Chair, Christina Fugazi, City of Stockton Commissioner, Nancy Young, City of Tracy Vice Chair, Leo Zuber, City of Ripon Commissioner, Kathy Miller, San Joaquin County Commissioner, Jose Nuño, City of Manteca Commissioner, Melissa Hernandez, Alameda County Commissioner, Mikey Hothi, City of Lodi Commissioner, Lily Mei, City of Fremont
Executive Director, Stacey Mortensen
SAN JOAQUIN REGIONAL RAIL COMMISSION TELECONFERENCE BOARD MEETING
March 5, 2021 – 8:00 am
Call-In Information: +1 (224) 501-3412 Access Code: 685-932-397 GoToMeeting Link: https://global.gotomeeting.com/join/685932397
SPECIAL NOTICE Coronavirus COVID-19
In accordance with the Governor’s Executive Order N-29-20, San Joaquin Regional Rail Commission Board Members will be attending this meeting via teleconference or videoconference. Members of the public may observe the meeting by dialing +1 (224) 501- 3412 with access code: 685-932-397 or log-in using a computer, tablet or smartphone at GoToMeeting.com using link: https://global.gotomeeting.com/join/685932397
Please note that all members of the public will be placed on mute until such times allow for public comments to be made. If a person wishes to make a public comment during the meeting, to do so they must either 1) use GoToMeeting and will have the option to notify SJRRC staff by alerting them via the “Chat” function or they can 2) contact SJRRC staff via email at [email protected] in which staff will read the comment aloud during the public comment period. Emailed public comments should be limited to approximately 240 words as comments will be limited to two (2) minutes per comment.
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 (SJRRC) 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. Anyone wishing to address the SJRRC Board is advised to have an interpreter or to contact SJRRC during regular business hours at least 48 hours prior to the time of the meeting so that SJRRC can provide an interpreter. Any writings or documents provided to a majority of the Commission regarding any item on this agenda will be made available upon request in both English and Spanish 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.
949 East Channel Street Stockton, CA 95202 (800) 411-RAIL (7245) www.acerail.com 1. Call to Order, Pledge of Allegiance, Roll Call Chair Fugazi
Roll Call: Hernandez, Mei, Hothi, Miller, Nuño, Young, Vice Chair Zuber, Chair Fugazi
Ex- Officios: Nguyen, Salazar, Zoslocki, Agar
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 two 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 https://acerail.com/board-of-directors/ subject to staff’s ability to post the documents prior to the meeting.
3. Consent Calendar 3.1 Minutes of SJRRC Board Meeting February 5, 2021 ACTION 3.2 Rail Commission/ACE Monthly Expenditure INFORMATION 3.3 ACE Monthly Fare Revenue INFORMATION 3.4 ACE Ridership INFORMATION 3.5 ACE On-Time Performance INFORMATION 3.6 Update on Positive Train Control INFORMATION 3.7 Washington Update INFORMATION
4. Approve a Resolution of the Board of Commissioners of ACTION the San Joaquin Regional Rail Commission Adopting Fiscal Year 2020/2021 Budget Amendment #2: a) SJRRC Operating Budget for no Net Increase adding Valley Link Reimbursement funds of $50,000 and reducing the Measure K contribution by $50,000 b) Separating SJRRC Contracted Services from the ACE Operating Budget c) Increasing the ACE Operating Budget Revenue and Expense Line for a Net Increase of $3,528,073 from $19,322,725 to $22,850,798 (Brian Schmidt) (All Voting Members) 5. Approve a Resolution of the Board of Commissioners of the ACTION San Joaquin Regional Rail Commission Approving and Authorizing the Executive Director to Negotiate and Execute a Consulting Agreement with the Tri-Valley – San Joaquin Valley Regional Rail Authority (Authority) to Reimburse SJRRC for Services to Review Valley Link Service Planning and Third Party Agreements (Autumn Gowan) (Regular Voting Members)
6. Approve a Resolution of the Board of Commissioners ACTION of the San Joaquin Regional Rail Commissioners Appointing Two Representatives to the San Joaquin Regional Rail Commission Station/Facilities Development Committee, including; • One from Sacramento Regional Transit District • One from San Joaquin Regional Rail Commission (Stacey Mortensen) (Regular Voting Members)
7. Approve a Resolution of the Board of Commissioners of the ACTION San Joaquin Regional Rail Commission Adopting the 2021 Federal Legislative Priorities for Inclusion in the SJCOG One Voice Project List (David Ripperda) (Regular Voting Members)
8. Refunding 2010 Series A-2 Bonds INFORMATION (Nick Perez)
9. Commissioner’s Comments
10. Ex-Officio Comments
11. Executive Director’s Report 12. Adjournment The next regular meeting is scheduled for: April 2, 2021 – 8:00 am SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 5, 2021
Item 3.1 ACTION
Minutes of SJRRC Board Meeting February 5, 2021 The meeting of the San Joaquin Regional Rail Commission was held at 8:00 a.m., February 5, 2021 via teleconference.
1 Call to Order, Pledge of Allegiance, Roll Call, Welcome and Introduction to New Rail Commissioners
Chair Fugazi called the meeting to order at 8:00 a.m. and led the audience in the Pledge of Allegiance. Commissioners Present: Mei, Hothi, Miller, Nuño, Young, Zuber, Chair Fugazi Commissioners Absent: None
Ex-Officio Members Present: Ms. Gayle, Ms. Parks, Mr. Dumas
2 Public Comments There were no public comments.
3 Consent Calendar
3.1 Minutes of SJRRC Board Meeting January 8, 2021 ACTION 3.2 Rail Commission/ACE Monthly Expenditure INFORMATION 3.3 ACE Monthly Fare Revenue INFORMATION 3.4 ACE Ridership INFORMATION 3.5 ACE On-Time Performance INFORMATION 3.6 Update on Positive Train Control INFORMATION 3.7 Washington Update INFORMATION 3.8 Agreements and Purchases Over $50,000 Executed in 2020 INFORMATION M/S/C (Zuber/Miller) Approve the Consent Calendar. Passed and Adopted by the San Joaquin Regional Rail Commission on the 5th day of February 2021 by the following vote to wit:
AYES: 5 Miller, Nuño, Young, Vice Chair Zuber, Chair Fugazi
NOES: 0 ABSTAIN: 2 Hothi, Mei ABSENT: 0
4 Background on Rail Commission Activities and Governance Structure INFORMATION
Ms. Mortensen gave a presentation on this item.
Commissioner Miller commented that this was a great presentation and that she is very impressed with the accomplishments of last year, one of the most challenging years that anyone has ever faced. Commissioner Miller commented that it appears that the Rail Commission decided to put their head down and keep moving forward and it is really impressive. It is a real testament to the hard work, outstanding leadership and efforts that all of these different agencies keep coming to the Rail Commission for management and for coordination. Commissioner Miller commented that she is very pleased and proud to be back with this group and that she expects to see exciting things in the future. Commissioner Mei thanked Ms. Mortensen for her presentation and commented that concurs with Commissioner Miller in that it must be a sign of faith if the Rail Commission is taking on additional tasks. Hopefully it is because of the diligence, fiscal transparency and responsibility that people are tasking you to consider additional outreach to other cities. Commissioner Mei commented that it is critical right now when we talk about COVID-19 and try to reimagine the transportation aspect and reconnect people to jobs and places. Chair Fugazi commented that before COVID hit, ACE had record ridership. ACE was really bursting at the seems and being able to set the foundation for future growth and acquiring what we needed. It is a true testament to staff and to Ms. Mortensen for her leadership, and to the Board for making those policy decisions. Chair Fugazi commented that she is very excited for the future of rail in the Central Valley and in the Bay Area.
5 ACE 6-Month Operations and Financial Report for the period July 1, 2020 INFORMATION through December 31, 2020
David Lipari, Brian Schmidt, and Ms. Mortensen gave a presentation on this item.
Commissioner Miller asked if there has been any research or if there has been any feedback on the potential impacts of large employers with a large portion of their workers to work remotely. Commissioner Miller commented that she sits on the Health Plan of San Joaquin and they are building an entirely new facility where employees can come and they now estimate that 60% of their
staff will become permanent remote workers. They have found no lack of productivity and in fact they have seen an increase in many instances. They are shelving their plans to build the new facility for now. It doesn’t mean that it won’t happen eventually, but it is showing that there is a lot more capacity in existing systems. How might this impact our needs going forward in terms of
increasing the number of routes and trips?
Mr. Lipari responded that there have been questions asked around that. The riders tell us that they are getting ready to come back and ride the service. There is an indication in earlier surveys that telecommuting is going to increase. There may be a situation that individual riders will return to ride the service, but they will return at a lesser rate than they were before the Pandemic. There will be another survey released in the next coming weeks that digs much deeper into that telecommuting question and what the effects will be. The initial thoughts are that one of the things that we think will help us, is that as
telecommuting increases, the move to less expensive housing markets may increase. I don’t have to be in the office five days per week, I only have to be in the office two to three days per week, so I might as well move to an inexpensive housing area. That may increase our market availability for the service as well. We may be moving into a future where we have a similar level
of ridership, but more individual riders. Mr. Lipari said that he will come back with that data as we drill more into that question. We will structure this by asking how much people were telecommuting before the Pandemic and how much they are telecommuting now. We know that quite a few of our passengers were telecommuting before the Pandemic and we’ll need to ask how the passengers expect the Pandemic to affect their telecommuting patterns.
Commissioner Miller responded that that is interesting because she knows that Sacramento’s real estate market has exploded and a large percentage of those folks are exiting the Bay Area for more affordable housing. Now, unfortunately,
they are making Sacramento housing not very affordable anymore, but you’re right, that could be a possibility for us. People may be commuting, but not
commuting as many days, so I will be interested in how this pans out. Commissioner Miller asked if there is any thought to surveying some of the larger employers that our riders work with.
Mr. Lipari responded that we are trying to let things get sorted out and let everyone figure out where they will be at and certainly engaging with our employer population and asking how they expect this to affect their employees, especially as they get back to ridership and people using their transit credits as well.
Chair Fugazi commented that maybe riders will return once schools reopen. Many parents are home with their children and as schools reopen, then they can get back on the ACE train and get back to work. They probably strongly looked at telecommuting so that they could support their children in their education.
Commissioner Mei thanked Mr. Lipari for this update and asked if they are tying into some of the other larger advocacy groups, such as Silicon Valley Leadership Group or Joint Venture Silicon Valley, because I know they have the update coming up for the State of the Valley and whether there is an opportunity there to get some more leverage, both in terms of explaining your outreach and messaging and getting some feedback. Commissioner Mei commented that she concurs with Commissioner Miller in terms of outreach to the larger employers to get some feedback. Here in Fremont we’ve been doing some of that and certainly in Alameda County. Commissioner Mei commented that there was a product last year called Building a Better Normal and talking about what that would be like. That had the representatives and mayors from San Mateo, Santa Clara, and as well as few from Alameda. That might be a good way of pulling some of that or at least let some of the messaging go out so that we can help continue the ridership and the viability in terms of how we can best deliver it. I think that the Governor’s order in terms of some of the face coverings will also create a comfort level for some of the riders, so any of the initiatives around some of those health orders would help to encourage the ridership.
Commissioner Nuño asked how much it typically costs to run the cars.
Mr. Lipari asked for clarification of the question and if the question is how much it costs to purchase a rail car, or how much does it cost to run the train.
Mr. Schmidt responded that in order to add a car, it’s really no cost. We are in the process of doing overhauls on the cars and we are maintaining the cars, which is a good thing because we do have an overhaul program, which allows us to take some of the funding from the ACE service program and put it toward
the railcar overhaul program. In order for us to put a car into service, it’s as simple as me walking up to the General Manager of the service and telling him we need to add a car tomorrow and they will put the car on the train set and it will be in service tomorrow.
Commissioner Nuño responded that he was wondering how fast it could be done, because just as we saw a spike go down in service, as things open up, we could say, let’s just try this out and things might spike back up.
Mr. Schmidt added that eight (8) cars can be run on the two train sets before we outgrow the existing platform lengths. Once we go to the third train set, the biggest hold up will be getting the shuttles in place. We will need to let our shuttle providers know as soon as possible when we see that coming. Typically, it takes about six (6) weeks for shuttle providers to go out for bid for the drivers and to get the shuttles in place. As we see that coming up, we’ll be able to tell them that we see service starting in four or five weeks, and they can get their process in place. When we do need to get that third train in service, it may be a week or two delay to get it going. As we see it ramping up, we can go out to our partner agencies and ask if they can get that third shuttle going into service.
Commissioner Mei commented that with the CARES Act funding, it was mentioned that you were going to hold off on those. Commissioner Mei asked if there is a time constraint on the use of that funding.
David Ripperda responded that there is no limitation on those federal funds and that they do not expire.
Commissioner Mei commented that this is wonderful, especially because we do not know how this is going to roll out with COVID. It is good to see that you are doing the cost balancing between the overrun with ACE and offsetting it with your impact in terms of your deliberate reductions. It looks like you are reallocating your resources so that you can balance it and keep it flat, at least for now. Commissioner Mei commented that she thinks that if we do outreach, to see if there are other opportunities for partnerships or other federal programs, especially with the change right now with the administration with the
DOT. In terms of programs, this might be something that is ongoing for now at least and the new norm for now in terms of maintenance costs and keeping things clean and hygienic. I think that might help encourage ridership as a whole, not just during the period of the pandemic, but in general. Cleanliness helps encourage ridership. That is important for us to have the ridership and to have the safety with COVID.
6 Approve Resolution of the Board of Commissioners of the San Joaquin ACTION Regional Rail Commission Adopting Fiscal Year 2020/2021 Budget Amendment #1 Adding Five Capital Projects and Updating Nine Capital Projects, Increasing the Capital Budget in the Amount of $34,769,211, from $89,848,794 to $124,618,005
David Ripperda and Kevin Sheridan gave a presentation on this item.
There were no comments on this item.
M/S/C (Zuber/Young) Approve Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Adopting Fiscal Year 2020/2021 Budget Amendment #1 Adding Five Capital Projects and Updating Nine Capital Projects, Increasing the Capital Budget in the Amount of $34,769,211, from $89,848,794 to $124,618,005.
Passed and Adopted by the San Joaquin Regional Rail Commission on the 5th day of February 2021 by the following vote to wit: AYES: 6 Hothi, Miller, Nuño, Young, Vice Chair Zuber, Chair Fugazi NOES: 0 ABSTAIN: 0 ABSENT: 0
7 Update on Newark-Albrae Siding Project and Letters of Support INFORMATION
David Ripperda gave a presentation on this item.
Commissioner Mei commented that the City of Fremont is glad to support the project and that they are happy to send the letter of support and we are supporting ACTC funding for this project. Commissioner Mei commented that she thinks it’s important that when we think about expanding the service through the Fremont area. The service is used by so many people. We have over 900 manufacturers and we connect jobs to places to people and that’s critical for us. Washington Hospital, Facebook, and Tesla are utilizing those opportunities. We are very supportive of making sure that people can get to and from their jobs and to connect those. The Central Valley commute has
created severe traffic congestion in the past, especially on 680. ACE has provided a valuable and sustainable service and we would like to continue that support.
Chair Fugazi thanked Commissioner Mei and the City of Fremont for their support.
8 Approve a Resolution of the Board of Commissioners of the San Joaquin ACTION Regional Rail Commission Approving a Reimbursement Agreement with Union Pacific Railroad for Preliminary Engineering Services for the Stockton Diamond Grade Separation Project for an Amount Not-to-
Exceed $1,600,000 and Authorizing the Executive Director to Execute Any and All Documents Related to the Projects
Kevin Sheridan gave a presentation on this item.
Chair Fugazi commented that she has been caught by a train in South Stockton for almost two hours and that the wait can be long and the idling trains cannot be good for our environment.
