GOOD MORNING AND WELCOME TO THE
APRIL.
ELEVEN.
TWENTY EIGHTEEN MEETING OF THE
BUDGET SUBCOMMITTEE NUMBER THREE
ON RESOURCES AND TRANSPORTATION
IT'S GOOD TO SEE YOU ALL HERE
THIS MORNING WE'RE GOING TO
BEGIN.
WITH OUR.
OF FIRST DATA.
ITEM TO BE HEARD AND WILL I GET
TO THE VOTE ONLY COUNTER LOW BUT
LATER IN THE AGENDA.
OUR LOW BUT LATER IN THE
MORNING.
AND SO WE BEGINWITH OUR FIRST
ISSUE OUR ANNUAL.
A REVIEW OF THE TWENTY EIGHTEEN
DRAFT BUSINESS PLAN OF THE
CALIFORNIA HIGH SPEED RAIL
AUTHORITY.
WELCOME MISTER KELLY.
GOOD MORNING MISTER CHAIRMAN
MEMBER HAS HUH I THINK THREE
PANELS THIS MORNING ANSWER TO.
.
WE'LL BEGIN WITH YOURS.
I THANK YOU MISTER CHAIRMAN AND
MEMBERS I'M BRIAN KELLY THE
CHIEF EXECUTIVE OFFICER FOR THE
CALIFORNIA HIGH SPEED RAIL
FORTY.
TO MY RIGHT IS RUSS FONG. WHO IS
OUR CHIEF FINANCIAL OFFICER
CALIFORNIA HIGH SPEED RAIL
AUTHORITY?
I'M ON MARCH NINTH THE AUTHORITY
RELEASED IT'S TWENTY EIGHTEEN
DRAFT BUSINESS PLAN FOR PUBLIC
REVIEW.
AND COMMENT THE DRAFT TWENTY
EIGHTEEN BUSINESS PLAN.
OF PRESENTS OUR VISION FOR
IMPLEMENTING THE NATION'S FIRST
HIGH SPEED RAIL SYSTEM.
I IN THE FACE OF CHALLENGES THAT
PROJECTS AROUND THE WORLD OF
SIMILAR MAGNITUDE. AND
COMPLEXITY HAVE FACED AND
ADDRESSED.
BUT FOR THE FIRST TIME IN THIS
DRAFT PLAN THE AUTHORITY IS
ASSIGNING COSTS.
TO RISKS PREVIOUSLY IDENTIFIED
IN PRIOR PLANTS AND REPORTS AND
PRESENTS A BASELINE COST
ESTIMATES.
FOR ALL PROJECTS SECTIONS.
ALSO FOR THE FIRST TIME THE
TWENTY EIGHTEEN DRAFT PLAN.
A WE JUST CONTINUE THE PAST
PRACTICE OF ESTIMATING PROJECT
COSTS WITH THE SPUR
A DOLLAR ESTIMATE.
AND INSTEAD THE PLAN ESTIMATES
COSTS UTILIZING A BASELINE
ESTIMATE AND RANGES.
CONSISTENT WITH INDUSTRY BEST
INDUSTRY PRACTICES FOR MEGA
PROJECTS.
REVISED BASED MY COSTS AS MUCH
OF AN INCREASE.
IN COSTS LARGELY DRIVEN BY THE
EFFECTS OF INFLATION.
INCREASED CONTINGENCY IN
PREVIOUSLY IDENTIFIED
CONSTRUCTION DELAYS IN THE
CENTRAL VALLEY.
HE'S AREAS MAKE UP ABOUT EIGHTY
THREE PERCENT OF THE COST
INCREASES.
OF FOR THE FULL PHASE ONE
SERVICE.
.
YEAH FOR THE FULL PHASE ONE
SERVICE BILL THAT BETWEEN SAN
FRANCISCO AND LOS ANGELES IN
ANAHEIM.
THE SCHEDULE FOR THE BAD ABOUT
THE SERVICE.
IN THE FOUR PAGE ONE SERVICE ARE
ALSO PUSHED OUT BY FOUR YEARS IN
THE PLAN RESPECTIVELY.
AND THESE SCHEDULES BE AFFECTED
PRIMARILY BY THE TIMING. AND
AVAILABILITY OF FUNDING FOR FOR
PROJECT IMPLEMENTATION.
DRAFT PLAN ALSO CONTINUES A
FINANCING STRATEGY CONSISTENT
WITH THE ONE OUTLINED IN THE
TWENTY SIXTEEN BUSINESS PLAN.
TO BETTER ALIGN THE TIMING OF
CAP AND TRADE FUNDS AT THE
PROJECT CAN BE DELIVERED.
IN A MANNER THAT PROVIDES.
BUT BENEFITS TO CALIFORNIANS AT
THE EARLIEST POSSIBLE TIME.
THE IN THE FACE OF THESE
CHALLENGES THE DRAFT PLAN
PROPOSES TO CONTINUE AND
INVESTMENT STRATEGY. THAT BUILDS
INFRASTRUCTURE AND USABLE
SEGMENTS THAT WILL BE LINKED
OVER TIME TO PROVIDE MOBILITY.
