THE LIGHT AT THE END OF THE TUNNEL HIGH-SPEED RAIL IN ORANGE COUNTY AND SOUTHERN CALIFORNIA WHITE PAPER THE LIGHT AT THE END OF THE TUNNEL HIGH-SPEED RAIL IN ORANGE COUNTY AND SOUTHERN CALIFORNIA WHITE PAPER i. Preface 1 Introduction and Background 1.1 Background 1.2 Purpose of Conference 2 Conference Summary 2.1 Welcome and Opening Remarks 2.1.1 Sarah L. Catz, Director, Center for Urban Infrastructure 2.1.2 Gary Brahm, Chancellor of Brandman University 2.1.3 Curt Pringle, Mayor of Anaheim and Chair, California High-Speed Rail Authority 2.2 Global Positioning: High-Speed Rail Around the Globe 2.2.1 Tom Downs, Chair, Rail Division, Veolia Transportation 2.3 Benefits of High-Speed Rail 2.3.1 Sarah L. Catz, Director, Center for Urban Infrastructure 2.4 How Do We Pay For High-Speed Rail? Moderator, John Haussmann, VP and Principal Manager, HDR 2.4.1 Do Public-Private Partnerships Make Sense? Mike Schneider, Managing Partner, InfraConsult 2.4.2 Foreign Investors: Kent Carl, President, Triarm International, Inc. 2.5 Federal Strategy 2.5.1 Loretta Sanchez, U.S. Representative, 47th District 2.6 Getting Connected: Defining an Effective Intermodal Strategy 2.6.1 Peter Buffa, Member, Board of Directors, Orange County Transportation Authority 2.6.2 Richard Flierl, Principal, Cooper Carry 2.6.3 Emile Haddad, President and CEO, FivePoint Communities 2.6.4 Art Leahy, CEO, Los Angeles County Metropolitan Transportation Authority 2.6.5 Will Kempton, CEO, Orange County Transportation Authority 2.6.6 Larry Agran, Mayor Pro Tem, City of Irvine 2.7 What are the Solutions 2.7.1 Tom Umberg, Vice Chair, California High-Speed Rail Authority 2.7.1.1 Participated Discussion 3 Online Survey 3.1 Survey Overview 3.2 Survey Data 4 Appendices 4.1 Speaker Bios 4.2 Proposed California High-Speed Rail Lines PREFACE4.3 Thinking Ahead: High-Speed Rail in Southern California, a report released in August by the Center for Urban Infrastructure, showcased the benefits of a fast, convenient, and efficient intercity high-speed rail system on southern California’s economy. The study was presented to a conference entitled, “The Light at the End of the Tunnel: Planning for High-Speed Rail in Orange County and Southern California”. More than 100 government, business and civic leaders from Orange County and southern California attended the invitation only conference held at Brandman University in Irvine on August 26, 2010. The conference was sponsored by the Orange County Transportation Association, Veolia Transportation, HDR, NRG Energy West, Brandman University, and Southern California Air Quality Management District. Conference speakers included Anaheim Mayor Curt Pringle, Chairman of the California High-Speed Rail Authority (CHSRA), former state Assemblyman Tom Umberg, Vice Chairman of CHSRA, Tom Downs, Chairman, Rail Division, Veolia Transportation, Art Leahy, CEO of the Los Angeles Metropolitan Transportation Authority, Will Kempton, CEO of the Orange County Transportation Authority (OCTA); U.S. Representative Loretta Sanchez, Irvine Councilmember Larry Agran, Emile Haddad, CEO of FivePoint Communities, Mike Schneider, Managing Partner, InfraConsult, Kent Carl, President, Triarm International, John Haussmann, VP and Principal Program Manager, HDR, Richard Flierl, Principal, Cooper Carry, Peter Buffa, Member, OCTA Board of Directors, and Sarah Catz, Director, Center for Urban Infrastructure. Following the conference, the Center for Urban Infrastructure conducted a high-speed rail survey utilizing surveymonkey.com and asking the conference invitation list to respond. Of the two hundred or so guests on the conference invitation list, 96 responded. Of those about half actually attended the August 26th Center for Urban Infrastructure Conference. The survey results are discussed at the end of this paper, but it is worth noting at this point is that the respondents felt strongly about the need to embrace private investment in the creation of a mass transit system that moves people and does so in an intelligent and economical way. Since this conference was held several significant events have occurred: • The California High-Speed Rail Authority has selected a 66.4-mile route between Borden and Corcoran, in the California Central Valley, as the first segment to be built. o Due to the lack of population and employment centers on this segment some critics are labeling it the “train to nowhere”. o The segment offers cheaper, less complex construction challenges than other options and has good access to existing railroad right of way. Co-Author of Thinking Ahead: High-Speed Rail in Southern California, Adam Christian, points out in his December 1, 2010 blog entry that assuming the segment from Borden to Corcoran is completed on budget it will rank as one of the lowest-cost