M/S/C (Young/Nuño) Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission
Approving a Reimbursement Agreement with Union Pacific Railroad for Preliminary Engineering Services for the Stockton Diamond Grade Separation Project for an Amount Not-to-Exceed $1,600,000 and Authorizing the Executive Director to Execute Any and All Documents Related to the Projects.
Passed and Adopted by the San Joaquin Regional Rail Commission on
the 5th day of February 2021 by the following vote to wit: AYES: 6 Hothi, Miller, Nuño, Young, Vice Chair Zuber, Chair Fugazi
NOES: 0 ABSTAIN: 0 ABSENT: 0
9 ACE Means-Based Discounted Ticketing Program Update INFORMATION
Rene Gutierrez gave a presentation on this item.
Commissioner Mei thanked Mr. Gutierrez and commented that it is very important. ACTC is very active in trying to make sure there is accessibility whether it’s for low income or particularly for students and so I am very supportive of this. Commissioner Mei commented that she noticed that staff is working with community-based organizations but that Fremont is not part of it, even though Fremont does have an ACE station and we have people going North to Sacramento and South and so I would greatly encourage that. We have the Fremont Family Resource Center here, which is a little bit unique in that includes 32 community-based organizations. I wanted to know as in terms of languages, and some people may not know that we have the largest Afghan population outside of Afghanistan, so having that information available in Dari, or in Chinese and Hindi would also be helpful and we could help with the translation services if those are a challenge and even the posters. We think that it’s very important to provide that and we look forward to that partnership and creating that awareness. We want to encourage people to utilize this and many of our workers travel both North and South, to Sacramento and to Great America, and that would be something that would be of great interest to them. I really applaud that effort in terms of creating that awareness and finding the funding that is necessary, especially in these challenging times with COVID, to ensure our workers can get to and from jobs.
Mr. Gutierrez thanked Commissioner Mei and commented that SJRRC staff is already working with the Chamber of Fremont, Dublin, Pleasanton, and Livermore, and that staff will be reaching out to other community-based organizations in the area.
Chair Fugazi thanked Commissioner Mei for her comments.
10 Approve a Resolution of the Board of Commissioners of the San Joaquin ACTION Regional Rail Commission to Appoint a Member and an Alternate of the Rail Commission Board Who are Residents of San Joaquin County to Serve on the Governing Board of the San Joaquin Joint Powers Authority
Ms. Mortensen gave a presentation on this item. M/S/C (Zuber/Young) Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission to Appoint a Member and an Alternate of the Rail Commission Board Who are Residents of San Joaquin County to Serve on the Governing Board of the San Joaquin Joint Powers Authority.
Passed and Adopted by the San Joaquin Regional Rail Commission on the 5th day of February 2021 by the following vote to wit: AYES: 6 Hothi, Miller, Nuño, Young, Vice Chair Zuber, Chair Fugazi NOES: 0 ABSTAIN: 0 ABSENT: 0
11 Election of Officers ACTION Ms. Mortensen gave a presentation on this item.
Vice-Chair Zuber recommended that Chair Fugazi be elected for another term as Chairperson.
Commissioner Young concurred and recommended that Vice-Chair Zuber continue as Vice Chair of the Board.
M/S/C (Zuber/Young) to Elect Chair Christina Fugazi as Chair and Vice Chair Leo Zuber as Vice Chair of the San Joaquin Regional Rail Commission Board for 2021. Passed and Adopted by the San Joaquin Regional Rail Commission on the 5th day of February 2021 by the following vote to wit:
AYES: 6 Hothi, Miller, Nuño, Young, Vice Chair Zuber, Chair Fugazi NOES: 0 ABSTAIN: 0 ABSENT: 0 12 Commissioner’s Comments
Commissioner Nuño commented that there was a lot of good information shared and that the with the expansions, staff and Commissioners have been very busy. It is good progress and is exciting to see.
Chair Fugazi thanked Commissioner Nuño for his comment.
Commissioner Young welcomed all of the new Commissioners and commented that she enjoys meeting new people and hearing the collective contributions that everyone provided. Commissioner Young commented that she would like to give a shout out to staff as we have been through a lot in the last year. We were trying to figure out how to add an extra train and then all of the sudden things hit really hard. It really shows in how things are presented, and Commissioner Young commented that she has great confidence in Ms. Mortensen and the SJRRC staff. Commissioner Young commented that she is glad to be a part of it.
Chair Fugazi commented that she concurs with both Commissioner Nuño and Commissioner Young. There has been a lot of work and groundwork has been laid with the work of staff and the Commission. Chair Fugazi commented that she looks forward to the future with the new Commissioners because we are going to be back from COVID, and we are prepared for it. Chair Fugazi commented that she is excited for that and for the future projects.
Commissioner Mei congratulated Chair Fugazi and Vice Chair Zuber in their continued leadership and for the impressive accomplishments that have been achieved during this very challenging time. Commissioner Mei thanked Ms. Mortensen and staff for their warm welcome and support to onboard her in her new role. Commissioner Mei commented that she looks forward to the opportunity to serve with everyone.
Chair Fugazi thanked Commissioner Mei for her comments.
13 Ex-Officio Comments
Ms. Rosa Parks announced the formation of the new Stanislaus Regional Transit Authority. The City of Modesto’s Transit and the County have merged into this new transit authority to improve and streamline transit services and enhance connectivity in our region. We are very excited for that and especially when ACE extends into our area, we want to make sure we have that great connectivity in our region. The first Board of Director’s meeting will be public and will be held this Wednesday, February 10th at 1:30 pm.
Mr. Tom Dumas with Caltrans commented the Sustainable Transportation Planning Grant applications are due next Friday. If the Board has any members that want to apply, please contact him. Up and down the corridor to the South of the Valley and Central Valley, we will be putting out 22 new electrical charging systems up and down I-5 and Highway 99, so people that are driving around in their Teslas will have more places to stop and charge up. Hopefully we will have some more up on our end of the Valley soon. On February 17th, LCTOP is having a workshop for those applications. The District has had success with those funds in the past and their options for getting more Capital funds for your programs through the Division of Rail and Mass Transit. The workshop is scheduled for February 17th from 10:00 am to 12:00 pm. Mr. Dumas congratulated SJCOG and the Stockton Traction Eastern Railroad. They announced that they got a 1.8-million-dollar grant from the CTC as a shortline railroad improvement program. That is one of the first Mr. Dumas has ever heard of, especially in this State. They’ve got almost another 1.8 million dollars for track improvements, so that will greatly help to connect the port with their alternate fuels and loading. It will be another rail improvement for this area and so things are looking up.
Kimberly Gayle with SJRTD thanked ACE, their sister agency in the Stockton urbanized area. We’ve worked on the distribution of 5307 Urbanized Area Funds that are from the Federal Transit Administration. SJRTD is facing ridership issues. Ridership is down to 40% of normal ridership. We are focusing on sanitizing and keeping our vehicles safe and hopefully people feel safe. Hopefully there is some consistency in our ridership. We started the Van Gogh service, on demand pilot, a few weeks ago. That service is at about 15% of normal. SJRTD will start outreach for our system redesign. SJRTD will be doing outreach with this Board and hopefully we can incorporate the stops that ACE has with our system. As of yesterday, we honored Rosa Parks, highlighting the importance that public transit plays in providing essential trips, as well as ensuring transit is available and is a civil right in our country. Rosa Parks is an icon that by her actions, helped launch an era that civil rights were made public. SJRTD honored Rosa Parks memory yesterday in promoting transit as a whole as a civil right. We want to welcome all of the new Board members to the Rail Commission Board and thank you for the opportunity to present today. 14 Executive Director’s Report
Ms. Mortensen gave the Executive Director’s Report and thanked everyone for their time.
15 Adjournment The meeting was adjourned at 9:52 am. The next regular meeting is scheduled for: March 5, 2021 – 8:00 am Item 3.2
San Joaquin Regional Rail Commission Altamont Corridor Express Operating and Capital Expense Report December 2020 50% of Budget Year Elapsed
SJRRC EXPENSE % ACE EXPENSE % FY 20-21 TO SPENT FY 20-21 TO SPENT OPERATING EXPENSES ALLOCATION DATE TO DATE ALLOCATION DATE TO DATE
Project Management, Services & Supplies Subtotal 1,639,567 674,530 41% 4,840,542 1,408,376 29% Contracted Services Subtotal 472,133 167,144 35% 15,639,400 7,437,511 48% Shuttle Services 742,783 371,391 50% TOTAL OPERATING EXPENSES 2,111,700 841,674 40% 21,222,725 9,217,278 43%
CAPITAL EXPENSE FY 20-21 TO SPENT CAPITAL PROJECTS ALLOCATION DATE TO DATE SAN JOAQUIN RAIL COMMISSION 1 East Channel Street Improvements 2,007,500 77,589 4% 2 Robert J. Cabral Station Expansion 1,979,505 126,503 6% TOTAL CAPITAL PROJECT SJRRC $ 3,987,005 $ 204,092 5%
ALTAMONT CORRIDOR EXPRESS 1 SJ COG Loan Repayment 1,118,012 1,118,012 100% 2 A1 & A2 Bond Repayment 3,033,988 1,056,994 35% 3 UPRR Capital Access Fee 3,242,516 1,621,258 50% 4 UPRR Capitalized Maintenance Projects 4,000,000 487,293 12% 5 UPRR Safety Fund 500,000 - 0% 6 ACE Extension Natomas to Stockton 5,000,000 137,961 3% 7 ACE Extension Lathrop to Ceres/Merced 10,000,000 3,384,623 34% 8 Stockton Diamond Grade Separation 2,000,000 - 0% 9 Locomotives (4) 1,000,000 220,474 22% 10 Platform Extension Projects 3,000,000 311 0% 11 Cabral Track Extension 5,000,000 144,233 3% 12 Positive Train Control 1,221,823 101,502 8% 13 Rail Cars - (5) passenger rail cab cars and (12) passenger coach cars 27,000,000 27,000,000 100% 14 Railcar Midlife Overhaul 6,711,081 1,653,501 25% 15 Locomotive Overhaul 524,530 - 0% 16 Locomotive Conversion 239,328 - 0% 17 State Owned Equipment Truck Overhaul 1,000,000 24,477 2% 18 Sunol Quiet Zone Quad Gates 475,000 33,290 7% 19 Facility Upgrades and Capital Improvements 93,068 - 0% 20 Lathrop/Manteca Station Improvements 779,700 104,705 13% 21 Tracy ACE Station Improvements 1,223,367 - 0% 22 Capital Spares 546,138 - 0% 23 Safety/Security Projects 382,115 184,086 48% 24 Short Range Transit Plan 26,123 - 0% 25 WiFi Upgrade 820,000 774,172 94% 26 Public Information Display Systems (PIDS) 500,000 1,256 0% 27 Network Integration 450,000 147,939 33% TOTAL CAPITAL PROJECTS ACE $ 79,886,789 $ 38,196,089 48%
TOTAL CAPITAL PROJECTS SJRRC & ACE $ 83,873,794 $ 38,400,180 46% Status of FY 20/21 Capital Projects - Notes As of February 2021 SAN JOAQUIN RAIL COMMISSION 1 East Channel Street Improvements - SJRRC received $2 million from the San Joaquin Council of Governments’ Measure K funds to improve the pedestrian and bicycle access along Channel Street between the Downtown Transit Center and Cabral Station. SJRRC has begun the environmental clearance and final design for the project, which is anticipated to be completed in 2021. Construction is slated to begin Fall 2021. Projected to be completed by the end of 2022. 2 Robert J. Cabral Parking Lot Expansion -Project will construct a new parking lot at the site of the old Western Pacific depot in Stockton, as well as reconstruct the building. Environmental work has been completed and design is underway for the parking lot and building reconstruction. ALTAMONT CORRIDOR EXPRESS 1 SJ COG Loan Repayment - Annual payment made July 1, 2020 per SJCOG amended loan agreement. 2 Bond Repayments - Bond repayments are made bi-annually, payments FY 20-21 are due in October 2020 and April 2021. 3 UPRR Capital Access Fee - Payment for calendar year 2021 paid in two installments. First payment to be processed in January 2021 and second payment in May 2021 4 UPRR Capitalized Maintenance Projects - Multi-year project is budgeted at $4,000,000 for the year. Invoices are received throughout the year. 5 UPRR Safety Fund - Ongoing project. 6 ACE Extension Natomas to Stockton - The final Environmental Impact Report (EIR) was adopted at the October 2nd 2020 Board meeting and the Notice of Determination was filed with San Joaquin County on October 6th, 2020. The project was approved for future consideration of funding at the December 2-3, 2020 meeting of the California Transportation Commission (CTC). Final Design and Right of Way funding for early segments of the project will be allocated at the January 27-28, 2021 CTC Meeting. 7 ACE Extension Lathrop to Ceres/Merced - The Environmental Impact Report (EIR) was certified in August 2018. Final design is currently underway for individual projects along the corridor. Preparation of a project level EIR for Ceres to Merced is underway.
8 Stockton Diamond Grade Separation - The project will grade separate the existing UPRR and BNSF lines creating an uninterrupted flow of rail traffic through the crossing. Project Approval (PA) and Environmental Document (ED) services for the project are currently underway. Coordination with the host railroads and other project partners to identify a preferred flyover concept is ongoing. A Notice of Preparation for the environmental document was released on August 19th, 2020 and the public scoping period closed on October 3rd 2020. Public release of the draft environmental document is expected in Spring 2021. 9 Locomotives (4) - All four (4) locomotives have been delivered and have been conditionally accepted. Staff received the final CARB engine certification from Siemens and provided the certification to BAAQMD in early October. BAAQMD reimbursement was received mid-November. 10 Platform Extension Projects - Multi-year project to extend the existing Lathrop/Manteca, Tracy, Vasco, Livermore, and Pleasanton platforms. A contract for final design was approved in May 2018 and is currently under review by Union Pacific. Environmental and design are currently underway for construction of a 400-foot platform extension at the Fremont ACE Station. 11 Cabral Track Extension - In June, SJRRC received approval from FTA Region 9 for a NEPA Categorical Exclusion. Coordination with Union Pacific on design review is ongoing, with construction anticipated to begin in Spring 2021.
12 Positive Train Control - The project is on track, staff continues to work with UPRR, Caltrain, FRA and all Passenger Rail Partners on software updates and system improvements.
13 Rail Cars - A contract with Bombardier was Approved at the April 2020 SJRRC Board meeting. The project is moving forward on schedule. This is Multi-year project for the procurement of five (5) passenger rail cab cars and 12 passenger coach cars. Delivery of the first cars is scheduled for November 2021. 14 Railcar Midlife Overhaul - Midlife overhauls of ACE’s existing fleet of 30 railcars is underway. Currently trucks, carpeting, rubber flooring, lighting and refreshing of the exterior paint scheme to the new colors is underway. The project is scheduled to be completed over the next three years. 15 Locomotive Overhaul - The locomotive overhaul program is complete. 16 Locomotive Conversion - Staff is working with the State of California on a scope of work for the decommissioning and conversion of the two units. 17 State Owned Equipment Truck Overhaul - Phase 1 of the project is underway, the float pool is being built up and delivery of the trucks is scheduled starting in June 2021 through September 2021. 18 Sunol Quiet Zone - Construction has been completed but to address public concerns, revisions need to be made. Preliminary Design for the revised project, Four Quadrant Gates on Main Street Sunol, is complete. Coordination with Alameda County for the final design and construction of the project is ongoing.
19 Facility Upgrades and Capital Improvements - Currently ongoing 20 Lathrop/Manteca Station Improvements - The construction contract was awarded at the October 2nd 2020 Board meeting. Construction is currently i 21 Tracy ACE Station Improvements - Consultant contract was awarded at the May 3rd 2019 Board meeting. Environmental and design are currently d 22 Capital Spares - Preventative Maintenance is ongoing. 23 Safety and Security/Video Cameras - The camera security project was awarded in June 2018 and is in construction. 24 Short Range Transit Plan - Update to FY 2018 - FY 2027 SRTP is ongoing. 25 WiFi Upgrade - The Proof of Concept (POC) installation by NOMAD has been completed and initial Factory Acceptance Testing (FAT) has begun. Full production is underway. SJRRC, NOMAD, and Xentrans continue to work on coordinating with the Herzog led ISC technology project to ensure compatibility and integration of the two onboard systems.
