f CITY COUNCIL CITY OF MILLBRAE ss AGENDA REPORT 1 K 621 Magnolia Avenue 0 MUIbrae, CA 94030

Report No. 6^61 SUBJECT: Letter Response to the High- Speed Rail 2020 Business Plan. For Agenda of: May 12, 2020 Department: City Manager ATTACHMENT: Draft Letter Originator: Thoiii^s C. Williams - City Manager Approved^^^ L^y Budget Action Yes: No: x Finance Review:

REPORT TYPE: ACTION X INFORMATIONAL ITEM TYPE: CONSENT PUBLIC HEARING EXISTING BUSINESS NEW BUSINESS_X_

RECOMMENDATION: Review draft letter to the California High-Speed Rail Authority (CHRSA) in response to their draft 2020 Business Plan and provide direction to staff to revise as appropriate.

BACKGROUND: California High-Speed Rail released their draft 2020 Business Plan on February 12, 2020 and is seeking comments by June 1, 2020. Staff has reviewed the business plan and prepared a draft comment letter (attached). CHSR will have a profound impact on the City ofMillbrae as the only planned stop between and San Jose will be at the .

Although in the planning phase for many years, CHSR has historically ignored and minimized the issues and concerns ofMillbrae (and other peninsula communities) and the current business plan is a perpetuation of this same behavior. Staff has many concerns related to the CHSRA project, some of which are appropriate to raise in response to their 2020 Business Plan. Other concerns and detailed comments related to flaws in CHSR's environmental analysis and draft plans are better addressed in response to their upcoming Draft Environmental Impact Report (DEIR) and associated preliminary design drawings and plans.

City staff has recently engaged with CHSRA staff as well as the primary landowner, whose approved TOD 1 project is most affected by the high-speed rail project. Unfortunately, these efforts have not been as fruitful as City staff had hoped due CHSRA staff ignoring the input of the City and property owner in their planning.

In response to the foregoing and as a result of the review of the business plan, staff provides the following overview of the draft comment letter for City Council review, comment, and direction.

Page 1 of 2 ANALYSIS:

In general, CHSRA's proposed plans at the Millbrae Station are inconsistent and noncompliant with the 1998 Millbrae Station Area Specific Plan MSASP) as originally approved and as amended in 2016. Further, CHSRA's plans entirely ignore the presence of a fully approved TOD development project (Millbrae Serra Station) of 444-488 residential units, approximately 250,000 sf office, and 30,000 sfof retail uses. During the approval process of the amended 2016 MSASP and its accompanying EIR, neither CHSRA nor any of the other companion transit agencies raised formal substantive objections to the project or concerns regarding the plans on the west side of the current station. It is this west side of the station that CHSRA has proposed a station entrance facility and 280 surface parking spaces that will entirely consume all developable land between the existing station and El Camino Real. This is not an acceptable plan to the City ofMillbrae.

Although not addressed or discussed in any detail by CHSRA in the Business Plan, the land use issues and conflict cannot be left uncommented by the City. The attached draft letter expands upon this in greater detail and also includes the following points regarding the 2020 Business Plan:

The plan is misleading and does not adequately describe the track improvements, new trackways, or configuration as it relates to the City ofMillbrae. The plan does not describe nor identify the impacts to the homes within the "Hemlock Ave" area ofMillbrae. ROW acquisition will impact many of the current homes. • The plan minimizes the conflicts and issues within Millbrae especially in light of the recent planning exercise undertaken with the City and developer of the Millbrae Serra Station project. • The plan minimizes the EIR process and is optimistic and unrealistic in terms of the project schedule (to meet Federal budget deadlines), especially in light of anticipated unresolved issues and impacts. • The plan totally ignores the approved Millbrae Station Area specific plan and station access adopted within the plan.

Staff seeks input and comments on the draft response letter such that formal comments can be submitted to CHSR in advance of the June 1, 2020 comment deadline.