ECONOMIC AND ENVIRONMENTAL
BENEFITS TO CALIFORNIANS.
AND INITIATE HIGH SPEED RAIL
SERVICE AS SOON AS POSSIBLE.
TOWARD THAT END THE DRUG
BUSINESS PLAN IDENTIFIES THE
FOLLOWING INVESTMENT PRIORITIES
IN ORDER.
THE FIRST HAS TO MEET OUR
COMMITMENTS TO OUR FEDERAL
FUNDING PARTNER.
THAT MEANS THE AFFORDABLE
COMPLETE.
THE HUNDRED NINETEEN MILE
SEGMENT IN THE CENTRAL VALLEY.
INCOMPLETE THE ENVIRONMENT A
REVIEW OF FOR THE ENTIRE PHASE
ONE SYSTEM BETWEEN SAN FRANCISCO
AND LOS ANGELES IN ANAHEIM.
BY TWENTY TWENTY TWO AS IS
REQUIRED IN OUR FEDERAL GRANT
AGREEMENT.
SECONDLY WE EXTEND THE BALLOT
VALLEY SERVICE FROM SAN
FRANCISCO ALL THE WAY TO
BAKERSFIELD.
THAT'S THIS DRAFT BUSINESS PLAN
RECOGNIZES THE HIGHER RIDERSHIP
AND REVENUE POTENTIAL BY LINKING
THE SILICON VALLEY.
THE CENTRAL VALLEY BETWEEN THESE
TWO CITIES SAN FRANCISCO
BAKERSFIELD.
WE PROPOSE TO ELIVER TWO
HUNDRED TWENTY FOUR MILES OF
HIGH SPEED RAIL READY
INFRASTRUCTURE FOR USE BY TWENTY
TWENTY SEVEN.
A PLAN PROPOSES TO CONSTRUCT
HIGH SPEED RAIL READY
INFRASTRUCTURE IN THE CENTRAL
VALLEY BETWEEN BAKERSFIELD AND
MADERA. IN THE SILICON VALLEY
YEARLY SAN FRANCISCO. TO REDUCE
TRAVEL TIMES FOR EXISTING
PASSENGER RAIL SYSTEMS
EXPAND CLEAN OF ELECTRIFIED
SERVICE.
AND PREPARE THE CORRIDORS FOR
TESTING IT POTENTIAL EARLY HIGH
SPEED RAIL OPERATIONS.
FOURTH WE ISOLATE THE TUNNELING
IN THE PROJECT WILL PASS AS THE
FINAL MISSING LINK TO COME
ABOUT ABOUT THE SERVICE.
WE ARE ENGAGING PUBLIC AND
PRIVATE SECTOR EXPERTISE TO
EXAMINE REFINER DESIGN OPTIONS
FOR THAT TOTALING.
OPTIMIZE OPERATIONAL EFFICIENCY
LIMIT COSTS
AND DEVELOP INNOVATED FUNDING
OPTIONS TO COMPLETE THE TUMBLING
THROUGH THE PROJECT A PASS.
WE ALSO IN THIS PLAN CONTINUE
THE BOOK IN INVESTMENTS OF FROM
PROPOSITION ONE A IN BOTH
SOUTHERN. AND NORTHERN
CALIFORNIA
THE DRAFT BUSINESS PLAN
CONTINUES TO PRIORITIZE
IMPROVING LOS ANGELES UNION
STATION. THE BURBANK TO ANAHEIM
CORRIDOR AND THE ELECTRIFICATION
OF THE CALTRAIN CORRIDOR.
IN THE BAY AREA.
AS I NOTED THE PLAN REFLECTS THE
AUTHORITIES COMMITMENT TO APPLY
LESSONS LEARNED AND MAKE
ORGANIZATION IMPROVEMENTS
NECESSARY.
TO DELIVER THIS PROJECT TO
INITIATE HIGH SPEED RAIL
SERVICE.
OF BETWEEN SILICON IN CENTRAL
VALLEY AS SOON AS POSSIBLE.
WHILE COMPLETING ENVIRONMENTAL
WORK IN MAKING IMPORTANT
INVESTMENTS IN SOUTHERN
CALIFORNIA CONSISTS OF THE
ACTION TAKEN BY THE LEGISLATURE
TO INVEST THOSE BOOK AND FUNDS.
A WITH THE RELEASE OF THE TWENTY
EIGHTEEN DRAFT BUSINESS PLAN
WE'VE INITIATED A SIXTY DAY.
PERIOD A PUBLIC REVIEW AND
COMMENT.
THAT PERIOD CLOSES ON MAY
SEVENTH TWO THOUSAND EIGHTEEN.
THE FINAL PLAN IS SCHEDULED TO
BE ADOPTED BY THE AUTHORITY
BOARD AT ITS PUBLIC HEARING. A
DURING THE THIRD WEEK OF MAY
SCHEDULED FOR SAN JOSE.
AT THIS TIME.
.
I'VE ALREADY INTRODUCED A HIGH
RESPONDER CHIEF FINANCIAL
OFFICER HE'LL HELP ME ANSWER ANY
QUESTIONS.