26 Public Information Display System (PIDS) - Currently ongoing project, PIDS system gives the ability to send train status and general information to ACE stations. SJRRC and 6 other local transit agencies are testing a new iteration of Cal-PIDS which is discussed on bi-weekly calls and SJJRC is currently testing through the Operator Console for the program. CCJPA is leading the project and is using Xenatech as their selected IT vendor to work out the technicalities associated with the new technology. The agreement between SJRRC and CCJPA for SJRRC to provide partial funding for shared downline stations and ACE only stations has been reviewed by SJRRC's legal team and has been sent over to CCJPA for final approval. CCJPA will provide design, implementation, operation and maintenance of CalPIDS. CCJPA will present to their Board 2/17/2021 for final approval on their side. ACE currently is testing the Operator Console that allows views of trains in real-time. This system will be connected with the rest of the CalPIDS system at a future point. Bi- weekly calls continue to work out bug fixes for the current program. For now, ACE will focus on the agreement and work with CCJPA until the state (Cal-ITP) has a more solid plan for train tracking and passing on this information to passengers.
27 Network Integration - Planning consulting services of integrating the ACE and SJJPA services with high-speed rail and other rail transit services. Fare Revenue Item 3.3
1,000,000
750,000
500,000
250,000
0 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 FY TOTAL FY 20-21 Fare Revenue 152,163 127,080 121,667 125,979 114,383 98,109 104,400 - - - - - 843,782 FY 19-20 Fare Revenue 1,038,170 912,427 968,729 1,052,213 816,770 822,711 1,040,903 886,822 508,211 92,586 103,410 88,932 8,331,885
% of Budget Year Elapsed: 58% FY 20-21 % of Budgeted Fare Revenue Received to Date 64.70% Projected Annual Fare Revenue (includes Amtrak Thruway Service): $ 1,304,580.00 ACE Weekly Revenue Comparison
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$- Nov Week 18 Week 19 Week 20 Week 21 Dec Week 22 Week 23 Week 24 Week 25 Week 26 Jan Week 27 Week 28 Week 29 Week 30 Week 31 2020/2021 $30,017 $31,682 $31,209 $31,748 $15,089 $26,720 $27,224 $25,025 $12,815 $10,754 $25,918 $27,275 $24,750 $26,443 2019/2020 $229,599 $233,630 $215,536 $232,195 $97,687 $252,293 $245,751 $243,714 $54,494 $85,743 $262,736 $253,513 $212,134 $255,346
FY 20/21 - Week 18 - 31 : Oct 26, 2020 to Jan 31, 2021 FY 19/20 - Week 18 - 31 : Oct 28, 2019 to Feb 2, 2020 2020/2021 2019/2020 -76%
-85% -86% -86% -86% -87% -87% -88% -89% -89% -89% -90% -90% -90%
Nov Week 18 Week 19 Week 20 Week 21 Dec Week 22 Week 23 Week 24 Week 25 Week 26 Jan Week 27 Week 28 Week 29 Week 30 Week 31 Revenue % Diff. YoY -87% -86% -86% -86% -85% -89% -89% -90% -76% -87% -90% -89% -88% -90% San Joaquins Weekly Revenue Comparison $1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$- November December January Week 18 Week 19 Week 20 Week 21 Week 22 Week 23 Week 24 Week 25 Week 26 Week 27 Week 28 Week 29 Week 30 Week 31 2020 / 2021 $233,440 $202,941 $196,847 $205,776 $303,307 $217,321 $144,389 $162,461 $230,121 $238,096 $168,618 $148,323 $149,846 $129,213 2019 / 2020 $555,480 $562,098 $564,899 $544,662 $1,130,0 $823,790 $516,478 $669,779 $900,935 $743,179 $561,838 $493,649 $504,570 $480,909
FY 20/21 -Week 18-31 : Oct 26, 2020 to Jan 31, 2021 FY 19/20 -Week 18 -31 : Oct 28, 2019 to Feb 2, 2020 2020 / 2021 2019 / 2020 -58%
-62% -64% -65% -68% -70% -70% -70% -72% -73% -73% -74% -74% -76%
November December January Week 18 Week 19 Week 20 Week 21 Week 22 Week 23 Week 24 Week 25 Week 26 Week 27 Week 28 Week 29 Week 30 Week 31 Revenue % Diff. YoY -58% -64% -65% -62% -73% -74% -72% -76% -74% -68% -70% -70% -70% -73% Ridership Item 3.4
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
- Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 FY TOTAL FY 20-21 Ridership 13,126 13,121 13,847 13,760 12,085 10,708 10,544 - - - - - 87,191 FY 19-20 Ridership 122,770 133,972 124,677 141,701 114,973 101,363 126,661 114,984 53,665 7,252 7,908 12,064 1,061,990 ACE Weekly Ridership Comparison
35,000
30,000
25,000
20,000
15,000
10,000
5,000
- Nov Week 18 Week 19 Week 20 Week 21 Dec Week 22 Week 23 Week 24 Week 25 Week 26 Jan Week 27 Week 28 Week 29 Week 30 Week 31 2020/2021 3,277 3,349 3,299 3,356 1,595 2,917 2,972 2,732 1,399 1,174 2,618 2,755 2,500 2,671 2019/2020 30,920 32,887 30,340 32,685 13,751 31,084 30,278 30,027 6,714 10,431 31,963 30,841 25,807 31,064
FY 20/21 - Week 18 - 31 : Oct 26, 2020 to Jan 31, 2021 2020/2021 2019/2020 FY 19/20 - Week 18 - 31 : Oct 28, 2019 to Feb 2, 2020 -79%
-88% -89% -89% -89% -90% -90% -90% -90% -91% -91% -91% -91% -92%
Nov Week Dec Week Jan Week Week 19 Week 20 Week 21 Week 23 Week 24 Week 25 Week 26 Week 28 Week 29 Week 30 Week 31 18 22 27 Riderhip % Diff. YoY -89% -90% -89% -90% -88% -91% -90% -91% -79% -89% -92% -91% -90% -91% San Joaquins Weekly Ridership Comparison 35,000
30,000
25,000
20,000
15,000
10,000
5,000
- November December January Week 18 Week 19 Week 20 Week 21 Week 22 Week 23 Week 24 Week 25 Week 26 Week 27 Week 28 Week 29 Week 30 Week 31 2020 / 2021 6,754 6,567 6,281 6,176 7,694 5,610 4,594 4,877 5,978 5,743 5,507 4,974 5,004 4,581 2019 / 2020 18,517 20,378 18,364 18,106 29,206 22,550 17,052 21,235 24,658 21,432 18,856 16,709 17,191 15,998
FY 20/21 -Week 18-31 : Oct 26, 2020 to Jan 31, 2021 2020 / 2021 2019 / 2020 FY 19/20 -Week 18 -31 : Oct 28, 2019 to Feb 2, 2020 -64% -66% -66% -68% -70% -71% -71% -71% -74% -73% -73% -75% -76% -77%
November December January Week 18 Week 19 Week 20 Week 21 Week 22 Week 23 Week 24 Week 25 Week 26 Week 27 Week 28 Week 29 Week 30 Week 31 Riderhip % Diff. YoY -64% -68% -66% -66% -74% -75% -73% -77% -76% -73% -71% -70% -71% -71% ACE ON TIME PERFORMANCE
100
90
80
70
60 OTP% 50
40
30
20
10
0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Item 3.5 Monthly OTP % 59.04 56.67 86.47 96.81 97.50 86.21 90.91 91.67 94.05 92.77 86.84 85.23 88.75 YTD OTP % 59.04 57.85 66.98 71.45 74.4 75.69 77.21 78.47 79.71 80.67 81.06 81.34 88.75 SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 5, 2021
STAFF REPORT
Item 3.6 INFORMATION Update on Positive Train Control
ACE train delays associated with Positive Train Control (PTC) continue to be down to less than a minute.
A new version of On-Board software was deployed on the ACE fleet between February 21st and February 28th, 2021.
Communications to Passengers: Staff continues to provide passengers with updated information regarding the delays using the following channels: • ACE Website • Social Media (Facebook and Twitter) • Onboard announcements • Via text alerts
Coordination with Union Pacific Railroad (UPRR), Caltrain and the Federal Railroad Administration (FRA): Staff continue bi-weekly conference calls/meetings with UPRR, Caltrain and Amtrak, and regular calls with the FRA on PTC.
ACE is fully PTC operational over the entire 86-mile ACE corridor.
Included is correspondence from the Federal Railroad Administration acknowledging ACE has a fully implemented PTC system.
Tai Ginsberg & Associates, LLC Buchanan Ingersoll & Rooney PC 810 7th Street, NE 1700 K Street, NW, Suite 300 Washington, DC 20002 Washington, DC 20006 T 202 415 9703 T 202 452 7900
TO: San Joaquin Regional Rail Commission (SJRRC) FROM: TG&A Staff SUBJECT: Monthly Progress Report for FEBRUARY 2021 DATE: February 28, 2021
THE BIDEN ADMINISTRATION/EXECUTIVE BRANCH January 27, 2021. President Joe Biden issued several Executive Orders and Here to tackle climate change and build on the executive actions that the President took on his first day in office, including rejoining the Paris Agreement and immediate review of harmful rollbacks of standards that protect the nation’s air, water, and communities. The House Committee on Transportation and Infrastructure Chairman Peter DeFazio (D-OR) and Chairwoman of the Subcommittee on Water Resources and Environment Grace Napolitano (D-CA) released a statement praising President Biden for his Executive Orders on Climate and Science. Earlier on January 25, 2021, President Biden signed an Executive Order updating and centralizing the Made in America waiver process. The US DOT issued a Statement supporting the Buy America E.O. See 2021 Joe Biden Executive Orders.
BIDEN 2021 TRANSPORTATION-RELATED NOMINATIONS/CONFIRMATIONS Since the January 2021 Report, following are the only changes in status (RED TYPE) to transportation-related nominees. A full 2019/2020 listing of “Nominations” is available from TG&A upon request. NOMINEE US DOT ADMINISTRATOR / OTHER STATUS Peter P. Montgomery Buttigieg Secretary of Transportation. Confirmed by the Senate by Yea-Nay Vote of 86 – 13 on 2/2/2021. Buttigieg Alejandro Nicholas Mayorkas Secretary of Homeland Security. Confirmed by the Senate by Yea-Nay Vote of 56 – 43 on 2/2/2021. Mayorkas Polly Ellen Trottenberg Deputy Secretary of Transportation Nomination received in the Senate and referred to the Committee Trottenberg on Commerce, Science, and Transportation on 2/13/2021. Deanne Bennett Criswell Administrator of the Federal Nomination received in the Senate and referred to the Committee Criswell Emergency Management Agency, on Homeland Security and Governmental Affairs on 2/22/2021. Department of Homeland Security
February 2, 2021 – Buttigieg Confirmed US DOT. The Senate confirmed Peter Buttigieg as the 19th secretary of the U.S. Department of Transportation by a vote of 86 to 13 (see nominations matrix above). Buttigieg was sworn- in on February 3, 2021. Prior to joining the Biden-Harris Administration, Secretary Buttigieg served two terms as mayor of his hometown of South Bend, Indiana. A graduate of Harvard University and a Rhodes Scholar at Oxford, Buttigieg served for seven years as an officer in the U.S. Navy Reserve, taking a leave of absence from the mayor’s office for a deployment to Afghanistan in 2014. See US DOT Press Release. The Biden Administration announced additional key members of its US DOT team who are joining the Department. See Other Biden US DOT Appointees and Key Officials.
APPROPRIATIONS/BUDGET February 11, 2021. The Congressional Budget Office (CBO) released a report entitled, “The Budget and Economic Outlook: 2021 to 2031” wherein the report notes that “the federal budget deficit will total $2.3 trillion, federal debt will reach 102 percent of GDP, and real GDP will grow by 3.7 percent.”
February 10, 2021. The US Department of Treasury issued their Monthly Treasury Statement (Receipts and Outlays of the United States Government For Fiscal Year 2021 Through January 31, 2021, and Other Periods). The Statement noted that over the four-month period of FY 2021 (October thru January 2021), total Receipts amounted to $1.188 trillion and Outlays totaled $1.924 trillion resulting in a deficit of $736 billion – a nearly 89 percent increase in the deficit from the same four-month period last fiscal year. See below - US Dept. of Treasury graph.
February 11, 2021. The WSJ reports that President Biden’s first budget proposal will be delayed. According to the “Journal” White House press Secretary Jen Psaki declined to provide a date as to when the proposed FY 2022 budget would be released. Typically, the President initiates the annual budget cycle with the submission of an annual budget proposal for the upcoming fiscal year to Congress. The President is required to submit the annual budget on or before the first Monday in February; however, budget proposals are often delayed during the first year of a new administration.
BUDGET RESOLUTION/COVID RELIEF (Also, See Addendum A. - at the end of the report.) February 1-5, 2021. The Senate/House each passed S. Con. Res. 5, the Concurrent Resolution on the Budget for FY 2021 on February 5, 2021. The Concurrent Resolution Senate Report notes that the Budget Resolution will enable Senate/House Democrats the ability to fast track President Joe Biden’s $1.9 trillion deficit spending emergency COVID-relief bill through the partisan budget reconciliation process, which only requires a simple majority in both the Senate and House to pass. Republicans generally support more pandemic-relief assistance (a $618 billion bill proposed by 10 Republican Senators), but not to the extent advocated by Democratic leaders. A key proposal of the Budget Resolution is to boost the $600 direct payment passed in the $900 billion December 2020 bill, for an overall total of $2,000 (i.e. an additional $1,400 in the current proposed House plan) for most working Americans, and to provide funding necessary to increase the $300 a week in supplemental unemployment benefits to $400 a week. The Democratic Resolution also proposes to provide approximately $30 million in relief for transit agencies who have been impacted by the pandemic and to provide funding for Amtrak to rehire 1,500 workers who were involuntarily furloughed last year. Senate/House Democrats are aiming to get a COVID-relief bill approved by Congress by early March and sent to the President’s desk before current benefits lapse on March 14.
February 1, 2021. The Congressional Budget Office (CBO) released a report entitled, “An Overview of the Economic Outlook: 2021 to 2031” that projects that the economic expansion that began in mid-2020 will continue. Real GDP is projected to return to its pre-pandemic level in mid-2021. The number of people employed is projected to return to its pre-pandemic level in 2024. Inflation, as measured by the price index for personal consumption expenditures, is to rise gradually over the next few years and rise above 2.0 percent after 2023, as the Federal Reserve maintains low interest rates and continues to purchase long-term securities. Interest rates on federal borrowing are to rise. The Federal Reserve is to maintain the federal funds rate (the rate that financial institutions charge each other for overnight loans of their monetary reserves) near zero through mid-2024 and then start to raise that rate gradually. See statement from Department of Treasury Secretary Janet L. Yellen.
February 1, 2021 - January 28, 2021. The National Association of Counties (NACo) issued a statement noting that the organization, “Welcome[s] [the] prospect of bipartisan cooperation, but a coronavirus relief Bill without essential aid for local frontline efforts misses the mark. Earlier, NACo sent a Letter to Congressional leaders “urge[ing] your bipartisan support and immediate passage of the local government aid outlined in the President’s American Rescue Plan.” The proposal includes $350 billion in critical aid to state, local and territorial governments.
SELECTED CONGRESSIONAL HEARINGS/BUSINESS Formal organizational meetings for the 117th Congress are ongoing and the following chart (below) will be updated to reflect additions as subcommittee chairs and ranking members are announced.