FISCAL IMPACT: There is no fiscal impact associated with this information item

COUNCIL ACTION: Provide comment and direction to City staff reeardine formal response to CHSR's 2020 Business Plan.

Page 2 of 2 REUBEN D. HOLOBER Mayor

ANN SCHNEIDER City ofMillbrae Vice Mayor

621 Magnolia Avenue, Millbrae, CA 94030 ANNE OLIVA d % Councilmember few

GINA PAPAN Councilmember

WAYNE J.LEE Councilmember

May 12, 2020

Tom Richard, Vice Chair California High Speed Rail Authority 770 L Street, Suite 620 Sacramento, CA 95 814

Dear Mr. Richards: As a result of our review of the California High-Speed Rail Authority (CHSRA) 2020 Draft Business Plan, the City ofMillbrae provides the following comments that need to be addressed by CHSRA.

General In 2008, the voters of California approved proposition 1A by a 52.7 percent vote to issue $5.95 billion in bonds for a Safe, Reliable, High Speed Passenger Train service that according to Section 185037. A.S.(f) It is the intent of the Legislature that the entire high-speed train system shall be constructed as quickly as possible in order to maximize ridership and the mobility of Californians, and that it be completed no later than 2020, and that all phases shall be built in a manner that yields maximum benefit consistent with available revenues.

As far back as 2010, CHSRA identified a station in Millbrae with the intent to utilize existing and BART rail right of way and the existing multi-modal transit station to connect with these other transit systems as well as San Francisco International Airport (SFO). In 1998, the City ofMillbrae adopted the Millbrae Station Area Specific Plan (MSASP) allowing for high density residential and mixed use TOD developments. Through significant collaboration and input from the regional transit agencies, the adopted MSASP also provides the station access needs of BART, Caltrain, Samtrans and if properly planned, high speed rail. Unfortunately, CHSRA's only proposed plan for the Millbrae Station is inconsistent with the adopted MSASP. The plan proposed by CHSRA turns an approved high density housing mixed use TOD into a massive surface parking lot. Page 2 The City ofMillbrae has requested repeatedly over several years that CHSRA consider additional alternatives to protect the environment and truly foster their stated priorities of "economic development" and "reducing impacts to businesses and residents" in local communities. Turning 444-488 approved high density housing units including 15% affordable, in Millbrae to a surface parking and railyard will negatively impact the local economy, job creation and approved housing. The City ofMillbrae requests that CHSRA adhere an envisioned plan that undergrounds the station and rail alignment in Millbrae as CHSRA is doing in other jurisdictions. The City of Millbrae is extremely disappointed to find out that undergrounding CHSR in San Francisco, a highly complex expensive project, is feasible - but a less complex undergrounding ofCHSR in Millbrae is somehow not feasible. We again request CHSRA include an alternative for undergrounding the tracks and station in Millbrae.

Another alternative ignored by CHSRA is their refuses to consider reconfiguring tracks at the station to use the right-of-way of BART'S underutilized third track. Why has CAHSRA taken BART'S concerns into consideration but not those of the City ofMillbrae or other stakeholders in the area?