GIVING IT WORTH NOTING MISTER
CHAIRMAN AND MEMBERS IS THAT.
EARLIER THIS YEAR I THINK MAYBE
THAT DAY EITHER THE DAY BEFORE
THE DAY AFTER I. ACCEPT THIS
POSITION OF THE LEGISLATURE
APPROVED AN AUDIT OF THE HIGH
SPEED RAIL FORTY.
I WANT TO ASSURE MEMBERS AT THE
AUDITOR'S STARTED THAT WORK
WE'VE MADE OFFICE SPACE
AVAILABLE.
THEY'RE THEY'RE THEY'RE THEY'RE
WORKING ON THE AUDIT.
I BELIEVE IT WILL LIKELY SHOW.
WHERE THE AUTHORITIES MADE
IMPROVEMENTS
AND IT'LL OBVIOUSLY SHOW WHERE
WE MUST CONTINUE TO MAKE
IMPROVEMENTS IN THE ORGANIZATION
THE MANAGEMENT THE PROJECT? I DO
WELCOME THIS EXTERNAL REVIEW.
AND I'M CONFIDENT THAT IT WILL
HELP US TO IMPROVE.
A PROGRAM OPERATIONS AND
MANAGEMENT.
THE AUDITOR'S REVIEW IS
SCHEDULED TO CONCLUDE IN BE
RELEASED SOMETIME IN AUGUST TO
TWENTY.
AND WITH THAT I'M HAPPY TO
ANSWER QUESTIONS A STORY THAT
WAS AUGUST OF TWENTY EIGHTEEN
WHAT IS YOUR IN DEPTH. AND JUST
A FEW MONTHS YES SIR.
THERE I. FOUND BELIEVE THERE'S
NOT.
GOTTEN SOME DISCUSSION ABOUT
THE NEED FOR MORE STATE STAFF.
A FOR THE HIGH SPEED RAIL
AUTHORITY. OF IS THAT I I THINK
WE'VE SEEN THAT TO A REQUEST YET
TO.
WHEN CAN WE ANTICIPATE THAT
WELL WOULD.
I'M NOT YOU'LL SEE THAT THIS
YEAR CANDIDLY BECAUSE WE ARE
ASSESSING NOW.
THE OPERATIONS OF THE
AFFORDABLE WHAT WE NEED AND.
WE DO HAVE SOME VACANCIES THAT
WE NEED TO FILL AND WE'RE
WORKING TO DO THAT.
IN REAL TIME.
AND.
WE HAVE SOME AGREEMENT TO
BORROW SOME STAFF WITH REQUIRED
OF AGREEMENT WITH CALTRANS THAT
WE ARE TALKING ABOUT THAT AS
WELL SO. THAT WHEN WE COME FOR
THE NEW STAFF REQUESTED TO A
PREMATURE FROM IT'S A RIGHT NOW
I THINK THAT'S A LITTLE MORE
EFFICIENT ANYWAY.
QUESTIONS.
PATTERSON.
I.
THE RAPPER.
FIRST OF ALL ONE OF WELL.
TO LET YOU KNOW HOW AT THAT THAT
I DO APPRECIATE.
.
THE CANDOR AND.
.
THE EFFORT HERE OF THIS IS IN
MY JUDGMENT A BUSINESS PLAN
THAT.
CERTAINLY TRY TO GET CLOSER TO.
BUT A REAL BUSINESS PLAN IS
ABOUT AND I AND I APPRECIATE THE
FACT THAT.
.
OVER THE LAST THE IN SEVERAL
WEEKS SAID THERE IN IN OTHER
HEARINGS AND THINGS THERE HAS
BEEN A REAL CLEAR UNDERSTANDING
OF THE DIFFICULTY THAT IS.
THAT IS FACING US. UP SOMEONE
EXPLORE JUST A COUPLE OF THINGS
ONE.
CAN YOU TELL ME WHAT THE INITIAL
OPERATING SEGMENT IT IT IT WILL
GO FROM WHERE TO WHERE.
OUR FIRST FULL SERVICE WOULD BE.
UP BAKERSFIELD ST FRANCIS.
UNDER THE VALID TO VALLEY
SERVICE TO BE OUR FIRST FULL.
LENGTH SYSTEM HOWEVER BUT WE
DON'T HAVE FULL FUNDING FOR THAT
RIGHT NOW.
AND SO.
WE ARE TAKING APPROACH THAT
COMMON FOR OTHER TRANSIT A
ENTITIES AROUND THE. COUNTRY IN
STATE WE'RE GONNA MOVE FORWARD
IN A INCREMENTAL WAY AND SO THE
FIRST IS AS YOU KNOW WE'RE IN
THE MIDDLE OF A HUNDRED NINETEEN
MILE STRETCH.
THAT WE HAVE CONSTRUCTION
CONTRACTS AND AWAY FOR THE
CENTRAL VALLEY.
AND WE HAVE AN AGREEMENT WITH
THE FEDERAL GOVERNMENT THAT WE
GET OPERATIONS OUT OF THAT OUT
OF THOSE ASSETS ONCE THEY'RE
BUILT.
