AGENDA September 26, :30 PM Hanford City Council Chambers/Civic Auditorium 400 North Douty Street Hanford, CA

Transcription

1 AGENDA September 26, :30 PM Hanford City Council Chambers/Civic Auditorium 400 North Douty Street Hanford, CA This Agenda shall be made available upon request in alternative formats to persons with a disability, as required by the Americans with Disabilities Act of 1990 (42 U.S.C ) and the Ralph M. Brown Act (California Government Code ). Persons requesting a disability related modification or accommodation in order to participate in the meeting should contact San Joaquin Regional Rail Commission staff, at , during regular business hours, at least twenty-four hours prior to the time of the meeting. All proceedings before the Authority are conducted in English. Any writings or documents provided to a majority of the Authority regarding any item on this agenda will be made available for public inspection at the offices of the San Joaquin Regional Rail Commission located at 949 E. Channel Street, Stockton, California, during normal business hours or by calling (209) The Agenda and meeting materials are also available on the San Joaquin Regional Rail Commission Website: 1 Call to Order, Pledge of Allegiance, Roll Call Chair Pedrozo 2 Presentation by Kings County Association of Governments Member Verboon/Terri King INFORMATION 3 3 Consent Calendar Chair Pedrozo 3.1 Approve Minutes from June 27, 2014 Board Meeting ACTION Approve Next SJJPA Board Meeting Location and Time ACTION 17 4 Public Comment Persons wishing to address the Authority on any item of interest to the public regarding SJJPA and the San Joaquin Rail Service shall state their names and addresses and make their presentation. Please limit presentations to three minutes. The Authority cannot take action on matters not on the agenda unless the action is authorized by Section of the Government Code.

2 5 Presentation on Draft CA Freight Mobility Plan Bruce De Terra INFORMATION 18 6 Intercity Rail Performance Standards Stacey Mortensen ACTION 21 7 Draft Interagency Transfer Agreement Dan Leavitt INFORMATION 30 8 Update on Interagency Transfer Agreement Schedule Stacey Mortensen INFORMATION 81 9 Amtrak Budget Update Stacey Mortensen INFORMATION San Joaquin Rolling Stock Update Brian Schmidt ACTION/ INFORMATION California Intercity Passenger Rail Leadership Coalition Update Dan Leavitt INFORMATION Administrative Matters or Announcements Correspondence San Joaquin Valley Rail Committee Stacey Mortensen INFORMATION Board Member Comments Chair Pedrozo INFORMATION 14 Adjournment Chair Pedrozo 2 of 92

3 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 2 INFORMATION Presentation on Kings County Background SJJPA Member Verboon is a Kings County Supervisor and a Board Member of the Kings County Association of Governments. Member Verboon will make a presentation to the SJJPA regarding Kings County and the City of Hanford. Recommendation: This is an information item. There is no action being requested. 3 of 92

4 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 3.1 June 27, 2014 SJJPA Board Meeting Minutes ACTION The regular meeting of the San Joaquin Joint Powers Authority (SJJPA) was held at 2 pm, June 27, 2014 at the Sacramento City Council Chambers. 1. Call to Order, Pledge of Allegiance, Roll Call John Pedrozo, Chairperson of the San Joaquin Joint Powers Authority (SJJPA), called the meeting to order at 2:00 pm and had Member Verboon lead the Pledge of Allegiance. Board Members Present: Blalock, Tatzin, Verboon, Johnson, Chiesa, Ishida, Vice-Chair Cohn, Vice-Chair Perea, and Chair Pedrozo Alternates Present: none 2. Public Comment Assemblymember Roger Dickinson: Assemblymember Dickinson said that he appreciated the opportunity to speak. He said he is very supportive of intercity passenger rail and the work of the SJJPA. He said that as a co-author of AB 1779, he is delighted by what has been accomplished by the SJJPA. Assemblymember Dickinson shared with the SJJPA information about the recently approved Cap & Trade program including that the Legislature and Governor approved 10% of the continuously appropriated Cap & Trade funds to intercity rail, commuter rail and transit. He said that Cap & Trade expenditures must reduce GHG emissions. He said that with the additions of fuels in the Cap & Trade program that this will be a great help in funding intercity rail capital projects for improvements. Assemblymember Dickinson said that this was good news for intercity rail for not just this year, but for many years to come. He said that intercity services should be getting their projects ready. He said that we know people will use intercity rail if we provide them a high-quality service. He thanked the SJJPA and said that he would be happy to take any of their questions. Member Chiesa noted that the key component of Cap & Trade is the continuous component of the program, not allowing the money to get siphoned off to other needs. The continuous funding is needed in order to do long term investment for intercity rail and transit. He asked if there is anything that the Assemblymember could do to make sure that the funding stays on track? Assemblymember Dickinson agreed that having the continuous appropriation of Cap & Trade is key to the program s success. 1 4 of 92

5 Jeff Morales, CEO of the California High-Speed Rail Authority: Mr. Morales shared his appreciation of the work being done by the SJJPA and reaffirmed his commitment for the CHSRA to work with the SJJPA. He commended Stacey Mortensen and her team for the work that they do in coordination with CHSRA. He said that Stacey has been a leader in rail transportation in California for a long time and that it is a pleasure to work with her. He said that the San Joaquin service is critical to California and that they are pleased to work with the SJJPA and support improving this service. He said that the CHSRA s 2012 Business Plan focused on a statewide network of interconnected rail services. He said that this was reinforced with the CHSRA s 2014 Business Plan and the landmark Cap & Trade legislation which Assemblymember Dickinson just spoke about that has been signed into law by the Governor. He noted that Cap & Trade is a real turning point in providing more investment to intercity rail and transit in California. It recognizes the role that rail and transit can play in helping the state reduce GHG emissions and meet sustainability goals. Mr. Morales said that as a frequent user of the San Joaquin service he would make one request, for more frequency of service into and out of Sacramento (Chair Pedrozo noted that this has been discussed a lot). Mr. Morales reaffirmed CHSRA s commitment to work with the SJJPA and their staff to make sure that we have a program that is well coordinated and ties the State together. Taylor Woolfork with Senator Galgiani s office: Mr. Woolfork spoke on behalf of Senator Galgiani. Mr. Woolfork said that in 2012 Senator Galgiani authored AB 1779 which authorized the creation of the SJJPA. He said that since then, they have been very pleased with the progress of the SJJPA. He noted that the Legislature recently passed the budget with significant ongoing Cap & Trade revenues to serve as a stable funding source for California intercity passenger rail services. Mr. Woolfork said that thanks to the SJJPA s efforts we have made great progress towards improving intercity rail service in California. Senator Galgiani looks forward to continuing to work with the SJJPA. Chair Pedrozo asked Mr. Woolfork to give his best regards to Senator Galgiani. Kate Meese, Director of the Local Government Commission: Ms. Meese said that she was there to speak in support of the efforts of the SJJPA. She said that the Local Government Commission understands how important it is to work together with agencies such as the SJJPA towards common goals of meeting our State s environmental sustainability goals and our economic priorities. In order for rail to be most effective there is a need for people to be able to access it by walking, biking and by taking transit. Ms. Meese said that the Local Government Commission really appreciates the SJJPA s focus on sustainable communities and transit oriented development. She thanked SJJPA staff for their help in recent Local Government Commission programs with elected officials and developers to work on removing barriers for more infill development in San Joaquin Valley cities. She thanked Vice Chair Perea for hosting their program in Fresno. She said that the Local Government Commission looks forward to continuing to work with the SJJPA. 2 5 of 92

6 Fran Halbakken, with the City of Sacramento: Ms. Halbakken thanked the SJJPA for their support of the City of Sacramento s grant application to the Strategic Growth Council. She said she was very happy to report that the City of Sacramento s application for Phase 3 of the Sacramento Valley Station finished at the very top of a highly competitive process and received funding from the SGC. Ms. Halbakken discussed the components of the Sacramento Valley Station project and its progress. She also discussed the components of the planning grant. Ms. Halbakken thanked Vice Chair Cohn for his efforts on the Sacramento City Council and said that the City of Sacramento looks forward to continuing to work with the SJJPA. Nate Knodt from Stockton: Mr. Knodt spoke as a transit advocate. He thanked the SJJPA for their good ideas including mid-corridor starts, flexible schedules, discounted round-trips, and grass-roots marketing. He said that it is important to advocate for both the San Joaquin service and HSR. He said that he thinks that HSR needs to be built now and needs to serve the San Joaquin Valley. David Schonbrunn, President of TRANSDEF and a Board Member of the Train Riders for California: Mr. Schonbrunn said that he was here to cheer the SJJPA on and to support their efforts. He also stated that he was the author of TRAC s Plan B, and that his organization filed suit with CARB claiming that the HSR project was actually going to increase GHG emissions and therefore be ineligible for Cap & Trade funding, and they are trying to rescind Proposition 1A. He said that it is possible that there could be a lot of resources heading in their direction for the San Joaquin service if TRANSDEF is successful. Mr. Schonbrunn suggested that they be ready, it might happen. He said that the recent changes at the Sacramento Valley Station had been very hard on passengers. He said that he wanted to be sure the SJJPA know that their passengers had been discriminated against by pushing them further away from the station and forcing very long walks to get from the trains to anything useful. He said that this redesign has also hurt Capitol Corridor ridership. Peter Engel, with Contra Costa Transportation Authority: Mr. Engel recognized the efforts that SJJPA staff had done in developing the Draft SJJPA Business Plan. He said that CCTA appreciated the opportunity to host the first public outreach meeting on the Draft Business Plan. He said they look forward to continuing to work with the SJJPA and their staff to improve the San Joaquin service. Tim Smith, State Chairman with the Brotherhood of Locomotive Engineers and Trainmen: Mr. Smith spoke in support of the efforts of the SJJPA. He said they were here to offer their support and that they are also advocates of the HSR system for California. 3. Consent Calendar 3.1 Approve Minutes from March 28, 2014 Board Meeting ACTION 3.2 Approve Next SJJPA Board Meeting Location and Time ACTION 3 6 of 92

7 Chair Pedrozo entertained a motion for the approval of the minutes from the March 28, 2014 Board Meeting. M/S/C (Blalock/Chiesa) to approve Consent Calendar Item 3.1. Passed and Adopted by the San Joaquin Joint Powers Authority on June 27, 2014, by the following vote to wit: Ayes: 9 Blalock, Tatzin, Verboon, Johnson, Chiesa, Ishida, Vice-Chair Cohn, Vice-Chair Perea, Chair Pedrozo Noes: 0 Abstain: 0 Absent: 1 Wheeler Chair Pedrozo entertained a motion for the approval of the next SJJPA board meeting location and time. M/S/C (Tatzin/Johnson) to approve next SJJPA board meeting location and time Item 3.2. Passed and Adopted by the San Joaquin Joint Powers Authority on June 27, 2014, by the following vote to wit: Ayes: 9 Blalock, Tatzin, Verboon, Johnson, Chiesa, Ishida, Vice-Chair Cohn, Vice-Chair Perea, Chair Pedrozo Noes: 0 Abstain: 0 Absent: 1 Wheeler 4. Presentation by California State Transportation Agency (CalSTA) Deputy Secretary of Transportation Chad Edison said that he appreciated the opportunity to make this presentation on behalf of CalSTA. Mr. Edison said that California is at the threshold of having stable and reliable capital funding from the commitment of 10% of ongoing Cap & Trade funding to intercity rail, commuter rail and transit made in Senate Bill 862. He said along with the Cap & Trade funding for sustainable communities, disadvantaged communities, and high-speed rail there was a tremendous opportunity for improving the transportation network and urban areas of the San Joaquin Valley. He said he hoped that the SJJPA was encouraged by this great opportunity as they considered the approval of their Draft Business Plan. 4 7 of 92

8 Mr. Edison talked about the high performance of the San Joaquin service and the importance of the San Joaquin service as part of an integrated statewide rail network. He said that the San Joaquins currently carry 33% of the passenger-miles for intercity rail in the State not even including the Thruway bus passenger-miles. He said the San Joaquin service was a very significant asset for the State of California. He said that the State expects to complete the improvements needed for a 7 th daily round trip for the San Joaquin between Oakland and Bakersfield in He said the San Joaquin service has a great foundation on which to build and they look forward to intercity, HSR, and transit working as a truly integrated network, bringing superior service to a part of the state which needs cleaner air and improved mobility. Mr. Edison explained the SJJPA will play a very important role in planning and implementing improvements of the San Joaquin service. Mr. Edison said that CalSTA is working with SJJPA staff to take all the steps needed to ensure a successful Interagency Transfer Agreement. He noted it is hard, detailed work, but that the SJJPA team has done a great job. He said that CalSTA looks forward to an effective State/JPA partnership which will stand the test of time. Mr. Edison also provided CalSTA s commitment to getting SJJPA the information it needs to be able to prepare to successfully manage the San Joaquin service. Mr. Edison pointed to a recent meeting with SJJPA staff and Board Leadership where CalSTA and Caltrans staff were able to provide information regarding to the Comet Car trainsets deployment which led to a clear path of action. He said that both Bruce Roberts and he were committed to providing the information needed on this and other issues related to the San Joaquin service. Mr. Edison discussed the process that CalSTA would be taking to develop program guidelines for grant applications for Cap & Trade Funds and key criteria for being eligible for Cap & Trade. He said they are seeking early input towards the development of the guidelines. He said that they anticipate tremendous benefits to the San Joaquin Corridor from the program. Mr. Edison said that CalSTA looks forward to working in partnership with SJJPA to create a well planned integrated rail network in California that lowers costs, increases ridership, improves connectivity, and provides exciting new transportation opportunities for the people of California. He said he would be happy to answer any questions. Member Perea thanked Mr. Edison for his time in meeting with him and SJJPA staff and he said that he thought it was a very productive meeting. He said that he hoped that Mr. Edison had enjoyed his vacation with his family. Chairperson Pedrozo thanked Mr. Edison for his presentation. 5 8 of 92

9 5. Presentation from Sacramento Regional Transit Vice Chair Cohn welcomed the SJJPA to Sacramento City Hall. He said they have been making a lot of progress in Sacramento and not just with the new arena (that they might have heard about) but also on their rail and transit network. He said that he wanted to have Mike Wiley the General Manager of Sacramento Regional Transit (Sac RT) to discuss the work underway to improve local and regional transit in the Sacramento area. Mike Wiley welcomed the SJJPA to Sacramento. Mr. Wiley provided an update of the plans to improve the various rail and transit services in the Sacramento area which connect to the San Joaquin service. He said that Sac RT has been an active supporter of the SJJPA and is a Member Agency. He said that the SJJPA has a wonderful staff and that Sac RT will continue to work to support staff and the board to take over the administrative responsibilities and improve the San Joaquin service. Mr. Wiley said that Sac RT works in partnership with the City of Sacramento on the improvements to the Sacramento Valley Station which is the northern terminus of the San Joaquin service. He said Sac RT is very focused on providing better connections between their light rail and bus services and the state supported intercity passenger rail services. He said that they are well underway with environmental work which they expect to have completed and ready for construction in a little over a year to provide much better connections at the Sacramento Valley Station. He said this improvement would also be tied to the expansion of their light rail service to the northern part of Sacramento and Sacramento International Airport. Mr. Wiley said at the same time that Sac RT is working with other regional partners (Sacramento, West Sacramento, Yolo Transit, and SACOG) to develop a new street car system to connect West Sacramento with Downtown Sacramento. This street car system would also operate through the hub Sacramento Valley Station which serves the San Joaquins. They expect the street cars system to begin operation by December 2017 after the opening of the new downtown arena. Mr. Wiley said that it is in the interconnectivity of all of the services that they really see the greatest benefits and highest ridership for each service. Mr. Wiley said that Sac RT is working with the City of Sacramento and Elk Grove towards the development of two new stations at 65 th Street and Elk Grove that will hopefully be served by the San Joaquins in the future. He said that Sac RT has a 4.3 mile extension of their Blue Line light rail service south to Consumes River College well under construction to be complete and in operation by September He said they are looking at improvements to all of Sac RTs services in order to take advantage of the increased activity at the Sacramento Valley Station. Mr. Wiley said that the SJJPA has an advocate and a partner with Sac RT and he reiterated that they look forward to continuing to work with the SJJPA. 6 9 of 92

