorize and Direct the Executive Director to Execute all Documents Related to the Agreement (Bryan Pennino)

9 Approve a Resolution of the Board of Commissioners of the ACTION 36 San Joaquin Regional Rail Commission Authorizing the Executive Director to Execute the Transportation Development Act (TDA) Claim to the San Joaquin Council of Governments for Fiscal Year 2015-16 Funding of $2,648,548 (Brian Schmidt)

10 Update on the Discussion at the February SJCOG Board INFORMATION 58

2 of 60 Meeting and Follow-up Discussions with SJRTD Regarding the Rail Commission LTF Request (Stacey Mortensen)

11 Update on Amtrak Agreement Negotiations for the San INFORMATION 59 Joaquins (Stacey Mortensen)

12 Update on ACEforward Program INFORMATION 60

13 Commissioner Comments

14 Ex-Officio Comments

15 Executive Director Report

16 Adjournment The next regular meeting is scheduled for April 1, 2016 – 8:00 am Robert J. Cabral Station, 949 East Channel Street, Stockton, CA

3 of 60 4 of 60 SAN JOAQUIN REGIONAL RAIL COMMISSION March 4, 2016 Item 4.1 ACTION Minutes of February 5, 2016 The regular meeting of the San Joaquin Regional Rail Commission was held at 8:00 am, February 5, 2016 at the Robert J. Cabral Station, 949 East Channel Street Stockton, CA 95202. 1 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.

Commissioners Present: Haggerty, Dresser, Fugazi, Hernandez, Maciel, Vice-Chair Miller, Chair Johnson Ex-Officio Members Present: DeMartino (SJRTD), Chesley (SJCOG), Dumas (Caltrans)

2 Public Comments Ms. Judy Houdsel, Tracy Ca, informed the Board of the congestion at the Tracy ACE station in the evening and asked if anything could be done to add a right turn lane exiting the station on to Tracy Blvd to relieve traffic backing up into the parking lot and people speeding to get out of the lot before the long backup. Ms Houdsel is a former ACE rider.

3 Presentations and Recognitions None

4 Consent Calendar

4.1 Minutes of November 6, 2015 ACTION 4.2 Rail Commission/ACE Monthly Expenditure Report 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 a Resolution of the Board of Commissioners of the San ACTION Joaquin Regional Rail Commission Authorizing and Directing the Executive Director to Submit and Execute any and All Certifications And Assurances Necessary to Obtain Financial Assistance Provided By the California State Transportation Agency (CalSTA) Under the Cap and Trade Program 4.8 Approve a Resolution of the Board of Commissioners of the San ACTION Joaquin Regional Rail Commission Authorizing and Directing the Executive Director to Sign and Submit the State Transit Assistance Application to Claim Alameda County Transportation Commission Apportionment for the ACE Service in the Amount of $450,000 for the Fiscal Years 2014/2015 and 2015/2016.

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M/S/C (Maciel/Hernandez) Approve the Consent Calendar. Passed and Adopted by the San Joaquin Regional Rail Commission on the 5th day of February 2016 by the following vote to wit: AYES: 7 Haggerty, Dresser, Fugazi, Hernandez, Maciel, Vice-Chair Miller, Chair Johnson NOES: 0 ABSTAIN: 0 ABSENT: 1 Blalock

5 Discuss and Approve an SJRRC Position on the SJCOG Staff ACTION Recommendation for the 2016/17 and 2017/18 Local Transportation Fund Allocations to SJRRC

Stacey Mortensen and Bob Schiffler updated the Board on 26 month process the Rail Commission staff had undertaken and how funding splits for ACE were developed and the reasons why the Rail Commission became the Managing Agency of the ACE Service.

Ms. Mortensen presented the history of the ACE Cooperative Services Agreement, why it was developed, how funding for the service was developed, and that each agency is responsible for funding.

Ms. Mortensen noted COG staff developed a 2-year temporary Rail Commission allocation proposal developed to accommodate the Commission’s LTF request. Ms. Mortensen noted the temporary 2-year proposal was vetted through the COG committees in January and was presented at the COG Board. Ms. Mortensen noted Chair Johnson attended the January COG Board meeting and requested the COG Board delay any decision on the 2-year temporary allocation until the Rail Commission Board had an opportunity to review and discuss the proposal and develop a position.

Chair Johnson noted even though we as Rail Commissioners wear many hats as Mayors, City Council members, and SJCOG Board Members, but today we need to put our rail hats on make and take a position on what is best for rail.

Commissioner Maciel thanked Ms. Mortensen for the information on what funding and what Santa Clara and Alameda Counties are required to pay to the Rail Commission for operations and what they are required to pay for within their own jurisdiction. With the information provided Santa Clara and Alameda are paying what they are required to pay.

Commissioner Maciel commented that while the City of Tracy will not be happy about taking a reduction in funding for the 2-year temporary solution, but might go along with the proposal. With Tracy, Manteca and Lathrop being an economic driver for San Joaquin County the ability for residents to get to jobs in the Bay Area is critical for the region to grow.

Commissioner Maciel added, if Rail is a priority, then there may need to be a discussion at the COG Board level if the use of LTF on streets and roads is appropriate.

Commissioner Miller commented through her research LTF was originally intended for transit with street and roads component after transit was funded. The issue is that City’s and County have become dependent on this funding, and there needs to be a discussion on what can be done to fund the local streets and roads going forward.

Commissioner Miller commented she is willing to accept the 2-year temporary proposal only if there is a commitment that this issue is resolved within the 2-years and not extended.

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Chair Johnson noted as Commissioner Maciel stated the ability for residents to get to jobs is critical to the economy of San Joaquin County as identified in a San Joaquin Partnership study showing the larger economic impact the County receives from residents traveling to jobs in the Bay Area.

Commissioner Hernandez commented on the importance of the ACE service to Manteca and the County and asked about the scale of ACE’s growing ridership. He acknowledged the difficulty for Manteca potentially losing funding for some of their programs but believed they could be creative in finding solutions. He noted the Rail Commission has refrained from making a bigger request for 17 years of service and that has allowed others in the region to benefit. Now there are real investments that need to be made to maintain the success of the service. As the County grows, ACE needs to grow to provide alternative transportation.

Commissioner Dresser commented while Lathrop is one the fastest growing communities in the County the City has become dependent on the available LTF funding for streets and roads. This change in funding will have an effect on how maintenance is done, but this is an issue that needs to be looked at and resolved.

Ms. DeMartino, SJRTD, commented on the impact of the COG proposal on the RTD services and noted they have already experienced service cuts. She described the demographics of the RTD riders and the importance of the services to them. Ms. DeMartino agreed the issue is larger than bus versus rail because LTF is a transit funding program and the policy issues need to be addressed for the long term. However the current COG proposal creates significant negative impacts on the Transit District and their riders and they cannot support it.