Leadership of Transportation-Related Committees of the 117th Congress (1st Session) 19-Feb-20 WORK IN PROGRESS
House Committees Chairman/Chairwoman Ranking Selected House Democratic Leadership APPROPRIATIONS Rosa DeLauro D-CT Kay Granger R-TX Nancy Pelosi Speaker of the House of Rep. D-CA Sub. on Energy & Water Development Marcy Kaptur D-OH Mike Simpson R-ID Steny H. Hoyer Majority Leader D-MD Sub. On Homeland Security Lucille Roybal-Allard D-CA Chuck Fleischmann R-TN James E. Clyburn Majority Whip D-SC Sub. on Transportation/HUD David E. Price D-NC Mario Diaz-Balart R-FL Henry Cuellar Chief Deputy Whip D-TX Katherine M. Clark House Assistant Speaker D-MA BUDGET John Yarmuth D-KY Jason Smith R-MO Hakeem Jeffries Caucus Chairman D-NY Pete Aguilar Caucus Vice Chairman D-CA ENERGY AND COMMERCE Frank Pallone, Jr. D-NJ Cathy McMorris Rodgers R-WA Sean Patrick Maloney Cong. Campaign Committee D-NY Sub. on Energy Bobby L. Rush D-IL Fred Upton R-MI Sub. on Environment and Climate Change Paul D. Tonko D-NY David B. McKinley R-WV
HOMELAND SECURITY Bennie G. Thompson D-MS John Katko R-NY Sub. on Transportation and Maritime Security Bonnie Watson Coleman D-NJ Carlos Gimenez R-FL
TRANSPORTATION AND INFRASTRUCTURE Peter DeFazio D-OR Sam Graves R-MO Selected House Republican Leadership Sub. on Aviation Rick Larsen D-WA Garret Graves R-LA Kevin McCarthy Minority Leader R-CA Sub. On Coast Guard/Maritime Transportation Salud Carbajal D-CA Bob Gibbs R-OH Steve Scalise Minority Whip R-LA Sub. on Highway/Transit Eleanor Holmes Norton D-DC Rodney Davis R-IL Gary Palmer Policy Chairman R-AL Sub. on Railroads/Pipelines/Hazardous Materials Donald M. Payne, Jr. D-NJ Rick Crawford R-AR Liz Cheney Conference Chairwoman R-WY Sub. on Water Resources/Environment Grace F. Napolitano D-CA David Rouzer R-NC Tom Emmer Nat'l. Republican Cong. Comm. R-MN Jim Banks Study Committee R-IN WAYS AND MEANS Richard Neal D-MA Kevin Brady R-TX Mike Johnson Vice Chair House Conference R-LA
Senate Committees Chairman/Chairwoman Ranking Selected Senate Democratic Leadership APPROPRIATIONS Patrick J. Leahy D-VT Richard Shelby R-AL V.P. Kamala Harris President D-CA Sub. on Transportation/HUD Brian Schatz D-HI Susan Collins R-ME Patrick J. Leahy President Pro Tempore D-VT Sub. on Homeland Security Chris Murphy D-CT Shelley Moore Capito R-WV Charles E. Schumer Majority Leader D-NY Sub. on Energy & Water Development Dianne Feinstein D-CA John Kennedy R-LA Richard Durbin Majority Whip D-IL Patty Murray Assistant Leader D-WA BANKING, HOUSING AND URBAN AFFAIRS Sherrod Brown D-OH Patrick Toomey R-PA Debbie Stabenow Policy Committee Chair D-MI Sub. on Housing, Transportation & Community Development TBD TBD Elizabeth Warren Vice Chair Dem. Conference D-MA Mark R. Warner Vice Chair Dem. Conference D-VA BUDGET Bernie Sanders I-VT Lindsey Graham R-SC Amy Klobuchar Chair Steering Committee D-MN Bernard Sanders Chair of Outreach I-VT COMMERCE, SCIENCE AND TRANSPORTATION Maria Cantwell D-WA Roger Wicker R-MS Sub. on Aviation Safety, Operations and Innovation Kyrsten Sinema D-AZ Ted Cruz R-TX Sub. on Surface Transportation, Maritime, Freight and Ports Gary Peters D-MI Deb Fischer R-NE Selected Senate Republican Leadership ENERGY AND NATURAL RESOURCES Joe Manchin III D-WV John Barrasso R-WY Mitch McConnell Minority Leader R-KY John Thune Minority Whip R-SD ENVIRONMENT AND PUBLIC WORKS Thomas R. Carper D-DE Shelley Moore Capito R-WV John Barrasso Assistant Leader R-WY Sub. on Transportation and Infrastructure TBD TBD Roy Blunt Policy Committee Chair R-MO Joni Ernst Vice Chair Republican Conf. R-IA FINANCE Ron Wyden D-OR Michael D. Crapo R-ID Rick Scott Rep. Senatorial Comm. Chair R-FL
February 24, 2021. The Senate Committee on Environment and Public Works held a hearing to discuss and receive testimony on, “Building Back Better: Investing in Transportation while Addressing Climate Change, Improving Equity, and Fostering Economic Growth and Innovation.” EPW Members and Staff Memorandum available from TG&A upon request. TG&A Summary Available Upon Request. Committee Link and Testimony.
February 24, 2021. The House Committee on Transportation and Infrastructure Subcommittee on Highways and Transit held a hearing to discuss and receive testimony on, “Examining Equity in Transportation Safety Enforcement.” Committee Link and Testimony.
February 24, 2021. The Senate Committee on Environment and Public Works held a hearing to discuss and receive testimony on, “Building Back Better: Investing in Transportation while Addressing Climate Change, Improving Equity, and Fostering Economic Growth and Innovation.” Committee Link.
February 11, 2021. The Senate Committee on Commerce, Science, and Transportation held an executive session to consider 1) Rules Governing the Senate Committee on Commerce, Science, and Transportation, 2) Budget Resolution for the Senate Committee on Commerce, Science, and Transportation and 3) Organizing Meeting for 117th Congress. Committee Link.
STATUS OF PRESIDENT BIDEN’S $1.9 TRILLION COVID-19 AMERICAN RESCUE PLAN See Addendum A. - at the end of the report. February 4, 2021. The House Committee on Transportation and Infrastructure held an organizational meeting and their first meeting (Protecting Transportation Workers and Passengers from COVID: Gaps in Safety, Lessons Learned, and Next Steps) of the 117th Congress. Committee Link and Testimony. TG&A Summary Available Upon Request. See T&I Committee Roster.
February 3, 2021. The House Committee on Homeland Security held an Organizational Meeting (virtual) for the 117th Congress to cover Committee Rules, the Committee Roster, Subcommittee Rosters and Committee Actions. See Committee Link.
SELECTED CONGRESSIONAL “TRANSPORTATION-RELATED” BILLS – FEBRUARY SENATE BILLS S TBA T. Carper (D-DE) Generating Resilient, S 356 C. Masto (D-NV) A bill to develop and improve the Press Environmentally Exceptional National Streets transportation workforce. Introduced 2/22/2021. Release Act’’ or the ‘‘GREEN Streets Act’’. Establish national goals to reduce greenhouse gas emissions from the National Highway System and help states adapt their transportation systems to the adverse effects of climate change. Introduced 2/23/2021. S TBA M. Cantwell (D-WA) “The Essential S 303 R. Blumenthal (D-CT) To require US DOT to support the Bill Transportation Employee Safety Act.” Requires efforts of State/local governments to provide for priority Summary US DOT/CDC/FEMA to support state /local testing of certain transportation workers with respect to governments to provide priority testing of COVID-19 and require the owners/operators of transportation workers to implement PPE & to equipment and facilities used by passenger or freight execute the cleaning, disinfection, & sanitization transportation employers to clean, disinfect, and sanitize requirements for owners/operators of that equipment and provide PPE to certain employees. equipment /facilities used by certain Introduced 2/8/2021. transportation employers and to codify a mask mandate on certain modes of passenger transportation. Introduced 2/8/2021. S Con Res 5 B. Sanders (I-VT) Setting forth the congressional S Res 27 C. Schumer (D-NY) A resolution relative to Senate Sec. budget for the US Government for FY 2021 and procedure in the 117th Congress. Introduced 2/3/2021. Analysis setting forth the appropriate budgetary levels for Passed/agreed to in Senate on 2/3/2021. Report FYs 2022 through 2030. Introduced 2/2/2021. Passed Senate on 2/5/2021 – 51 to 50. Passed House on 2/5/2021 – 219 to 209.
S 195 A. Klobuchar (D-MN) A bill To require the US DOT to provide States applying for distracted driving grants an explanation of the eligibility decision with respect to the State. Introduced 2/3/2021. HOUSE BILLS HR 1152 S. Lynch (D-MA) To amend title 49, United States Code, with respect to grants for buses and bus facilities. Introduced 2/18/2021. HR 1142 W. Keating (D-MA) To direct US DOT to HR 1082 C. Smith (R-NJ) “Sami’s Law.” To require ride-hailing establish a grant program for projects to Newspaper companies to implement an enhanced digital system strengthen and protect vulnerable Article to verify passengers with their authorized ride-hailing infrastructure used during mass Press Release vehicles and drivers. Introduced 2/15/2021. evacuations. Introduced 2/18/2021. HR TBA J. Panetta (D-CA) “The Electric Bicycle HR 947 G. Pence (R-IN) To amend title 23, USC, to modify Press Release Incentive Kickstart for the Environment (E- certain requirements of the railway-highway crossings BIKE) Act.” To encourage the use of program. Introduced 2/8/2021. electric bicycles, or e-bikes, through a consumer tax credit. Introduced 2/9/2021. HR 903 B. Thompson, (D-MS) “The Rights for the HR 792 D. Beyer, Jr. (D-VA) To direct US DOT to establish a Transportation Security Administration grant program to facilitate the installation, on bridges, Workforce Act.” To enhance the security of evidence-based suicide deterrents, including operations of the Transportation Security suicide prevention nets and barriers. Introduced Administration. TSA employees would 2/4/2021. have full federal sector collective bargaining rights and due process and whistleblower protections. Introduced 2/5/2021. HR 762 R. Krishnamoorthi (D-IL) To require the US HR 740 J. Brownley (D-CA) T require the US DOT to solicit a DOT to provide States applying for study on climate resilient transportation distracted driving grants an explanation of infrastructure. Introduced 2/3/201. the eligibility decision with respect to such State. Introduced 2/4/2021. H Con. Res 11 J. Yarmuth (D-KY) Establishing the HR 510 J. Brownley (D-CA) “Support Local Transportation Sec. Analysis congressional budget for the US Press Release Act.” Modifies the percentages of funds to be Government for FY 2021 and setting forth Article allocated to certain urbanized areas under the surface the appropriate budgetary levels for FYs transportation block grant program. Introduced 2022 through 2030. Introduced 2/1/2021. 1/28/2021. Passed House on 2/3/2021 – 218 to 212. HR 583 J. Panetta (D-CA) “The Green Bus Tax HR 512 J. Brownley (D-CA) “Green Bus Act of 2021.” To Press Release Credit Act.” Grants bus manufacturers a Press Release require any bus purchased for use in public tax credit for battery electric or hydrogen Article transportation with funds provided by the Federal fuel-cell buses. Introduced 1/28/2021. Transit Administration to be a zero-emission bus. Introduced 1/28/2021. HR 508 J. Brownley (D-CA) “SAFE Streets Act.” To HR 451 E. Blumenauer (D-OR) “The Building United States Press Release include a special rule for the dedication of Infrastructure and Leveraging Development Act (aka Article funds under the highway safety BUILD Act). To increase the national limitation improvement program for certain amount for qualified highway or surface freight vulnerable users. Introduced 1/28/2021. transfer facility bonds (funding through Private Activity Bonds. Introduced 1/25/2021.
FEDERAL REGISTER NOTICES OF FUNDING OPPORTUNITY (NOFOs) - GRANT AWARDS See Addendum B. - Calendar Year NOFO/AWARDS SCORECARD – at end of report.
February 18, 2021. The Federal Highway Administration (FHWA) issued a Notice announcing a funding opportunity for “Administration of the Dwight David Eisenhower Transportation Fellowship Program (DDETFP) Local Competition at Designated Institutions of Higher Education.”
The DDETFP Local Competition is to stimulate interest among students attending an Institution of Higher Education (IHE) of Minority Serving Institutions (MSI) and community colleges to conduct transportation-related research, pursue transportation-related degrees, to enter the transportation workforce, and to enhance the breadth, scope and diversity of knowledge of the entire transportation community in the United States. The FHWA expects approximately $1 million to be made available for the DDETFP Local Competition program. The FHWA anticipates selecting up to 50 DDETFP Local Competition fellowship programs per this notice. Cost sharing or matching is not required. The current closing date for applications is April 16, 2021 at 5:00pm Eastern Time.
February 17, 2021. The US DOT (USDOT) announced it is seeking applicants for the FY 2021 round of the Infrastructure for Rebuilding America (INFRA) discretionary grant program to fund transportation projects of national and regional significance. [Recall that the earlier January 22, 2021 INFRA NOFO was recalled by the Biden Administration for revision.] The Notice of Funding Opportunity (NOFO) is soliciting applications for $889 million in FY 2021 INFRA funds to be made available for awards. Also, amounts from prior year authorizations, presently estimated at up to $150 million, may be made available and awarded under this solicitation. Eligible applicants for INFRA grants are: (1) a State or group of States; (2) a metropolitan planning organization that serves an Urbanized Area; (3) a unit of local government or group of local governments; (4) a political subdivision of a State/local government; (5) a special purpose district or public authority with a transportation function, including a port authority; (6) a Federal land management agency that applies jointly with a State or group of States; (7) a tribal government or a consortium of tribal governments; or (8) a multi-State or multijurisdictional group of public entities. INFRA grants may be used for up to 60 percent of future eligible project costs. Other Federal assistance may satisfy the non-Federal share requirement for an INFRA grant, but total Federal assistance for a project receiving an INFRA grant may not exceed 80 percent of future eligible project costs. For the first time, the US DOT is seeking INFRA projects that address climate change and environmental justice. Applications must be submitted by 11:59 p.m. EST on March 19, 2021.
February 11, 2021. The Advanced Research Projects Agency Energy (ARPA-E) within the Department of Energy issued a Funding Opportunity Announcement making available approximately $100 million in funding to support high-risk R&D leading to the development of potentially disruptive new technologies across the full spectrum of energy applications. Areas of research responsive to this FOA include (but are not limited to) electricity generation by both conventional and renewable means; electricity transmission, storage, and distribution; energy efficiency for buildings, manufacturing and commerce, and personal use; and all aspects of transportation, including the production and distribution of both renewable and nonrenewable fuels, electrification, and energy efficiency in transportation. ARPA-E anticipates making approximately 30-50 awards under this FOA. Individual awards may vary between $250,000 and $10 million in Federal share. This FOA is open to U.S. universities, national laboratories, industry and individuals. Under a Cooperative Agreement or Grant, the Prime Recipient must provide at least 20 percent of the total project cost. The submission deadline for concept papers is 9:30 AM ET, April 6, 2021. The submission deadline for full applications is TBD.
February 11, 2021. The Federal Transit Administration (FTA) issued [announced] a Notice of Funding Opportunity (NOFO) and here and here making available $180 million in competitive grants under the FY 2021 Low or No Emission Grant Program (Low-No Program). Funding will be awarded competitively for the purchase or lease of low or no emission vehicles that use advanced technologies for transit revenue operations, including related equipment or facilities. Complete proposals must be submitted by 11:59 PM ET by April 12, 2021. OTHER TRANSPORTATION-RELATED FEDERAL REGISTER NOTICES February 23, 2021. The Federal Railroad Administration (FRA) issued a Correcting Amendment to their published December 14, 2020 Final Rule amending FRA’s grade crossing safety standards. An error was made that resulted in a cross-reference to the wrong paragraph.