SO.
I AM WE ARE PROPOSING IN THE
BUSINESS PLAN TO INCREMENTALLY
GET TO THE VALLEY TO VALLEY
SERVICE.
AND IN THE MEANTIME WE WOULD
BUILDING AWAY AS WE'VE.
OUTLINED IN PRIOR PLANTS TO
PROVIDE SOME MOBILITY BENEFIT.
WITH THE SEGMENTS THAT WE BUILT
SO THE FIRST OF CENTER VALLEY
SIDE IS AT BAKERSFIELD MADERA
STRETCH CONNECTING WITH THE
AMTRAK SERVICE GOING NORTH.
I TO SACRAMENTO IN WEST TO THE
BAY AREA. AND ON THE SILICON
VALLEY SIDE WE ARE ALREADY
PARTNERS IN THE ELECTRIFICATION
OF THE PROJECT FROM SAN JOSE TO
SAN FRANCISCO. AND WE ARE
PROPOSING TO EXTEND THAT FURTHER
SOUTH TO GILROY SUITE OF
ELECTRIFIED SECTION.
ABOUT TWO HUNDRED TWENTY FOUR
MILES AND TOTAL OF ELECTRIFIED.
SERVICE ON TWO ENDS AND WE WE
STILL PROPOSED TO GET THE.
ISOLATE THE TUNNELS LAST PIECE
TO COMPLETE THAT ABOUT.
SO.
WE HAVE A A ESSENTIALLY ADMIT
INITIAL OPERATING SEGMENT THAT
IS DISCONNECTED AMENDED IT IT IT
IT IT SO IT RUNS.
IT BASICALLY RUNS FROM.
OUTSIDE MADERA GAS TO.
OUTSIDE BAKERSFIELD THAT THAT
WILL BE IN OPERATION WHAT WILL
RUN ON ON THOSE TRACKS YET WE
ARE. WE HAVE NOW ENGAGE IN EARLY
TRAIN OPERATOR THAT WE ARE A
TALKING TO NOW ABOUT HOW BEST TO
PUT THAT SERVICE IN PLACE BUT.
THE PROPOSAL HERE'S TO GO ALL
THE WAY TO BAKERSFIELD IN THE
SOUTH AND. IN THE NORTH I THE
MADERA OR MERCED.
A LIKELY MADERA AND CONNECT
THEIR WITH THE AMTRAK SYSTEM
THAT GOES FURTHER SOUTH OF
FURTHER NORTH TO SACRAMENTO. AND
WEST TO THE.
BAY AREA THAT IS AN INCREMENTAL
A USE THAT WE ARE EXAMINING WE
WE WANT TO LOOK AT WHETHER NOT
WE CAN DO THAT WITH ELECTRIFIED
HIGH SPEED TRAINS INITIALLY OR
WHETHER WE HAVE TO.
ALLOW THE ASSETS TO BE USED
DIRECTLY BY AMTRAK AND THAT'S
SOMETHING THAT WE ARE.
ANALYZING IN REAL TIME AND I'D
INDICATED A PRIOR HEARING WOULD
BE REPORTING BACK TO THE
LEGISLATURE. AT OUR PROJECT
UPDATE REPORT IN MARCH.
WHAT?
THE LANGUAGE IN THE. PLAN.
IN DESCRIBING.
HIGH SPEED YET THAT IT INITIAL
OPERATING SEGMENT.
HAS CHANGED IT THAT THE LANGUAGE
TO DESCRIBE IT USED TO BE HIGH
SPEED RAIL.
THIS BUSINESS PLAN DESCRIBED IT
AS HIGH SPEED RAIL READY.
WHAT'S THE DIFFERENCE BETWEEN
THE TWO WELL ULTIMATELY THE.
WE WILL HAVE A A SYSTEM THAT IS
ENTIRELY A HIGH SPEED RAIL
SYSTEM CONNECTING BAKERSFIELD
AND SAN FRANCISCO.
AS WE'VE INDICATED IN THE PLAN
AND IN PRIOR HEARINGS OF WE
DON'T HAVE THE FULL FUNDING FOR
THAT AT THIS TIME SO SIMILAR TO
WHAT DID THIS PROJECT IS NEVER
HAD FULL FUNDING.
OF FOR ALL OF ITS.
OUR OPERATIONS AND SO WE ARE
PROPOSING TO BUT BUILT IT
INCREMENTAL STAGES THE FIRST IS
MEET OUR FEDERAL COMMITMENT IN
THE CENTRAL VALLEY TO GET SOME
OPERATIONAL USE OUT OF THE
ASSETS WERE BUILDING THEIR.
A LOT WE WANT TO EXAMINE AND I
WON EXAMINE WHETHER HIGH SPEED
ELECTRIFY TRAINS COULD BE
INITIALLY USED THEIR TO CUT DOWN
THE TRAVEL TIMES NOW. WHAT IS
OTHERWISE THE AMTRAK SERVICE?
AND ON THE WEST SIDE WE WANT
EXTEND THE ELECTRIFICATION OF
CALTRAIN.