Mr. Chesley, SJCOG, commented on the complex policies of the LTF program and the impact of the Rail Commission request. He noted the process in meeting with all of the jurisdictions to come up with a compromise to address the Rail Commission request and mitigate the impact to RTD. A key issue is the continued use of LTF funds in some jurisdictions for local street repairs, which contributes to the overall transit shortfall. The ultimate solution will have to tackle this issue and working toward a long term solution will take time. Mr. Chesley noted COG staff would likely still be recommending the compromise proposal to the SJCOG Board.

Vice Chair Miller asked about the comparison between the $700,000 hit to the Rail Commission and the hit to SJRTD. Mr. Chesley responded the COG staff calculation was $600,000, but that RTD was challenging that figure.

Commissioner Fugazi asked how the shortfall for the Rail Commission would be filled. Ms. Mortensen responded that there were no resources identified currently to fill the deficit and the situation was compounded by the federal money in the compromise proposal that requires a local match, or use of toll credits, which aren’t actual dollars and there is no guarantee FTA would approve their use for the Rail Commission.

Chair Johnson commented that LTF is primarily for transit and rail services are prioritized at the top of the program. He summarized Mr. Chesley’s proposal as being again, only for the short term, as had been done last year and there was no certainty this was going to be resolved.

Chair Johnson made a motion that the Rail Commission request the $4.0m needed in LTF funding from SJCOG and if the $4.0m is not allocated direct staff to file an appeal to the Secretary of Transportation.

7 of 60 M/S/C (Johnson/Hernandez) Approve an SJRRC Position on the SJCOG Staff Recommendation for the 2016/17 and 2017/18 Local transportation Fund Allocations to SJRRC. Passed and Adopted by the San Joaquin Regional Rail Commission on the 5th day of February 2016 by the following vote to wit: AYES: 5 Dresser, Fugazi, Hernandez, Maciel, Chair Johnson NOES: 1 Vice-Chair Miller, ABSTAIN: 0 ABSENT: 0

6 Approve a Resolution of the Board of Commissioners of the San ACTION Joaquin Regional Rail Commission Approving the SJRRC Federal Legislative Priorities for 2016 and Authorizing Submittal into the SJCOG One Voice Program.

Brian Schmidt reviewed the prior years’ Legislative Priority and noted various stakeholders in Washington DC, including the Department of Transportation in Washington encouraged the Rail Commission to continue with the same priority, the Stockton Track Extension Project. Additionally, the stakeholders encouraged staff to resubmit the Project in the TIGER VIII program this coming spring.

M/S/C (Johnson/Miller Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Approving the SJRRC Federal Legislative Priorities for 2016 and Authorizing Submittal into the SJCOG One Voice Program. Passed and Adopted by the San Joaquin Regional Rail Commission on the 5th day of February 2016 by the following vote to wit: AYES: 7 Blalock, Dresser, Fugazi, Hernandez, Maciel, Vice-Chair Miller, Chair Johnson NOES: 0 ABSTAIN: 0 ABSENT: 1 Haggerty,

7. Election of Officers ACTION

Chair Johnson opened the discussion for Rail Commission Chair and Vice-Chair in 2016.

After discussion Commissioner Maciel nominated Chair Johnson to remain Chair for 2016, and the nomination was seconded by Commissioner Hernandez.

After discussion, Chair Johnson nominated Commissioner Maciel as Vice-Chair for 2016, and the nomination was seconded by Commissioner Fugazi.

M/S/C (Maciel/Hernandez) Approve current Chair Johnson as Chair of the San Joaquin Regional Commission for 2016. Passed and Adopted by the San Joaquin Regional Rail Commission on the 5th day of February 2016 by the following vote to wit: AYES: 7 Haggerty, Dresser, Fugazi, Hernandez, Maciel, Vice-Chair Miller, Chair Johnson NOES: 0 ABSTAIN: 0 ABSENT: 1 Blalock

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M/S/C (Johnson/Fugazi) Approve Commissioner Maciel as Vice-Chair of the San Joaquin Regional Rail Commission for 2016. Passed and Adopted by the San Joaquin Regional Rail Commission on the 5th day of February 2016 by the following vote to wit: AYES: 7 Haggerty, Dresser, Fugazi, Hernandez, Maciel, Vice-Chair Miller, Chair Johnson NOES: 0 ABSTAIN: 0 ABSENT: 1 Blalock

8 Update on Amtrak Agreement Negotiations for the San Joaquin’s INFORMATION

In the interest to time, the update was deferred to the next meeting.

9 Commissioner Comments

Commissioner Fugazi asked staff to look into participating in Rosa Parks Day in the future.

Commissioner Miller announced she will be leaving the Rail Commission Board.

10 Ex-Officio Comments

None

11 Executive Director Comments

None

12 Adjournment –

The meeting was adjourned at 8:56 am. The next regular meeting is scheduled for: March 4, 2016 – 8:00 am Robert J. Cabral Station 949 E. Channel Street, Stockton CA

9 of 60 Item 4.2

San Joaquin Regional Rail Commission Altamont Corridor Express Operating and Capital Expense Report January 2015 59 % of Budget Year Elapsed

SJRRC EXPENSE % ACE EXPENSE % FY 15-16 TO SPENT FY 15-16 TO SPENT OPERATING EXPENSES ALLOCATION DATE TO DATE ALLOCATION DATE TO DATE

Project Management, Services & Supplies Project Management, Services & Supplies Subtotal 644,852 248,558 39% 4,217,370 1,820,185 43% Contracted Services Subtotal 399,739 136,584 34% 15,186,149 6,648,485 44% Shuttle Services 1,203,190 381,947 32% TOTAL OPERATING EXPENSES 1,044,591 385,142 37% 20,606,709 8,850,617 43%

CAPITAL EXPENSE % FY 15-16 TO SPENT CAPITAL PROJECTS ALLOCATION DATE TO DATE

1 Cabral Track Extension 1,946,720 22,966 1% 2 A1 & A2 Bond Repayment 3,038,013 688,328 23% 3 Altamont Corridor Rail Project HSR/Regional Rail EIR/EIS 10,200,000 - 0% 4 UPRR Capital Access Fee 3,242,516 - 0% 5 Positive Train Control 5,000,000 3,948,000 79% 6 Mid Life Overhaul of 1 Locomotive 1,400,000 - 0% 7 Capital Spares/Upgrades for Passenger Cars and Locomotives 850,000 - 0% 8 San Joaquin Intercity Minor Capital Project ( Funded by State of California) 500,000 0% 9 eTicketing 1,000,000 1,186 0% 10 ACE Maintenance & Layover Facility 1,200,000 3,159 0% 11 Security Project (On Board Cameras) 1,000,000 3,069 0% 12 Sunol Wayside Horn Project 800,000 3,168 0% TOTAL CAPITAL PROJECTS 30,177,249 4,669,877 15%

10 of 60 Status on Capital Projects 1 Cabral Track Extension Phases 1-3 - Cabral Track Extension is currently ongoing and is scheduled to be completed in a future fiscal year. 2 Bond Repayments - Bond repayments are made bi-annually. The first payment for the fiscal year was made on October 9, 2015. The second payment is scheduled for April 15, 2016. 3 Altamont Corridor Rail Project HSR/Regional Rail EIR/EIS - Project is currently ongoing.