OTHER REPORTS/NOTICES/NEWS ARTICLES February 22, 2021. The Federal Transit Administration (FTA) is working with the Centers for Disease Control and Prevention (CDC) and other federal agencies to provide guidance to the public transportation industry in response to the COVID-19 public health emergency. On January 29, 2021, the CDC issued an Order requiring the wearing of masks by travelers to prevent spread COVID-19. The FTA posted four new Frequently Asked Question (FAQs) regarding the CDC Order’s disability mask exemption and the Americans with Disabilities Act (ADA).
February 17, 2021. The AASHTO Council on Rail Transportation held a Webinar covering several topics including: 1) Grants: Upcoming NOFOs and Best Practices, 2) Metrics and Standards, and 3) ADA Compliance and Research Panel Discussion. For example, the webinar noted that the FY 2021 BUILD Notice of Funding Opportunity (NOFO) is to be released before the statutory deadline of April 26, 2021, that applicants will have 90 days to submit applications and that award announcements would be by November 22, 2021. Moreover the CRISI NOFO would be issued likely in spring 2021. The webinar was covered by TG&A – summary available upon request. FY 2021 Competitive Discretionary Grant Applications include the following:
February 16, 2021. The National Academies Press released a Report entitled, “Guidebook for Deploying Zero-Emission Transit Buses (2021).”
February 16, 2021. The Federal Transit Administration (FTA) issued a Dear Colleague Letter rescinding a June 2018 Dear Colleague letter regarding the Capital Investment Grants (CIG) program. The 2018 letter [The letter was rescinded on February 16, 2021] outlined factors the former Administration chose to emphasize when making discretionary funding decisions for the CIG program. Rather than the approach outlined in the 2018 letter, FTA will instead rely on the CIG statutory framework to ensure projects awarded funding have met the requirements of federal public transportation law, the Major Capital Investment Projects regulation, and the CIG Final Interim Policy Guidance. See statement from House Committee on Transportation and Infrastructure Chairman Peter DeFazio (D-OR) applauding the rescission of the former FTA CIG guidance.
February 9, 2021. The Federal Transit Administration issued an amendment to its FTA Master Agreement (version 28, February 9, 2021) to incorporate the requirements of the CDC mask order. FTA’s Master Agreement contains the standard terms and conditions that apply to every grant, cooperative agreement and loan authorized by federal public transportation law or administered by FTA. The amendment includes enforcement actions FTA may take for non-compliance. Meanwhile, Peter DeFazio (Chairman House T&I Committee) and Bennie Thompson (Chairman Homeland Security Committee) sent a letter Stephen Dickson (FAA Administrator) and Darby LaJoye (Administrator TSA) encouraging the two agencies to work in coordination with U.S. air carriers to robustly communicate and enforce Centers for Disease Control and Prevention (CDC) guidance, and the Department of Homeland Security (DHS) National Emergency determination aimed at Promoting COVID-19 Safety in Domestic and International Travel.
February 3, 2021. A coalition of transit industry executives sent a letter to Congressional leaders requesting $39.3 billion in emergency aid for public transit agencies nationwide in the next coronavirus relief bill.
February 2, 2021. President Biden directed the Federal Emergency Management Agency (FEMA) to fully reimburse states for the cost of National Guard Personnel and emergency costs. President Biden also announced and here that the administration is retroactively reimbursing states fully for FEMA-eligible services – including masks, gloves, emergency feeding actions, sheltering at risk populations, and mobilization of the National Guard – back dated to the beginning of the pandemic in January 2020. House Committee on Transportation and Infrastructure Chairman Peter DeFazio (D-OR) et al released a statement “applaud[ing] President Biden for directing the Federal Emergency Management Agency (FEMA) to retroactively reimburse state, local, tribal, and territorial governments back to January 2020 and through the end of September 2021 for emergency costs related to fighting the COVID-19 pandemic at 100 percent Federal rather than the normal 75 percent.”
February 1, 2021. The National Academies Press released a Report entitled, “Redesigning Transit Networks for the New Mobility Future (2021).”
February 1, 2021. The National Academies Press released a Report entitled, “Guidebook and Research Plan to Help Communities Improve Transportation to Health Care Services (2021).”
February 1, 2021. The National Academies Press released a Report entitled, “Analysis of Green Bond Financing in the Public Transportation Industry (2021).”
January 30, 2021. The Chaddick Institute for Metropolitan Development at DePaul University issued a Report entitled, “On the Brink: 2021 Outlook for the Intercity Bus Industry in the United States.” The report noted that the “prognosis for the intercity bus industry remains uncertain due to the weakened financial condition of most scheduled operators and the unanswerable questions about the pace of a post-pandemic recovery.” However, the report found that, “despite the challenges, signs of optimism are emerging that the intercity bus industry will move from “the brink” onto a more solid financial footing in post-pandemic times.”
January 29, 2021. The Centers for Disease Control and Prevention (CDC) issued an Order requiring the wearing of masks by travelers to prevent spread of the virus that causes COVID-19. The CDC Order implements President Biden’s Executive Order 13998, “Promoting COVID-19 Safety in Domestic and International Travel.” Conveyance operators must require that all persons wear masks when boarding, disembarking, and for the duration of travel, with certain exemptions. The Order defines “conveyance” as including “aircraft, train, road vehicle (including rideshares), vessel…or other means of transport, including military transport.” The Order goes into effect February 1, 2021 and remains in effect unless modified or rescinded based on specific public health or other considerations, or until the Secretary of Health and Human Services rescinds the determination. In addition to the CDC order, the Transportation Security Administration (TSA) anticipates issuing additional information and guidance on this topic. The US DOT has posted a US DOT FAQs page for additional modal specific information.
January 29, 2021. Uber released a 52-page report entitled, “Towards a New Model of Public Transportation - How Uber is offering public transportation agencies new tools to operate more efficient, connected and equitable mobility networks.” The paper is to establish the strategic foundation for how Uber expects public transportation to evolve over the coming decade.
January 29, 2021. The Center for Transportation and the Environment recently released a report entitled, “Transit Vehicle Innovation Deployment Centers (TVIDC) Advisory Panel Overview and Conclusions.” Encouraged by continued development of Zero-Emission Bus (ZEB) technologies, transit agencies have started committing to ambitious timelines for transitioning their entire fleets within the next 10 to 15 years. The report focuses on suggestions to expand the adoption of ZEB in the U.S. transit industry.
January 29, 2021. Operation Lifesaver released a suite of new rail safety materials to help keep people safe around railroad tracks and trains. Operation Lifesaver also released materials focused on sharing rail safety information with individuals experiencing homelessness, empowering them to make safe choices around railroad tracks and trains.
January 28, 2021. An EBP US, Inc. Independent Study and Here prepared for the American Public Transportation Association (APTA) found that even with the two rounds of emergency funding, public transit agencies still face a projected shortfall of $39.3 billion through the end of calendar year (CY) 2023. As a result, “APTA is urging Congressional leaders and President Joseph Biden, Jr. to provide an additional $39.3 billion in COVID-19 emergency funding to help public transit agencies continue to provide a critical lifeline to essential workers and to help our communities begin to rebuild our economy.” According to a January 2021 APTA survey of public transit industry businesses, 76 percent of businesses have seen a reduction in their transit industry business as a result of COVID-19, and nearly four in 10 businesses will be forced to consider additional layoffs. One of every five businesses are concerned that they may go out of business due to the pandemic.
January 15, 2021. The Federal Highway Administration (FHWA) issued several FY 2021 apportionment notices on January 15, 2021, but the official post on the FHWA Notices Page didn’t make it until February 2, 2021. The apportionment notices included a post of $2 billion nationally in FY 2021 Highway Infrastructure Program funding Apportionments, $10 billion nationally under the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 for Highway Infrastructure Programs, and the Redistribution of Certain Authorized Funds for FY 2021.
January 22, 2021. The American Association of State Highway and Transportation Officials (AASHTO) released their 2020 Annual Report. The report highlights AASHTOs achievements and accomplishments in 2020, such as AASHTO’s support for state DOTs as they responded to the pandemic.
UPCOMING CONGRESSIONAL CALENDAR – MARCH 2021 The Senate has announced a tentative Calendar with March 29 - April 9 being noted as a State Work Period. The House calendar for March is noted below.
UPCOMING DEADLINES/EVENTS Note: Given the recommendations from the Centers for Disease Control and Prevention, many upcoming events have/are being cancelled or conducted “virtually” to prevent the spread of COVID-19.
February 23-25 AASHTO 2021 Virtual Washington Briefing; February 23-26 10th International Railway Summit (Virtual); March 3 American Society of Civil Engineers is to release the 2021 Report Card for America's Infrastructure; March 8-26 NACo 2021 Virtual Legislative Conference; March 10 Next-Gen Freight Rail (virtual); March 16-18 American Public Transportation Association Mobility Conference; March 30 FHWA Broadband / 5G rollout among state DOTs (webinar); April 6, 7 & 8 TRB - Measuring and Managing Freight System Resilience Workshop; April 7-8 APTA High Speed Rail Conference, Upcoming Registration; May 13 17th Annual NRC Railroad Equipment Auction; May 18-21 American Public Transportation Association Legislative Conference; TBA Railroad Day on Capitol Hill.
SCUTTLEBUTT February 17-23, 2021. As voiced by Majority Leader Steny Hoyer in November 2020, House Democratic leaders are proceeding with plans to bring back earmarks for the 117th Congress. Several articles surfaced in February from the Reason Foundation and Roll Call discussing the ramifications.
February 11, 2021. President Biden and Vice President Harris met in the Oval Office with a bipartisan group of Senators from the Environment and Public Works (EPW) Committee, and Transportation Secretary Pete Buttigieg joined virtually, to discuss the critical need for investing in modern and sustainable infrastructure.
February 5, 2021. New York Judge Scott DelConte ruled that Republican Claudia Tenney defeated Congressman Anthony Brindisi by 109 votes in the nation's last undecided congressional race. Tenney is to be sworn in as the Congresswoman for central New York’s 22nd Congressional District. Judge DelConte’s order directed New York to certify the election results immediately.
Addendum A. STATUS OF PRESIDENT BIDEN’S $1.9 TRILLION COVID-19 AMERICAN RESCUE PLAN (TRANSPORTATION-RELATED COMMITTEE ACTIONS)
The Budget Resolution provided reconciliation instructions to various House and Senate committees to submit changes in law within their respective jurisdictions to increase the deficit by not more than their respective allocated amounts for the period of FYs 2021 through 2030 to advance President Biden’s $1.9 trillion coronavirus relief plan. Accordingly, the following House Committees were instructed to report legislation totaling in aggregate $1.9 trillion consistent with specified budgetary target amounts no later than February 16, 2020. (To date, the Senate has taken no Committee action concerning Budget reconciliation/American Rescue Plan bill.) Highlighted below are brief summaries of House committee action proposing transportation-related funding increases.
House Committee on Agriculture $ 16,112,000,000 House Committee on Education and Labor $ 357,076,000,000 House Committee on Energy and Commerce $ 188,498,000,000 House Committee on Financial Services $ 75,000,000,000 House Committee on Foreign Affairs $ 10,000,000,000 House Committee on Natural Resources $ 1,005,000,000 House Committee on Oversight and Reform $ 350,690,000,000 House Committee on Science, Space and Technology $ 750,000,000 House Committee on Small Business $ 50,000,000,000 House Committee on Transportation and Infrastructure $ 95,620,000,000 House Committee on Veterans’ Affairs $ 17,000,000,000 House Committee on Ways and Means $ 940,718,000,000 Subtotal: $2,102,469,000,000 Less Overlap: $ 215,000,000,000 Total: $1,887,469,000,000
February 22, 2021. The House Committee on the Budget held a virtual Committee Markup of the “American Rescue Plan Act of 2021” – [S. Con. Res. 5 was ordered reported, without Amendment]. The Committee received submissions from nine Committees of Jurisdiction; thence, the House Budget Committee, as provided for under Section 310 of the Budget Act, bound the provisions together, without substantive change, into a single measure [Legislative Text - Sen Con Res 5]—a reconciliation bill. See Committee Report. T&I Republicans detailed their opposition to transportation Budget Reconciliation Measures in the T&I Committee’s submission to the Committee on the Budget - See Minority Dissenting Views.
February 10, 2021. The House Committee on Transportation and Infrastructure held a Full Committee Markup to consider Legislative proposals to comply with the reconciliation directive included in section 2001 of the Concurrent Resolution on the Budget for Fiscal Year 2021, S. Con. Res. 5 (TITLE VII— COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE). Committee Link. The Committee announced that it adopted (without amendment) nearly $100 billion in aid to the nation, including transportation workers—as part of President Biden’s $1.9 trillion American Rescue Plan. The Committee’s portion will be combined with other committee recommendations (to date nine committees) to make up President Biden’s aid plan. The T&I Committee’s portion of the FY 2021 budget reconciliation bill includes: FEMA’s Disaster Relief Fund: $50 billion for reimbursement to state, local, tribal, and territorial governments dealing with ongoing response and recovery activities from COVID-19. Transit: $30 billion to help assist with operating costs, including payroll/PPE. Airports: $8 billion, including $800 million for airport concessionaires.
Economic Development Administration: $3 billion to provide economic adjustment assistance to help prevent, prepare for, and respond to economic injury caused by the COVID-19 pandemic. Aerospace manufacturing: $3 billion for temporary payroll support program to retain/rehire workers. Amtrak: $1.5 billion (splits of $820.4 billion to NEC and $679.6 billion to the National Network) to recall and pay employees furloughed due to the COVID-19 pandemic through the end of fiscal year 2021 and to restore daily long-distance service.
The House Committee on Financial Services concluded a markup on February 11, 2021 wherein legislation was adopted, as amended, providing for reconciliation of S. Con. Res. 5, the Concurrent Resolution on the Budget for Fiscal Year 2021. The Financial Services Committee proposed $15 billion to further extend the Payroll Support Program (PSP3) through September 30, 2021, to provide payroll support for airline workers and related contract workers. Specifically, PSP3 provides $14 billion to support workers of eligible air carriers, and $1 billion would be available to support workers of eligible contractors.
The House Committee on Oversight and Reform also released/adopted [February 10-12, 2021] Subtitle A—Coronavirus State and Local Fiscal Recovery Funds to allocate funding to states, localities, Tribes, and territories to fight the coronavirus pandemic and its devastating economic impacts. The Committee adopted the $350 billion package for states ($195.3 billion), localities ($130.2 billion - split evenly between municipalities and counties), Tribes ($20 billion), and territories ($4.5 billion); $570 million for emergency leave for federal and postal workers; and $117 million for oversight entities to promote transparency and accountability of all federal coronavirus relief funds on February 12, 2021. Click here to download approximate funding estimates and here for Committee One-Pager. Also see, Committee Link and NACo Analysis.
Meanwhile, on February 11, 2021 the House Ways and Means Committee [more information of Committee provisions] advanced their portion of President Biden’s $1.9 trillion COVID-19 aid package which included: Additional direct payments of $1,400 per person—bringing their total relief to $2,000 per person. Extending temporary federal unemployment and benefits through August 29, 2021 and increasing the weekly benefit from $300 to $400. Expanding tax credits targeted at workers and families. Supporting health coverage and improves health care affordability. Protecting the elderly and crushes the virus in nursing homes. Incorporates a minimum-wage increase to $15 an hour.
The House Committee on Energy and Commerce passed their COVID-19 relief budget reconciliation legislation on February 12, 2021. See Committee Link for details.
Addendum B. – Calendar Year NOFO/AWARDS SCORECARD. An Excel spreadsheet with “hot-links” is available from TG&A upon request.