FROM SAN FRANCISCO TO SAN JOSE
ALL THE WAY TO GILROY.
THAT WILL MEAN THAT CALTRAIN
WILL NO LONGER HAVE TO USE
DIESEL TRAINS FROM GILROY. A
GOING NORTH AND THE WHOLE SYSTEM
WOULD BE ELECTRIFIED IT WOULD BE
READY FOR US AND WE ARE
EXAMINING WHETHER WE CAN PUT.
HIGH SPEED ELECTRIFIED SERVICE
IN THERE AS AN INTERIM BASIS AS
EARLY AS TWENTY TWENTY SIX OR
TWENTY TWENTY SEVEN.
SO THAT'S WHAT'S IN THE PLAN
WERE DOING THE ANALYSIS NOW AND
WILL REPORT BACK. TO LEGISLATURE
IN THE PUBLIC ON ON HOW WE CAN
PUT THAT INTO PLAY. A AND MARK
THAT MORNING OPERATING SEGMENT.
WILL RUN TRAINS OF SOME KIND.
BACK AND FORTH BETWEEN MADERA
AND BAKERS YEAH I WEEKTHAT'S A
REQUIREMENT WE HAVE WITH OUR
FEDERAL GRANT AGREEMENT TODAY.
THAT WE PUT THAT AND YOU WE PUT
THOSE ASSETS INTO USE YOU YOU
CANNOT SAY TODAY THAT.
THEY WILL BE HIGH SPEED TRAINS
THEY BUT THEY MAY VERY WELL BE
SLOW SPEED TRAIN.
OUR ASSETS INITIALLY ARE GOING
TO ARE NOT SORRY OUR ASSETS FOR
THE TIRE ABOUT DEVELOP BEFORE
HIGH SPEED TRAIN SERVICE.
ONCE WE COMPLETE ALL OF THE
SYSTEM INCLUDING THE TUNNELING
BETWEEN THE PROJECT WILL PASS.
THAT'S STRETCHING THE CENTRAL
VALLEY IN GOING WEST WILL TRAVEL
IN EXCESS OF TWO HUNDRED MILES
PER HOUR.
A WHEN WE GET TO THE SILICON
VALLEY WILL TRAVEL SPEEDS OF
ROUGHLY HUNDRED TEN MILES PER
HOUR.
THE IN THAT CORRIDOR.
SO THAT'S THE SYSTEM THAT WE
ALTERNATE WILL BUILD WE DON'T
HAVE ALL THE FUNDING IN HAND FOR
THAT RIGHT NOW WE LIKELY HAVE A
FUNDING GAP.
THAT'S ABOUT THE COST OF THE
TUNNELS FOR THAT.
BUT IN THE INTERIM WE DO WANT TO
PROVIDE MOBILITY BENEFITS WHERE
WE CAN AND IF WE CAN PUT
ELECTRIFIED SERVICE IN THE
CENTRAL VALLEY. SOONER
CONNECTING WITH AMTRAK.
THAT WE THINK WE REDUCE THE
AMTRAK TRAVEL TIME BY NINETY
MINUTES AND MAY BE ABLE TO
REDUCE THE STATE SUBSIDY FOR
THAT SYSTEM.
THAT ANALYSIS IS UNDERWAY NOW
AND WILL COME BACK A WITH THE
PROJECT UPDATE REPORT FOR ALL OF
YOU YOU DO RECOGNIZE THE SIZE
AND THE.
DIFFICULT NATURE OF ATTAINING
THE GAP FUNDING.
FOR THE FOR THE FOR THE TITLES.
BUT I DO I DO A AND ONE OF THE
REASONS THAT.
YOU KNOW I WANNA ISOLATED ON ON
ON THE TUNNELS I THINK.
YOU KNOW MY VIEW IS ONCE YOU
HAVE SOME SERVICES RUNNING ON
EITHER SIDE. OF THE TUNNEL
BECOMES AN OBVIOUS ELEMENT IN
CONNECTING THE TWO.
BY FOCUSING ON THE TUNNEL.
IN BRINGING IN SOME EXPERTISE
ON INNOVATIVE WAYS TO FUNDED.
AND ENGAGING OUR FEDERAL
PARTNERS GOING FORWARD I THINK
WE CAN.
YOU KNOW I'M CONFIDENT WE'LL
FIND AWAITING. WAY TO GET THERE
ON THE SPECIFIC ASSET THAT WILL
HAVE OBVIOUS MOBILITY BENEFIT
WITH THE ELECTRIFICATION.
.
FROM WHAT GILROY TO SAN JOSE M..
.
THAT'S A LONG.
UNION PACIFIC.
LINES CORRECT DO YOU HAVE
PERMISSION.
FOR THAT PURPOSE AS WE INDICATED
IN THE PLAN WE ARE NOT WE ARE
CURRENTLY IN TALKS WITH YOU P..
HOW WOULD YOU DESCRIBE THOSE
TALKS POSITIVE?