10 6. Summary of Public Meetings, Outreach, Comments and Revisions to the Draft Chapters for SJJPA Business Plan Stacey Mortensen, Executive Director asked Chair Pedrozo if she could first make a couple of acknowledgements. She first let Vice Chair Perea know that Kate Meese the Director of the Local Government Commission had thanked him for hosting their meeting in Fresno. Ms. Mortensen also complimented the work of Mr. Leavitt with traveling up and down the corridor to get public input on the Draft SJJPA Business Plan and in putting the final SJJPA Business Plan together. Dan Leavitt, Manager of Regional Initiatives reported that a number of activities were done to support public involvement and stakeholder outreach efforts after the release of the Draft SJJPA Business Plan. Five public meetings were scheduled in May. He said a press release was developed to provide information about the SJJPA, the Draft SJJPA Business Plan, and the public meetings to be held in May. The press release was provided to the various organizations and agencies identified in Chapter 2 of the SJJPA Business Plan, to those on the SJJPA stakeholder list, to the SJJPA Member Agencies to provide to their stakeholder lists, and to the media. Mr. Leavitt said that the press release was also posted on the SJJPA webpage (in both English and Spanish), and a poster was also developed to be posted at San Joaquin Stations, at SJJPA Member Agency offices, and on SJJPA Member Agency websites. Mr. Leavitt said that written comments were received from a number of agencies, organizations, and stakeholders. He explained that the written comments received were included as attachments to this agenda item. Mr. Leavitt said that the five public meetings were held in May to present key elements of the Draft Business Plan, receive input on the Draft SJJPA Business Plan, and to answer any questions regarding the draft. The PowerPoint presentation made by SJJPA staff at these meetings is available on the SJJPA webpage. He said these meetings included a translator for Spanish speaking participants. SJJPA Member Agencies and Kern Council of Governments assisted in notifying the public about the meetings and the availability of the SJJPA Draft Business Plan using their existing stakeholder lists. Mr. Leavitt said there were articles in the Modesto Bee and Merced Sun Star in advance of the meetings and an article in the Fresno Bee following the Fresno meeting and a local radio station covered the Bakersfield meeting. The Mayor of Bakersfield attended the meeting in Bakersfield. Mr. Leavitt said they appreciated the SJJPA Board Members participation in the meetings in Walnut Creek (Tatzin), Fresno (Vice Chair Perea, and Ishida), Modesto (Chiesa, and Johnson), and Sacramento (Vice Chair Cohn). Mr. Leavitt said that there was a good discussion at each meeting with those that attended of 92

11 Mr. Leavitt highlighted some of the comments that were made and noted that these were summarized in the book item. He said that based on the input received, a number of edits have been recommended to be made to the SJJPA Business Plan. These edits were reviewed by the Ad Hoc Staff Working Group members. Mr. Leavitt said that the Track-Change version of the SJJPA Business Plan that shows each of the suggested edits to be made to the SJJPA Business Plan is provided as an attachment to Agenda Item 7. Member Chiesa stated that regarding the mid-corridor start that one member of the public was identified as being opposed. Member Chiesa asked what was the reason they provided for their opposition? Mr. Leavitt responded that it was his understanding that this person felt the SJJPA should be more focused on increasing service between Stockton and Bakersfield that this person believes that is the area that needs the most improvement of service. Chair Pedrozo noted that they had a comment on this item from Mike Barnbaum with Here We Ride. Mr. Barnbaum welcomed the SJJPA to Sacramento and voiced his support for the Business Plan s outreach plan focus on reaching out to the Spanish speaking communities along the corridor. He passed out to the Board a copy of the Amtrak timetable for the Sunset Limited and he pointed out to the Board that the schedule is in both English and Spanish. He suggested a similar schedule could be developed for the San Joaquin service. He also expressed support of the extension of the San Joaquin service to Oakland Coliseum/BART with the connection to Oakland Airport. David Schonbrunn reported that their organization believes that there is a great synergy with the SJJPA having the same Managing Agency as the ACE service. He said that as a part of their comment letter they suggested that the SJJPA consider running San Joaquin service in the Altamont Corridor. He said that this would multiply the effectiveness of San Joaquin and ACE improvements. 7. Approval of SJJPA Business Plan Mr. Leavitt explained that in order for the SJJPA to take over the administrative responsibilities of the San Joaquin rail service, the SJJPA must develop and approve a Business Plan to be included and referenced as part of the Interagency Transfer Agreement (ITA). He said the Business Plan will be an Appendix to the ITA. Mr. Leavitt said as specified in AB 1779, the SJJPA Business Plan includes a report on the recent as well as historical performance of the corridor service, an overall operating plan including proposed service enhancements to increase ridership and provide for increased traveler demands in the corridor for the upcoming year, short-term and longterm capital improvement programs, funding requirements for the upcoming fiscal year, 8 11 of 92

12 and an action plan with specific performance goals and objections. He said the SJJPA Business Plan documents service improvements (rail and thruway/connecting bus) to provide the planned level of service, inclusion of operating plans to serve peak period work trips, and consideration of other service expansions and enhancements. Mr. Leavitt said this initial business plan is consistent with the 2013 State Rail Plan developed by Caltrans Division of Rail (DOR) pursuant to Section and the 2014 Business Plan to be developed by the California High-Speed Rail Authority pursuant to Section of the Public Utilities Code. In addition, he said the SJJPA Business Plan provides detailed staffing analysis which identifies the administrative cost savings from the transfer of the San Joaquin rail service to the SJJPA. Mr. Leavitt explained that based on the input received, a number of edits have been made to the SJJPA Business Plan. Mr. Leavitt noted that the Track-Change version of the SJJPA Business Plan provided in their briefing book shows each of the suggested edits made to the SJJPA Business Plan. He said that these changes have been reviewed by the SJJPA Ad Hoc Staff Working Group. He highlighted some of the key changes for the board including: Fresno be included as a potential location for midcorridor starts/ends (he noted that it was possible that both Fresno and Merced could be utilized); he said they added a section for planning for 90 mph service and other improvements that could help reduce travel times; to identify and make improvements at crossings to improve safety and reliability; consideration of wayside horns to reduce impacts; and to work with developers, communities and organizations to promote transit oriented development. Mr. Leavitt said that once approved a clean version of the SJJPA Business Plan will be produced and uploaded to the SJJPA webpage. Mr. Leavitt asked that the SJJPA approve the Resolution Adopting SJJPA Business Plan. Member Chiesa said that in talking with people at the Modesto session that on-time performance was very important, connectivity to other forms of transportation, the midcorridor start is his highest priority. He said that perhaps the North bound train could start at Fresno and the South bound train could start at Merced. He said the need is there for another trainset, but that they need to secure more funding. He said they need to focus on getting some of the Cap & Trade funds that are coming. He also concurred that they need to do work towards increasing the outreach to the Latino community. He said he appreciated all the efforts to complete the Business Plan. Vice Chair Perea asked about the timing of implementing a new maintenance facility for the San Joaquin service somewhere in the Central Valley? Mr. Leavitt said that the need for a potential new maintenance facility is identified in the Business Plan. It is not an item for the next fiscal year. He said it is something that SJJPA staff would begin the planning exercise for after the transfer of the administrative responsibilities of the service. Vice Chair Perea asked if he thought they would begin that discussion in about a year or so? Mr. Leavitt responded Yes of 92

13 Vice-Chair Cohn said that he wanted to move the item and that he thought that this was a real landmark item for both the corridor and for the SJJPA. He said he thought they had put out some very good ideas that could greatly improve the service. He said he believes this is just the beginning. He said the San Joaquin needs to be ready to expand and to accept resources. Member Blalock asked how close was this effort to what they did with the Capitol Corridor JPA? Was there a significant difference of any kind that they would want to know about? Mr. Leavitt said that they did use the Capitol Corridor plan as a model. He said that they actually looked at both the original Capitol Corridor Business Plan and their more recent plans. Mr. Leavitt said that if they looked at the initial Capitol Corridor plan that they would see that SJJPA Business Plan has a lot of similarities to that initial plan. He said that the San Joaquin is a unique corridor, so that they also have a number of sections/chapters which are unique to the San Joaquin. Vice Chair Cohn said he felt that the SJJPA Business Plan was more ambitious than the first Capitol Corridor Business Plan and he complimented the SJJPA staff for that. Chair Pedrozo entertained a motion for the approval of the SJJPA Business Plan. M/S/C (Cohn/Perea) to approve SJJPA Business Plan. Passed and Adopted by the San Joaquin Joint Powers Authority on June 27, 2014, by the following vote to wit: Ayes: 9 Blalock, Tatzin, Verboon, Johnson, Chiesa, Ishida, Vice-Chair Cohn, Vice-Chair Perea, Chair Pedrozo Noes: 0 Abstain: 0 Absent: 1 Wheeler Chair Pedrozo thanked Stacey Mortensen and Dan Leavitt and SJJPA staff for the hard work for completing the Business Plan. 8. San Joaquin Rolling Stock Update Brian Schmidt, Director of Operations, reported that all the Comet Cars had been delivered and that on April 14, the second Comet Car trainset was deployed on the San Joaquins. Mr. Schmidt said that on June 3 the second Comet Car trainset was removed from service. He said that staff has been working with Caltrans in looking at the data and that Caltrans felt that at this time it was better to take that second set out of service and replace it with a bi-level trainset. Mr. Schmidt thanked Chad Edison and Bruce Roberts for the meeting which they attended on June 4 with Vice Chair Perea, Ms. Mortensen, Mr. Leavitt and himself. He said that Caltrans provided data and said that of 92

14 the State representatives felt it was not good to have the second Comet Car trainset deployed with ridership and revenue being down. Mr. Schmidt presented an On-time Performance (OTP) chart for May, 2014 which showed that OTP was down to 61%. He said this was primarily due to a lot of train incidents throughout the corridor. He said that a lot of the incidents were in the Fresno area and were primarily incidents with BNSF freight trains. Mr. Schmidt explained that because the San Joaquins operate on a mostly single-track freight railroad that when there are incidents with freight trains, it also impacts the passenger service. He said that the OTP did improve in the month of June (up to 73%). He said that for the fiscal year the San Joaquins are at 77% on-time. Mr. Schmidt reported that ridership was down about 0.5%. He said that the last two months had seen an increase in San Joaquin ridership. Mr. Schmidt said that ticket revenue for the San Joaquins are down nearly 4% for the fiscal year. Mr. Schmidt said that staff would continue to meet with Caltrans and CalSTA. Member Chiesa asked what kind of comments had been received on the Comet Cars? Mr. Schmidt noted they had received one negative comment letter which had been included in the board book items. He said that Amtrak customer satisfaction survey results appeared to be similar to the previous year. 9. California Intercity Passenger Rail Leadership Coalition Update Mr. Leavitt gave an update on the SJJPA s activities with the CA Intercity Passenger Rail Leadership Coalition. Mr. Leavitt said that the CIPR Leadership Coalition focus over the last couple of months to successfully ensure that intercity rail was included as an important component of Cap & Trade allocations. He said that this is a critical milestone for the CIPR Program since this will provide a much needed stable and ongoing source of capital funding for the CIPR program. Mr. Leavitt said that the CIPR Leadership Coalition worked with Members of the Legislature and their staff and the Administration in support the Cap & Trade allocation program that was approved by the Legislature on June 15, He provided highlights of the June 13, 2014 letter of support from the CIPR Leadership Coalition and the summary of the Cap & Trade Allocation (for FY and for subsequent years) that were provided in the board book items. He noted that the San Joaquin service could compete with other rail and transit services for 10% of ongoing Cap & Trade funding which could be anywhere from $150 - $500 million a year based on current estimates. He said that they would also be eligible for some Sustainable Communities funding at their stations which could improve connectivity at stations and potentially for some Low Carbon Transportation funding for new rail equipment that reduce CO2 emission. Mr. Leavitt reported that Cap & Trade funding would be critical for improving intercity rail, commuter rail and transit in California. He said that the CIPR Leadership Coalition greatly appreciates the support it received from the California Transit Association (CTA) of 92

15 Mr. Leavitt said that Senator Jackson is the Chair of the Senate Select Committee on Passenger Rail. He said Senator Jackson and Senator Galgiani (a member of the Senate Select Committee) were critical in gaining support for CIPR being included in Cap & Trade. He reported that the CIPR Leadership Coalition is continuing to work to establish an Assembly Select Committee on Passenger Rail with Assemblymember Gray (Merced) as the Chair. Mr. Leavitt said that the Select Committees will continue to work to increase state funding to improve and expand the program and to leverage these investments by advocating for additional federal rail funds. Vice Chair Cohn noted that the CIPR Leadership Coalition really started in earnest a year or so ago. He said he thought they had already had a pretty dramatic impact on the budget already, that it was pretty significant what we ve been able to accomplish for intercity rail. He said that we just need to keep at it. Mr. Leavitt added that when they took the vote on Cap & Trade that it was amazing how many of the Senators who spoke before the vote talked about the intercity services. He said that every one of them that spoke about intercity services spoke very positively about wanting to see improvement to these services. He said it was really pleasing to see how much intercity rail was recognized by the Legislature. 10. Update on the Interagency Transfer Agreement and Schedule Ms. Mortensen noted that this is an ongoing board item since it is the key to the SJJPA taking over the administrative responsibilities for the San Joaquin service. She said that the Interagency Transfer Agreement (ITA) is not just another document that they must do, it is really a heavy lift. She said that Capitol Corridor ITA (which was a small service at the time of its ITA) was about 700 pages when you include the appendices. Ms. Mortensen noted that at some point staff would be bringing a similar document before them. She said that the main body of the document is likely to be about pages and that staff had been working hard on getting that complete. Ms. Mortensen explained that it is the appendices which make up the bulk of the document (Operating Agreements, Lease Agreements, Fund Transfer Agreements, etc.). She said that the Capitol Corridor has provided a good model, but that we are needing to add in some additional elements that are applicable to the San Joaquin corridor. Ms. Mortensen reported on meetings with CalSTA and Caltrans, and she thanked Chad Edison for his time and efforts and thanked Caltrans as well. She discussed how the work was fully coordinated with the LOSSAN JPA with their similar ITA effort. She noted that they had reached agreement on the Performance Standards and that she appreciated that CalSTA had sought input from the three JPAs staff (SJJPA, LOSSAN, and Capitol Corridor) before making these public. She said the general categories were passenger usage, cost efficiency and operating performance categories like ontime performance of 92

16 Ms. Mortensen further reported that they were still on track for a December ITA target. She said that staff plans to bring a draft of the main body of the ITA to the Board at their September Board Meeting. She also said that six of the major Appendices are under development. She said she thought it was possible that they could also bring to the Board the SJJPA Roles and Responsibilities and State Roles and Responsibilities appendices for the September Board Meeting as well. She reiterated that they were on schedule for the end of the year and noted that they might need to call a special Board Meeting at some point to keep things moving. 11. Administrative Matters or Announcements Ms. Mortensen explained that correspondence was included as part of their book items. Ms. Mortensen said that they would begin playing a more active role in the development of the CA Freight Mobility Plan and she noted that there was a meeting coming up in Fresno regarding the Draft CA Freight Mobility Plan. She said that this plan would require comments by the end of July (so they will be reviewing another big document). 12. Board Member Comments Chair Pedrozo asked for any Member comments. Vice-Chair Perea reiterated his appreciation to Chad Edison for the level of participation and cooperation that the SJJPA has with CalSTA. He thanked Mr. Edison for attending this SJJPA Board Meeting and for participating in the meeting with staff and Caltrans on June 4. Chair Pedrozo thanked those attending the meeting and SJJPA staff for their efforts with the Business Plan which he knew took a lot of effort. He was pleased that they had gotten it done and wanted to commend everyone who was a part of making that happen. He thanked the City of Sacramento and Vice-Chair Cohn for their hospitality. Member Verboon thanked Ms. Mortensen, Mr. Leavitt, and Mr. Schmidt for their efforts to get Kings County to join the SJJPA, and the SJJPA for listening to their concerns in coming up with the Business Plan. He said that they look forward to hosting the next SJJPA Board Meeting in September. 13. Adjournment Chairperson Pedrozo adjourned the meeting at 3:24 pm. The next meeting of the SJJPA is scheduled for September 26, of 92