SELECTED TRANSPORTATION NOTICE OF FUNDING OPPORTUNITIES (NOFOs) &/OR AWARDS (SCORECARD for CY 2021) 2/18/2021 TYPE NOFO NOFO $s APPLICATION NOFO $ NOFO TITLE (NOFO / AWARD) ISSUANCE DATE NOFO URL MADE AVAILABLE DEADLINE AWARDS AWARDS URL AWARDED - DATE COMMENTS US DOT Inclusive Design Challenge (FY 2018 Funding) NOFO/AWARD 4/21/2020 NOFO URL 5,000,000 10/30/2020 3,000,000 Award URL 1/6/2021 $5 m. prize purse from FY 2018 “Highly Automated Vehicle Research & Dev. Pgm." Complete Trip - ITS4US Deployment Program NOFO/AWARD 6/18/2020 NOFO URL 40,000,000 7/7/2020 38,350,871 Award URL 1/6/2021 FY 2021 INFRA Discretionary Grants VOID - TBA - See 2/17/2021 for Revision NOFO 1/20/2021 NOFO URL 889,000,000 4/4/2021 TBD TBD TBD Postponed Notice URL FY 2021 INFRA Discretionary Grants NOFO 2/17/2021 NOFO URL 1,039,000,000 3/19/2021 TBD TBD TBD FY 2021 National Infrastructure Investments (aka BUILD) VOID - TBA NOFO 1/21/2021 NOFO URL 1,000,000,000 4/20/2021 TBD TBD TBD Postponed Notice URL Dwight David Eisenhower Transportation Fellowship Program NOFO 2/18/2021 NOFO URL 1,000,000 4/16/2021 TBD TBD TBD US DHS/ FEMA FY 2020 Fire Prevention and Safety (FP&S) Grant program NOFO 1/14/2021 NOFO URL 35,500,000 2/26/2021 TBD TBD TBD FY 2020 Staffing For Adequate Fire And Emergency Response (SAFER) grants NOFO 1/27/2021 NOFO URL 355,000,000 3/12/2021 TBD TBD TBD DOE Advanced Research Projects Agency – Energy FOA 2/11/2021 FOA URL 100,000,000 TBD TBD TBD TBD Development of high-potential, high-impact energy technologies. EPA FAA Airport Coronavirus Response Grant Program Notice 12/31/2020 Notice URL 2,000,000,000 TBD TBD TBD TBD Aviation Workforce Development Grant Program - Aviation Maintenance NOFO 1/20/2021 NOFO URL 5,000,000 3/22/2021 TBD TBD TBD Aviation Workforce Development Grant Program - Aircraft Pilots NOFO 1/20/2021 NOFO URL 5,000,000 3/22/2021 TBD TBD TBD Small Community Air Service Development Program NOFO 1/20/2021 NOFO URL 18,000,000 3/1/2021 TBD TBD TBD Rev. closing date - original was 1/26/2021 FHWA Highway Construction Workforce Partnership (HCWP) Grant Program NOFO 1/5/2021 NOFO URL 4,000,000 2/22/2021 TBD TBD TBD Commuter Authority Rail Safety Improvement (CARSI) Grants NOFO/AWARD 8/26/2020 NOFO URL 50,000,000 40,255,750 Award URL 1/14/2021 FRA FY 2021 Supplemental for the NEC Cooperative Agreement to Amtrak NOFO 2/11/2021 NOFO URL 1,209,483,050 2/22/2021 TBD TBD TBD FY 2021 Supp. for the National Network Cooperative Agreement to Amtrak NOFO 2/11/2021 NOFO URL 1,380,241,050 2/22/2021 TBD TBD TBD FTA FTA - Coronavirus Response/Relief Supplemental Appropriations Act of 2021 Notice 1/11/2021 Notice URL 14,000,000,000 TBD TBD TBD TBD FY 2021 Low or No Emission Grant Program NOFO 2/11/2021 NOFO URL 180,000,000 4/12/2021 TBD TBD TBD HUD MARAD FY 2021 Small Shipyard Grants program NOFO 1/15/2021 NOFO URL 19,600,000 2/25/2021 TBD TBD TBD NAT'L. SCIENCE FOUNDATION NHTSA / FMCSA FY 2021 High Priority- CMV program NOFO 1/28/2021 NOFO URL 25,211,500 3/15/2021 TBD TBD TBD FY 2021–Commercial Motor Vehicle Operator Safety Training Program NOFO 1/28/2021 NOFO URL 2,000,000 3/15/2021 TBD TBD TBD FY 2021 Commercial Driver's License Program Implementation NOFO 1/28/2021 NOFO URL 32,702,000 3/15/2021 TBD TBD TBD FY 2021 High Priority Program – Innovative Technology Deployment NOFO 1/29/2021 NOFO URL 20,000,000 3/15/2021 TBD TBD TBD DOT / PHMSA FY 2021 Supplemental Public Sector Training (SPST) Grant program NOFO 2/4/2021 NOFO URL 1,300,000 3/15/2021 TBD TBD TBD DOC/EDA OSHA USDA
SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 5, 2021
STAFF REPORT
Item 4 ACTION Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Adopting Fiscal Year 2020/2021 Budget Amendment #2: a) SJRRC Operating Budget for no Net Increase adding Valley Link Reimbursement funds of $50,000 and reducing the Measure K contribution by $50,000 b) Separating SJRRC Contracted Services from the ACE Operating Budget c) Increasing the ACE Operating Budget Revenue and Expense Line for a Net Increase of $3,528,073 from $19,322,725 to $22,850,798
Background:
On July 2, 2020, the San Joaquin Regional Rail Commission (“SJRRC”) Board approved the FY 2020/2021 SJRRC/Altamont Corridor Express (ACE)/San Joaquin Joint Powers Authority (SJJPA) Operating and Capital Budgets. As part of the budget approval process, the Executive Director is responsible for and authorized to implement the adopted budget. The Executive Director’s authority is limited to the major category levels identified in the budget and is subject to the Commission’s authorized expenditure limits, except for those expenditures that are routine in nature and are required in order to conduct the ordinary day-to-day activities of the Commission or the ACE Service. These ongoing expenditures are approved through the adoption of the budget. Budget increases, amendments, or transfers between major budget categories are submitted to the Board for approval in accordance with Section 7.2 of the SJRRC Joint Powers Agreement.
Details of the changes are described below. A separate budget spreadsheet for the FY 2020/21 Operating Amendment includes the proposed revisions (shown in green), is included.
Budget Amendment #2 includes the following:
a) SJRRC Operating Budget for no Net Increase adding Valley Link Reimbursement funds of $50,000 and reducing the Measure K contribution by $50,000
An agreement with Valley Link for reimbursement of approved SJRRC services related to managing the operations of future Valley Link service is included as a later item on this March meeting agenda.
b) Separating SJRRC Contracted Services from the ACE Operating Budget As part of the Fiscal Year 2020/2021 Budget, the Commission contracted with Caltrans for third party mechanical work to increase Rail Maintenance Facility utilization, provide additional funding, and redeploy SJRRC and Contractor staff. Additionally, the Commission contracted Siemens to provide storage and facilities to complete Conditional Acceptance of Caltrans procured Venture Single Level passenger cars. This endeavor requires a separate enterprise fund to be created separate from the ACE service. These revenues and expenses will be separated from the ACE Operating Budget.
c) Increasing the ACE Operating Budget Revenue and Expense Line for a Net Increase of $3,528,073 from $19,322,725 to $22,850,798
Due to the COVID-19 pandemic, ACE service was reduced in Mid-March 2020 to two daily roundtrips. Funding partners Alameda County Transportation Commission (ACTC) and Santa Clara Valley Transportation Authority (VTA), initially contributed to a 2 round-trip service level in the original Budget, consistent with the Cooperative Services Agreement, until such time the Commission was able to demonstrate cost increases associated with the pandemic. Budget Amendment #2 identifies additional contributions agreed upon by ACTC and VTA, that reflect the actual costs during the pandemic. The ACE Operations and Maintenance and Consumables/Repair Parts line items have experienced increased expenses due to running longer trainsets for social distancing, maintaining staffing for the safety of ACE passengers, additional COVID-19 cleaning costs for the equipment, stations and facilities, and other evolving protocols associated with the continuing pandemic. Additionally, preventative maintenance work and testing/certifying/training on the new locomotives has delayed the redeployment of Commission and Contractor staff so those expenses have remained in the ACE portion of the Budget.
Budget Amendment #2 also allows for the introduction of a 3rd round-trip train toward the end of the fiscal year if the recovery ridership threshold is reached.
Operating Budget Revisions Summary Table Prior Budget Revised Budget Increase/Decrease SJRRC SJRRC Contracted Contracted Operating Revenue SJRRC ACE SJRRC Services ACE SJRRC Services ACE Measure K $2,009,700 $964,124 $1,959,700 $964,124 -$50,000 $- $ - SJCOG - Local Transportation Funds (LTF) 2,796,123 2,796,123 - - Fare Revenues 1,229,580 1,460,127 - 230,547 ACTC Measure B Local 1,567,430 2,340,240 - 772,810 ACTC Measure BB Local 743,216 1,103,918 - 360,702 Santa Clara VTA Local 2,546,587 3,819,880 - 1,273,293 Transportation for Clean Air (TFCA) 80,000 - - -80,000 SJCOG - State Transit Assistance (STA) 65,522 65,522 - - MTC - State Transit Assistance (STA) 347,133 347,133 - - ACTC Measure B Local - Admin Fee 15,000 15,000 - - ACTC Measure BB Local - Admin Fee 15,000 15,000 - - Amtrak Thruway Service 75,000 75,000 - - High Speed Rail 102,000 102,000 LCTOP - Means Based Fare Program 173,687 173,687 - - FTA CARES ACT 8,704,323 9,675,044 - 970,721 Valley Link Reimbursement 50,000 50,000 Other Revenue - Contracted Services 1,900,000 1,900,000 - Total Revenues $2,111,700 $21,222,725 $2,111,700 $1,900,000 $22,850,798 $ - $ - $3,528,073 SJRRC SJRRC Contracted Contracted Operating Expenses SJRRC ACE SJRRC Services ACE SJRRC Services ACE Project Management, Services, Supplies Salaries/Benefits/Contract Help $1,078,411 $4,265,428 $1,078,411 $150,000 $4,115,428 $- $- $- Office Expense Postage 22,369 27,485 22,369 27,485 - - - Subscriptions/Periodicals/Memberships 6,750 9,650 6,750 9,650 - - - Office Equipment/Furniture 39,976 64,231 39,976 64,231 - - - Computer Systems 84,750 8,850 84,750 8,850 - - - Communications 21,272 60,904 21,272 60,904 - - - Motor Pool 17,240 62,149 17,240 62,149 - - - Transportation/Travel 10,650 17,125 10,650 17,125 - - - Training 6,098 15,625 6,098 15,625 - - - Audits Regulatory Review 14,200 69,400 14,200 69,400 - - - Professional Services - Legislative 76,470 - 76,470 - - - - Professional Services - Legal 100,000 60,000 100,000 60,000 - - - Professional Services - General 127,356 163,695 127,356 163,695 - - - Publications/Legal Notices 11,000 16,000 11,000 16,000 - - - Taxes Assessments 23,025 - 23,025 - - - - Sub-Total $1,639,567 $4,840,542 $1,639,567 $150,000 $4,690,542 - - - Contracted Services Maintenance of San Joaquin County Facilities $99,499 $- $99,499 $- $- $- $- Maint. & Improvements System Wide ACE Stations - 54,900 - 54,900 - - - Maintenance of Headquarters Structures/Grounds 39,532 130,992 39,532 130,992 - - - ACE Operations & Maintenance - 3,931,538 - 6,788,618 - - 2,857,080 Contracted Services - 1,750,000 - 1,750,000 - - - - Positive Train Control - 276,000 - 276,000 - - - Consumables/Repair Parts - 550,000 - 756,250 - - 206,250 Leases/Maintenance of Facilities 31,800 39,100 31,800 39,100 - - - Fuel - 831,482 - 981,482 - - 150,000 Railroad Maintenance, Oversight/Dispatching - 1,076,631 - 1,076,631 - - - Insurance 180,949 3,764,611 180,949 3,764,611 - - - Insurance Management Fees 22,500 127,500 22,500 127,500 - - - Security Services/Safety Programs 43,128 352,601 43,128 352,601 - - - FRA Drug Testing Program - 7,100 - 7,100 - - - Community Engagement & Marketing 33,000 422,742 33,000 422,742 - - - Passenger Services - 14,500 - 14,500 - - - Ticketing Services - 436,614 - 436,614 - - - Professional Services Operations 21,725 243,948 21,725 243,948 - - - Communications Operations - 96,536 - 132,736 - - 36,200 Communications WiFi - 400,000 - 400,000 - - - Emergency Ride Home/Emergency Bus Bridges - 19,125 - 19,125 - - - Rail Maintenance Facility - 1,113,480 - 1,113,480 - - - Sub-Total $472,133 $15,639,400 $472,133 $1,750,000 $17,138,930 - - $3,249,530 Shuttle Services - $742,783 - $ 1,021,326 - - $278,543 Total Expenses $2,111,700 $21,222,725 $2,111,700 $1,900,000 $22,850,798 $- $- $3,528,073
• ACE Revenue increase of $3,528,073 o $230,547 increase to Fare Revenue o $772,810 increase Alameda County Transportation Commission (ACTC) Measure B contribution o $360,702 increase ACTC Measure BB contribution o $1,273,293 increase Santa Clara Valley Transportation Authority (SCVTA) o Decrease $80,000 of Transportation for Clean Air (TFCA) Funds o $970,721 increase FTA CARES ACT • ACE Expense increase of $3,528,073 o $2,857,080 increase to ACE Operations and Maintenance o $206,250 increase to Consumables/Repair Parts o $150,000 increase to Fuel o $36,200 increase to Communications Operations o $278,543 increase to Shuttle Services
Fiscal Impact:
A. SJRRC Operating Budget for no Net Increase adding Valley Link Reimbursement funds of $50,000 and reducing the Measure K contribution by $50,000 B. Separates the SJRRC Contracted Services from the ACE Operating Budget C. Increases the ACE Operating Budget revenue and expense line for a net increase of $3,528,073 from $19,322,725 to $22,850,798
Recommendation:
Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Adopting Fiscal Year 2020/2021 Budget Amendment #2: a) SJRRC Operating Budget for no Net Increase adding Valley Link Reimbursement funds of $50,000 and reducing the Measure K contribution by $50,000 b) Separating SJRRC Contracted Services from the ACE Operating Budget c) Increasing the ACE Operating Budget revenue and expense line for a net increase of $3,528,073 from $19,322,725 to $22,850,798 RESOLUTION SJRRC-R-20/21-
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION ADOPTING FISCAL YEAR 2020/2021 BUDGET AMENDMENT #2: a) SJRRC OPERATING BUDGET FOR NO NET INCREASE ADDING VALLEY LINK REIMBURSEMENT FUNDS OF $50,000 AND REDUCING THE MEASURE K CONTRIBUTION BY $50,000 b) SEPARATING SJRRC CONTRACTED SERVICES FROM THE ACE OPERATING BUDGET c) INCREASING THE ACE OPERATING BUDGET REVENUE AND EXPENSE LINE FOR A NET INCREASE OF $3,528,073 FROM $19,322,725 TO $22,850,798
WHEREAS, on July 2, 2020 the Board of Commissioners of the San Joaquin Regional Rail Commission (SJRRC) adopted the fiscal year 2020/2021 Capital and Operating Budgets; and
WHEREAS, the San Joaquin Regional Rail Commission Joint Powers Agreement (“JPA”) requires approval of all amendments to the capital and operating budget; and
WHEREAS, as part of the Budget approval process, the Executive Director is responsible for, and authorized to implement the adopted Capital and Operating Budgets. The Executive Director’s authority is limited to the major category levels identified in the Budget and is subject to the Commission’s authorized expenditure limits, except for those expenditures that are routine in nature and are required in order to conduct the ordinary day-to-day activities of the Commission or the ACE Service. These ongoing expenditures are approved through the adoption of the Budget. Budget increases, amendments, or transfers between major budget categories are submitted to the Board for approval in accordance with Section 7.2 of the JPA; and
WHEREAS, from time to time the need to amend an approved budget occurs to include additional funds for and or projects to complete the mission of the Commission in providing the ACE and San Joaquins Services; and
WHEREAS, the Executive Director has prepared an amended Operating Budget that reflects SJRRC operating budget for no net increase adding Valley Link Reimbursement Funds of $50,000 and reducing the Measure K contribution by $50,000; and
WHEREAS, the Executive Director has prepared an amended Operating Budget that reflects separating SJRRC Contracted Services from the ACE Operating Budget and increasing the ACE Operating Budget revenue and expense line for a net increase of $3,528,073 from $19,322,725 to $22,850,798; and WHEREAS, following review and deliberation, the San Joaquin Regional Rail Commission staff has recommended adoption of Amendment #2 to the FY 2020/2021 SJRRC/ACE Combined Operating Budget as presented; and
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the San Joaquin Regional Rail Commission adopts Fiscal Year 2020/2021 Budget Amendment #2: a) SJRRC operating budget for no net increase adding Valley Link Reimbursement Funds of $50,000 and reducing the Measure K contribution by $50,000 b) Separating SJRRC Contracted Services from the ACE Operating Budget c) Increasing the ACE Operating Budget Revenue and Expense Line for a Net Increase of $3,528,073 from $19,322,725 to $22,850,798
PASSED AND ADOPTED, by the Board of Commissioners this 5th day of March 2021, by the following vote:
Regular Voting Members:
AYES: NOES: ABSENT: ABSTAIN:
Special Voting Members as to c):
AYES: NOES: ABSENT: ABSTAIN:
ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION
______STACEY MORTENSEN, Secretary CHRISTINA FUGAZI, Chair SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 5, 2021
STAFF REPORT
Item 5 ACTION
Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Approving and Authorizing the Executive Director to Negotiate and Execute a Consulting Agreement with the Tri-Valley – San Joaquin Valley Regional Rail Authority (Authority) to Reimburse SJRRC for Services to Review Valley Link Service Planning and Third-Party Agreements
Background:
The Tri-Valley – San Joaquin Valley Regional Rail Authority (Authority) was established on January 1, 2018 through the enactment of Assembly Bill 758 to plan and deliver the Valley Link project – a critically needed, mega-region, rail connectivity project to link Livermore and the Central Valley to the Dublin/Pleasanton BART station. This service will also connect to the ACE east-west trunkline and the new north-south ACE expansion between Merced and Natomas.