The City ofMillbrae provides a strategic location for CHSRA due to the existing Caltrain and BART track alignments as well as the existing multi-modal transit station that currently serves these two transit agencies. The City ofMillbrae plays one of the most important and critical roles within the proposed San Francisco to San Jose high speed train segment connecting CHSR to San Francisco International Airport (SFO), Caltrain, Samtrans, private shuttles, and BART. In, Addition to these general comments, please note the followmg; Page 80, Table 3.3 - Provide more detail regarding scope and description regarding the project "Millbrae Station Track Improvement and Car Purchase". What is the track improvement that is planned? Page 81 of the draft 2020 Business Plan- it states the CHSRA is sharing track within the Caltrain right-of-way in the segment between San Francisco and San Jose. This is not the case in Millbrae and people should not be misled. The only plan being considered by CHSRA for both the rail alignment and station/surface parking is at the expense of an approved high density, state of the art mixed-use development, that includes affordable housing (refer to attached plans). This is clearly unacceptable and the City ofMillbrae is requesting alternative plans to CHSRA's only alternative in Millbrae be incorporated in the 2020 Business Plan and Environment Impact Report that we understand is currently being prepared. Page 83 of the draft CHSR 2020 Business Plan - Strategic Right-of-Way Acquisitions - the plan states that CHSR "continue to work with partners in the Millbrae area" and that in light of the approved development at the site, a "joint approach to meet the needs at the site would be desirable." Unfortunately, this is not being accomplished. In fact, the statement is undermined by CHSRA's station designs showing a surface-level parking lot on this site. Page 3 As acknowledged by CHSRA, a fully entitled project, which has already undergone California Environmental Quality Act (CEQA) review, (Millbrae Serra Station Project - MSS) exists immediately adjacent to the current station and CHSRA's proposed plans are in direct conflict with this approved project. CHSRA and City staff have met on numerous occasions, yet CHSRA fails to recognize this approved project and include an alternative in the environmental analysis that accommodates and respects the rights and obligations of the City and landowner associated with the MS S project. Proceeding with blinders on with an environmental document that replaces an approved 444-488 residential unit and 300,000 square foot office/commercial transit-oriented development (TOD) project with a surface parking lot is neither prudent nor in the spirit of a joint approach. CHSRA has willing partners in the City and landowner(s) yet is not willing to include and analyze an alternative that would be a true "win-win" for all parties. An alternative such as this can provide all of the station's functions required by CHSRA within the development, can provide any and all of the replacement parking required, and can allow the development of a true TOD project around the Millbrae Station as envisioned in the City's Millbrae Station Area Specific Plan (MSASP). Anything short of acknowledging such in the 2020 Business Plan and analyzing such an alternative in the DEIR is a failure by CHSR and will most likely have far reaching and long term economic, legal, and land use implications. The 2020 Business plan also mentions three examples (including properties surrounding the Diridon Station) where "strategic right-of-way procurement" is being pursued "where development is being planned but additional land is needed for the rail corridor". Why can't this same strategy/approach be pursued at the Millbrae Station? This approach would meet and help resolve the issues described above. On Page 133 - Phase I Environmental Completion -the 2020 Business Plan states that the all of the Phase I Records of Decisions (RODS) must be obtained by December 31, 2022 to meet the Federal grant deadlines. Not addressing the above issue regarding inclusion of a viable environmental alternative at the Millbrae Station will certainly not further or enhance CHSRA's objective of meeting this deadline. The City also understands that a recent study concludes that the difference in travel time between Caltrain and the proposed CHSRA in the San Francisco to San Jose segment is 4 minutes. We question if the benefit of saving 4 minutes by CHSRA is worth the extraordinary cost and negative impacts to housing. The City ofMillbrae requests this question also be addressed in the 2020 Business Plan. Right now, CHSRA is on a path that will slow—or possibly derail-their plans to provide statewide high-speed train service. Serra Station is an approved mixed-use project that includes 444-488 units of housing (including 15% percent affordable), 290,000 square feet of office, and 30,000 square feet of retail. This vital local project was years in the making and was approved by the Millbrae City Council in April 2018. It is fully compliant and consistent with the City's approved MSASP, and it meets or exceeds all the requirements of state-mandated housing and desperately needed affordable housing in our community and region. This project allows Millbrae to exceed its Regional Housing Needs Allocation (RHNA) targets. Page 4 Approved Serra Station Project - City ofMillbrae

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CHSRA has completely ignored the City's MSASP, General Plan and the Serra Station approved project. Instead, their sole alternative is to eliminate the 444-488 units of housing and 290,000 sq.ft. of office forthe following 288 space surface parking lot.