BUT YOU YOU YOU THINK THAT UNION
PACIFIC WILL EVENTUALLY AGREE
WHAT ALLOW YOU ACCESS BECAUSE I
DON'T KNOW IF THEY'RE IN THE
ROOM IT'S A NEGOTIATION.
AND WE ARE TALKING ABOUT. A
ABOUT THAT IN AND WHAT WE WOULD
DO IS USE THAT A RIGHT AWAY TO
ELECTRIFY TWO TRACKS THAT ARE
FOR PASSENGER RAIL AND MAINTAIN
A FREIGHT TRACK FOR THEIR USE.
OF IN THE RIGHT AWAY IT IS THE
LEAST IMPACTFUL WAY. A TO GET
INTO THAT THAT SECTION THAT
ULTIMATELY WE WILL NEED. AND WE
CONTINUE TO WORK WITH THEM IN
GOOD FAITH HE ON TRYING TO GET
THAT UP THE THE.
YOUR YOUR BUSINESS PLAN
ANTICIPATES A RATHER.
I THINK.
.
A DUBIOUS APPROACH TO THE
FINANCING WHICH IS THE CAP AND
TRADE.
THAT REQUIRES EXTENSIONS AND
THAT AND THE LIKE AND.
ARE LEGISLATIVE ANALYST'S
OFFICE WHO SAID THAT A COMPLETE
UNVIABLE FUNDING PLAN DOES NOT
EXIST.
FINDING IT IN THE BUSINESS PLAN
SEEMS TO.
I'M RELY ON EXTENDING CAP AND
TRADE.
.
FROM YOUR BUSINESS PLAN YOUR.
SUGGESTING TO PROHIBIT THE
LEGISLATURE FROM RESTRICTING
REDISTRIBUTE OR IMPAIRING THE
AUTHORITIES.
CAP AND TRADE FOR THIRTY YEARS.
EXTENSION OF THE CAP AND TRADE
PROGRAM THROUGH TWENTY FIFTY.
AND GUARANTEED THAT THE
LEGISLATURE WILL BACK FILL ANY
SHORTFALL OF CAP AND TRADE
AUCTIONS.
BRING IN LESS.
REVENUE. UP ARE YOU.
AWARE THAT THAT KIND OF A PLAN
IS GOING TO REQUIRE A VOTE OF
THE PEOPLE.
AM I THINK THAT'S A OPEN
QUESTION RIGHT NOW.
WE ARE I WANT TO SAY THIS ABOUT
THE CAP AND TRADE A PROGRAM IN
THE TWENTY SIXTEEN BUSINESS
PLAN.
OTHER WAS AN ASSUMPTION OF CAP
AND TRADE REVENUE ALL THE WAY TO
TWENTY FIFTY. A AND WE INDICATED
THAT FOR BUILDING A MAKE A
PROJECT OF THIS SIZE.
A YOU WANT TO BE ABLE TO FINANCE
ANY REVENUE STREAM SO THAT YOU
CAN MATCH.
REVENUES WITH YOUR CAPITAL COSTS
IS YOUR BUILDING A IF WE DON'T A
HAVE SOME KIND OF A FINANCING
CAPACITY AGAINST THE REVENUE
STREAMS DEDICATED THE PRICE.
TO THE PROJECT IT WILL BE
DIFFICULT TO STAY ON SCHEDULE.
IN SO JUST AS WE SAID IN TWENTY
SIXTEEN WE WANT TO TRY TO. BE
ABLE TO BRING FORWARD SOME OF
THE DOLLARS THAT ARE OTHERWISE
CONTINUOUSLY APPROPRIATED TO
THIS PROJECT.
THROUGH THE CAP AND TRADE
MECHANISM AND SO. INDUSTRY HAD
GIVEN US IT OUT HERE THREE
THINGS YOU LOOK FOR FOR THE
HIGHEST INVESTMENT GRADE.
THAN INVESTMENT GRADE STATUS OF
A FINANCING YOU WANNA HAVE NOT
IMPAIRMENT YOU WANT TO HAVE A
COMMITMENT TO TWENTY FIFTY.
ANYONE HAVE A FLORA FUNDING.
I DON'T I CAN'T WE DON'T KNOW WE
CAN GET ALL THOSE THINGS BUT
IT'S NOT A GO OR NO GO WE NEED
AUTHORITY TO. FINANCE AGAINST IT
WE NEED TO BE IS STRONGEST AS IT
COULD BE DE BACK COMMITMENT TO
MAKE SURE WE CAN DO THE
FINANCING.
AND EH HOWEVER STRONG IT IS IN
STATUTE AND AND ARTICULATED IN
THE LAW.
WE WILL GET A IT WILL REFLECT
OUR RICH ARE RISK OR COST OF
CAPITAL.
SO WITH THESE THREE ELEMENTS
WITH HAVE THE VERY CHEAPEST CASA
CAPITAL WITH ELEMENTS THAT ARE.
YOU KNOW SHADES OF GRAY ON IT TO
THE BECAUSE CAPITA MICHAEL
HIGHER BUT WE WOULD STILL YOU
KNOW THERE'S THERE'S.