4 UPRR Capital Access Fee - Payment due March 2016

5 Positive Train Control - Expected completion is 15-16. PTC Installation invoice received August 2015.

6 Mid Life Overhaul of 1 Locomotive - No activity to date.

7 Capital Spares/Upgrades for Passenger Cars and Locomotives - No activity to date. 8 San Joaquin Intercity Minor Capital Project (Funded by State of California) - No activity to date. 9 eTicketing Project - is currently ongoing. 10 ACE Maintenance & Layover Facility - Final processing of change orders, final payments applications and other paperwork are underway, this will allow the project to be formally “closed-out.” 11 Security Project (On Board Cameras) - In final phase of testing.

12 Sunol Wayside Horn Project - is currently ongoing.

11 of 60 Fare Revenue Item 4.3 800,000

750,000

700,000

650,000

600,000

550,000

500,000

450,000

400,000

350,000

300,000 FY Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 TOTAL FY 15-16 Fare Revenue 691,120 726,320 756,505 775,946 689,118 612,393 686,119 - - - - - 4,937,520 FY 14-15 Fare Revenue 622,997 656,896 745,617 732,067 544,828 623,202 680,375 622,604 721,746 689,067 729,375 617,884 7,986,657

% of Budget Year Elapsed: 58% FY 15-16 % of Budgeted Fare Revenue Received to Date: 61.9% Projected Annual Fare Revenue: $8,000,000

12 of 60 ACE DAILY AVERAGE RIDERSHIP

95,503 93,727 106,573 104,176 103,190 105,411 105,454 109,072 115,890 122,306 102,515 91,386 99,795 6000

5000

4000

3000

2000

1000

0 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 DAILY AVERAGE 4775 4686 4844 4735 5160 4791 4793 5133 5519 5436 5325 4107 4928

MONTHLY RIDERSHIP 95,503 93,727 106,573 104,176 103,190 105,411 105,454 109,072 115,890 122,306 102,515 91,386 99,795 Item. 4.4 % CHANGE 1% 6% 11% 4% -2% 7% 5% 7% 6% 4% 15% 9% 4%

13 of 60 ACE ON TIME PERFORMANCE

100

OTP% 40

0 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Item. 4.5 YTD OTP % 91.14 95.51 91.48 90.91 95.00 93.18 93.18 97.62 91.02 90.86 90.13 95.83 78.48 Monthly OTP % 91.14 93.31 92.65 92.19 92.74 92.81 92.87 93.46 93.19 92.95 92.72 92.98 78.48

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San Joaquin Regional Rail Commission Monthly Report – February 2016

SJRRC and MHGS Items • MHGS facilitated a phone call between SJRRC and DOT to discuss SJRRC’s TIGER 7 application in advance of submitting a TIGER 8 application. • MHGS submitted meeting requests in advance of a SJRRC visit to DC. • On February 23rd, MHGS covered and provided a memo on the Senate Commerce Committee, Subcommittee on Surface Transportation’s hearing on passenger rail. • On February 24th, MHGS covered and provided a memo on the House THUD Appropriations Subcommittee hearing on the FY17 DOT budget request.

Congressional Appropriations and Budget Process

FY17 Administration Budget: • The Administration released its FY 2017 budget on February 9th. • The Budget provides a total of $98.1 billion in discretionary and mandatory budgetary resources for the Department of Transportation in 2017. • Over the next decade, the Budget reflects an average increase of about $30 billion per year in investments associated with the 21st Century Clean Transportation Plan to reduce traffic and carbon intensity of the transportation sector and adapt to emerging technologies in developing sustainable systems of the future. This investment package includes: o An average of about $10 billion a year over 10-years for new, multi-modal programs awarded at the state and local level to promote innovations that lead to smarter, cleaner regional transportation systems; o On average, $10.5 billion annually over 10 years to improve our Nation’s transit systems, including $3.6 billion per year to expand the development, access and use of public transit; o Nearly $7 billion annually on average over 10 years to support current operations, improve rail safety and invest in high-performance rail initiatives; o $2 billion in FY 2017 to expand investment in the future of our freight system, in addition to nearly $2 billion in baseline resources; o $1.25 billion annually to expand the successful, multi-modal Transportation Investment Generating Economic Recovery (TIGER) program. • The Budget also fully supports FAST-authorized funding levels for the surface transportation program, which are aimed at keeping the system safe and in a state of good repair. For 2017, this includes: o $44 billion to invest in the critical infrastructure of the nation’s highway and bridge systems;

15 of 60 o Nearly $10 billion to support operations of public transit systems across the Nation; o Roughly $730 million for the National Highway Traffic Safety Administration (NHTSA) to research and develop new, life-saving technologies and to support vehicle safety programs; o Around $640 million to support nationwide motor carrier safety and consumer enforcement efforts through the Federal Motor Carrier Safety Administration (FMCSA). • The Budget also provides discretionary resources to fund air, maritime and pipeline and hazardous materials transportation activities, including: o $15.9 billion for the Federal Aviation Administration (FAA) to invest in the safest, most efficient aerospace system in the world. o $295 million for the Pipeline and Hazardous Materials Safety Administration (PHMSA) to facilitate the safe transportation of hazardous materials through pipelines, rail, roadway, air, and waterways. o $428 million for the Maritime Administration to implement programs that promote the economic competitiveness, efficiency, and productivity of U.S. maritime transportation. o $36 million for the Saint Lawrence Seaway Development Corporation (SLSDC), to operate and maintain the U.S. portion of the binational St. Lawrence Seaway, and promote environmental management and regional economic development.

FY17 Congressional Budget: • On 10/27/15 House Republican Leadership released a draft 2-year budget framework that was negotiated with the support of the White House. The legislation would raise the debt ceiling through March 2017 and establish defense and non-defense spending caps for FY16 and FY17 which would increase spending by $80 billion over those two fiscal years. The increase in spending is offset by tapping the Strategic Petroleum Reserve, auctioning spectrum and other revenues and cuts. • The House passed the measure on 10/28, and on 10/30, the Senate cleared the two- year budget and debt ceiling deal, just 72 hours after it was unveiled by congressional leaders and the White House. • Less than 4 months after the 2-year deal was signed into law, members of the Freedom Caucus and other conservative lawmakers are demanding additional spending cuts for FY17. • House Budget Committee Chairman Price has acknowledged that he will have to cut an estimated $30 billion from the October 2015 deal for FY17 in order to get a budget agreement passed in the House. These cuts are likely to come from mandatory programs, but the legislative process for advancing these cuts is not yet determined. Appropriators are resistant to including these cuts within their annual bills, but other options (like advancing the cuts as a stand-alone measure) have drawbacks as well.