CHSRA Proposed Station Site Plan

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The 2020 Business Plan does not specifically include the actual site plan and details regarding the proposed build-out at the Millbrae Station. However, a site plan has been shown as part of the

preliminary EIR documents. Given the ongoing and recent discussion between CHSRA, the City f ofMillbrae and the major impacted landowner, the proposed plan for 288 surface parking spaces on prime developable land in the heart of an approved Specific Plan designated for high density TOD development cannot go without comment. It is our understanding that these proposed surface parking spaces are replacement space for parking that the CHSRA project will eliminate. A portion of these eliminated spaces are within the existing BART garage due to reconfiguration by CHSRA. Does BART know of these proposed plans and concur with this change to their facility? BART also allows a certain amount of Caltrain users to park in the garage as well. Does CHSRA's plan take into account the impacts to this Caltrain parking capacity as well? BART is eliminating parking on the east side of the station with the current Gateway project. Any further elimination of garage parking and reconfiguration of drop-off areas and function will have adverse impacts to the approved Gateway development with potential spillover impacts to the City ofMillbrae. CHSRA also refuses to consider reconfiguring tracks at the station to use the right-of-way of BART'S underutilized third track. Why has CAHSRA taken BART'S concerns into consideration but not those of the City ofMillbrae or other stakeholders in the area?

On numerous occasions, the City ofMillbrae has requested to meet with higher level CHSRA leaders to work together to resolve this conflict. There are pragmatic, straightforward solutions that avoid issues and provide mutual benefits to CHSRA and Millbrae.

CHSRA staff charged with managing the San Francisco to San Jose segment has refused to hear our voices, address our concerns, and honor our request to meet with the member of the CHSRA Board. Through this letter we are making that request once again.

Lastly, CHSRA staff has communicated to the City ofMillbrae that undergrounding the station and rail is not feasible. We have disagreed and believe it is quite feasible as it is apparently the plan in San Francisco. We have learned that on May 8, 2020, Metropolitan Transportation Commission (MTC) is to consider the following:

San Francisco Peninsula Rail Program Memorandum of Understanding. A request for approval of a Memorandum of Understanding (MOU) with the Transbay Joint Powers I Authority (TJPA), Peninsula Corridor Joint Powers Board (Caltrain), San Francisco County Transportation Authority (SFCTA), City/County of San Francisco, and the California High Speed Rail Authority to support the Transbay Joint Powers Authority in development of the Downtown Extension Rail Program. Sb. 20-0711 Commission Approval Action: Presenter: Lisa Klein. The Downtown Rail Extension project will extend Caltrain and future California High-Speed Rail service from the current Caltrain terminus at Fourth and King streets to the new (see map in Attachment A). The project, which completed supplemental environmental review in mid-2019, is estimated to cost nearly $4 billion and involves significant technical complexities including tunneling under San Francisco. Regional Measure 3 includes $325 million for the Downtown Rail Extension project.

Page 6

The City ofMillbrae is extremely disappointed to find out that undergrounding CHSRA in San Francisco, a highly complex expensive project, is feasible - but a less complex undergrounding of CHSRA in Millbrae is somehow not feasible. We again request CHSRA include an alternative for undergrounding the tracks and station in Millbrae.

We believe that in CHSRA staffs zeal to complete the environmental document expeditiously, errors in judgment are being made that will have severe and detrimental impacts on all affected parties. As stated above, the current path that CHSRA is pursuing directly contradicts what the State Legislature and Governor are trying to accomplish in the delivery of high density, transit- oriented development to help meet our state's housing crisis. We respectfully request you consider station alternatives that can achieve these shared goals.

Sincerely,

Reuben D. Holober, Mayor

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Ann Schneider, Vice Mayor a| Anne E. Oliva, Councilmember !-. ~^.

^ Gina Papan, Councilmember Wayne J. Lee, Councilmember

ec: Congresswoman Jackie Speier Senator Jerry Hill Assembly Member Kevin Mullin