LARGE SORT OF SWINGS IN IN WHAT
YOU WHAT YOU NEED TO DO BASIC
FINANCING WATER POINT IS.
WE NEED TO FINANCE THE REVENUE
STREAM TO BRING THE DOLLARS FOR
TO MEET THE CAPITAL COSTS AT THE
TIME WE HAVE THEM TO BUILD THE
PROJECT.
AND THAT WAS SOMETHING WE SAID
IN TWENTY SIXTEEN AND SOMETHING
WE'RE REPEATING TWENTY EIGHTEEN.
AGAIN I WANT TO.
I REALLY DO WANT TO FOCUS YOU
YOU HAVE MADE SOME SPECIFIC.
CONTINGENCIES IN THE PLAN TO
ACCESS.
CAP AND TRADE.
AND.
ARE LEGISLATIVE COUNSEL HAS
ADVISED US THAT ONLY A VOTE OF
THE PEOPLE CAN REQUIRE. A FUTURE
LEGISLATURE TO COMMIT FUNDS OR
PROHIBIT A FUTURE LEGISLATURE
FROM CHANGING AN APPROPRIATION.
ARE YOU AWARE AND DO YOU CONCUR
THAT WHAT IS IN YOUR BUSINESS
PLAN REQUIRES A VOTE OF THE
PEOPLE.
I DON'T NECESSARILY CONCUR WITH
THAT YET
BECAUSE.
I DON'T.
I DON'T KNOW THAT TO BE TRUE
AGAINST THE CAP AND TRADE
REVENUE STREAM I THINK.
WE NOW HAVE A CONTINUES
APPROPRIATION IF WE ARE GIVEN
LEGISLATIVE AUTHORITY TO REVENUE
BOND OFF THAT APPROPRIATION. OF
BUT WE CAN'T DO THE IMPAIRMENT
WOULD STILL GO FORWARD WITH
TRYING TO FINANCES.
MAYBE WITHOUT THE IMPAIRMENT IN
MAYBE IT MEANS THAT WE DON'T
HAVE AS HIGH RATED. A OF A
FINANCIAL STRUCTURES POSSIBLE
BUT IT CONTINUES APPROPRIATION
IS PRETTY GOOD WHICH WE ALREADY
HAVE. OF AN AUTHORITY TO ISSUE
REVENUE BONDS OFF THAT'S THAT
STREAM IS HELPFUL. A WE WOULD IT
WOULD BE USEFUL TO HAVE SOME
FLOOR OF A COMMITMENT IN THERE.
BUT WOULD THAT UNDER THE LAW
TODAY IS A CONTINUES THE
APPROPRIATED MATTER WE HAVE
TWENTY FIVE PERCENT.
A IF THAT'S IF THERE'S A FLOOR
THAT'S TIED TO THAT.
IT WOULD HELP US FINANCE THE
AGAINST THAT REVENUE STREAM BUT
IT.
BUT FOR FOR THIS MEMBER IT SEEMS
PRETTY PRETTY CUT AND DRIED THAT
WHAT YOU'RE PROPOSING IN THE
BUSINESS PLAN IS GOING TO
REQUIRE VOTE OF THE PEOPLE IF.
YET DUBBED BECOMES A EVIDENT.
THAT IN ORDER TO ACTUALIZE THE
BUSINESS PLAN.
WOULD YOU BE ARE GOING TO GO TO
A VOTE OF THE PEOPLE IS THAT AN
OPTION. AS YOU CONSIDER.
AT LEAST THE BUSINESS PLAN IN
FRONT OF THIS WHICH I THINK AT
AT DOES ACTUALLY REQUIRE.
AT LEAST OF A CHANGE IN THE
STATE CONSTITUTION
SO I THINK THERE'S GOT TO BE
SOME KIND OF VOTE OF THE PEOPLE
HERE TO LET YOU DO WHAT YOU ARE
PLANNING TO WE WE WE PUT IN THE
BUSINESS PLAN. AND AS WE TOUTS
THE THREE THINGS YOU NEED FOR
THE HIGHEST INVESTMENT GRADE
FINANCING WE OUTLINED WHAT THE
INDUSTRY GAVE US IS THESE ARE
THE THREE THINGS YOU NEED.
I LOOK AT IT HAVING COME FROM
THE LEGISLATURE AND SAID AND
LOOK AT AND SAY. GIVE THOSE ARE
THREE THINGS THAT THE INDUSTRY.
POINT OUT AS THE HEIGHT BEST
THINK YOU NEED FOR AN INVESTMENT
GRADE RATING.
I DON'T KNOW YOU CAN GET ALL
THOSE THINGS AND BUT I DO THINK
YOU CAN STILL FINANCE WITH LEFT.
AND WILL THEN WHAT WE SAID IN
THE PLANS WOULD WORK WITH THE
DEPARTMENT OF FINANCE AND THE
LEGISLATURE ON EXACTLY WHAT THE
FINANCING AUTHORITY LOOKS LIKE.