17 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 3.2 ACTION Approve Next SJJPA Board Meeting Location and Start Time Background: Staff proposes Oakland location at 11:30 am for the December 5, 2014 SJJPA Board Meeting. The meeting time is coordinated with the San Joaquin schedules and the location should be a short walk from the Oakland Amtrak station. Fiscal Impact: There is no fiscal impact. Recommendation: Approve Next SJJPA Board Meeting Location/Time 17 of 92

18 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 5 INFORMATION Presentation on Draft California Freight Mobility Pan (CFMP) Background The California Freight Mobility Plan (CFMP) is a statewide, long-range plan with the following vision for the movement of freight in California: As the national gateway for international trade and domestic commerce, California enhances economic competitiveness by collaboratively developing and operating an integrated, multimodal freight transportation system that provides safe, sustainable freight mobility. This system facilitates the reliable and efficient movement of freight and people while ensuring a prosperous economy, social equity, and human and environmental health. The CFMP complies with the relevant provisions of the federal Moving Ahead for Progress in the 21st Century Act, which encourages each state to develop a freight plan, as well as AB 14 (Lowenthal, 2013), which requires the preparation of a California state freight plan. For more information regarding the CFMP see the attached fact sheet. Bruce De Terra, with Caltrans will make a presentation to the SJJPA regarding the Draft California Freight Mobility Plan. Recommendation: This is an information item. There is no action being requested. 18 of 92

19 HOW TO PARTICIPATE WEBSITE: The website will be updated with the latest information as the plan is developed. You can join the CFMP list to receive future notifications and information. Requests to join the mailing list, questions, and input can be directed by . PUBLIC WORKSHOPS: Eight workshops will be held around the state to inform and receive input from the public on the draft CFMP. They will be held between June 16 and July 31, The workshop locations are Redding, Sacramento, Oakland, Marina, Fresno, Los Angeles, San Bernardino, and San Diego. More information on the workshops will be posted to the website and distributed to the list as it is finalized. The California State Transportation Agency (CalSTA) and the California Department of Transportation (Caltrans) are currently developing a state freight plan, titled the California Freight Mobility Plan (CFMP). Per Assembly Bill 14 (Lowenthal, 2013) the CFMP will be a comprehensive plan that governs the immediate and long-range planning activities and capital investments of the state with respect to the movement of freight. The CFMP will also comply with the relevant provisions of the federal Moving Ahead for Progress in the 21 st Century Act, which encourages each state to develop a freight plan. CFMP Vision As the national gateway for international trade and domestic commerce, California enhances economic competitiveness by collaboratively developing and operating an integrated, multimodal freight transportation system that provides safe, sustainable freight mobility. This system facilitates the reliable and efficient movement of freight while ensuring a prosperous economy, social equity, and human and environmental health. CFMP Goals 1. Economic Competitiveness: Improve the contribution of the California freight transportation system to support economic efficiency, productivity, and competitiveness. 2. Congestion Relief: Reduce costs to users by minimizing congestion on the freight transportation system. 3. Safety and Security: Improve the safety, security, and resilience of the freight transportation system. 4. Freight System Infrastructure Preservation: Improve the state of good repair of the freight transportation system. 5. Innovative Technology and Practices: Use innovative technology and practices to operate, maintain, and optimize the efficiency of the freight transportation system while reducing its environmental and community impacts. 6. Environmental Stewardship: Avoid and reduce adverse environmental and community impacts of the freight transportation system. 19 of 92

20 Collaboration Partners The CFMP is being prepared in parallel with Caltrans California Transportation Plan (CTP) 2040 which is a long-range transportation plan to achieve our collective vision for California s future statewide, integrated, multimodal, sustainable transportation system. The CFMP is one of several Caltrans modal plans that will be integrated within the CTP. In addition to the CTP working groups, the CFMP development is guided by the California Freight Advisory Committee (CFAC). The CFAC is an advisory committee to CalSTA and Caltrans consisting of a representative cross section of public and private sector freight stakeholders, including representatives of seaports, railroads, airports, trucking, shippers, carriers, freight-related associations, the freight industry workforce, regional and local governments, state and federal agencies, Tribal governments, and environmental, safety, and community organizations. Schedule The CFMP Administrative Draft will be posted in early May 2014 and the CFMP Public Review Draft will be posted by mid-june The Public Comment Period will be between June 16 and July 31, During this time the public workshops will be held and the public can review the draft CFMP and submit comments to CFMP@dot.ca.gov. The submitted comments will be reviewed and incorporated as necessary, with the goal of finalizing the CFMP by December 31, of 92

21 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 6 Approval of Intercity Rail Performance Standards ACTION Background In order to take over the administrative responsibilities of the San Joaquin rail service, the SJJPA must negotiate and sign an Interagency Transfer Agreement (ITA) with the State. Intercity Rail Performance Standards developed by the California State Transportation Agency (CalSTA) with input from the staff of Caltrans, SJJPA, LOSSAN JPA, and the Capitol Corridor JPA will be included as Appendix K of the ITA. As specified in AB 1779, Not later than June 30, 2014, the secretary shall establish a set of uniform performance standards for all corridors and operators to control cost and improve efficiency. AB 1779, further states, To the extent necessary, as determined by the secretary, performance standards may be modified not later than July , or the effective date of the interagency transfer agreement, whichever comes first, and that the secretary shall require the board to demonstrate the ability to meet the performance standards established by the secretary. On June 30, 2014, CalSTA established Intercity Rail Performance Standards (see attached) as mandated by AB CalSTA has requested that these be adopted by the SJJPA as part of the ITA process. These performance standards are built from the following measures: Usage measured by passenger miles and ridership. Cost Efficiency measured by farebox recovery and total operating cost per passenger mile. Service Quality measured by endpoint on-time performance, all-station ontime performance, and operator responsible delays per 10,000 train miles. Recommendation: Approve Resolution Adopting Intercity Rail Performance Standards 21 of 92

22 22 of 92

23 23 of 92

24 24 of 92

25 25 of 92

26 26 of 92

27 27 of 92

28 28 of 92

29 RESOLUTION SJJPA / - RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN JOAQUIN JOINT POWERS AUTHORITY ADOPTING THE INTERCITY RAIL PERFORMANCE STANDARDS WHEREAS, the Intercity Passenger Rail Act of 2012 (AB 1779) provides for the creation of a San Joaquin Joint Powers Authority (SJJPA) which, if certain requirements are met, will manage the San Joaquin Intercity Rail Service; and WHEREAS, ten (10) Member Agencies have approved a Joint Exercise of Powers Agreement to form the SJJPA and have appointed Board Members and Alternates; and WHERAS, as mandated by AB 1779, the California State Transportation Agency (CalSTA) was required to develop Intercity Rail Performance Standards by June 30, 2014; and WHEREAS, in order to take over the administrative responsibilities of the San Joaquin rail service, the SJJPA must negotiate and approve an Interagency Transfer Agreement (ITA) with the State of California which will include the Intercity Rail Performance Standards as an Appendix; and WHEREAS, CalSTA requested that the SJJPA adopt the Intercity Rail Performance Standards as part of the ITA process; and NOW THEREFOR BE IT RESOLVED, that the Board of Directors of the SJJPA hereby adopts the Intercity Rail Performance Standards developed by CalSTA. PASSED AND ADOPTED, by the Board of Directors this 26 th day of September, 2014, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SAN JOAQUIN JOINT POWERS AUTHORITY Stacey Mortensen, Secretary John Pedrozo, Chair 29 of 92

30 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 7 Draft Interagency Transfer Agreement INFORMATION Background In order to take over the administrative responsibilities of the San Joaquin rail service, SJJPA must negotiate and sign an Interagency Transfer Agreement (ITA) with the State. The ITA development has been underway for a number of months and it is expected to be completed and ready to sign by the end of The State is negotiating with the SJJPA and LOSSAN JPA ITAs concurrently and the efforts are fully coordinated and consistent. The Capitol Corridor Joint Powers Authority ITA was used as a model for the Draft ITA. The ITA between the SJJPA and the State shall cover the initial three-year period after the transfer, but may be extended thereafter by mutual agreement. The ITA is expected to have the following Appendices: TABLE OF APPENDICIES Appendix Description Responsible A Efficiency and Cost Reduction Measures SJJPA B Business Plan SJJPA C Statement of Three Year Funding Caltrans D Fund Transfer Agreement SJJPA/Caltrans E Equipment Lease Caltrans F Transfer Agreement Caltrans G Maintenance Agreement Caltrans H Operating Agreement Caltrans I Functions Assumed by Joint Powers Authority SJJPA J Functions Retained or Assumed by the State SJJPA K Performance Standards CalSTA L General Liability Insurance M Excess Liability Insurance Draft SJJPA Interagency Transfer Agreement, September 17, 2014 i 30 of 92

31 The latest version of the Draft ITA and drafts for Appendices A (Efficiency and Cost Reduction Measures), I (Functions Assumed by the Joint Powers Authority), & J (Functions Retained or Assumed by the State) are attachments to this item for Board review. Recommendation: This is an information item. There is no action being requested. Draft SJJPA Interagency Transfer Agreement, September 17, of 92

32 San Joaquin Joint Powers Authority (SJJPA) Draft Interagency Transfer Agreement September 2014 Draft SJJPA Interagency Transfer Agreement, September i 32 of 92

33 Insert (Index) Draft SJJPA Interagency Transfer Agreement, September ii 33 of 92

34 Table of Contents RECITALS AGREEMENT Article 1. Article 2. Article 3. Article 4. Article 5. Article 6. Article 7. Article 8. Article 9. Article 10. Article 11. Article 12. Article 13. Article 14. Article 15. Article 16. Article 17. Article 18. Article 19. Article 20. Definitions Transfer of Responsibilities Term of Agreement; Option Renew Annual Level of Funding Planned Service Improvements Estimated State Costs for Initial Year; Statement of Anticipated Operating Subsidy by State; Efficiency and Cost Saving Measures Subsequent Year Authority Costs; Statement of Anticipated Operating Subsidy by State Service Responsibilities Operation of Feeder/Distributer Bus Service Annual Business Plan State as Third Party Beneficiary to Amtrak Contract(s); SJJPA as Agency of the State Performance Standards Force Majeure Liability and Indemnification Funding Shortfalls; Deficit Financing; Reduction in Level of Passenger Rail Service in the Corridor No Guaranty of Funding Termination by Parties Arbitration Audit Successor Acts Draft SJJPA Interagency Transfer Agreement, September iii 34 of 92

35 Article 21. Article 22. Article 23. Article 24. Article 25. Article 26. Article 27. Article 28. Article 29. Article 30. Successor and Assigns to the Parties Notices Amendment Representations and Warranties of the Parties Construction: Complete Agreement Partial Invalidity Conflicts Between This Agreement and Other Agreements Counterparts Signatures Draft SJJPA Interagency Transfer Agreement, September iv 35 of 92

36 TABLE OF APPENDICIES Appendix Description Reference A Efficiency and Cost Reduction Measures B Business Plan C Statement of Three Year Funding D Fund Transfer Agreement E Equipment Lease F Transfer Agreement G Maintenance Agreement H Operating Agreement I Functions Assumed by Joint Powers Authority J Functions Retained or Assumed by the State K Performance Standards L General Liability Insurance M Excess Liability Insurance Draft SJJPA Interagency Transfer Agreement, September v 36 of 92

37 INTERAGENCY TRANSFER AGREEMENT This Agreement (Agreement) is made and entered into as of the Effective Date in the State of California by and between the San Joaquin Joint Powers Authority (SJJPA), a joint powers authority (JPA) created pursuant to Senate Bill 1095 (Chapter 1313, Statutes of 1985), and the State of California (State), acting by and through the California State Transportation Agency (CalSTA) RECITALS This Agreement is made with reference to the following facts: A. On September 29, 2012, the Governor signed into law Assembly Bill 1779 (AB 1779), also known as the Intercity Passenger Rail Act of 2012 (Act), authorizing the Department of Transportation (Caltrans) with approval from the Secretary of Transportation, to enter into an interagency transfer agreement under which the SJJPA would assume responsibility for administering the state-funded intercity rail service, and authorized the creation of the new SJJPA through an amendment to the existing Joint Exercise of Powers Agreement (JPA). AB 1779 amends sections , , and of, and to repeal and add Article 5.4 (commencing with Section 14074) of Chapter 1 of Part 5 of Division 3 of Title 2 of, the Government Code relating to transportation. B. The following public agencies below are authorized to contract with each other for the joint exercise of any common power under Article 1, Chapter 5, Division 7, Title 1 of the Government Code of the State of California, and each has been designated by the Act and signed on to be the Member Agencies of the SJJPA: a. Sacramento Regional Transit District b. San Joaquin Regional Rail Commission c. Stanislaus Council of Governments d. Merced County Association of Governments e. Madera County Transportation Commission f. Fresno Council of Governments g. Kings County Association of Governments h. Tulare County Association of Governments i. Contra Costa Transportation Authority j. Alameda County Draft SJJPA Interagency Transfer Agreement, September of 92

38 Kern Council of Governments has not yet appointed members and signed on to the SJJPA but may do so at any time in the future. If the rail service boundaries of the San Joaquin Corridor are extended, an additional Member Agency from each county receiving rail service may be added to the board with the approval of a two-thirds vote by the SJJPA. C. This Agreement provides for the transfer of responsibility for administering the intercity passenger rail service, also known as the San Joaquin, (Service) from the State to the SJJPA, subject to the Secretary of the California State Transportation Authority (CalSTA), approval. D. The SJJPA has produced a business plan (Business Plan) which contains a proposal for the use of the State funding allocation or operation of the Service and which describes the methods by which the SJJPA will administer such rail service and seek to increase the ridership in the LOSSAN corridor, and which will be updated by the SJJPA to the Secretary by April 1 st of each year. E. In accordance with the Act, the SJJPA may, through competitive solicitation process, contract with the National Railroad Passenger Corporation (Amtrak) or with other organizations not precluded by state or federal law to provide passenger rail service, for the operation of the Service, and may contract with rail corporations and other rail operators for the use of tracks and other facilities and for the provision of passenger services on terms and conditions as the parties may agree. Under such circumstances, the State would be deemed to be a third-party beneficiary of each passenger rail service contract, ad these contracts may not contain any provision or provisions that would negatively impact or conflict with any other contracts the State has regarding intercity rail service. F. Consistent with the Business Plan, as updated annually, and budget processes described herein, the State will annually prepare and submit to the Legislature a proposed funding allocation for funding which is consistent with and sufficient for agreed upon operations and planned service improvements to the Service as set forth in an approved Business Plan and budget. Draft SJJPA Interagency Transfer Agreement, September of 92

39 AGREEMENT NOW THEREFORE, in consideration of the recitals and the rights, duties and covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the SJJPA and the State hereby agree to the following: ARTICLE 1. DEFINITIONS The terms defined in this Section 1.0 shall for all purposes of this Agreement have the meanings specified herein. 1.1 Act has the meaning set forth in Recital A to this Agreement 1.2 SJJPA means the San Joaquin Joint Powers Authority 1.3 Member Agencies shall mean those public entity members of the SJJPA named in Recital B of this Agreement 1.4 Agreement shall mean this agreement whereby the State transfers, as provided for in the Act and as set forth herein, responsibility for operating and administering the Service to the SJJPA, including all applicable cost control established hereunder or by statute. 1.5 Agreements shall mean this Agreement, the Equipment Lease, the Fund Transfer Agreement, the New Operating Agreement and the New Transfer Agreement. 1.6 BNSF Railway Company or BNSF and Union Pacific Railroad or UPRR shall refer to the privately owned railroads over which the Service operates. 1.7 Business Plan shall mean the business plan which has been submitted by the SJJPA to the Secretary of the California State Transportation Authority. A copy of the Business Plan Update is attached to this Agreement as Appendix B. The Business Plan shall be updated and submitted to the Secretary annually thereafter by a Business Plan Update by April 1 st of each year. 1.8 San Joaquin Joint Powers Authority or SJJPA shall mean the public agency created by and organized as a joint exercise of powers agency pursuant to Article 1, Chapter 5, Division 7, Title 1 of the Government Code of the State of California, which shall assume administrative responsibility for the Service as more fully provided in this Agreement. 1.9 San Joaquin Corridor or Corridor means the rail corridor which as its termini and intermediate stations between Los Angeles Bakersfield Fresno Stockton Oakland. Draft SJJPA Interagency Transfer Agreement, September of 92