16 of 60 • Chairman Price is aiming to mark up a budget resolution during the third week of March. • It is unclear at this point if the Senate will draft and attempt to pass a budget resolution.

FY16 Omnibus: • On December 18th the House (316-113) and Senate (65-33) passed the FY16 Omnibus Appropriations bill. The omnibus combines all 12 annual appropriations bills to fund the government at $1.149 trillion (consistent with the 2-year budget deal passed in October) through the end of FY16. • The bill includes $18.65 billion in FY2016 discretionary appropriations for the Department of Transportation, $847 million above the FY2015 enacted level and $2.7 billion below the President’s request (disregarding the Administration’s request to shift more funding in certain programs from discretionary to mandatory spending.) Within this amount, funding is prioritized on programs to make the transportation systems safe, efficient, and reliable. • TIGER Grants are funded at $500 million, equal to the FY2015 enacted level, for TIGER grants, which are also known as National Infrastructure Investments. • The Federal Railroad Administration (FRA) is funded at $1.68 billion, an increase of $52 million above the FY2015 enacted level. This includes $289 million for Amtrak operations and continued service for all current routes, and $1.1 billion for capital grants. The bill also promotes necessary reforms to Amtrak, and repurposes $19 million in old, unobligated rail funding to support the Northeast Corridor. • The bill includes $288 million to support rail safety and research programs, including inspectors and safety personnel to help ensure the safety of passengers and local communities. This funding also includes $50 million for rail safety grants, to support the implementation of Positive Train Control (PTC) and improve rail infrastructure, such as track, tunnels and bridges. • The Federal Transit Administration (FTA) is funded at $11.76 billion, consistent with the recently-passed authorization in the FAST Act. The bill provides a total of $2.177 billion for Capital Investment Grants (“New Starts”), fully funding all current “Full Funding Grant Agreement” (FFGA) transit projects, as well as supports new projects anticipated to receive FFGA awards. Also $50 million is provided for core capacity projects, and $353 million for Small Starts projects. • In total, Congress passed three CRs before passing a final omnibus bill for FY16.

FAST Act/Surface Transportation/Passenger Rail • On December 4th, President Obama signed into law the FAST Act, a 5-year authorization of surface transportation programs. Amtrak and passenger rail programs were reauthorized as part of the FAST Act. • The House passed the bill on December 3rd (359-65) and the Senate passed the bill on the same day (83-16).

17 of 60 • The FAST Act is the result of intense conference negotiations between the House and Senate to resolve differences between their two different surface transportation bills. • With regard to Hazardous Materials, the bill: o Grants states more power to decide how to spend training and planning funds for first responders o Requires Class I railroads to provide crude oil movement information to emergency responders o Reforms an underutilized grant program for state and Indian tribe emergency response efforts o Better leverages training funding for hazmat employees and those enforcing hazmat regulations o Requires real-world testing and a data-driven approach to braking technology o Enhances safety for both new tank cars and legacy tank cars o Speeds up administrative processes for hazmat special permits and approvals o Cuts red tape to allow a more nimble federal response during national emergencies • The rail title of the bill: o Provides robust reforms for Amtrak, including reorganizing the way Amtrak operates into business lines o Gives states greater control over their routes, by creating a State-Supported Route Committee o Speeds up the environmental review process for rail projects, without sacrificing environmental protections o Creates opportunities for the private sector through station and right-of-way development o Consolidates rail grant programs for passenger, freight, and other rail activities o Establishes a Federal-State Partnership for State of Good Repair grant program o Strengthens Northeast Corridor planning to make Amtrak more accountable and states equal partners o Allows competitors to operate up to three Amtrak long-distance lines, if at less cost to the taxpayer o Strengthens passenger and commuter rail safety, and track and bridge safety o Preserves historic sites for rail while ensuring that safety improvements can move forward o Unlocks and reforms the Railroad Rehabilitation and Improvement Financing (RRIF) loan program o Includes reforms to get RRIF loans approved more quickly with enhanced transparency o Provides commuter railroads with competitive grants and loans to spur timely Positive Train Control implementation

18 of 60 o Provides competitive opportunities for the enhancement and restoration of rail service o Increases the rail liability cap

Surface Transportation Board Reauthorization Bill • On December 18th the President signed the Surface Transportation Board Reauthorization, S. 808, into law. The bill was passed by the House on December 10th by voice vote. • On June 18th, the Surface Transportation Board Reauthorization bill passed the Senate by Unanimous Consent. The bill was then sent to the House. • The bill was introduced on March 19, 2015 by Senators Thune and Nelson. • Specifically, the bill: 1) Sets timelines for rate reviews and expands voluntary arbitration procedures, 2) Grants STB new authority to proactively investigate rail delay issues and enhances transparency, and 3) Enacts structural reforms on the board (increases to 5 members) to allow for direct discussion to improve efficiency • The bill was passed out of the Commerce Committee on March 25th. MHGS covered the mark up and provided a separate memo.

Tax extenders/Tax Reform • On December 17, 2015, the House passed tax extenders legislation by a vote of 318- 109, and the Senate followed suit the very next day by a 65-33 vote. • The extenders package included $680B in in permanent and short term extensions of tax breaks for businesses and individuals. • The recently passed legislation includes a number of items specific to transportation. The 45G short line tax credit was extended for two years, through January 1, 2017. It also allows short lines created after 2005 to claim the credit. • The tax extender legislation also increases and permanently extends the commuter transit tax benefit (from $130 per month to $255 per month). • With the 2016 election now coming into full swing, the prospect for tax reform in the 114th Congress remains dim. • However, some believe that the recently passed tax extenders bill increases the chances for tax reform to be accomplished in 2017. • The thinking is that the extenders package altered the budget baseline in such a way that it will be easier to lower the 35% corporate tax rate. • Additionally, now that the former W&M Chairman Paul Ryan is the House Speaker, he may work to leverage his new power to attain his goal of tax reform.

Short Line Tax Credit • The Short Line Tax Credit was extended as part of the tax extenders package passed in December 2015 (along with the omnibus). • Senators Crapo, Wyden, Moran, Schumer, Isakson, Casey, Boozman and Blumenthal introduced the Short Line Tax Credit bill, S. 637, on March 3, 2015. The bill has been referred to the Finance Committee. There are currently 42 co-sponsors.

19 of 60 • This legislation would extend the Short Line Railroad tax credit until January 1, 2017. • A similar bill has been introduced in the House (H.R. 721) by Representative Jenkins. The bill was referred to the Ways and Means Committee and currently has 247 co-sponsors.