high- speed rail projects ever built on a per mile basis. The Light at the End of the Tunnel: Planning for High-Speed Rail in Orange County and Southern California - page 3 of 36 PREFACE . Consequently, it would constitute a tremendous bang for the buck, while boosting the California High-Speed Rail Authority’s credibility as a competent steward of taxpayer dollars. o Approximately 80,000 jobs will be created in the Central Valley. • The newly elected Governors of Ohio and Wisconsin refused to accept stimulus funding from the federal government to develop their own rail lines. o This led to the federal government redirecting $624 million in economic stimulus funds to the California high-speed rail project that had been approved for Ohio and Wisconsin. • After the November 2010 elections, the House of Representatives began their new session with a Republican Majority. o The incoming chairman of the House Transportation and Infrastructure Committee is Representative John Mica, R-Fla., who has already signaled that high-speed rail money might be better spent in areas of the country other than in California. • California high-speed rail critics make their views known o Cities on the San Francisco Peninsula continue to try to block high-speed rail routes that travel through residential areas. o The Lawyers’ Committee for Civil Rights in San Francisco and the Associated Professionals and Contractors have filed an administrative complaint against the California High-Speed Rail Authority, charging it with unfair contracting practices that violate federal civil rights laws. o Reports have surfaced that criticize the California High-Speed Rail Authority’s management, saying it is too small and overwhelmed by the task at hand. o Concerns have been raised in the Central Valley that valuable farm land will be destroyed to make room for railroad right of way. • General Electric Co., and CSR Corp., China’s largest maker of rail vehicles, plan to invest $50 million in their U.S. based venture for supplying passenger trains for high speed lines in both California and Florida. The next several months will continue to bring newsworthy headlines to this mega- infrastructure project and the Center for Urban Infrastructure will monitor the events and keep abreast of the California high-speed rail project and what it continues to mean for California and in particular, the southern California economy. Following is the summary of the August 26th Center for Urban Infrastructure conference, “The Light at the End of the Tunnel: Planning for High-Speed Rail in Orange County and Southern California”. A constant dialogue on the high-speed rail project is urged and to that end, updates will be posted on www.c-u-i.org The Light at the End of the Tunnel: Planning for High-Speed Rail in Orange County and Southern California - page 4 of 36 INTRODUCTION AND BACKGROUND 1.1 Background In January 2010, President Obama announced the recipients of an unprecedented $8 billion federal stimulus grant that will jumpstart high-speed rail service on thirteen corridors across the United States. California was named the largest recipient of any state ($2.34 billion) with $2.25 billion allocated to a dedicated high-speed rail system. Federal funds will be matched by state funds from Proposition 1A and the remainder of the money will be allocated toward regional transit projects. Excited by the potential of this investment, many political leaders are touting the myriad benefits of a fast, convenient and efficient intercity rail system, including lower carbon emissions, improved mobility, employment and economic revitalization and less dependence of foreign oil. In the summer of 2010, the Center for Urban Infrastructure (CUI) analyzed the benefits to be realized from high-speed rail, specifically in southern California, and the strategies needed to ensure that cities around the region can take advantage of the investment about to be made in California. This analysis was included in the report, Thinking Ahead: High-Speed Rail in Southern California. This report also examined the impact high-speed rail will have on legislative initiatives that mandate a reduction in statewide greenhouse gas emissions (AB 32) and the coordination of regional land use and transportation planning (SB 375) in support of those reduction targets. More specifically, the goals of the CUI report, were to: • Quantify some of the regional economic benefits likely to be captured by southern California transit users and adjacent communities, such as reduced greenhouse gas emissions (GHG), improved health, employment growth and increased affordable housing • Outline principles of effective intermodal strategies to increase future ridership • Understand the role of high-speed rail in advancing compliance