40 1.10 Efficiency and Cost Reduction Measures means the proposed measures and initiatives outlined in the Business Plan and included in this Agreement as Appendix A California Transportation Commission or CTC shall refer to the commission established in 1978 by Assembly Bill 402 (Chapter 1106, Statutes of 1977) and further defined in Section 5.4 of this Agreement California Department of Transportation or Caltrans means the Department of Transportation of the State of California 1.13 Effective Date means the date set forth in Section Equipment Lease means the agreement between the State and the SJJPA to allow for the use of State-owned equipment, a copy of which is attached to this Agreement as Appendix E Excess Liability Insurance means the policy of excess liability insurance which is described in Section 14.6 hereof and a copy of which is attached to this Agreement as Appendix M Expanded Service has the meaning set forth in Section Functions Assumed by the SJJPA means the statement of functions assumed by the SJJPA which is attached to this Agreement as Appendix I Functions Assumed or Retained by the State means the statement of functions assumed by the State which is attached to this Agreement as Appendix J Fund Transfer Agreement means that certain Standard Provisions of Intercity Rail Fund Transfer Agreement between the State of California Department of Transportation and the SJJPA covering allocations of State transportation, planning and development account funds herewith, a copy of which is attached to this Agreement as Appendix D General Liability Insurance means the general liability insurance policy coverage described in Section 14.6, a copy of which is attached to this Agreement as Appendix L Governor means the Governor of the State of California Intercity Rail Program means the Service, the Pacific Surfliner rail service and the Capitol Corridor rail service, all the feeder bus services related thereto and any future state-supported intercity passenger services Legislature means the State Legislature of the State of California Maintenance Agreement means that certain Maintenance Agreement between the California Department of Transportation and the National Passenger Railroad Corporation (Amtrak) for the maintenance of State-owned equipment dated ########, a copy of which is attached to this Agreement as Appendix G Maintenance Transfer Date shall have the meaning set forth in Subsection 8.2g. Draft SJJPA Interagency Transfer Agreement, September of 92

41 1.26 Mechanical Officer shall mean a representative of the State or the SJJPA specifically designated to oversee the maintenance of equipment Minimum Service has the meaning of the minimum level of service that the State shall fund as specified in the Act and further set forth in Section Minor Capital Projects means minor capital projects as defined in and authorized by California Government Code Section Operating Agreement means that certain agreement for the provision of passenger rail service pursuant to Title 49 U.S.C. Section between the State and Amtrak and dated #######, a copy of which is attached to this Agreement as Appendix H Operating Slots shall mean the contractual ability to run an additional train(s) on a host railroad Performance Standards means the standards referred to in Article 12 hereof, a copy of which are attached to this Agreement as Appendix K Retained Equipment shall have the meaning set forth in Section 8.5.f Secretary shall mean the Secretary of the California State Transportation Agency (CalSTA). Unless the context otherwise requires, any reference to the Secretary includes CalSTA and its officers and employees Service shall mean rail and related services in the Corridor, including feeder bus services related thereto, as expanded, modified and developed by the SJJPA pursuant to this Agreement or any amendment thereto State shall mean the State of California, acting by and through its Department Statement of Three-Year Funding means the statement described in Section 6.4, a copy of which is attached to this Agreement as Appendix C State-owned Equipment means the train sets (rail cars and locomotives) identified in Appendix A to the Equipment Lease, which is attached to this Agreement as Appendix E Surplus Funding shall have the meaning set forth in Section 7.3 hereof Term has the meaning set forth in Section Track and Signal Improvements shall mean the improvements to the San Joaquin Corridor Transfer Agreement means the Transfer Agreement between the Department and Amtrak for the Transfer and Operations of State Provided Rail Equipment dated #########, a copy of which is attached to this Agreement as Appendix F Shared Use Agreements shall refer to those agreements that exist between the State and any railroad owner over which the Service operates Update or Business Plan Update has the meaning set forth in Section 1.6. ARTICLE 2. TRANSFER OF RESPONSIBILITIES Draft SJJPA Interagency Transfer Agreement, September of 92

42 2.1 Except as otherwise provided for herein, the State herby transfer management and control of the Service to the SJJPA, effective as of, 2015 (the Effective Date ). Subject to the terms and conditions of this Agreement and except as otherwise provided herein, as of such date, the SJJPA assumes responsibility for operating and administering the Service as set forth herein, and, as of such date, succeeds the State s powers, obligations and duties relative to such Service as provided in this Agreement. 2.2 The State agrees that the SJJPA may have its Mechanical Officer present at the site of rail car maintenance from and after the Effective Date to monitor maintenance on behalf of the SJJPA. ARTICLE 3. TERM OF THE AGREEMENT; OPTION TO RENEW 3.1 The term of this Agreement, as provided in Government Code Section , subdivision (b) shall commence on the Effective Date set forth in Section 2.1 above and shall terminate, subject to earlier termination as provided herein, on the third anniversary date of the Effective Date. 3.2 Subject to finding by the Secretary, which finding shall be made in a report to be submitted to the parties hereto no less than 180 days prior to the termination date set forth in the preceding paragraph, that the SJJPA has met or exceeded Performance Standards as required hereby and is not otherwise in material breach of any term, condition or other obligation under this Agreement, the SJJPA shall have the option, to be exercised by written notice given to the State not less than 90 days prior to such termination date, to renew this Agreement on the same terms and conditions as stated herein for a further three year term commencing on the date of termination of the Term of this Agreement. ARTICLE 4. ANNUAL LEVEL OF FUNDING 4.1 Subject to the Business Plan or any Business Plan Update or amendment thereto and to a demonstration with respect to the first year s budget under this Agreement, to the satisfaction of the Secretary, that efficiencies and cost reductions have been achieved, the state shall seek to obtain funding for the SJJPA which is consistent with each successive approved budget contained in the Business Plan Update. Subject to appropriation by the Legislature, all funding to be provide by the State for the Term and the term of any subsequent agreements, shall seek to ensure an annual level of funding consistent with and sufficient for the level of operating requirements and Draft SJJPA Interagency Transfer Agreement, September of 92

43 service improvements to the Service which are contained in each successive approved Business Plan. ARTICLE 5. PLANNED SERVICE IMPROVEMENTS 5.1 The SJJPA believes that there are adequate facilities and equipment six daily round trips for the Service (four between Oakland and Bakersfield and two between Sacramento and Bakersfield). It is the intent of the SJJPA to sustain this level of service and funding permitted, subject to any necessary consents or approvals of UPRR and BNSF, the SJJPA will implement additional service. 5.2 The parties hereto acknowledge that the State Rail Plan identifies expansion of the number of daily trains as well as the areas served, and the parties agree to work to accomplish this service level increase to the extent reasonably feasible, subject to the availability of necessary funding, trackage rights and equipment, and consistent with the requirements of other Intercity Rail Programs for operating funding, train sets and rail capacity during the terms of this Agreement. It is the intent of the parties that the State shall support the Service, provided such support does not prejudice the programs of the other Intercity Rail Programs. It is also the intent of the foregoing that the State shall support these other Intercity Rail Programs, provided such support does not disproportionately prejudice the programs of the Service. 5.3 The annual Update to the Business Plan shall identify the scope of operations and capital improvements, if any, to the Service for the identified State fiscal year and shall be the basis for projecting funding requirements to operate, administer and market the Service by the SJJPA. The State and the Secretary will receive, review, modify as required or deemed advisable and the Secretary shall approve on or before July 31 st of each year, each Update to the Business Plan, and shall exercise reasonable efforts to secure from the Legislature the appropriation for the level of the Service agreed upon therein. Subject to Article 15 hereof, this Service will be operated to the extent that the Legislature appropriates necessary funds. 5.4 Funding for capital improvements to implement agreed upon enhanced levels of the Service may be obtained through available federal, state and local capital funding programs, Operating Revenues (as defined in Article, Section of the Fund Transfer Agreement) attributed to the Service and in excess of projected revenues, revenues from operating improvements and efficiencies, and private resources. To the extent that the SJJPA requests capital funding through state capital funding programs, the SJJPA shall submit the appropriate documentation which meets State Draft SJJPA Interagency Transfer Agreement, September of 92

44 requirements governing such programs for submittal in accordance with all applicable rules, regulations, policies, procedures and timetables of the California Transportation Commission (CTC) as they relate to such submittals. ARTICLE 6. ESTIMATED STATE COSTS FOR THE FIRST YEAR; REQUIREMENT THAT THE SECRETARY DETERMINE THAT EFFICENCIES AND COST REDUCTIONS CAN BE ACHIEVED BY THE SJJPA; STATEMENT OF ANTICIPATED OPERATING SUBSIDY BY THE STATE 6.1 As determined by baseline calculations provided by the State for the State s proposed administration, marketing and operating costs for fiscal year , it is agreed that the total estimated cost to the SJJPA and the maximum amount of funds to be transferred by the State to the SJJPA to operate the Service for the balance of the Amtrak contract (insert end date) from the Effective Date, net of maintenance supervision funds retained by the State pursuant to the terms of the Equipment Lease, would be Amtrak s estimate of $##,###,### (for specified months). The State has prepaid Amtrak operating and maintenance for ####,#,2015 and will encumber the available operating funds (for the months of ######) to the SJJPA within the Fund Transfer Agreement. For Amtrak contract year (October 1, 2015 through September 30, 2016) funds to be transferred for Amtrak operations (excluding maintenance supervision retained by the State and provided for in the Equipment Lease) are: $##,###,###. For State fiscal year (FY) (beginning on the effective date, July 1, 2015 through June 30, 2016) marketing funds to be transferred are $#,###,###. Such amounts include State operating subsidies and funds currently used by the State for administration and marketing of the Service. These amounts, or such other amounts as are set forth in the annual Business Plan Update submitted by the SJJPA and as modified by the Secretary, shall be included in the State budget proposal submitted to the Legislature by the State. Such amount shall be allocated and transferred by the Secretary, or to the extent legally required, the CTC as provided herein, to the SJJPA following appropriation by the Legislature, but, pursuant to the provisions of Article 16 of this Agreement, there is no guaranty of State funding. 6.2 In order to authorize the Department to enter into this Agreement to effect transfer of administrative functions to the SJJPA, and in accordance with and pursuant to the Efficiencies and Cost Reductions Statement, the Secretary has determined that transferring responsibility for intercity rail service in the San Joaquin Corridor to the Draft SJJPA Interagency Transfer Agreement, September of 92

45 SJJPA would reasonably result in the efficiencies and cost reductions identified in Appendix A 6.3 The SJJPA has submitted to the Secretary for the first year of the Agreement, a Business Plan Update for FY and which includes all the information required under Article 10 hereof. A copy of the Business Plan Update for FY and FY is attached to this Agreement as Appendix B. 6.4 The attached Statement of Three (3) Year Funding (Appendix C) is a statement of the annual level of funding for a three year period from the Effective Date of this Agreement (which level of funding is consistent with and sufficient for the planned service improvements within the Corridor), together with a statement for each year of this Agreement, of the funds intended to be transferred by the State to the SJJPA subject to Legislative appropriation for support at the same level, including (a) State operating subsidies made available for the Service, and (b) funds currently used by the State for the administration and marketing of the Service, with such amounts adjusted for inflation and in accordance with the approved Business Plan. ARTICLE 7. SUBSEQUENT YEAR AUTHORITY COSTS 7.1 On or before April 1 st of each year in which this Agreement, or any subsequent agreement regarding the Service, is in effect, the SJJPA shall submit to the Secretary for review and approval, subject to any recommended modifications to be made on or before July 31 st, as part of the SJJPA s annual Business Plan Update to the Business Plan, the projected costs for the next State fiscal year to administer the Service. The State s share of such annual projected costs, when approved by the Secretary, shall be included in the State budget proposal submitted to the Legislature and shall, subject to the appropriation by the Legislature and, to the extent legally required, to programming by the CTC, be allocated to the SJJPA. 7.2 The amount sought to be appropriated by the Legislature shall cover the State s share of all SJJPA and State costs to administer, manage, maintain, market and operate the Service including all planned service improvements as set forth in Article 5 and such other additions and extensions within the San Joaquin Rail Corridor to which the State and the SJJPA may agree. In addition, the SJJPA may use any cost savings from operational improvements or efficiencies achieved by it, or increases in Operating Revenues (as defined in Article III, Section 3(a)(iv)(A) of the Fund Transfer Agreement) in excess of Business Plan projections to provide service improvements, additional marketing, planning studies, station area development efforts, fare discounts and other programs to increase ridership of the Service; provided that Draft SJJPA Interagency Transfer Agreement, September of 92

46 revenues which are not expended in the year recognized may be subject to reversion in the event that the Legislature, by budget control language or otherwise, requires such revision. 7.3 If the budget allocation provided by the State to the SJJPA in any State fiscal year for passenger rail services operations exceeds the level of actual billings from the SJJPA s contracting passenger rail operating service provider, the difference between the allocated amount for such operating services and the aggregate amount of actual billings for such services in the fiscal year by such passenger rail operating service provider, other than any true cost savings achieved through operational improvements or efficiencies gained plus operating revenues in excess of Business Plan projections, shall be considered to be Surplus Funding and not cost savings (such difference herein, Surplus Funding. ) Such Surplus Funding shall be identified by the SJJPA and the State shall be promptly notified upon receipt by the SJJPA of a final invoice for the fiscal year from the passenger rail operating service provider, and such amount will be subtracted from the State s annual budget allocation request for the next subsequent fiscal year. ARTICLE 8. SERVICE RESPONSIBILITIES 8.1 The respective duties, obligations and responsibilities of the SJJPA, the Secretary and of the State for the Service, effective, unless otherwise indicated as of the Effective Date, shall be as specified in this Section. 8.2 The duties, obligations and responsibilities of the State are identified in Appendix J. 8.3 The duties, obligations and responsibilities of the Secretary shall be the following: a. Develop, review and subject to modification, approve Performance Standards. b. Review and, subject to modification, approve annual Business Plan Update. 8.4 The SJJPA will use its best efforts to coordinate Service schedules jointly with an Intercity Rail Program with which it shares tracks and/or equipment. Should the parties be unable to reach agreement on mutually acceptable schedules, the dispute shall not be submitted to arbitration pursuant to Article 18 hereof and instead the Secretary or the Secretary s designee shall set such schedules, which determination shall be binding upon the parties. 8.5 Other Agreements a. On the Maintenance Transfer Date, and subject to any maintenance or warranty administration responsibility retained by the State under the Equipment Lease, Draft SJJPA Interagency Transfer Agreement, September of 92

47 the SJJPA, in concert with the CCJPA will assume responsibility for administration of the delegated maintenance oversight for the rail cars and locomotives assigned to the Service and any other Intercity Rail Program with which the SJJPA shares tracks and rail cars, including leased equipment, the equipment designated and purchased by the State for such Intercity Rail Program as set forth in the state s California Passenger Program Report ( ), and equipment utilized for such Intercity Rail Program which is or may be acquired to the execution of this Agreement (the State owned Equipment ). b. The terms for transferring the State-owned Equipment and other equipment and property owned by the State and required for the Service, including the number of units to be provided, liability coverages, maintenance and warranty responsibility and indemnification issues, are as set forth herein and in the Equipment Lease which is to be executed by the parties as of the Effective Date of this Agreement. c. The effectiveness of this Agreement is specifically contingent upon the approval and execution and attachment hereto of the Agreements, all data as of the Effective Date. If the parties to each of the Agreements have not agreed upon and executed each of the Agreements, neither party hereto shall have any further obligation or liability to the other party. d. The State-owned Equipment is subject to the terms of the Transfer Agreement, the Maintenance Agreement and the Transfer Agreement. The Transfer Agreement and the Maintenance Agreement are for a term commencing on ############ and continuing until terminated upon sixty (60) days written prior notice. The Transfer Agreement is for a term commencing on the Effective Date and continuing until terminated in accordance with the provisions thereof. e. The parties agree that the new Operating Agreement is intended to govern the operation of the Service as between the SJJPA and Amtrak and that the current Operating Agreement is superseded only to the extent that it relates to operation of the Service as covered in the SJJPA-Amtrak Operating Agreement. The Transfer Agreement is intended to govern certain operation issues among the SJJPA, the State and Amtrak pending transfer of maintenance administration responsibility (subject to any defined responsibility retained by the State) with respect to the State-owned Equipment in accordance with the provisions of the Equipment Lease. Until the Maintenance Transfer Date, the State shall be the party charged with maintenance supervision responsibility pursuant to the terms of the Transfer Agreement and the Maintenance Agreement which shall continue to be administered by the State. Certain operational issues are governed by the New Transfer Agreement pending transfer of maintenance supervision responsibility to the SJJPA. Prior to the Maintenance Transfer Date, it is the intent of the parties that the SJJPA and Amtrak will enter into separate maintenance and transfer agreements with respect to the State-owned Draft SJJPA Interagency Transfer Agreement, September of 92