Railroad Safety and Positive Train Control Extension Act • Congress included a PTC extension in the short term transportation bill extension that they passed in late October. • The bill would extend the deadline to install PTC to Dec. 31, 2018, from Dec. 31, 2015. • On March 4, 2015, Senators Blunt, Thune, and McCaskill introduced a PTC extension bill, S. 650. There are ten additional co-sponsors: Johnson, Fischer, Inhofe, Sullivan, Murkowski, Moran, Heller, Rubio, Ayotte, and Portman. The bill was referred to the Senate Commerce Committee. • The purpose of the bill is to extend from December 31, 2015, to December 31, 2020, the deadline for Class 1 Railroads to implement PTC. The bill authorizes the Secretary of DOT to extend the implementation deadline, upon application, in one- year increments. The Secretary is directed to revise federal regulations requiring a Class II or Class III railroad to equip its locomotives with an onboard PTC system to operate in PTC territory. • The bill was passed out of the Commerce Committee in March. MHGS covered the mark up and provided a memo. • Prior to the recent Amtrak derailment, MHGS heard that Sen. Blunt’s strategy was to seek inclusion of this legislation in the THUD appropriations package that will pass later this year. However, the derailment changed the political landscape for a PTC delay. • A PTC extension was included in the House’s version of the Surface Transportation Reauthorization bill, as well as the recently announced short term extension.

20 of 60 ITEM: 4.7 San Joaquin Regional Rail Commission Fiscal Year 2016/2017 Board Meeting Schedule (Meetings are scheduled on the first Friday of the month) July 2016-June 2017

Date Location Time July 1, 2016 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

August 5, 2016 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

September 2, 2016 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

October 7, 2016 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

November 4, 2016 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

December 2, 2016 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

January 6, 2017 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

February 3, 2017 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

March 3, 2017 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

April 7, 2017 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

May 5, 2017 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

June 2, 2017 Robert J. Cabral Station, South Meeting Room 8:00 AM 949 E. Channel Street - Stockton, CA

21 of 60 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 4, 2016

STAFF REPORT

Item 5 ACTION Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Opening of the Public Comment Period Until May 6, 2016, for a Proposed 5.25% Fare Increase for All ACE Service Fare Media Rounded Up to the Nearest 25¢, Effective October 3, 2016, and Setting a Public Hearing for Adoption of the ACE Fare Increase at the May 6, 2016 Rail Commission Meeting

Background:

In 2012, the San Joaquin Regional Rail Commission (SJRRC) approved a fare increase of 10% for the Altamont Corridor Express (ACE) service effective January 1, 2013. As part of the public comments, passengers expressed a desire to have annual fare increases in small increments rather than larger increases every few years. This was consistent with the adopted Fare Program which allows for annual increases. However, further evaluation of cost and required staff time involved deemed a biennial increase more acceptable.

In May 2014, the Rail Commission approved a 4.75% fare increase, rounding the ticket price to the nearest $0.25 increment effective October 6th 2014. The fare increase included a grace period of not to exceed 90 days to allow passengers to use up their old ticket stock.

Proposed Fare Increase:

The adopted ACE Fare Program utilizes the annual Consumer Price Index (CPI) for Urban Wage Earner and Clerical Workers, San Francisco-Oakland-San Jose Area as a basis for fare increases, adjusted by any significant regional or industry factors. The CPIs for December 2013-December 2015 is shown below:

Year CPI December 2013-2015 – Total CPI Increase 5.31% Since Last Fare Increase in October 2014

Based upon the CPI data, staff is proposing a 5.25% increase (actual CPI down to the nearest .25%) to all fares, with all increases rounded up to the nearest $0.25 increment.

22 of 60 Fare Increase Adoption Schedule:

As part of the Rail Commission’s fare increase policy a public comment period is required. A proposed schedule is included below:

March 4, 2016 : Open Public Comment Period until May 6, 2016

May 6, 2016 : Public Comment Period Closes : Open Public Hearing : Receive Comments : Close Public Hearing : Consider Adopting a resolution implementing the fare increase

Staff will assemble the comments received prior to mailout for the May 6, 2016 Board meeting and provide all comments received after the mailout date to the Board during the staff presentation. Additionally, the Cooperative Services Agreement dated June 30, 2003 states the Commission must seek and receive approval from the Alameda County Transportation Commission (ACTC) and the Santa Clara Valley Transportation Authority (VTA) prior to approving the increase.

The approval process for ACTC and VTA will be completed prior to the May 6, 2016 Board meeting.

If approved, staff will redesign the fare media to create a distinctly new identity allowing the Passenger Service Agents (PSAs) to quickly determine valid fares. Ticket stock from October 2014 fare increase will be honored for no more than 90 days (October 3, 2016 – December 31, 2016) for travel or after that time maybe upgraded at face value.

Additionally, to avoid confusion and delay, staff is proposing that refunds be prohibited due to the high cost, passenger inconvenience, and disruptive process of returning partially used and/or previous fare media. However, SJRRC will honor tickets purchased January 2013 and forward for upgrade.

Attached is a copy of the Proposed Fare Increase for review.

Recommendation:

Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Opening of the Public Comment Period Until May 6, 2016, for a Proposed 5.25% Fare Increase for All ACE Service Fare Media Rounded Up to the Nearest 25¢, Effective October 3, 2016, and Setting a Public Hearing for Adoption of the ACE Fare Increase at the May 6, 2016 Rail Commission Meeting.

23 of 60 RESOLUTION RRC-R-15/16-

RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION AUTHORIZING THE OPENING OF THE PUBLIC COMMENT PERIOD UNTIL MAY 6, 2016, FOR A PROPOSED 5.25% FARE INCREASE FOR ALL ACE SERVICE FARE MEDIA ROUNDED UP TO THE NEAREST 25¢, EFFECTIVE OCTOBER 3, 2016, AND SETTING A PUBLIC HEARING FOR ADOPTION OF THE ACE FARE INCREASE AT THE MAY 6, 2016 RAIL COMMISSION MEETING

WHEREAS, the Adopted ACE Fare Program allows for fare increases to be implemented each year based upon the Consumer Price Index (CPI) for Urban Wage Earner and Clerical Workers, San Francisco-Oakland-San Jose Area; and

WHEREAS, the ACE fares were last increased in October 2014 by 4.75%; and

WHEREAS, the CPI increases over the last two years have totaled approximately 5.25%; and

WHEREAS, ticket stock from the October 2014 fare increase will be honored for no more than 90 days (October 3, 2016 – December 31, 2016) for travel or after that time maybe upgraded at face value; and

WHEREAS, refunds are prohibited due to the high cost, passenger inconvenience, and disruptive process of returning partially used and/or previous fare media.

NOW THEREFORE, BE IT RESOLVED that the Board of Commissioners of the San Joaquin Regional Rail Commission hereby authorizes the opening of the Public Comment for a proposed 5.25% fare increase for all ACE service fare media rounded up to the nearest 25¢, effective October 3, 2016, until May 6, 2016, and setting a Public Hearing for adoption of the ACE fare increase at the May 6, 2016 Rail Commission meeting.