This single purpose Authority is necessary to accelerate Valley Link project delivery to accommodate the dramatically increasing travel demand along the I-205 and I-580 corridors, and to provide policy representation and governance for Alameda and San Joaquin County constituents.
The mega-region has struggled with numerous independent operating agencies and many stakeholders have expressed a desire for the Authority to work with an existing agency to oversee operations rather than stand up another fully staffed agency. The early identification of an operating agency will assist the Authority with certain milestone decisions that could affect the viability, scope, or cost of future operations.
The San Joaquin Regional Rail Commission (Commission) approved in December 2020 a Memorandum of Understanding (MOU) with the Authority to establish the process and roles and responsibilities for managing the operations of future Valley Link service. The purpose of the MOU is to memorialize the understanding of the Authority and Commission establishing a framework to negotiate agreements establishing their roles and responsibilities for the successful implementation and operation of the new service. The proposed reimbursement agreement is the first agreement with the Authority that will provide for the reimbursement of the Commission for its consulting services in developing the Valley Link Service.
Scope of Consulting Services The initial scope of consulting services the Commission will provide for the Valley Link Service Planning (Scope) upon the request of the Authority are as follows: • Review of preliminary engineering documents. • Review of Interagency agreements. • Review of early service development and operating plans. • Review procurements. • Attendance at meetings and participation in conference calls. It is anticipated that the Authority will request that the Commission perform specific consulting tasks within the Scope during the term of the agreement. The proposed agreement will provide for the reimbursement of those additional tasks the Commission agrees to perform.
Contract Structure: Staff is recommending that the Commission enter into a consulting agreement (Agreement) with the Authority to compensate the Commission for allowable costs and staff time for the consulting services it provides to the Authority. The Agreement will identify the Scope of the Commission’s consulting services and the reimbursement of the Commission for those services. The Agreement will also cover the reimbursement of any additional specific consulting tasks the Commission agrees to perform from time to time. To the extent the Authority’s funding of the Commission’s services are limited, the Agreement will provide that when the Authority’s funding for the Commission’s services have been exhausted, the Commission will be able to cease all work on those services until additional reimbursement funding is available.
Procedurally, the Commission would perform work under the Reimbursement Agreement by utilizing staff and, if necessary, any necessary third-party agreements to complete its work. The Commission would invoice the Authority for all allowable costs for payment.
Staff is working with Counsel and the Authority to draft the reimbursement agreement and anticipate finalizing the agreement by Spring 2021.
Fiscal Impact: This is part of the FY 20/21 Budget Amendment #2 under item 4 on this agenda.
Recommendation: Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Approving and Authorizing the Executive Director to Negotiate and Execute a Consulting Agreement with the Tri-Valley – San Joaquin Valley Regional Rail Authority (Authority) to Reimburse SJRRC for Services to Review Valley Link Service Planning and Third-Party Agreements. SJRRC RESOLUTION-R-20/21-
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION APPROVING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE A CONSULTING AGREEMENT WITH THE TRI-VALLEY – SAN JOAQUIN VALLEY REGIONAL RAIL AUTHORITY (AUTHORITY) TO REIMBURSE SJRRC FOR SERVICES TO REVIEW VALLEY LINK SERVICE PLANNING AND THIRD PARTY AGREEMENTS
WHEREAS, in early 2018, the Tri-Valley – San Joaquin Valley Regional Rail Authority (Authority) was established through the enactment of Assembly Bill 758 to plan and deliver the Valley Link Project to link Livermore and the Central Valley to the Dublin/Pleasanton BART station. This service will also connect to the ACE east-west trunkline and the new north-south ACE expansion between Merced and Natomas; and
WHEREAS, the Authority and the Commission entered into a Memorandum of Understanding (MOU) in December 2020 to establish the process and roles and responsibilities for managing the operations of the Valley Link Service; and
WHEREAS, the purpose of the MOU is to memorialize the understanding of the Authority and Commission establishing a framework to negotiate agreements establishing their roles and responsibilities for the successful implementation and operation of the new service; and
WHEREAS, the Authority desires to retain the Commission as a consultant to review the Valley Link Services Planning and third-party agreements it enters into; and
WHEREAS, the Authority and Commission desire to enter into a consulting agreement (Agreement) retaining the Commission as a consultant and reimbursement it for allowable costs and staff time for performing those services; and
WHEREAS, the Commission would perform its consulting work under the Agreement and utilize staff and any necessary third-party agreements to complete the work and then invoice the Authority for reimbursement; and
WHEREAS, Staff is working with Counsel and the Authority to finalize the Agreement by Spring 2021; and
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the San Joaquin Regional Rail Commission hereby Approve and Authorize the Executive Director to Negotiate and Execute a Consulting Agreement with the Tri-Valley – San Joaquin Valley Regional Rail Authority (Authority) to Reimburse SJRRC for Services to Review Valley Link Service Planning and Third Party Agreements. PASSED AND ADOPTED, by the Board of Commissioners on this 5th day of March 2021, by the following vote:
AYES: NOES: ABSTAIN: ABSENT:
ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION
______STACEY MORTENSEN, Secretary CHRISTINA FUGAZI, Chair SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 5, 2021
STAFF REPORT
Item 6 ACTION Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commissioners Appointing Two Representatives to the San Joaquin Regional Rail Commission Station/Facilities Development Committee, including; • One from Sacramento Regional Transit District • One from San Joaquin Regional Rail Commission
Background: At the October 4th, 2019 Rail Commission Board Meeting, Ordinance No. 2019-01 was adopted which established the Station and Facilities Development Committee of the San Joaquin Regional Rail Commission.
The Committee has certain decision-making authorities delegated to it by the Rail Commission under an annual, Rail Commission approved scope and budget identified for the Valley Rail Expansion in Stanislaus, San Joaquin and Sacramento Counties.
The Committee is subject to the Brown Act and will meet on an as needed basis and include teleconferencing to ensure quorums. There may be times where several meetings a month may be needed and times where there are no meetings in a month.
The Committee is made up of four (4) members. Utilizing the existing member agencies of the San Joaquin Joint Powers Authority for some continuity, the Rail Commission has requested that StanCOG and SacRT recommend an appointee from its’ membership. The remaining two members are Rail Commissioners from the areas of San Joaquin County affected by the expansion. No alternates are designated for the Committee.
There is currently a vacancy for a Rail Commission appointment and a SacRT appointment, due to changes in the membership of the local governing boards. Existing members include Supervisor Vito Chiesa from the Stanislaus county region and Commissioner Leo Zuber for the south San Joaquin County region.
SacRT has recommended Elk Grove Councilmember Patrick Hume to serve for the Sacramento county region. Based upon the need for a north San Joaquin county representative, Commissioner Mikey Hothi is recommended to fill the vacancy for the Rail Commission.
Fiscal Impact: There is no fiscal impact.
Recommendation: Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commissioners Appointing Two Representatives to the San Joaquin Regional Rail Commission Station/Facilities Development Committee, including; • One from Sacramento Regional Transit District • One from San Joaquin Regional Rail Commission
RESOLUTION SJRRC-R-20/21-
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION APPOINTING TWO REPRESENTATIVES TO THE SAN JOAQUIN REGIONAL RAIL COMMISSION STATION/FACILITIES DEVELOPMENT COMMITTEE, INCLUDING; • ONE FROM SACRAMENTO REGIONAL TRANSIT DISTRICT • ONE FROM SAN JOAQUIN REGIONAL RAIL COMMISSION
WHEREAS, at the October 4th, 2019 Rail Commission Board Meeting, Ordinance No. 2019-01 was adopted which established the Station and Facilities Development Committee of the San Joaquin Regional Rail Commission; and
WHEREAS, the Committee has certain decision-making authorities delegated to it by the Rail Commission under an annual, Rail Commission approved scope and budget identified for the Valley Rail Expansion in Stanislaus, San Joaquin and Sacramento Counties; and
WHEREAS, the committee is made up of four (4) members, and utilizing the existing member agencies of the San Joaquin Joint Powers Authority for continuity, the Rail Commission has requested that StanCOG and SacRT recommend an appointee from its’ membership. The remaining two members are Rail Commissioners from the areas of San Joaquin County affected by the expansion; and
WHEREAS, there is a vacancy on the Committee for the Rail Commission and for SacRT; and
WHEREAS, SacRT recommended Elk Grove Councilmember Patrick Hume to serve for the Sacramento county region; and Commissioner Mikey Hothi is recommended to fill the Rail Commission vacancy; and
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the San Joaquin Regional Rail Commission hereby appoints Patrick Hume and Mikey Hothi to the Rail Commission’s Stations/Facilities Development Committee.
PASSED AND ADOPTED, by the Board of Commissioners this 5th day of March 2021, by the following vote:
AYES: NOES: ABSTAIN: ABSENT:
ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION
______STACEY MORTENSEN, Secretary CHRISTINA FUGAZI, Chair SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 5, 2021
STAFF REPORT
Item 7 ACTION Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Adopting the 2021 Federal Legislative Priorities for Inclusion in the SJCOG One Voice Project List
Background: The San Joaquin Council of Governments (SJCOG) One Voice® is a legislative advocacy program for San Joaquin County that promotes issues of regional significance to federal legislators and agencies typically through an annual advocacy trip to Washington, D.C. However, with the expectation COVID-19 will limit in-person meetings for, at least, another six months, SJCOG staff is proposing two virtual meeting days, one in April, the other in June (dates still to be determined). The purpose of the One Voice® program will remain the same: to advocate for increased funding and/or new or amended legislation for issues and projects of regional significance to the San Joaquin region.
For the 2021 One Voice® program, SJCOG staff are recommending projects that are regionally significant and that provide a community-wide benefit and are aligned based on thematic concepts:
• Environmental Sustainability – projects whose core features improve air quality, reduce vehicle miles traveled, and are responsive to climate change / resiliency goals. • Trade Corridors – projects which foster goods movement, commerce, or enhance/eliminate barriers to trade. • Innovation and Technology – strategies / projects that capture cutting edge technology investments. • Growth Management – projects which strengthen connections to housing and have strong, direct connectivity to economic development. • Social Equity and Mobility – investments that provide options for disadvantaged communities
As with previous years, SJRRC is able to approve and submit a project to be included on the regional priority project list. Based upon the above criteria, the following project in the overall Valley Rail program is recommended by staff.
North Lathrop Transfer Station
The North Lathrop Transfer station is located along the existing ACE route on the Union Pacific Railroad (UPRR) Fresno Subdivision. There are extensive residential areas located directly adjacent to the station location to the northwest and southwest, thus providing ease of access for nearby residents to walk, bike, or drive to the station. As an intricate part of the Valley Rail Project, the North Lathrop Transfer Station requires approximately 17 acres of presently unimproved federal land at the southwest corner of the Sharpe Army Depot. When constructed the new transfer station and parking area will provide a vital transportation hub for connecting today’s ACE service to the new Sacramento and Merced ACE extensions (Valley Rail). This location was approved in the Altamont Corridor Express (ACE) Lathrop to Ceres Extension Final Environmental Impact Report (August 2018).
Prior to the Valley Rail Project, the Department of the Army determined that 525 acres of the 724-acre U.S. Department of Defense Sharpe Army Depot were in excess of their needs. The Department of the Army directed the Installation Management Command to take the site into their accountability and prepare for sale through the General Services Agency.
Subsequently, the Port of Stockton filed an application to have the property conveyed to them for economic development opportunities. The Port's overall Development Plan for Sharpe Army Depot preserves the station site for SJRRC. Section 2833 of the Fiscal Year 2021 National Defense Authorization Act (NDAA) authorized the Secretary of the Army to convey the 525 acres of Sharpe Army Depot to the Port of Stockton if no other federal agencies expressed immediate interest. The committee approving the NDAA also expressed other State agency interest be considered.
To further memorialize and demonstrate mutual concurrence to the Army, the SJRRC and the Port of Stockton entered a non-binding memorandum of understanding (MOU) on June 15, 2020. The new transfer station platform and station tracks allow trains to pull into the station and passengers to board and disembark the train. A pedestrian overcrossing will be constructed between the surface parking area and the station platform, crossing over the railroad tracks. To meet parking demands generated by ACE service at this new station, a new surface parking lot will be constructed on approximately 6.9 acres directly east of the station platform on the southern portion of the Sharpe Army Depot. Vehicle access to the station will be provided by modifying the existing three-way intersection of West Lathrop Road and McKinley Avenue to extend McKinley Avenue into Sharpe Army Depot, providing an opportunity to improve access to the rest of the property for economic development.
Once completed the station will allow passengers to transfer from trains traveling from Sacramento bound trains coming north from Ceres/Merced, to trains traveling south from Sacramento and Stockton heading to San Jose, thus allowing passengers from all trains from Ceres/Merced to reach San Jose. The project also includes construction of double track through the Lathrop Wye, where the UPRR Fresno Subdivision, Tracy Subdivision, and Oakland Subdivisions interface.
The project will result in a number of public and private benefits, including:
• Improved air quality and reduced vehicle miles traveled • Improved access and mobility for goods movement • Economic development of an underutilized asset • Improved transportation options for a highly disadvantage community
Staff is recommending funds be sought for construction of the North Lathrop Transfer Station. The total estimated construction cost is approximately $75 million, and SJRRC staff recommend requesting $25 million in construction funding through the One Voice® program. Senate Bill 132 funds will be used as matching funds for the project. As the federal funding process unfolds related to infrastructure as a means to stimulate the economy, additional funding may be included in existing federal programs and/or new funding programs might be created. As those opportunities might provide requests for additional projects, staff will present potential projects to the Board for consideration and approval.