48 Equipment over which the SJJPA will have maintenance supervision responsibility under the provisions of this Agreement and the Equipment Lease. Alternatively, and at the State s option and subject to any required approval or consent of Amtrak, the State will assign or contractually transfer its rights and obligations under these agreements with respect to the State-owned Equipment which is the subject of the Service, or over which the SJJPA has maintenance supervision responsibility under the terms of this Agreement, to the SJJPA, effective as of the Maintenance Transfer Date. To the extent that the SJJPA and Amtrak (and, if it so elects, the State) enter into a subsequent transfer agreement and/or maintenance agreement, such agreement or agreements shall be subject to the prior approval of the State and Secretary. The terms and conditions of any assignment of rights and obligations under the Maintenance Agreement or the Transfer Agreement in accordance with these provisions shall likewise be subject to the prior approval of the State and the Secretary. Effective upon assignment of the State s rights and obligations for the Service under the Transfer Agreement and Maintenance Agreement, or the entering into of a subsequent transfer agreement and maintenance agreements between the SJJPA and Amtrak (and, if it so elects, the State) governing operation and maintenance with respect to the Service, the Transfer Agreement shall be terminated. f. With respect to the State-owned Equipment being transferred to the SJJPA for operation of the Service and maintenance supervision responsibility transferred to the SJJPA, it is the intent of the parties that, in accordance with the provisions of the Equipment Lease, no rights in any specifically identified units of the Stateowned Equipment shall be transferred to the SJJPA. Rather, it is the intent of the parties, and it is hereby agreed, that this Agreement and the Equipment Lease transfer to the SJJPA the right to operate within the Corridor and, effective upon transfer of maintenance supervision responsibility, the obligation to supervise maintenance of a number of units of each type of State-owned Equipment, either solely or in concert with equipment maintenance supervisory personnel from the CCJPA, as identified in Appendix A to the Equipment Lease, as such Appendix A may be modified or amended from time to time in accordance with the provisions of the Equipment Lease. To the extent that there is State-owned Equipment that is not being transferred to the SJJPA in accordance herewith and pursuant to the Equipment Lease because such State-owned Equipment is being employed by another Intercity Rail Program (the Retained Equipment), such Retained Equipment shall be operated and maintained in accordance with the provisions of the Operating Agreement, the Transfer Agreement and the Maintenance Agreement. Effective upon transfer of maintenance supervision responsibility to the SJJPA, State shall either (i) amend the existing Transfer Agreement and Maintenance Agreement to delete or suspend State control over Draft SJJPA Interagency Transfer Agreement, September of 92

49 State-owned Equipment which is not also Retained Equipment (ii) enter into a subsequent or replacement, separate transfer agreement and maintenance agreement with Amtrak for such Retained Equipment, or (iii) at the State s option and subject to the consent of Amtrak and the SJJPA, the SJJPA, the State (or any successor operator of another Intercity Rail Program), and Amtrak may be included as parties to the current Transfer Agreement and Maintenance Agreement, by amendment thereto. If option (ii) is selected, the State shall retain responsibility under the Maintenance Agreement and the Transfer Agreement with respect to the Retained Equipment. 8.6 The SJJPA shall, as of the effective dates applicable to such specific responsibilities as may be set forth herein and in the Equipment Lease, assume from the State, the State s functions, duties, obligations and responsibilities related to management, administration, operations, equipment, maintenance, facilities, finance, contracts, passenger services, legislative outreach, service planning, capital development, Minor Capital Projects, marketing and legal services for the Service, including but not limited to the specific functions and responsibilities set forth in Appendix I, attached hereto, and excluding those functions and responsibilities retained by the State or the Secretary and set forth in Appendix J and Section 8.3 above. 8.7 The SJJPA shall set fares for the Service; provided, however that where the Service is directly contiguous with any part of any other California Intercity Rail Program, the parties will attempt to reach agreement on the fare structure for such contiguous area. Failing such agreement, the dispute shall not be submitted to arbitration pursuant to Article 18 hereof, but shall instead be resolved by the Secretary or the Secretary s designee, such determination to be final and binding upon the parties. 8.8 A. With respect to all equipment and facilities, including rail cars, rail equipment, buses and rail tracks and stations, used jointly by both the Service and any other California Intercity Rail Program, all savings in operations attributable to such other Intercity Rail Program shall be allocated to such Intercity Rail Program, and not to the SJJPA. Likewise, effective as of the Maintenance Transfer Date, the SJJPA shall coordinate with the CCJPA to supervise and administer maintenance on any passenger rail equipment jointly used for the Service and another California Intercity Rail Program, but all such maintenance expenses shall be equitably appropriated between such Intercity Rail Programs based upon total car and locomotive miles traveled in service, or any other equitable cost sharing mechanisms agreed upon between the State, SJJPA and CCJPA. B. The SJJPA and the State agree to use their respective best efforts to minimize any negative impacts of such joint use and to maximize the efficient use of the Draft SJJPA Interagency Transfer Agreement, September of 92

50 equipment and facilities by taking, without limitation, the following steps: (i) maintenance and cleanliness standards shall be the same for any joint-use equipment or facilities; (ii) assignment of equipment to individual trains shall be in accordance with a deployment plan agreed to by the CCJPA, SJJPA and the State; (iii) the percent of scheduled car and locomotive miles by equipment type not covered because of mechanical failure compared to total scheduled miles shall be balanced between Intercity Rail Programs; and (iv) the percent of on-line failures delaying service by type of equipment per one thousand (1,000) hours of scheduled operation will be balanced between Intercity Rail Programs. C. SJJPA shall maintain all stations and appurtenances over which it has control or responsibility, including, but not limited to restroom facilities, in good condition and repair, and in accordance with high standards of cleanliness (Public Utilities Code, Section ) 8.9 A. The Operating Agreement is a one-year agreement between the State and Amtrak with an effective date of #####,##,####, subject to renewal at the end of the first year of that agreement for successive terms of (12) months. As of the Effective Date, the SJJPA and Amtrak will enter into the New Operating Agreement with respect to the Service subject to approval by the State. Effective as of the Effective Date, the Operating Agreement will be amended by Amtrak and the State to exclude the Service from its provisions. B. The parties further agree that the New Operating Agreement between the SJJPA and Amtrak, and any subsequent operator with respect to the Service, and any assignment of the State s rights and obligations with respect to the Service and/or the State-owned Equipment under the Transfer Agreement or the Maintenance Agreement, pursuant to any new maintenance and/or transfer agreement between the SJJPA and Amtrak (or any subsequent operator) shall be subject to review and approval by the Secretary or the Secretary s designee prior to its execution by the SJJPA, which approval shall not be unreasonably withheld A. Because Funding Agreement(s) for Capital Projects with the Host Railroad(s) are currently in place, and the work to be performed has commenced under the supervision of the State, which supervision, the parties hereto hereby agree, could not be efficiently transferred to the SJJPA, the parties agree that it is in their mutual best interest for the State to continue as the sole public entity party to the Funding Agreement(s) and to continue to administer and supervise the agreement(s). The State agrees to consult with the SJJPA regarding any change orders, amendments or modification of the scope of work to be performed which is sought or recommended Draft SJJPA Interagency Transfer Agreement, September of 92

51 by the Host Railroad(s), and to review and consider, and if it deems appropriate, to seek to effect any changes recommended by the Authority to the scope of work. ARTICLE 9. OPERATION OF FEEDER BUS SERVICE 9.1 The SJJPA will take over the administration of the following feeder bus routes 1 which operate primarily in conjunction with the Service: Route 1 Network Los Angeles Basin 2 ; o 1a Bakersfield-Los Angeles-San Diego*; o 1b Bakersfield-Los Angeles-Long Beach*/San Pedro*; o 1c Bakersfield-Van Nuys-Torrance; Route 3 Sacramento Valley, Stockton*-Sacramento-Marysville-Chico-Redding; Route 6 South Bay, Stockton-San Jose; Route 7 North Bay/Redwood Empire, Martinez-Vallejo-Napa-Santa Rosa-Eureka*- McKinleyville*; Route 9 High Desert-Las Vegas, Bakersfield-Las Vegas; Route 10 Valley-South Coast, Bakersfield-Oxnard-Santa Barbara; Route 12 Antelope Valley, Bakersfield-Victorville; Route 15 Yosemite, Merced-Yosemite National Park; Route 18 Valley-Central Coast; o 18a Hanford-San Luis Obispo-Santa Maria; o 18b Hanford-Visalia; Route 19 Inland Empire-Coachella Valley; o 19a Bakersfield-Riverside-San Bernardino-Hemet*; o 19b Bakersfield-Riverside-San Bernardino-Palm Springs-Indio; Route 34 Bay Area Stockton, Stockton-Oakland-San Francisco; Route 20a Sierra Foothills/High Sierra, Sacramento-Auburn/Reno/Sparks; Route 20c Lake Tahoe, Sacramento-South Lake Tahoe/Stateline; Route 99-Trans Bay, Emeryville-San Francisco; and Route 395-Eastern Sierra (summer only). Merced-Yosemite-Mammoth Lakes. 9.2 All costs of operation of the above listed bus routes will be the responsibility of the SJJPA; all revenue credits for the bus portion of the trip generated from passenger tickets used for travel on these bus routes will be retained by the SJJPA for the Service. 1 Connecting stations for the San Joaquin trains are shown in italics. Cities designated with asterisks (*) are not served by all schedules on the route. 2 Route 1 serves the Pacific Surfliner and San Joaquin routes. Draft SJJPA Interagency Transfer Agreement, September of 92

52 9.3 The SJJPA may change schedules of San Joaquin trains and may change the schedules of the connection bus routes administered by the SJJPA as listed in Section 9.1 above, or the SJJPA may discontinue individual bus trips on these bus routes, provided the level of Service provides at least substantially the same number of route miles as in effect on, Such rail or bus schedule changes may break or eliminate existing San Joaquin feeder bus connections with the following Capitol Corridor or Pacific Surfliner feeder bus routes administered by the State or its successor: Capitol Corridor: At Sacramento: Feeder Bus Route 3 (Sacramento Redding); Feeder Bus Route 20a (Sacramento-Reno); Feeder Bus Route 20c (Sacramento-Lake Tahoe) At Martinez: Feeder Bus Route 7 (Martinez-Santa Rosa-Eureka-McKinleyville) At San Jose: Feeder Bus Route 6 (South Bay-Stockton) Pacific Surfliner: At Los Angeles: Feeder Bus Route 1a (Los Angeles-San Diego); Feeder Bus Route 1b (Los Angeles-Long Beach/San Pedro); Feeder Bus Route 1c (Los Angeles-Torrance) At Santa Barbara: Feeder Bus Route 10 (Bakersfield-Santa Barbara) At San Luis Obispo: Feeder Bus Route 18a (Hanford-San Luis Obispo) Conversely, changes in schedules made by the State or any successor Intercity Rail Program on the San Joaquin services listed above may break or eliminate existing San Joaquin corridor connections with Service or connecting bus routes as listed in Section 9.1 above. The parties agree that the service changes of the type described above may result in potential adverse impacts upon the rail and bus services administered by the other party or service as a direct result of breaking or eliminating connections with such services. 9.4 Therefore, if a potential adverse impact arises as a result of a service change proposed by either party, the parties will attempt to agree on a mutually agreeable service change. If the parties cannot agree, the State will be the mediator. The basic Service timetable produced with State funds shall provide full schedule information for the entire extent of train and bus services, including feeder bus routes not listed above which are operated by the State in connection with or supplemental to the Service. 9.5 The parties shall also allow any State administered feeder bus services to use Service facilities, stations and appurtenances without any charge by the SJJPA to the State or Draft SJJPA Interagency Transfer Agreement, September of 92

53 the operator. SJJPA will not prohibit and will assist in the placement by State of signs and informational material designed to alert the public to the availability of State administered feeder bus service. (For the purposes of this Section, State administered feeder bus service includes any bus service funded pursuant to California Public Utilities Code, Section 99316). ARTICLE 10. ANNUAL BUSINESS PLAN 10.1 The Business Plan Update shall each year describe the responsibilities and identify the annual level of funding consistent with and sufficient for operation of the Service and for any planned improvements to the Service The Business Plan Update has been submitted by the SJJPA to the State, and contain budget, operating and capital improvement proposals, as well as all other required elements of the Business Plan as set forth below, for fiscal years and respectively The SJJPA s Business Plan proposed budget for has been reviewed by the Secretary and the Department and has been included, with any modifications made by the Secretary or the Legislature, in the 2015 State Budget Act for The Business Plan Update has been reviewed by the Secretary and by the Department and shall be approved with any modifications requested by the Secretary as soon as reasonably possible following the Effective Date. The budget proposal for such approved Business Plan Update shall be incorporated into the Department s budget proposal which shall be submitted to the Governor in accordance with the deadline established by the State of California Department of Finance to be included in the Governor s budget proposal to the Legislature for the fiscal year. In the event that the SJJPA does not agree with the amount provided in the Department s budget proposal for the Service, it shall be permitted to make its views known to the Legislature and to the Governor during the state budget approval process Not later than ten (10) business days following the receipt by SJJPA from Amtrak of the adjusted and final contract amount for the New Operating Agreement for a subsequent federal fiscal year, or if the SJJPA has entered into a similar agreement with another operator of the Service, within ten (10) business days following receipt by the SJJPA of an adjusted and final contract amount for subsequent year of such other similar agreement, the SJJPA shall submit to the State an amendment to the Business Plan Update reflecting the final contract amount. Draft SJJPA Interagency Transfer Agreement, September of 92

54 10.6 Subsequent State fiscal year Business Plan Updates shall be submitted no later than April 1 of each year of the term of this Agreement or any renewal thereof and shall contain budget information for the State fiscal year subsequent to the next year of the Agreement. The Business Plan Update shall be reviewed and, subject to modification by the Secretary, approved by the Secretary on or before July 31 of each year, with any recommended modification, and the approved budget incorporated into the Department s proposed budget for inclusion in the Governor s budget in accordance with the procedures set forth in Section 10.4 above Each Business Plan Update shall be consistent with the provisions and requirements of this Agreement and shall contain each of the requirements contained in the California Government Code Section , subdivision (b), including, without limitation, provisions regarding the following matters. a. A report on recent as well as historical performance of the Service, an overall operating plan including proposed service enhancements to increase ridership and provide for increased traveler demands in the Corridor for the upcoming year, short term and long term capital improvement programs, funding requirements for the upcoming fiscal year, and an action plan with specific performance goals and objectives. b. Documentation of Service improvements to provide the planned level of service, including operating plans to serve peak period work trips and consideration of other Service expansions and enhancements. c. A clear delineation of how funding and accounting for State-sponsored Intercity Rail Program services shall be separate from locally sponsored services in the Corridor. Any proposals to expand or modify the Service shall be accompanied by the identification of all associated costs and ridership projections. d. The establishment of fares, operating strategies, capital improvements needed, and the marketing and operating strategies designed to meet Performance Standards required by the Act. e. Service amenities, food and beverage services, and commissary services. f. The SJJPA s proposed levels of train performance. g. Any proposed modifications or amendment to Performance Standards Should the Business Plan or Business Plan Update as approved by the Secretary include an estimated completion date or dates for any items of work identified therein, the SJJPA shall confirm to those completion dates. In accordance with the provisions of the Fund Transfer Agreement, any failure to conform may constitute Draft SJJPA Interagency Transfer Agreement, September of 92