PASSED AND ADOPTED, by the Board of Commissioners this 4th day of March, 2016, by the following vote:

AYES: NOES: ABSENT: ABSTAIN:

ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION

______STACEY MORTENSEN, Secretary BOB JOHNSON, Chair

24 of 60 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 4, 2016

STAFF REPORT

Item 6 ACTION Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Executive Director to Submit and Execute Any and All Grant Applications, Agreements, Certifications and Assurances and Any Other Documents Necessary to Obtain Financial Assistance Provided by the California State Transportation Agency (CalSTA) Under the Cap and Trade Program

Background:

The Transit and Intercity Rail Capital Program (TIRCP) was created by Senate Bill 862 (Chapter 36, Statutes of 2014) to provide grants from the Greenhouse Gas Reduction Fund to fund capital improvements and operational investments that will modernize California’s transit systems and intercity, commuter, and urban rail systems to reduce emissions of greenhouse gases by reducing vehicle miles traveled throughout California. The goals of the TIRCP are revenue to fund capital improvements and operational investments that will reduce greenhouse gas emissions, modernize California’s intercity rail, and bus and rail transit systems to achieve the following objectives: • Reduction in greenhouse gas emissions; • Expand and improve rail service to increase ridership; • Integrate the rail service of the state’s various rail operations, including integration with the high-speed rail system; and • Improve safety

Additionally, it is a goal of this program to provide at least 25 percent of available funding to projects that provide a direct, meaningful, and assured benefit to disadvantaged communities, consistent with the objectives of Senate Bill 535. It is the intent of the California State Transportation Agency (CalSTA) to adopt an initial multi- year program of projects covering a minimum of two years of estimated funding. The California Department of Transportation in collaboration with CalSTA is responsible for administering this program.

TIRCP has an existing continuous appropriation of approximately $440 million through 2017/2018. Additional funding proposed as part of the Administrations Transportation Funding Plan would include $800 million in appropriations in 2016/2017 and 2017/2018. This brings the potential appropriations between $440 million and $1.24 billion.

Project applications will be selected through a competitive processed based on evaluation criteria outlined in the Program Guidelines. Over the past six (6) weeks, staff has developed a potential list of project that can fit into prioritized phases. This effort has proven to be an iterative process and the exact application is not finalized yet. At

25 of 60 this time Staff proposes to include the following projects within this TIRCP Application, while maintaining the flexibility to tailor the application to the Program Guidelines: • Parking, either surface lots or structures (potentially in Stockton, Tracy, and Vasco, and Pleasanton) • Platform Extensions (potentially at Lathrop, Tracy, Vasco, Livermore and Pleasanton) • Rolling Stock procurement, including new locomotives and coach cars • Niles Canyon Railway rehabilitation to main line standards • Capital Access Fee, a fee paid to the Union Pacific Railroad for extended train consists

By completing the projects listed above the Commission expects to obtain the following benefits: • Increased ridership due to increased parking facilities. • Increased ridership due to extended train consists (extending two round (2) trips to a length of eight (8) coach cars to ten (10) coach cars). • Extended Platforms to aid in passengers boarding and alighting the existing seven (7) car consists and also extended train consists (current platforms are sized for six (6) car consists). • Future increased trip frequency and/or reduced run-time by shifting the freight traffic to the Niles Canyon Railway.

If approved, Staff will continue to develop this application for submission prior to the April 5th, 2016 deadline. This includes producing the required ridership forecasts and Greenhouse Gas Reduction calculations required by the Program Guidelines. The projects listed above will be finalized and prioritized into phases to allow CalSTA to fund as many projects within the application as possible.

If successful, these funds will be amended in to the Capital Budget.

Fiscal Impact:

No Fiscal Impact at this time.

Recommendation:

Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Executive Director to Submit and Execute Any and All Grant Applications, Agreements, Certifications and Assurances and Any Other Documents Necessary to Obtain Financial Assistance Provided by the California State Transportation Agency (CalSTA) Under the Cap and Trade Program.

26 of 60 RESOLUTION RRC-R-15/16

RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION AUTHORIZING THE EXECUTIVE DIRECTOR TO SUBMIT AND EXECUTE ANY AND ALL GRANT APPLICATIONS, AGREEMENTS, CERTIFICATIONS AND ASSURANCES AND ANY OTHER DOCUMENTS NECESSARY TO OBTAIN FINANCIAL ASSISTANCE PROVIDED BY THE CALIFORNIA STATE TRANSPORTATION AGENCY (CALSTA) UNDER THE CAP AND TRADE PROGRAM

WHEREAS, the California State Transportation Agency will administer the Transit and Intercity Rail Capital and Low Carbon Transit Operations Programs to eligible grantees for transportation improvement and greenhouse gas reduction projects, and

WHEREAS, The San Joaquin Regional Rail Commission (SJRRC) is an eligible grantee for Cap and Trade funding;

WHEREAS, the California State Transportation Agency requires a resolution from the governing board in order to receive the funds and that SJRRC will abide by the terms that go with this grant;

NOW, THEREFORE, BE IT RESOVLED by the Board of Directors of the San Joaquin Regional Rail Commission that the Executive Director is hereby authorized to file and execute grant applications, grant agreements, certifications, assurances and other documents as may be necessary for obtaining federal financial assistance provided by the California State Transportation Agency following all required rules and terms.

PASSED AND ADOPTED by the Board of Commissioners this 4th, day of March 2016, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

SAN JOAQUIN REGIONAL RAIL COMMISSION

______

STACEY MORTENSEN, Secretary BOB JOHNSON, Chair

27 of 60 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 4, 2016

STAFF REPORT

Item 7 ACTION Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Certifying the Notice of Exemptions for “Early Action” Projects Associated with the ACEforward Program and Authorize and Direct the Executive Director to Execute all Documents Related to the Notices After Project Approval.

Background:

The Rail Commission in currently underway with the ACEforward Program which aims at providing improvements along the existing corridor and service expansion toward Modesto and Merced. Included in the ACEforward Program are a number of “Early Action” projects which have independent utility and which would provide immediate near-term improvements along the Corridor. These Near-Term Projects include: • The Sunol Wayside Horn Project in Sunol within Alameda County. • Wyche Siding Extension Project in San Joaquin County near Manteca. • Chrisman Road Grade Separation Project in San Joaquin County near Tracy. • McKinley Avenue Grade Separation Project in Lathrop and Manteca. • Midway Siding Extension Project in San Joaquin County near Tracy. • Radum Siding Upgrade and Extension Project in Alameda County between Pleasanton and Livermore.