Fiscal Impact:
There is no fiscal impact.
Recommendation:
Approve a Resolution of the Board of Commissioners of the San Joaquin Regional Rail Commission Adopting the 2021 Federal Legislative Priorities for Inclusion in the SJCOG One Voice Project List. RESOLUTION SJRRC-R-20/21-
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SAN JOAQUIN REGIONAL RAIL COMMISSION ADOPTING THE 2021 FEDERAL LEGISLATIVE PRIORITIES FOR INCLUSION IN THE SJCOG ONE VOICE PROJECT LIST
WHEREAS, the San Joaquin Regional Rail Commission has been engaged in advocacy efforts to secure funding for the improvement and expansion of passenger rail service affecting San Joaquin County; and
WHEREAS, it is prudent for the Rail Commission to prioritize a project for submission in federal funding programs; and
WHEREAS, the Rail Commission is developing passenger rail service between Sacramento and Merced; and
WHEREAS, the Rail Commission is committed to improving rail transportation throughout California, including freight rail; and
WHEREAS, this project will address congestion, air quality, and other environmental issues facing the region; and
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the San Joaquin Regional Rail Commission hereby prioritizes the following 2021 Federal Legislative Project:
North Lathrop Transfer Station. The total estimated construction cost is approximately $75 million, and SJRRC staff recommend requesting $25 million in construction funding through the One Voice® program. Senate Bill 132 funds will be used as matching funds for the project.
PASSED AND ADOPTED, by the Board of Commissioners this 5th day of March 2021, by the following vote to wit:
AYES: NOES: ABSENT: ABSTAIN:
ATTEST: SAN JOAQUIN REGIONAL RAIL COMMISSION
__ STACEY MORTENSEN, Secretary CHRISTINA FUGAZI, Chair SAN JOAQUIN REGIONAL RAIL COMMISSION Meeting of March 5, 2021
STAFF REPORT
Item 8 INFORMATION Refunding 2010 Series A-2 Bonds
Background:
On November 4, 2010, the San Joaquin Regional Rail Commission issued, through the California Transit Finance Corporation (CTFC), $7,535,000 of 2010 Tax Exempt Series A-1 Certificates of Participation and $27,990,000 of 2010 Taxable Series A-2 Certificates of Participation (COPs) to finance the construction of the Commission’s transit maintenance facility.
SJRRC Outstanding Debt Original Amount Final Series Tax Status Call Date Issuance Outstanding Maturity Series 2010A-1 Tax Exempt $7,535,000 $0 5/1/20 -
Series 2010A-2 Taxable (with 45% Federal $27,990,000 $27,885,000 5/1/40 5/1/2020 (RZEDB) Subsidy)
The A-2 certificates were designated as “Recovery Zone Economic Development Bonds (RZEDBs)” under the provisions of the American Recovery and Reinvestment Act of 2009. As RZEDBs, the Commission is eligible to receive a cash subsidy payment from the US Treasury equal to 45% of the interest component, providing an attractive interest cost to the Commission. Since 2009, the actual subsidy amount paid by the US Treasury has been lowered due to federal sequestration. The subsidy amount is currently reduced by approximately 5.70% for federal fiscal year 2021.
The Commission has $27,885,000 of 2010A-2 COPs currently outstanding, all of which will be callable on 5/1/2021 at par. With the call-feature that was put in place in 2010, the Commission can only refund the existing COPs on the principal and interest payment dates, which are May 1st and November 1st.. Under current market conditions, debt service savings is approximately $5.3 million in present value terms, through 2040: the final maturity on the COPs. The new COPs will be issued as fixed rate, tax exempt securities and will no longer rely upon the federal subsidy. This will lower the Commission’s annual principal and interest payments (i.e., the annual debt service payments) on the certificates
At the February 7th, 2020 SJRRC Board Meeting, the board adopted a resolution to authorize staff to continue working with the current assembled financing team and prepare for refunding the current 2010 Taxable Series A-2 Certificates of Participation (COPs). Since then, staff has been monitoring the market and meeting with our financial advisors from Public Financial Management LLC (PFM). As the Commission approaches the call date on 5/1/2021 and with interest rates at very low and attractive levels for refinancing, staff is working with the Bond team to bring to the Board a full set of documents for review and approval for the April 2nd Board Meeting.
Fiscal Impact:
The proposed refunding transaction will reduce annual debt service paid by the Commission through 2040. Under current market conditions, debt service savings is approximately $360,000 annually through 2040, or $7.0 million through the life of the COPs. This equates to $5.3 million in present value terms. According to our financial advisors at PFM, a minimum threshold for refinancing is a savings range of 3% to 5%. When the present value savings is divided by the par amount of the refunded COPs ($5,300,000 / $27,885,000) it yields a savings percentage of 19%, these savings are subject to interest fluctuation.
The savings estimate includes all transaction costs. Transaction costs include fees for the legal team, rating agencies, financial advisor, bond underwriter, trustee, and other related parties. Total transaction costs are currently estimated to be $290,000 for all parties to execute the transaction. Most parties will work “at risk” and are only paid upon a successful closing. According to IRS rules, transaction costs may be paid with COP proceeds and have been factored into the total transaction cost and savings estimates.
Recommendation:
This item is informational.
Staff is working with the legal and financial team to prepare documents, meet with rating agencies and prepare for transaction execution to meet the May 1st call date. Staff will return to the Board with a full set of documents for your review and approval for the April 2nd Board Meeting.
February 18, 2021
Memorandum
To: San Joaquin Regional Rail Commission
From: PFM Financial Advisors LLC
RE: 2021 COP Refunding Opportunity
INTRODUCTION PFM Financial Advisors LLC (“PFM”), as financial advisor, has worked with Commission staff to monitor market opportunities for the potential refunding of the Commission’s outstanding bonds. The Commission currently has outstanding $27,885,000 of Certificates of Participation (COPs), issued in 2010 to finance the construction of the Stockton Rail Maintenance Facility. With the call-feature that was put in place in 2010, the Commission can refund $27.9 million of the existing COPs with new COPs at lower interest rates, provided for in the current low-interest rate environment. Importantly, the Commission may only call and refund the outstanding COPs on an interest payment date: i.e., every May 1st and November 1st. Under current market conditions the Commission can save approximately $7.0 million in debt service costs through 2040. These debt service savings equate to $5.3 million on a present value basis. This memorandum provides a brief market update and discussion of the financing team, and the specific qualifications and experience of the underwriting firm used for this transaction.
BOND MARKET UPDATE For the purpose of tracking tax-exempt municipal interest rates over time, we use the AAA Municipal Market Data Index (“AAA MMD”), which serves as the benchmark against which most tax-exempt, fixed-rate transactions are priced. For the purpose of tracking taxable municipal interest rates over time, we use the U.S. Treasury rates, which serves as the benchmark against which taxable, fixed-rate transactions are priced. The chart below tracks the 30-year MMD rate as well as the 30-year Treasury rate since 2000.
Both tax-exempt and taxable rates declined dramatically following the start of the COVID-19 pandemic with record lows in August 2020. The rates have since ticked up from their lowest levels. That said, the current market still provides a very favorable environment for borrowing. Investors have been flocking to safe investment options such as municipal bonds in the wake of the COVID-19 pandemic and uncertainty in economic recovery. That coupled with a favorable supply-demand dynamic supports continued municipal demand for tax-exempt bonds.
As shown in the chart below, the tax-exempt interest rates are low with the 30-year MMD rate at 1.47%, 2.43% lower than its twenty-year average. The taxable rates are also low with the 30-year Treasury rate at 2.07%, 1.75% lower than its twenty-year average.
San Joaquin Regional Rail Commission February 18, 2021 Page 2
FINANCING STRUCTURE AND OVERVIEW OF FINANCING TEAM In 2010, the Commission issued the COPs through the California Transit Finance Corporation (CTFC). COPs are essentially a lease structure wherein each Certificate represents a proportionate interest in an annual lease payment to be made by the Commission to a third-party, non-profit, public benefit corporation – in this case, the CTFC. The CTFC was created in 1990 by the California Transit Association to provide assistance to transit entities in the State of California in financing capital improvements. With its focus on transit capital financing, the CTFC has been used by California transit agencies when the need for a conduit issuer arises, including Victor Valley Transit, Gold Coast Transit, North County Transit District (San Diego) among others.
The CTFC independently procured a team of legal and finance professionals that have a specific expertise in COP financing for transit agencies in California. PFM serves the CTFC as their municipal advisor, Nossaman LLP serves as bond and disclosure counsel, and RBC Capital Markets serves as the underwriter on most CTFC transactions. The CTFC last ran a procurement for team members – including investment banking services – in 2008. The CTFC’s intent is to provide a team of professionals that have relevant experience with COPs issued by transit agencies. Transit COPs are not offered in the market every month and do require some understanding of state and federal transit funding and the credit strength of those revenues to present the strongest case to investors and rating agencies.
UNDERWRITER QUALIFICATIONS AND TRANSACTION COSTS RBC’s relevant qualifications and experience – and in particular the experience of the lead banker for RBC, Tom Yang –for other California transit COP transactions includes the following:
AC Transit Riverside Transit Agency Gold Coast Transit Sacramento Regional Transit Los Angeles MTA San Diego MTS North County Transit District Victor Valley Transit Authority
In addition to strong experience with California transit COPs, RBC served as the lead underwriter for the SJCOG on their last two sales tax revenue bonds in 2017 and 2019, respectively. Each selection was part of a competitive RFP process conducted by the SJCOG. Through their work with SJCOG, San Joaquin Regional Rail Commission February 18, 2021 Page 3
RBC brings a thorough understanding of the San Joaquin regional economy and demographics, and the Measure K sales tax credit: an important part of the security for the Commission’s COPs.
The role of the underwriter on a COP or bond transaction is to participate throughout document development, the rating agency presentations, take the lead on investor outreach and marketing, and ultimately underwrite the securities. For these services, the underwriter is paid a “take-down” and/or a “management fee.” These fees are expressed as a dollar payment for each $1,000 of COPs or bonds sold. The combined takedown and management fee represents the total compensation paid to the underwriter. The proposed fee for underwriter (RBC) for the SJRRC 2020 refunding transaction is $3.25 per each $1,000 of COPs (i.e., per bond) sold. There is no management fee proposed.
For comparison, below we list the underwriting fees proposed for the SJRRC transaction compared to underwriter fees for other recent and similar transactions.
Recent Underwriter Fees for Comparable Transactions
San Joaquin San Joaquin County Victor Valley Regional Rail AC Transit Dsitrict Gold Coast Transit Transportation Transit Authority Caltrain (2019) Commission (2019) Authority (2017) Authority (2019) (2018) Estimate (2021) Par Amount (Transaction Size) $ 21,945,000 $ 63,960,000 $ 11,655,000 $ 10,475,000 $ 22,000,000 $ 47,635,000 Underwriter Fees UW Fees (Takedown) 71,321 95,940 48,485 $44,309 $77,000 $166,723 Takedown Per Bond (per $1,000): $3.25 $1.50 $4.16 $4.23 $3.50 $3.50
The overview of underwriting fees above represent a variety of underwriting firms including RBC, JP Morgan and Wells Fargo. Underwriting fees on recent COP transactions (i.e., Victor Valley, Gold Coast and AC Transit) range from $3.50 per bond to $4.23 per bond. This translates to a total underwriter compensation ranging from $44,000 to $77,000 for those COP transactions. Caltrain (a similar commuter rail issuer rated in the single-A category) did not issue securities as COPs, but as farebox revenue bonds. They paid their underwriters $3.50 per bond, translating to $166,723 in underwriter compensation. Underwriter compensation always varies with the size of the transaction. The San Joaquin County Transportation Authority (the issuing body of the San Joaquin COG), paid their underwriters $1.50 per bond, translating to $95,940 of total underwriter compensation. You often see higher rated, sales tax bond issuers (like San Joaquin COG) pay lower takedown to underwriters given that these credits are easier to explain to investors and sell. Also, larger sized transactions (i.e., $50 million and larger) often pay lower per-bond fees, since there are more bonds issued, generating larger total compensation, even with lower per-bond fees. This is the case with the San Joaquin COG. RBC has proposed $3.25 per bond as compensation to underwrite the refunding COPs contemplated by the SJRRC. This translates to approximately $71,321 in total underwriter compensation.
For additional context, we also include the cost of issuance (apart from underwriting fees) proposed for the SJRRC refunding COPs compared to the cost of issuance for other recent and similar transactions. San Joaquin Regional Rail Commission February 18, 2021 Page 4
Recent Cost of Issuance for Comparable Transactions San Joaquin San Joaquin County Victor Valley Regional Rail AC Transit Dsitrict Gold Coast Transit Transportation Transit Authority Caltrain (2019) Commission (2019) Authority (2017) Authority (2019) (2018) Estimate (2021) Par Amount (Transaction Size) $ 21,945,000 $ 63,960,000 $ 11,655,000 $ 10,475,000 $ 22,000,000 $ 47,635,000
Cost of Issuance Bond Counsel 40,000 77,000 100,000 35,000 40,000 250,000 Disclosure Counsel 40,000 35,000 65,000 35,000 40,000 140,000 Underwriter Counsel 25,000 20,000 20,000 $20,000 $20,000 $25,000 Financial Advisor(s) 60,000 70,000 85,000 60,000 60,000 137,000 Rating Agency 35,000 36,000 33,000 24,000 33,250 26,000 Rating Agency (second rating) 41,000 25,000 46,500 Rating Agency (third rating) 30,000 CTFC Fee 10,000 10,000 25,000 CSCDA Fee 5,000 Verification Agent 1,750 1,750 Printer 2,300 3,890 2,300 1,590 650 4,500 Trustee 3,500 11,000 4,350 4,900 4,750 8,150 Other Fees 7,000 7,175
Total COI $ 217,550 $ 300,890 $ 348,575 $ 190,490 $ 223,650 $ 667,150
Total cost of issuance (apart from underwriting fees), including all legal, advisory, rating agency and ancillary fees (e.g., printing, etc.) are estimated to be $217,550 to execute and close the proposed SJRRC Refunding COPs. This places the estimated cost of issuance slightly below the comparably sized transaction for Gold Coast Transit in 2017, and below the larger transactions of Caltrain and the San Joaquin COG. Caltrain used three ratings and paid higher bond counsel costs which led to higher cost of issuance compared to the costs proposed for the SJRRC. AC Transit was a smaller transaction, but was taxable and required additional effort from bond and disclosure counsel resulting in comparably higher costs of issuance.
All cost of issuance and underwriter fees are expected to be paid out of COP proceeds (vs. out of SJRRC’s budgeted revenues) and have been accounted for in all refunding and debt service savings numbers presented to date. This is the common practice for paying these fees and is industry standard for nearly all municipal bond transactions in the US. The currently estimated debt service savings of approximately $5.3 million million is net of these transaction costs and fees and is stated in the more conservative present value terms.
NEXT STEPS Commission staff has been working with the financing team to update documents and prepare for the refunding. The financing documents along with detailed debt structuring numbers will be provided to Moody’s Investor Service to request a rating on the upcoming COPs. This is required to inform investors of the credit quality of the offered securities and to successfully sell the COPs. Ratings are expected to be received in late March. Substantially final financing documents will be submitted to the Board for review and potential approval at the April 2nd Board meeting. Following Board approval, the team will post the Preliminary Official Statement (POS) and make this offering document available to potential investors. RBC will begin their marketing efforts for the COPs as soon as the POS is posted and over the following two weeks. Pricing for the COPs is expected to occur on or about April 14th. The Series 2021 refunding COPs will close and proceeds will be delivered to the trustee on or about April 28th. The 2010 COPs will then be called on the next available call date of May 1, 2021.