55 the basis for delaying or withholding payment for the work to the extent of the delay Methods the State will use for its annual review of the Business Plan Update and annual proposal on funding and appropriations will include evaluation of the Business Plan Update to determine that the Business Plan Update is an integrated program that provides all of the necessary components for producing the required intercity passenger rail services, including but not limited to, specific determinations that the Business Plan Update addresses: a. Cost levels for the provision of the proposed level of passenger rail service; b. Route and schedule coordination with other Intercity Rail Programs and other passenger rail services, and with feeder bus services for such Intercity Rail Programs and other passenger rail services, including as appropriate, a comparison of proposed fares, schedules and service amenities with other competitive transportation modes within the Corridor to ensure that the projected route performance is reasonable and achievable; c. Compliance with Performance Standards as modified from time to time; d. Non-violation of (i) the provisions of this Agreement, (ii) other Agreements with respect to the Service and the State-Owned Equipment, and (iii) applicable law and regulations; e. Reasonableness of the projections of ridership, revenues and funding needs using standard rail industry and financial evaluation tools and models; f. Identified and documented annual funding and appropriations requirements for each year of this Agreement; g. Fiscal results of the prior year s operations [this needs to be built into the Amtrak requirements or we will not be able to comply] Such review will also include a determination as to whether all necessary resources are available and have been included in the Business Plan Update, that key assumptions are reasonable and consistent, and that proposed levels of passenger rail and feeder bus service are sufficient to meet anticipated customer needs on a cost-effective basis. ARTICLE 11. STATE AS A THIRD PARTY BENEFICIARY TO AMTRAK CONTRACT; SJJPA AS AGENCY OF THE STATE 11.1 In accordance with the Act, the State is deemed to be a third-party beneficiary of any contract for passenger rail services between the SJJPA and Amtrak (or any other Draft SJJPA Interagency Transfer Agreement, September of 92

56 passenger rail service provider under contract with the SJJPA pursuant to California Government Code Section ) for use of tracks and other facilities and for the provision of passenger services on such terms and conditions as the parties may agree No such contract shall contain any provision which would have a materially detrimental effect on any other contract the State may have regarding other California Intercity Rail Programs, nor shall the State enter into any contract during the Term hereof regarding any other Intercity Rail Programs which contains any provision which is anticipated to have a materially detrimental effect on the Service As provided in California Government Code Section , the SJJPA is deemed to be an agency of the State of California for purposes related to providing passenger rail services. By executing this Agreement, the SJJPA acknowledges and agrees that such provision does not render it an agent of the Department of the Secretary. ARTICLE 12. PERFORMANCE STANDARDS 12.1 Appendix K is the Performance Standards for the operation of the Service by the SJJPA. These Performance Standards are the final Performance Standards adopted by the Secretary in accordance with the Act as of ######, ##, ####. ARTICLE 13. FORCE MAJEURE 13.1 Each party will be excused from performance of its obligations where such nonperformance is caused by any event beyond its control, such as any nonappealable order, rule or regulation of any federal or state governmental body, agent or instrumentally, a work stoppage, major accident or incident, a natural disaster declared as such by a public official authorized to make such declaration, or civil disorder, provided that the party excused hereunder shall use all reasonable efforts to minimize its non-performance and to overcome, remedy or remove such even in the shortest practical time Should a force majeure event occur which renders it impossible for a period of forty-five (45) or more consecutive days for either party to perform its obligations hereunder, the parties agree to negotiate in good faith to amend the existing Business Plan or Business Plan Update to deal with such event and to seek additional sources of funding to continue the operation of the Service. Draft SJJPA Interagency Transfer Agreement, September of 92

57 ARTICLE 14. LIABILITY AND INDEMNIFICATION 14.1 Liability, indemnification and insurance coverage for liability imposed for injury or damage to State, the SJJPA or any third party related to or arising out of obligation, responsibility or duty delegated to or assumed by the State or the SJJPA under this Agreement shall be provided for as follows: a. The SJJPA shall indemnify, defend and hold harmless the State and the Secretary and their respective officers and employees, from any liability imposed for injury or damages occurring by reason of anything done or omitted to be done by the SJJPA under this Agreement or in conjunction with any obligation, responsibility or duty delegated to or assumed by the SJJPA under this Agreement. As described in Section 14.2 below, the SJJPA shall bear all expenses and costs and shall pay all settlements or final judgments arising out of any claim, action or proceeding arising out of any obligation, responsibility or duty delegated to or assumed by the SJJPA under this Agreement, including but not limited to, the operation and maintenance of the Service provided for pursuant to this Agreement, including the costs of defense as incurred. b. The State shall indemnify, defend and hold harmless the SJJPA and its officers and employees, from any liability imposed for injury or damages occurring by reason of anything done or omitted to be done by the State under this Agreement or in conjunction with any obligation, responsibility or duty delegated to or assumed by the State under this Agreement. As described in Section 14.2 below, the State shall bear all expenses and costs and shall pay all settlements or final judgments arising out of any claim, action, or proceeding arising out of any obligation, responsibility or duty delegated to or assumed by the State under this Agreement, including, but not limited to, the operation and maintenance of the Service provided for pursuant to this Agreement, including the costs of defense The indemnifying party shall bear all expenses, costs and shall pay all settlements or final judgments arising out of any claim, action or proceeding involving the injury to and/or death of any person or damages to or any loss of property arising from any indemnification obligation of the indemnifying party under Section 14.1 above, including the costs of defense and settlement. Should a claim, action or proceeding of any nature be brought at any time against a party entitled to indemnification pursuant to Section 14.1 above, asserting liability on the part of the such party for such injury, death, damage or loss, the party entitled to such indemnification shall promptly provide notice to the indemnifying party of such claim, action or proceeding and shall tender the defense of such claim, action or proceeding to the indemnifying party which shall thereafter provide tall such defense, indemnity and protections as are necessary under the provisions of this Draft SJJPA Interagency Transfer Agreement, September of 92

58 Agreement. The party entitled to indemnification shall provide such additional information or assistance as is reasonably requested by the indemnifying party to assist in the defense, prosecution or settlement of any such claim, action or proceeding. The indemnifying party may engage counsel of its choice to defend the indemnified party subject to the indemnified party s consent, such consent not to be unreasonably withheld The SJJPA will name or cause to be named the State and the Secretary as additional insureds, indemnified parties and/or loss payees (pertaining to Stateowned Equipment) to any policy of insurance purchased by the SJJPA and in any indemnity provision in any agreement between the SJJPA and Amtrak or any successor operator to Amtrak, UP, BNSF or any other railroad or entity controlled thereby or any successor thereto, feeder bus operators, or any other party the SJJPA has an agreement with that involves or is related in any way to the administration, operation or maintenance of the Service by the SJJPA. The SJJPA will provide or cause to be provided to the State, copies of all applicable insurance policies and/or certifications and agreements containing indemnity provisions State will name or cause to be named the SJJPA as an additional insured and/or indemnified party with respect to any policy of insurance purchased by the State and in any indemnity provision in any agreement between the State and Amtrak or any successor operator, UP, BNSF or any successor thereto, feeder bus operators, or any other party the State has an agreement with that involves or is related in any way to the administration, operation or maintenance of the Service or State-owned Equipment by the State. The State will provide or cause to be provided to the SJJPA, copies of all applicable insurance policies and/or certifications and agreements containing indemnity provisions upon request Effective upon assumption by the SJJPA of operating or maintenance responsibility for the State-owned Equipment, the SJJPA will require that Amtrak or any subsequent operator continue to provide physical damage insurance for Stateowned Equipment at the same or higher levels and at least the same terms and conditions as currently included in the Operating Agreement in effect on the date of execution of this Agreement. Any change to this coverage shall require the prior written approval of the State. Unless otherwise approved in writing by the State, the insurance as referenced herein shall be written on an equipment replacement cost basis with a deductible not to exceed $ per occurrence. The State shall be named as an additional insured and the sole loss payee as respects to its interest in the State-owned Equipment entrusted to the SJJPA. The SJJPA shall cause the insurer to waive all rights of subrogation against the State. Draft SJJPA Interagency Transfer Agreement, September of 92

59 14.6 Commencing no later than the Effective Date, the SJJPA will obtain and maintain in force the following additional insurance: a. General Liability Insurance coverage for property damage and bodily injury in the amount of million dollars ($,000,000), with a deductible not to exceed $ per occurrence covering the activities of the SJJPA, and naming the State and the Secretary as additional insureds; the policy shall contain the coverages and exclusions contained in the policy. b. Excess Liability Insurance coverage for property damage and personal injury in excess of the insurance provided for in subdivision (a) above, in the amount of dollars ($ ), generally covering the activities of the SJJPA, and naming the State and the Secretary as additional insureds; the policy or policies shall contain substantially the same coverages and exclusions contained in the policy or policies which are attached to this Agreement. c. All premiums for the procurement and continuation of the insurance provided for in Section 14.5 and subdivisions a. and b. of this Section 14.6 and the incremental cost of adding the Sate and the Secretary as additional named insureds for these policies described above will be included in the Business Plan Update for submission to the Legislature for appropriation. Subject to the deductible identified in the preceding sentence, any deductible obligation of the policy referenced in subdivision a. above will be included in the Business Plan for submission to the Legislature for appropriation. Subject to the deductible identified in the preceding sentence, any deductible obligation under the policy described in subdivision a. shall be the sole responsibility of the SJJPA. d. Any deductible obligation under the property damage policy for State-owned Equipment required to be maintained under the provisions of the Operating Agreement and referenced in Section 14.5 above shall be the responsibility of the State. The State will provide funding to the SJJPA on an as needed and as available basis to cover this obligation from other unencumbered Intercity Rail Program funds. In the event of an occurrence requiring the State to fund the deductible amount or any portion thereof, the SJJPA will immediately notify the Secretary and the State will take the necessary steps to seek to increase the funding of the current Fund Transfer Agreement with the SJJPA to include the specific loss up to the full $ deductible sum. To the extent that there is no available unobligated Intercity Rail Program funding, the deductible sum at issue will be covered by the SJJPA from budgeted rail funds already allocated to the SJJPA through the Business Plan Update process [don t think we can agree to this last point] Provided that the SJJPA furnishes and maintains all of the insurance that it is contractually required to obtain under this Agreement, then, in accordance with the present terms of the joint exercise of powers agreement pursuant to which the Draft SJJPA Interagency Transfer Agreement, September of 92

60 SJJPA has been organized, any indemnity obligation of the SJJPA hereunder shall not flow through to become obligations of any Member Agency of the SJJPA as a consequence of that Member Agency s status as a Member Agency of the SJJPA. In other words, in accordance with the foregoing, no Member Agency shall have any liability or obligation for indemnification hereunder to the extent that its activities with respect to the SJJPA are limited to its appointment of a member to the SJJPA Board of Directors as its representative thereto, and such member s activities with respect to the SJJPA are limited to participation on the Board of Directors or any committees thereof in Board and committee activities to the extent permitted by law and in the usual and customary manner. To the extent that the negligence of any Member Agency causes or contributes to a loss for which the State has been final adjudged jointly, or jointly and severally, liable with the Member Agency, the State may seek contribution and/or indemnification from that Member Agency to the extent permitted by applicable law Except as may be purchased hereafter, the State does not maintain, nor does it intend to maintain or cause to be maintained during the course of this Agreement, any insurance coverages for its indemnification obligations herein. The foregoing notwithstanding, the State reserves the right to purchase or cause to be purchased at any time during the term of this Agreement or any extension thereof, insurance coverage for such indemnification obligations Pursuant to California Government Code Section 895.4, the foregoing Sections 14.1 through 14.8 constitute the entire agreement between the parties hereto regarding indemnification for liabilities which may be incurred by either party under this Agreement Any disputes under this Article 14 shall be resolved by arbitration pursuant to Article 18 hereof This agreement, the Fund Transfer Agreement, the Equipment Lease, and (as respects the State s participation herein), the New Transfer Agreement are solely intended to establish standards and controls governing the expenditure of Stateprovided funds and the use of State-owned Equipment for the Service to be operated and maintained by the SJJPA. ARTICLE 15. FUNDING SHORTFALLS DEFICIT FINANCING; REDUCTION IN LEVEL OF PASSENGER RAIL SERVICE IN THE CORRIDOR Draft SJJPA Interagency Transfer Agreement, September of 92

61 15.1 Subject to funding appropriation by the Legislature and to the extent legally required, to programming by the CTC, the parties agree that the level of Service to be funded by the State is described in Sections 5.1 and 5.2 above. Subject to the Minimum Service requirement described below, the SJJPA shall not be obligated to operate any Service for which funding is not available at the time the Service is to be provided Subject to funding appropriation by the Legislature and to the extent legally required, to programming by the CTC, and as required by the Act, the parties agree that for not less than three years from the Effective Date of this Agreement, a minimum level of service shall be maintained by the SJJPA and funded by the State. This minimum level of service is defined as two (2) daily round trips between Sacramento and Bakersfield, and four (4) daily round trips between Oakland (Jack London Square) and Bakersfield together with the associated feeder bus services described in Sections 9.1 through 9.5 with substantially the same number of train miles as was provided on (hereinafter, Minimum Service ) The parties agree that other proposed service that goes beyond Minimum Service, whether called additional service, locally sponsored service, State sponsored service, enhanced service, or any other similarly descriptive term, shall hereinafter be referred to as Expanded Service. Expanded Service shall only be operated by the SJJPA if sufficient funding is included in the annual Business Plan Update budget, to the extent required by law, is appropriated by the Legislature and programmed by the CTC, or otherwise is available for expenditure when the Expanded Service commences. Funding for Expanded Service may be provided by the State, any jurisdiction served by the Service, or any other available funding source. In the event he SJJPA determines that funds appropriated by the Legislature or otherwise available for Expanded Service will be insufficient to operate the Expanded Service during the State fiscal year, the SJJPA shall obtain any additional funds required or make adjustments to the level of Expanded Service to the extent necessary to operate at least Minimum Service with available funding In recognition of the obligations imposed by the Act on the SJJPA to operate the Minimum Service and on the State to fund that Minimum Service, the parties shall use their best efforts to include adequate funding in the proposed budget submitted to the legislature. The Business Plan Update budget shall set forth a specific line item amount identified solely for the operation of the Minimum Service If there is a shortfall between the funding approved in the proposed budget contained in an annual Business Plan Update and the actual amount appropriated Draft SJJPA Interagency Transfer Agreement, September of 92

62 by the Legislature, or actually available from the State or any other funding source at the time the Service is to be provided, the level of Service shall be reduced to a level that can be sustained by available funding during the fiscal year, but in no event less than the Minimum Service. If Minimum Service cannot be provided because the Legislature has not appropriated funds identified in the Business Plan sufficient to maintain Minimum Service, SJJPA may terminate this Agreement in accordance with Section 17.5 hereof If the level of funding described in Section 15.2 above is appropriated by the Legislature and, to the extent required by law, is programmed by the CTC, but additional funding is still needed to operate the Minimum Service without interruption, the following steps will be taken: a. To the extent feasible, the SJJPA will make adjustments to the level of passenger rail service for service other than the defined Minimum Service during the fiscal year, to the extent necessary to continue the uninterrupted operation of an amended form of the Service, but in no event less than the Minimum Service; b. If additional funding is still required, the SJJPA will seek to obtain such additional funding from available sources. If, following good faith efforts by the SJJPA to obtain such supplemental funding, the SJJPA is unable to do so, the SJJPA shall continue to operate the Minimum Service for so long as it has funds available to provide such Minimum Service. Not less than thirty (30) days in advance of the date that the SJJPA anticipates that it will exhaust funds available to provide Minimum Service or amended Minimum Service, it shall notify the State that it is terminating the Agreement, which termination shall be effective sixty (60) days following the date anticipated for exhaustion of funds to maintain such Minimum Service or amended Minimum Service. In such event, and at least ninety (90) days (or such other notice period contained in any contract with a subsequent operator of termination of such contract) prior to the effective date of termination of this Agreement, the SJJPA shall have notified Amtrak or any subsequent operator that it intends to terminate this Agreement and shall have obtained the consent of Amtrak or any subsequent operator to continue the Service to the date of termination of the Agreement, which Service shall be maintained for such period at a level to be agreed upon between the State and Amtrak or such subsequent operator. In such event, the State agrees to fund Minimum Service or such other service level as may be agreed upon between the State and Amtrak or any subsequent operator, for such period and to compensate the SJJPA for administration of the Service for such period in the monthly amounts for each monthly period during which the Service is continued, equal to one twelfth (1/12) of the amount appropriated by the Legislature for the then-current State fiscal year for administration of the Draft SJJPA Interagency Transfer Agreement, September of 92