Environmental clearances must be obtained pursuant to the California Environmental Quality Act (CEQA). The CEQA process can be very time consuming and costly for projects unless they qualify for exemption status. Fortunately, these Early Action projects qualify for either a Categorical Exemption or a Statutory Exemption as indicated below.

Project Exempt Status Type and Section Number or Code Number Sunol Wayside Horn Project Categorical Class 3, Section 15303 Exemption Wyche Siding Extension Project Statutory PRC Section 21080 (b)(10) Exemption Chrisman Road Grade Separation Statutory PRC Section 20180.13 Project Exemption McKinley Avenue Grade Separation Statutory PRC Section 20180.13 Project Exemption Midway Siding Extension Project Statutory PRC Section 21080 (b)(10) Exemption Radum Siding Upgrade and Statutory PRC Section 21080 (b)(10) Extension Project Exemption

28 of 60 The status’ listed in the table above for each project are based on findings prepared by ICF International (ICF), a sub-consultant to the AECOM on the ACEforward Program. After conducting their environmental research, ICF provided a Memorandum for each Project (attached), which includes a detailed Project Description, a review of the Qualifications for a Categorical or Statutory Exemption, and Project Findings in Support of a Categorical or Statutory Exemption. As documented in the findings, each of the projects qualifies for the particular exemptions identified above. Each of the Early Action projects constitutes a single and complete project and functions independently of any other improvements to meet the stated purpose for each project

Projects that qualify for an 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 publically 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 only a 35-day legal appeal period.

The Commission would act as the Lead Agency in the adoptions of these Notices.

The California Office of Planning and Research (OPR) NOE template that has been completed for each project. Should the Board certify these exemptions, a NOE for each project will be filed with the State Clearinghouse along with a recording to the local County Clerk for the County in which the specific Project is located after project approval.

Fiscal Impact:

None.

Recommendation:

Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Certifying the Notice of Exemptions for “Early Action” Projects Associated with the ACEforward Program and Authorize and Direct the Executive Director to Execute all Documents Related to the Notices After Project Approval.

29 of 60 RESOLUTION RRC-R-15/16-

APPROVE A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION CERTIFYING THE NOTICE OF EXEMPTIONS FOR “EARLY ACTION” PROJECTS ASSOCIATED WITH THE ACEFORWARD PROGRAM AND AUTHORIZE AND DIRECT THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS RELATED TO THE NOTICES AFTER PROJECT APPROVAL.

WHEREAS, the San Joaquin Regional Rail Commission ("Commission") is proceeding with the ACEforward Program (collectively the "Program"); and

WHEREAS, the following projects are included in the “Early Action” projects associated with the Program:

Project Sunol Wayside Horn Project Wyche Siding Extension Project Chrisman Road Grade Separation Project McKinley Avenue Grade Separation Project Midway Siding Extension Project Radum Siding Upgrade and Extension Project

; and

WHEREAS, The Projects qualify for either a Categorical Exemption under the California Code of Regulations or a Statutory Exemption under the Public Resources Code as follows:

; and

WHEREAS, SJRRC can act as the Lead Agency for these applications.

30 of 60

NOW, THEREFORE, the Commission hereby resolves as follows:

1. Notice of Exemptions shall be filed for the following Projects once the Project(s) have been approved, (with the associated Exemption Status and reference cited):

2. The Executive Director is authorized and directed to execute said Notices of Exemption and any and all related documents.

PASSED AND ADOPTED, by the Board of Commissioners this 4th day of March, 2016 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION

______STACEY MORTENSEN, Secretary Bob Johnson, Chair

31 of 60 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 4, 2016

STAFF REPORT

Item 8 ACTION Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Contract with Summit Signal, Inc. for the Construction and Installation of the Sunol Wayside Horn System (16-R-29-00) in an Amount Not-To-Exceed $547,101 and Authorize and Direct the Executive Director to Execute all Documents Related to the Agreement

Background:

The Rail Commission in currently underway with the ACEforward Program which aims at providing improvements along the existing corridor and service expansion toward Modesto and Merced. Included in the ACEforward Program are a number of “Early Action” projects which provide immediate near-term improvements along the Corridor. The Construction and Installation of the Sunol Wayside Horn System is one such project. When complete, the Sunol Wayside Horn System will greatly reduce locomotive horn noise through Sunol, thereby improving the overall quality of life for the residents of Sunol. Approval of the ACEforward Program is included in the 2015-2016 Work Program and Budget.

On January 15, 2016, the Invitation to Bid (IFB) was released along with the project plans and specifications. The Notice Inviting Sealed Bids was published in accordance with the posting requirements in the SJRRC Procurement Manual. The scope of the work includes construction of a wayside horn system at Main Street and Bond Street in Sunol, CA. During this procurement, three (3) addendums were released on February 1, 2016, February 8, 2016 and February 15, 2016. On February 19, 2016, bids were received and publicly opened and read from the following firm(s):

• Integra Construction Services, Inc. $494,000.00 • Summit Signal, Inc. $547,100.89

The two (2) Bids received were opened in public and reviewed for initial completeness. At the Bid Opening, Integra Construction Services, Inc. was announced the apparent low bidder.

Following the public bid opening, bids were thoroughly reviewed. Bids were checked in the following areas:  Bid Responsiveness  Debarment Review  References  Contractor License Check  Technical Evaluation  Audit of Qualifications and  Price Analysis Experience

32 of 60 However, after thoroughly reviewing the Bids, staff found a number of deficiencies in the bid submitted by Integra Construction Services, Inc. and in consultation with San Joaquin Regional Rail Commission’s (SJRRC) Legal Counsel, the deficiencies in the Bid were not considered minor irregularities. Therefore the bid was deemed non- responsive.

Therefore, it was determined that Summit Signal, Inc. is the lowest responsive and responsible bidder with a bid of $547,100.89. This procurement contained a base bid only and no alternates.

A Notice of Intent to Award was published on February 22, 2016. Pursuant to the approved and adopted protest procedures for publically bid construction projects, the bid protest period will close on March 3, 2016 at 2:00 P.M. P.S.T. On February 24, 2016, SJRRC received one (1) protest from Integra Construction Services, Inc. As of the date of this Staff Report, staff is proceeding with the Bid Protest Procedures and will have an update for the Board at the March 4, 2016 meeting.

The Notice Inviting Sealed Bids was published in three (3) newspapers the Stockton Record, the Tri-Valley Herald, and the Daily Journal San Jose. A total of fourteen (14) firms requested the procurement documents including contractors and plan rooms.

Project completion is estimated at sixty-three (63) calendar days following the Notice to Proceed.

Offices for Summit Signal, Inc. are located in Willits, CA. Listed sub-contractors include: CTC, Inc. Fort Worth, TX.