63 Service by the SJJPA. Such amount shall be paid in accordance with the provisions of Article III of the Fund Transfer Agreement. ARTICLE 16. NO GUARANTY OF FUNDING 16.1 Notwithstanding any other provision of this Agreement, the State has no obligation or duty and no representation or warranty is made by the State herein that any funding will actually be appropriated by the Legislature and, to the extent required, programmed by the CTC, to carry out the purposes of this Agreement. The obligation of the State is limited to preparing, supporting and submitting budgets and appropriation request to the Legislature on a timely basis, all as set forth in this Agreement. ARTICLE 17. TERMINATION BY PARTIES 17.1 Notwithstanding any other provision of this Agreement, either party may terminate this Agreement without cause, by giving not less than ninety (90) days advance written notice to the other In the event that a party terminates this Agreement, the parties agree to cooperate with each other to facilitate the transfer of responsibilities from the SJJPA to another entity or back to the State with minimum disruptions to passenger service and in the most cost effective manner possible. To the extent reasonably feasible, the parties shall endeavor to make the effective date of termination coincident with the beginning of the State s next fiscal year In the event that there are any funds provided by the State remaining unspent by the SJJPA as of the date of termination of the Agreement, such funds shall be promptly released or reimbursed to the State to be used by the State to provide the Service or for transfer to a successor administering agency of the Service Section 17.1 notwithstanding, the State may, in its sole discretion, terminate this Agreement upon not less than thirty (30) days prior notice upon the occurrence of a material breach of any of the Agreements, which material breach shall include, but not be limited to the following: a. SJJPA s refusal to perform any of the Services as required under the Agreements when such refusal significantly disrupts operations in the Corridor and is not excused by any other provision of this Agreement; b. SJJPA s insolvency or inability to meet its obligations, the filing of an involuntary petition in bankruptcy, its making of an assignment for the benefit of creditors, Draft SJJPA Interagency Transfer Agreement, September of 92

64 filing a petition for an arrangement, composition of compromise with its creditors under any applicable laws or having a trustee, receiver, or other officer appointed to take charge of its assets; c. SJJPA s failure to comply with any valid law, ordinance, rule, regulation or order of any legal entity or authority which failure has a material impact on the SJJPA s ability to perform this Agreement; d. The abolition, termination or other dissolution of the SJJPA; e. The material breach of any other obligation, duty, responsibility, covenant or condition agreed to by the SJJPA pursuant to the Agreements Section 17.1 notwithstanding, the SJJPA may, at its sole discretion, terminate this Agreement upon not less than thirty (30) days prior notice upon the occurrence of a material breach of the Agreement by the State, which shall include, but not be limited to: a. The failure of the Legislature to appropriate sufficient funds to operate the Service at the Minimum Service levels; b. The failure of the State to make payments as required by this Agreement or the Fund Transfer Agreement; c. The material breach of any other obligation duty, responsibility, covenant or condition agreed to by the State pursuant to the Agreements Upon termination, the party electing to terminate shall notify the other party in writing stating the basis for termination. If termination is for cause, and the other party has taken effective action to remedy the default within the notice period, such termination shall not become effective Upon termination for cause, State shall have the right to enter into an agreement with another party for administration and/or operation of the Service. In the event of termination for cause, the terminating party shall also be entitled to unavoidable incremental allowable costs actually incurred and attributable to the termination, but, in the event of termination for cause by the State, not for any operating costs for continuation of the Service which would otherwise have been incurred had the State not exercised its right to terminate Except as set forth in this Article 17, no party shall have any liability or obligation to the other party by reason of termination of this Agreement Any exercise of the State s right to terminate this Agreement shall be subject to the prior written approval of the Secretary. Draft SJJPA Interagency Transfer Agreement, September of 92

65 ARTICLE 18. ARBITRATION 18.1 In the event of a dispute between the parties which has not been satisfactorily resolved by those parties within sixty (60) days of the commencement of the dispute, said dispute shall be submitted to arbitration by a panel of three arbitrators who shall conduct the arbitration pursuant to the rules of the American Arbitration Association. The panel of arbitrators shall consist of one arbitrator appointed by each of the disputants, the third arbitrator to be appointed by mutual consent of the other two arbitrators The arbitration panel shall resolve the dispute in accordance with the terms of this Agreement, and such resolution shall be final and binding upon the parties. Each party shall bear its own costs of arbitration, including reasonable attorneys fees. The cost of the third arbitrator shall be divided equally between the disputants. Any proceeding convened under this provision shall be conducted in the City of Sacramento, California. Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Upon failure of a party to comply with an arbitration award issued pursuant to this Section, the other party may refer the matter to a court of competent jurisdiction for enforcement of the award Unless otherwise agreed by the disputants, only disputes regarding a disputant s rights and obligations arising under the terms of: (i) this Agreement, (ii) the Agreements, or (iii) any other agreement between the disputants in which this arbitration provision is incorporated by reference shall be subject to arbitration pursuant to Section The foregoing notwithstanding, with respect to contract claims or disputes arising under this Agreement or any Appendix hereto which may be subject to the provision of California Public Contract Code Section 10240, such claims or disputes shall be resolved by arbitration conducted by a single arbitrator selected by the parties from the certified list created by the California Public Works Contract Arbitration Committee and in accordance with the requirements and procedures set forth in such Section ARTICLE 19. AUDIT 19.1 The State shall perform such audits and reviews of the financial statements and operations of the SJJPA and Service as are specified herein and as are more fully set forth in the Fund Transfer Agreement. Such audits and reviews shall be conducted Draft SJJPA Interagency Transfer Agreement, September of 92

66 by State staff, by an independent auditor selected by the State, or any combination thereof The State may conduct such reviews or audit of the operation or financial statements of the SJJPA at such other times and under such circumstances as State may determine, upon reasonable notice to the SJJPA. Reviews and audits shall include the financial statements, documentation and the physical operations of the SJJPA. Auditors shall have access to the financial statements and supporting documents, including books and records of account, sufficient to form an opinion as to the financial condition and operations of the SJJPA. Costs incurred by the State to perform such audits and reviews shall be borne by the State. Costs incurred by the SJJPA s staff related to the performance of such reviews and the audits may not be invoiced to the Sate but may be recovered thorough the SJJPA s indirect cost rate. ARTICLE 20. SUCCESSOR ACTS 20.1 All statutes cited herein shall be deemed to include amendments to and successor statutes to the cited statues as they presently exist. ARTICLE 21. SUCCESSOR AND ASSIGNS TO THE PARTIES 21.1 Neither this Agreement nor any right, duty or obligation hereunder may be assigned, transferred, hypothecated or pledged by any party without the express written consent of the other party; provided, that unless otherwise expressly required herein, a party shall not be obligated to obtain the written consent of the other party with respect to any contract related to the Service for the provision of goods and/or services to the contracting party in the ordinary course of business. ARTICLE 22. NOTICES 22.1 Any notice which may be required under this Agreement shall be in writing, shall be effective when received, and shall be given by personal service, or by certified or registered mail, return receipt requested, to the addresses set forth below, or to such other addresses as may be specified in writing and given to the other party in accordance herewith. If given to the State: State of California Department of Transportation Draft SJJPA Interagency Transfer Agreement, September of 92

67 P.O. Box Sacramento, CA Attention: Rail Program Manager, MS 74 with a copy to: State of California Office of the Secretary California State Transportation Agency (CalSTA) If given to the SJJPA: San Joaquin Joint Powers Authority (SJJPA) 949 East Channel Street Stockton, CA Attention: Executive Director ARTICLE 23. AMENDMENT 23.1 This Agreement may not be changed, modified, or amended except in writing, signed by the parties hereto, and approved in advance in writing by the Secretary, and any attempt at oral modification of this Agreement shall be void and of no effect. ARTICLE 24. REPRESENTATION AND WARRANTIES OF THE PARTIES 24.1 The SJJPA hereby represents and warrants to the State that: a. The SJJPA is in good standing under applicable law, with all requisite power and authority to carry on the activities for which it has been organized and proposed to be conducted pursuant to the Agreements. b. The SJJPA has the requisite power and authority to execute and deliver the Agreements and to carry out its obligations hereunder. The execution and delivery of the Agreements by such entity, the performance by it of its obligations thereunder and the consummation of the transactions contemplated thereby have been duly authorized by the governing board of such entity and no other proceedings are necessary to authorize the Agreements or to consummate the transactions contemplated thereby. The Agreements have been duly and validly executed and delivered by such entity and constitute valid and binding obligations of such entity, enforceable against it in accordance with their terms, except to the extent that such enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium or other laws now or hereinafter in effect relating to the creditor s rights and the remedy Draft SJJPA Interagency Transfer Agreement, September of 92

68 of specific enforcement and injunctive and other forms of equitable relief, and may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. c. Neither the execution and delivery of the Agreements and the performance of its obligations thereunder nor the consummation of the transactions contemplated thereby will (i) conflict with or result in a breach of any provision of any agreement among the Member Agencies; (ii) violate any write, order, judgment, injunction, decrees, statute, rule or regulation of any court or governmental authority applicable to such entity or its property or assets The State does hereby represent and warrant with respect to each of the Agreements to the SJJPA that: a. It is validly existing with all requisite power and authority to carry on the activities proposed to be conducted pursuant to the Agreements. b. It has the requisite power and authority to execute and deliver the Agreements and to carry out its obligations thereunder. The execution and delivery of the Agreements, the performance by it of its obligations thereunder and the consummation of the transactions contemplated thereby have been duly authorized and no other proceedings are necessary to authorize the Agreements or to consummate the transactions contemplated thereby. The agreements have been duly and validly executed and delivered by it and constitute valid and binding obligations, enforceable against it in accordance with their terms, except to the extent that such enforceability may be subject to bankruptcy, insolvency, reorganization, moratorium or other laws now or hereinafter in effect relating to creditor s rights and other forms of equitable relief, and may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. c. Neither the execution and delivery of the Agreements and the performance of its obligations thereunder nor the consummation of the transactions contemplated thereby will (i) conflict with or result in a breach of any other agreement; (ii) violate any writ, order, judgment, injunction, decree, statute, rule or regulation of any court or governmental authority applicable to such entity or its property or assets. ARTICLE 25. CONSTRUCTION; NUMBER, GENDER AND CAPTIONS 25.1 The Agreements have been executed in the State of California and shall be construed according to the law of said State. Numbers and gender as used therein shall be construed to include that number and/or gender which is appropriate in the context of the text in which either is included. Captions are included therein for Draft SJJPA Interagency Transfer Agreement, September of 92

69 the purposes of ease of reading and identification. Neither gender, number nor captions used therein shall be construed to alter the plain meaning of the text in which any or all of them appear. ARTICLE 26. COMPLETE AGREEMENT 26.1 This Agreement, including Appendices, constitutes the full and complete agreement of the parties, superseding and incorporating all prior oral and written agreements relating to the subject matter of this Agreement All attached Appendices A through N are hereby incorporated and made an integral part of this Agreement by this reference. ARTICLE 27. PARTIAL INVALIDITY 27.1 If any part of this Agreement is determined to be invalid, illegal or unenforceable, such determination shall not affect the validity, legality or enforceability of any other part of this Agreement and the remaining parts of this Agreement shall be enforced as if such invalid, illegal or unenforceable part were not contained herein. ARTICLE 28. CONFLICTS BETWEEN THIS AGREEMENT AND OTHER AGREEMENTS 28.1 To the extent that any provision of or requirement of this Agreement may conflict with a provision or requirement of any Agreement between the parties hereto, or between a party hereto and any other party, which is attached to this Agreement as an Appendix, the priority of agreements set forth in the Equipment Lease shall be employed to resolve such conflict. ARTICLE 29. COUNTERPARTS 29.1 This Agreement may be executed in one or more counterparts and may include multiple signature pages, all of which shall be deemed to be one instrument. Copies of this Agreement may be used in lieu of the original. ARTICLE 30. SIGNATURES IN WITNESS WHEREOF, the parties have signed this Agreement as of the date set forth above. Draft SJJPA Interagency Transfer Agreement, September of 92

70 SAN JOAQUIN JOINT POWERS AUTHORITY JOHN PEDROZO Chairperson STATE OF CALIFORNIA Department of Transportation MALCOLM DOHERTY Director Draft SJJPA Interagency Transfer Agreement, September of 92

71 September 2014 DRAFT APPENDIX A JPA COST EFFICIENCIES, REDUCTIONS AND ADDITIONAL VALUE CAPTURE Interagency Transfer Agreement California has a new vision for a growing integrated statewide intercity rail network, including a phased high speed rail system. The existing intercity rail services now have a significant coordination role related to high speed rail, which was not a consideration at the time of the original transfer of the Capitol Corridor service. The federal government also has a new vision and framework for Amtrak-operated passenger rail service. Under PRIIA, States are required to pay more for the current levels of Amtrak service and California has already committed to the new cost structure. This new vision and environment require a flexible approach to evaluating various performance criteria. Even with the prior state commitment to increased baseline costs under PRIIA, the San Joaquin Joint Powers Authority (SJJPA) has recommended a series of cost containment/reduction strategies over the next several years, including: Administration San Joaquin Regional Rail Commission (SJRRC) is the owner/operator of the Altamont Corridor Express (ACE) rail service and was selected by the SJJPA to be their Managing Agency. Through a competitive bid process, the SJRRC was determined to be the most qualified and least costly applicant to provide administrative and management services for the SJJPA. The SJRRC s consolidated agency approach results in the most efficient and cost-effective management of the San Joaquin Valley s two passenger rail services. SJRRC has sufficient depth in professional staff to support areas like management, government affairs, planning, operations, finance, contracting, IT, grants management, human resources, and administration and there is a great synergy between the management of the San Joaquin and the ACE service. SJRRC achieves maximum efficiency and cost-effectiveness by predominately utilizing shared staff positions for day-to-day management and oversight of the San Joaquin service. The operation of ACE service requires similar management and regulatory experience, as well as support positions allowing the shared staff concept to be very cost effective. In addition, being located in the San Joaquin Valley, SJRRC has lower salary rates than Bay Area or Sacramento based agencies and can provide jobs to a region that has the greatest need of 92

72 Operating and Maintenance Costs Pursuant to AB 1779, the Secretary of the California State Transportation Agency (CalSTA) submitted a set of uniform performance standards for all state-supported intercity passenger rail corridors. These performance standards ensure that the SJJPA will control San Joaquin cost and improve operating efficiency. Current SJJPA strategies to reduce operational and maintenance costs and/or increase cost effectiveness include: A review of equipment reliability and development of recommendations for modified maintenance practices to reduce equipment out of service hours. Optimization of the Northern Californian fleet for the San Joaquins and Capitols, based upon the improved equipment reliability. Potential re-assignment of the Comet Cars would benefit the San Joaquins, where deployment of the Comet Cars required additional leased Amtrak units at significant expense and high operational and maintenance costs. o Comet Car trainsets could be used to reduce the number of leased Amtrak units and also defer future rehab costs due to the newly rebuilt equipment, initiate new or increased intercity service, serve as extra capacity during peak travel periods, or become reserve equipment for emergencies. A review and potential reconfiguration of the current incentive programs to Amtrak and the host Railroads. Negotiating revisions to Amtrak operating agreement to improve performance reporting and decrease costs. Potential changes to existing train and connecting bus schedules which could improve ridership, revenue, and/or cost-effectiveness. Identify any Thruway bus routes not served by competing bus services, and promote legislation to enable use of excess bus capacity on those routes. Work with host railroads, the State, and Amtrak to identify capital or system improvements to improve performance and reduce operational and maintenance costs. Improve communications with host railroads through regular Capital Improvement Team (CIT) meetings. Refine crew utilization based on load and equipment. Refine equipment use based on load and turns of 92