The Engineer’s Cost Estimate, prepared by AECOM/Pennino Management Group, is $450,680.00. Summit Signal’s bid is 21.5% higher than the Engineer’s Cost Estimate. This increased cost includes allowances added during the procurement process for permits, roadway worker protection and an overall contingency. The Project Budget for this phase of work is as follows:

UPRR Agreements $ 10,000 Engineering $ 20,000 UPRR Engineering $ 22,500 Construction $ 500,000 CM and PM Services $ 44,200 Contingency $ 117,340

Overall the Project is within budget.

Approval of this action would constitute approval of the Project to proceed, and the Notice of Exemption previously certified under a separate action item at the March 4th, 2016 Board Meeting would be filed.

Fiscal Impact:

33 of 60

Funding for the Project is included in the Approved FY 2015-2016 SJRRC/ACE Capital Budget under Wayside Horn Project line item.

Recommendation:

Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing a Contract with Summit Signal, Inc. for the Construction and Installation of the Sunol Wayside Horn System (16-R-29-00) in an Amount Not-To- Exceed $547,101 and Authorize and Direct the Executive Director to Execute all Documents Related to the Agreement.

34 of 60 RESOLUTION RRC-R-15/16-

APPROVE A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION AUTHORIZING A CONTRACT WITH SUMMIT SIGNAL FOR THE CONSTRUCTION AND INSTALLATION OF THE SUNOL WAYSIDE HORN SYSTEM (16-R-29-00) IN AN AMOUNT NOT-TO-EXCEED $547,101 AND AUTHORIZE AND DIRECT THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS RELATED TO THE AGREEMENT

WHEREAS, the San Joaquin Regional Rail Commission ("Commission") desires to construct and install the Sunol Wayside Horn System (collectively the "Project"); and

WHEREAS, funding for the project is included in the SJRRC 2015/2016 fiscal year Capital Budget in the Wayside Horn Project line; and

WHEREAS, Sealed bids for the Project were received on February 19, 2016; and

WHEREAS, Summit Signal, Inc. was the lowest responsive, responsible bidder for the Project; and

NOW, THEREFORE, the Commission hereby resolves as follows:

1. The Project is hereby approved and shall proceed forward to construction, the previously certified Notice of Exemption shall be filed by the Executive Director.

2. A contract shall be entered into between the San Joaquin Regional Rail Commission and Summit Signal, Inc. in the amount of $547,101 with a contract duration of one hundred and twenty (120) calendar days.

3. The Executive Director is authorized and directed to execute said contract and any and all related documents.

PASSED AND ADOPTED, by the Board of Commissioners this 4th day of March, 2016 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION

______STACEY MORTENSEN, Secretary Bob Johnson, Chair

35 of 60 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 4, 2016

STAFF REPORT

Item 9 ACTION Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Executive Director to Execute the Transportation Development Act (TDA) Claim to the San Joaquin Council of Governments for Fiscal Year 2015-16 Funding of $2,648,548.

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, targeting the 2015/16 Fiscal Year.

In the 16 months since the September 2013 Rail Commission Board directive, Rail Commission staff worked with COG staff to provide numerous pro-forma budgets, cash flow analysis, justification of costs and an assessment of all available revenue options. COG staff vetted this information fully and came to the conclusion to support a Rail Commission funding request of $4M (an increase of $3.3M) request for the LTF funding.

This effort resulted in SJCOG proposing a one-year compromise in TDA funding for fiscal year 2015/2016 to allow the Commission to meet its funding needs. The compromise provided the Rail Commission with an additional $1.3M in TDA funding, through higher than expected TDA revenues. The approved compromise increased the Commission’s TDA funds $700,000 to $2,021,405, and included a one-year deferral of the SJCOG loan payment of $1.9M.

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 FY2015-16 funding and unclaimed funds from previous years for the following amounts:

Local Transportation Funds $2,021,405 State Transit Assistance Funds $627,143 Total Gross TDA Claim Amount $2,648,548 Less fees for SJCOG Administrative $49,640 Net 2015/2016 SJRRC TDA Funds $2,598,908

The 2015/2016 TDA funds will be used for Operations consistent with the Approved FY2015/2015 SJRRC/ACE Operating Budget.

36 of 60 Fiscal Impact:

This TDA claim is consistent with the approved FY2015-16 SJRRC/ACE Operating Budget.

Recommendation:

Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Authorizing the Executive Director to Execute the Transportation Development Act (TDA) Claim to the San Joaquin Council of Governments for Fiscal Year 2015-16 Funding of $2,648,548.

37 of 60 RESOLUTION NO. SJRRC-R-15/16-

RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION APPROVING THE FISCAL YEAR 2015-16 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)

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 FY2015-16 operating and capital budgets;

NOW THEREFORE, BE IT RESOLVED that the FY 2015-16 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 4th day of March 2016, by the following vote:

AYES: NOES: ABSENT: ABSTAIN:

ATTEST: THE SAN JOAQUIN REGIONAL RAIL COMMISSION

______STACEY MORTENSEN BOB JOHNSON Secretary Chair

38 of 60 39 of 60 40 of 60 41 of 60 42 of 60 43 of 60 44 of 60 45 of 60 46 of 60 47 of 60 48 of 60 49 of 60 50 of 60 51 of 60 52 of 60 53 of 60 54 of 60 55 of 60 56 of 60 57 of 60 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 4, 2016

STAFF REPORT

Item 10 INFORMATION Update on the Discussion at the February SJCOG Board Meeting and Follow-up Discussions with SJRTD Regarding the Rail Commission LTF Request

A staff presentation will be made at the meeting regarding the SJCOG Board meeting and the most recent follow-up discussions.

58 of 60 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 4, 2016

STAFF REPORT

Item 11 INFORMATION Update on Amtrak Agreement Negotiations for the San Joaquins

A staff presentation will be made at the meeting regarding the Amtrak negotiations for the FY 15/16 Operating Agreement for the San Joaquin Intercity Rail Service

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STAFF REPORT Item 12 INFORMATION Update on ACEforward Program

Background:

As directed by the SJRRC Board, the “ACEforward” program is moving forward: • The key goals include improving service reliability and passenger convenience of the Altamont Corridor Express (ACE), increasing to six daily round trip trains between Stockton and San Jose and extending service to Modesto by 2019 with additional service expansion to ten daily round trip trains and extension of service to Merced by 2023. • SJRRC is preparing an Environmental Impact Report (EIR) for ACEforward in compliance with the California Environmental Quality Act (CEQA) and the Federal Railroad Administration (FRA) is preparing an Environmental Impact Statement (EIS) for ACEforward in compliance with the National Environmental Policy Act (NEPA). SJRRC is serving as the lead agency for the preparation of the EIR and the FRA is serving as the lead agency for the preparation of the EIS.

Status Update: Staff will provide an update of the ACEforward program progress and summarize recent meetings and presentations, including the February 10, 2016 “Altamont Regional Rail Working Group” meeting held at Livermore (LAVTA).

Staff will also provide an update of the implementation of Wayside Horns in Sunol.

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