73 Marketing The SJJPA marketing and outreach program will retain the successful elements of the existing San Joaquin marketing effort but will introduce and focus on a more grass roots, communitybased approach for the San Joaquin Corridor and potential passengers. Following a model that has been successfully deployed for many years with the ACE service, SJJPA will retain small businesses or individuals who are active in community issues to act as a direct conduit between the SJJPA and the various communities within the corridor. This approach will be more direct and more cost effective than traditional advertising. Of the 364 train miles on the San Joaquin route, about 284 miles (78%) pass through the San Joaquin Valley. The San Joaquin Valley is one of the largest rural and agricultural areas in the nation. It is also very culturally diverse with many languages spoken. Overall, nearly half of the entire constituency speaks Spanish as the primary language. In addition, Valley counties share common issues such as large rural areas, agricultural industries, rapidly growing and diverse population, and a lack of information about transportation alternatives. The SJJPA s grass roots approach will enable the SJJPA to more cost-effectively reach out to the San Joaquin Corridor s diverse population. The SJJPA will utilize its Member Agencies for joint marketing and partnerships with local agencies throughout the San Joaquin Corridor. Additionally, visitors bureaus, business organizations, social service providers, and non-profit groups involved in transportation, environmental or livability issues will be enlisted to support the distribution of information and generate support for the San Joaquin service. Grass roots, community based marketing strategies for the San Joaquins will reach more communities with potential riders, for less cost of 92

74 DRAFT APPENDIX I FUNCTIONS ASSUMED BY THE SAN JOAQUIN JOINT POWERS AUTHORITY (SJJPA) Interagency Transfer Agreement September Management Manage and direct San Joaquin Service (includes all rail and Thruway bus operations). Oversee administration of service (operations, maintenance, marketing, etc.). In coordination with the State, lead or provide support in all negotiations related to service. Develop all proposed policies, plans, and programs for the Service. Prepare and implement changes in scheduling and fares. Prepare and implement a risk management and safety programs. Coordinate Interagency Transfer Agreement (ITA) with the State. Coordinate with the State and the other JPAs. 2. Administration Provide administrative support to the SJJPA. Employ agents and employees. Prepare materials for SJJPA Board Meetings. Handle SJJPA administrative requests. 3. Operations Develop operational plans in conjunction with affected agencies. Administer, review, and evaluate operator and other contracted services. Oversee and coordinate fare collection, schedules, station maintenance, and security with affected jurisdictions and agencies. Monitor and manage contractors service productivity, on-time performance, and other performance standards and objectives. Review train dispatching (including priorities) and control procedures. Conduct incident investigations and on-site field audits. Oversee food service cars and other service amenities. 4. Equipment In coordination with Capitol Corridor Joint Powers Authority (CCJPA) and the service operator, establish the most efficient, cost-effective daily equipment cycles attainable that meet the service needs of both the San Joaquin and the Capitol Corridor services. Develop equipment maintenance programs and work jointly to implement those programs. Develop training programs for the service operator s equipment maintenance personnel and work jointly to assure the application of those programs of 92

75 Prepare and administer contract familiarization programs and briefings for the service operator s equipment maintenance management personnel. Monitor compliance with operating and safety regulations. Develop maintenance processes and procedures designed to improve equipment reliability, availability and performance. Conduct on-site field audits of equipment maintenance activities and overall equipment condition. Review plans, schedules and procedures for maintenance of equipment, including support of any State warranty programs, and assess need for new equipment. Develop and implement performance measurement metrics aimed at improving the overall effectiveness of the service operator s equipment maintenance program. Manage all repair, rehabilitation and modification programs and attendant contracts, assuring the timely completion of these programs and the fastest possible return to service of the units upon which work is being performed. 5. Facilities Review and assess existing structures and facilities and identify capital needs. Monitor and coordinate station development plans and programs. Manage and coordinate railroad facility programs with service. Acquire, by lease, purchase, lease-purchase, or eminent domain, and to hold and dispose of real and personal property as necessary. Construct, manage, and maintain facilities and services. 6. Finance Perform management analysis of financial and performance efficiency. Prepare financial reports for San Joaquin Service. Monitor fare collection and revenue analysis. Develop financial standards for contracted entities. Develop and oversee funding agreements, financial reporting, and operating and capital budgets. Approve and process payment of bills and invoices. Provide input to the State regarding the budget necessary to sustain the existing level of service and any planned and mutually agreed to expansions or enhancements. 7. Contracts Develop and coordinate procurement of contracts. Monitor contracts according to procurement requirements. Manage contracts for compliance. Direct and coordinate audits for SJJPA contracts of 92

76 Develop and coordinate contract modifications, negotiations, and procurement documents. 8. Passenger Services Manage and administer passenger service activities. Coordinate customer relations and interface with public, including preparing responses to letters and inquiries. Review and present passenger publications and promotional materials. Prepare, publish, and distribute timetables and set guidelines for coordination of timetables. 9. Legislative Outreach Maintain and develop relations with all stakeholders and interests. Advise on federal and state legislative issues affecting service. Oversee developments influencing funding of service. Advocate before local, regional, state, and federal officials and agencies for improvements to services and facilities for the San Joaquin Service. 10. Service Planning Develop short-term and long-term service planning. Prepare and maintain annual Business Plan. Direct the development of joint-ticketing program if applicable. Coordinate and integrate service and operational plans and programs of the SJJPA with other organizations, providing rail service in the San Joaquin Rail Corridor or with whom the SJJPA may share common facilities, including Capitol Corridor, the BNSF Railway, and Union Pacific or their successor agencies or corporations. Strategic planning to advance goals and objectives. Negotiate with any other public or private transportation providers as necessary to ensure coordinated service with the San Joaquin Service. 11. Capital Development Develop capital program and budget for service. Oversees various capital projects and programs in corridor. Work with state and federal agencies to plan, program, and secure funding for improvements for the San Joaquin Service. Negotiate for and accept funds to be expended for the purpose of providing and improving the San Joaquin Service. Prepares and coordinates grant proposals. Apply for and execute, and administer grants for financial aid pursuant to any applicable state or federal statutes or local requirements. Request programming through appropriate procedures of 92

77 12. Marketing Develop, implement, update, and manage marketing program. Oversee and report on marketing contractor. Manage and administer market research efforts. Direct and coordinate advertising media, community outreach, and public information. 13. Attorney Retention of legal services as deemed appropriate. Provide legal advice. Support in developing legal and institutional arrangements and other issues of 92

78 September 2014 DRAFT APPENDIX J FUNCTIONS RETAINED OR ASSUMED BY THE STATE Interagency Transfer Agreement The duties, obligations and responsibilities of the State shall be the following: Funding Requests and Budgets Provides funding for intercity service operations, administration and marketing. Based upon the Secretary s approval of a budget in the SJJPA s applicable annual Business Plan Update, prepare and submit proposals for funding appropriations to the Legislature in connection with the State s annual budget process. Account for the disbursement to the SJJPA of amounts appropriated by the Legislature in accordance with a Fund Transfer Agreement which is to be entered into by the parties as of the Effective Date of this Agreement. The effectiveness of this Agreement is specifically contingent upon the approval and execution of the Agreements. Report as required to the Department of Finance (DOF) on the financial status of the state-supported services. Pursue and advocate for funding through DOF and other State channels to sustain and expand rail service on the three state-supported intercity passenger rail services. Prepares grant applications to the federal government for intercity services. Service Coordination and Network Integration Responsible for overseeing coordination among Intercity Rail Programs. In connection therewith, the State shall have the reasonable right to review in advance the terms of any agreement or amendment or modification thereof between the SJJPA and any other party which would have a direct and material impact upon the coordination of the Service with other Intercity Rail Programs. Define the roles and responsibilities of the JPAs in Network Integration effort. Develop and oversee the Network Integration for both rail and thruway bus service. Oversee annual or biannual review of the Network Integration plan and; oversee and coordinate efforts to refine and augment system integration. Lead and the evaluation, development and potential implementation of an integrated fare system on the state supported services. Pursue funding opportunities to develop and implemented an integrated fare system for the state-supported services and local connecting services. Includes all duties assigned to the State for Network Integration and will include complete coordination with SJJPA assigned representative of 92

79 Performance Measures and Monitoring Develop standard performance measures for each state supported service Report as required to the department of finance, CalSTA, CTC, etc. on the performance of the state-supported systems. Review and monitor Performance Standards and equipment maintenance standards. Review the annual Business Plan Update. Audit the operations of the SJJPA in accordance with this Agreement, the Fund Transfer Agreement and the Equipment Lease. Fleet Management, Deployment and Maintenance Administer maintenance of all equipment designated in Section 8.5a, until such time as maintenance administration responsibility passes to the SJJPA in accordance with the provisions of the Equipment Lease (the Maintenance Transfer Date therein). Administer warranty claims made with respect to the State-owned Equipment, until the Maintenance Transfer Date, in accordance with the provision of such Equipment Lease. Administer and monitor any amendment or modification to the Service or to maintenance of equipment in accordance with this Agreement, Fund Transfer Agreement, Equipment Lease, New Operating Agreement and/or Transfer Agreement as required or desired by the parties to this Agreement. Develop a fleet deployment and management plan in coordination with the three managing JPAs. Oversee the fleet management plan(s). Vehicle procurement, done jointly. State Rail Plan Develop, update and manage the State Rail Plan Prepare reports, summaries, including the State Rail Plan, as required by the Legislature, or otherwise required or deemed advisable by the State, with input from the SJJPA regarding the San Joaquin Service as requested by the State. Administer and coordinate systemwide contracts involving market research and ridership/revenue demand models. Administer the shared use agreements with host railroads in coordination with the JPAs Amtrak Negotiations 2 79 of 92

80 Integrate the JPAs into the negotiating and development of operating, maintenance and equipment contracts with Amtrak (based on current management and oversight); assist and support JPAs with negotiations with Amtrak (based on management and oversight roles). Lead a unified approach to future negotiations for the three state-support services with Amtrak or others as appropriate. Shared Use and Station Agreements Third Party Agreements Assist in the negotiation and management of shared use and station agreements: a. Policy and liaison activities (with JPA representatives). b. Develop relationship with RR (leverage and use JPA). c. Assist in negotiations with RR contracts with JPA representative. d. Environmental liaison. e. Administer TCIF-Major and CHRSA Blended system operations (with JPA representative). f. Plans, designs and modeling review. Railroad Safety and Security Administer the Section 190 and other safety related funding programs. a. Develop Agreements (with JPA representatives) b. Develop contract scope and execute contracts c. Field Diagnostics d. Local Agency Coordination e. Request Environmental Certification f. Inspections g. Manage 130, 190, HSRCSA, TCIF-Minor projects h. Review and pay invoices Class1 Railroads Negotiations/Operating Slots Assist in developing RR agreements (to include concurrence from JPA). Conduct periodic status meeting with RR and JPA representatives. Conduct inspections. Administer Environmental Assessments. Review and pay invoices of 92

81 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 8 INFORMATION Update on Interagency Transfer Agreement Schedule Staff will present an update on the Interagency Transfer Agreement (ITA) and the schedule for the ITA. Staff will summarize recent meetings with CalSTA and Caltrans regarding the ITA and the ITA schedule. 81 of 92

82 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 9 INFORMATION Amtrak Budget Update Staff will present an update on the Amtrak Budget for the San Joaquin Service. 82 of 92

83 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 10 INFORMATION San Joaquin Rolling Stock Update Staff will present an update on the Comet Car performance and the overall Service Performance at the Board Meeting. 83 of 92

84 Item 11 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT California Intercity Passenger Rail (CIPR) Leadership Coalition Update Background INFORMATION The CIPR Leadership Coalition has been focused on working with CalSTA to ensure that the guidelines for ranking projects competing for the ongoing Transit and Intercity capital funds available meet the intent of SB 862. Please see the attached CIPR joint letter to CalSTA regarding Cap & Trade guidelines for Transit and Intercity Program funding. SB 862 requires that 25% of Transit and Intercity Program Cap and Trade funds will benefit Disadvantage Communities. The California Air Resources Board (CARB) and Cal EPA have been working to identify Disadvantaged Communities using the CalEnviroScreen model. Based on their initial draft findings, the San Joaquin route and the stations it serves should be very competitive for meeting this criteria. Figures 1 & 2 below show the geographical areas designated as Disadvantaged Communities (with the current staff preferred methodology). The red being the most impacted. Figure of 92

85 Figure 2. The CIPR Leadership Coalition is continuing to work to establish an Assembly Select Committee on Passenger Rail with Assemblymember Gray (Merced) as the Chair. The Select Committees will continue to work to increase state funding to improve and expand the program and to leverage these investments by advocating for additional federal rail funds. Recommendation This is an information item. There is no action being requested. 85 of 92

86 DATE: August 18, 2014 TO: Honorable Brian Kelly Secretary, California State Transportation Agency (CalSTA) 915 Capitol Mall Suite 350B, Sacramento, CA FROM: California Intercity Passenger Rail Agencies RE: Input for Cap-and-Trade Guidelines On behalf of the state s three existing and two emerging California Intercity Passenger Rail (CIPR) services, we appreciate the opportunity to provide input prior to the development of draft program guidelines for the Cap-and-Trade Transit and Intercity Rail Capital Program. We strongly supported SB 862 and particularly appreciate the provisions to devote 10% of total Capand-Trade revenues to transit and CIPR capital projects, and to have the Transportation Agency administer the program. The Transit/CIPR program is vital to the improvement and expansion of the state rail program since the State Transportation Improvement Program only provides very limited funding for CIPR capital improvements. The state does not currently have a secure or stable funding source for capital improvements for these three rail services which are three of the five busiest intercity rail services in the nation. SB 862 provides a solid foundation for the development of guidelines for this Program, stating that the investments from this Program will reduce greenhouse gas emissions, modernize California s intercity, commuter, and urban rail systems to achieve all of following objectives: 1) Reduce greenhouse gas emissions. 2) Expand and improve rail service to increase ridership. 3) Integrate the rail service of the state s various rail operators, including integration with the high-speed rail system. 4) Improve rail safety. Section 75221(d) of SB 862 provides important and clear direction for the development of the guidelines to evaluate grant applications for funding. Section 75221(a), projects eligible for funding, explicitly addresses two improvements critical to the future success and financial sustainability of state-supported rail service: rail service integration and acquisition of rail cars and locomotives. Rail network integration will help create a seamless rail system in California and encourage rail use at all levels, making tangible progress towards the state s goal of reducing greenhouse gas emissions. Procuring a fully state-owned fleet of rail cars and Tier-IV 86 of 92

87 locomotives will not only reduce the significant equipment lease costs currently being incurred, but increase ridership and revenue on all three intercity rail services and significantly reduce emissions from existing Amtrak-owned locomotives. Guidelines that place a high priority on these two areas of improvement for the state rail system will help the state reach its goal of creating sustainable communities. We look forward to providing additional coordinated input after the initial public workshops and again after the draft guidelines are released. Sincerely, James P. Spering John Pedrozo Fred Strong Dave Potter Chair, CCJPA Chair, SJJPA Chair, LOSSAN Chair, CRCC 87 of 92

88 SAN JOAQUIN JOINT POWERS AUTHORITY September 26, 2014 STAFF REPORT Item 12 ACTION/INFORMATION Administrative Matters Correspondence: SJJPA comment letter to Caltrans on the Draft 2014 CA Freight Mobility Plan was submitted on July 28, 2014 (see attached). Please also see SJJPA letters of support for the City of Oakley and the City of Martinez for their Priority Development Area (PDA) grant applications to the Contra Costa Transportation Authority. Caltrans Division of Rail and Mass Transit does not have a future scheduled meeting for the San Joaquin Valley Rail Committee. This Committee is specifically called out in AB 1779 as reporting to the SJJPA once the administrative responsibilities of the San Joaquin service have been transferred to the SJJPA. Staff recommends that a strategy for the future of the San Joaquin Valley Rail Committee be presented as an action item at the December 5, 2014 SJJPA Board Meeting. Fiscal Impact: There is no fiscal impact. Recommendation: There is no action being requested. 88 of 92

89 89 of 92

90 90 of 92

91 91 of 92