TO GO FORWARD SO I DON'T HAVE A
PLAN RIGHT NOW TO GO THE VOTER
PEOPLE I'M NOT SURE WE NEED TO
GO TO VOTE OF THE PEOPLE. OF
WILL LOOK AT THAT AND WE WILL
WORK WITH THE LEGISLATURE ON HOW
WE CAN BEST DEFINE HOW WE CAN
FROM FINANCE AGAINST THE REVENUE
STREAM ALREADY COMMITTED TO THE
PROJECT.
AND OUR HOPE IS TO.
GETS SOME KIND OF FINANCING SO
THAT WE CAN MAKE SURE WE CAN
DELIVER THE PROJECT IN THE
ELEMENTS OF THE PROJECT SOONER
RATHER THAN LATER.
THAT'S THE NUMBER ONE NEED OR
PUSH FOR THE FINANCING IS JUST.
MAKE SURE WE CAN BE CAPITAL
COSTS IN
I.
THEN AGAIN I I.
LEGISLATIVE COUNSEL HAS OPINED
ON THIS AND I THINK THAT'S A
SIGNIFICANT THE OPINION AM I
THINK IT NEEDS TO BE PAID
ATTENTION TOO HIGH AT. OUT
BEFORE YOU RESPOND WITH NOW.
KIND OF.
GOING THROUGH THIS DISCUSSION
SEVERAL TIMES I THINK WE GET IT.
FINALLY.
.
I'M GENERALLY CONCERNED ABOUT
WHAT IS PLAN B. IT IT ALMA
SURFACE UP THIS DOES NOT LOOK
LIKE IT'S GOING TO GET
COMPLETED.
I KNOW YOU YOU YOU ARE
OPTIMISTIC AND YOU WANT TO BE
INNOVATIVE AND AND ALL OF THAT.
BUT THE BUT ECONOMIC GRAVITY HAS
REALLY KICKING IN HERE.
AND I WANT TO KNOW IF THERE IS A
PLAN B..
IT IS WHAT HAPPENS IF YOU JUST
SIMPLY.
A CANNOT BUILD THE ENTIRE
SYSTEM.
A ARCTIC ARE YOU CONSIDERING A
PLAN BE IS THERE A CONTINGENCY
PLAN OF SOME KIND.
WELL MISTER PATTERSON I AGAIN I
GUESS I'D SAY THAT'S GOING TO BE
A CONVERSATION THAT'S A BROADER
THAN JUST OFFICES CAN INVOLVE
THE LEGISLATURE AND US OF. IT
GOING FORWARD I YOU KNOW.
I'VE STEPPED INTO THIS AND I
KNOW WHAT I HAVE.
AND I KNOW THAT IT SHORT OF WHAT
WE NEED IN THE PROJECT HAS
ALWAYS BEEN IN THAT CONDITION
SINCE THE DAY THE VOTERS APPROVE
THE RITUAL PONDS.
THEY'VE NEVER HAD ALL THE MONEY
THEY NEED TO GO.
AND SO THE AUTHORITY ADOPTED A
PRINCIPLE THAT SAID WITH THE
FUNDING WE HAVE WE WILL BUILD
INCREMENTALLY TO PROVIDE
BENEFITS EARLY.
HOPEFULLY LINKING ALL OF THE
INVESTMENTS WE MAKE FOR THE FULL
SYSTEM.
AND.
THAT I THINK IS THE APPROPRIATE
WAY TO GO WHEN YOU DON'T HAVE
EVERY DOLLAR YOU NEED FOR THE
FULL SYSTEM.
SO I'M PROPOSING A BUSINESS PLAN
BASED ON WHAT I KNOW WE HAVE.
A AND I KNOW WE HAVE TO DO WORK
WITH OUR FEDERAL PARTNERS WE
HAVE TO CONTINUE TO WORK WITH
THE PRIVATE SECTOR AND WE HAVE
TO CONTINUE TO DO WORK WITH ALL
OF YOU.
TO ENSURE THAT WE CAN KEEP
BUILDING THE SYSTEM.
I TOOK THIS JOB I DO THIS
BECAUSE I THINK IT'S AN
IMPORTANT. PROJECT FOR THE
FUTURE THE STATE I DON'T. ABOUT.
X. ESPOUSING TO PLAN BE RIGHT
NOW BECAUSE I WANT TO MOVE
FORWARD ON WHAT WE HAVE AND I
WANNA.
YOU KNOW SHOW THAT WE CAN
DELIVER AND PERFORM. AND AS WE
DO THAT I THINK INCREMENTALLY WE
CAN BUILD THE SYSTEM.
MY UNDERSTANDING IS THAT THE
AUTHORITY.
.
HAS COMPLETED A CONTINGENCY PLAN
DOCUMENT FOR EARLY SERVICE
OPERATIONS OF THE FIRST
CONSTRUCTION SEX SECTION.
THAT THAT WAS REQUIRED BY THE
FEDERAL RAILROAD ADMINISTRATION
OF AS PART OF THE COOPERATIVE
AGREEMENT. WITH THEM FOR GRANT
FUNDING.
.
PAGE FIFTY ONE OF THE F. R. A.
DOCUMENT.
ARE YOU AWARE OF A CONTINGENT
PLAN.
DOCUMENT THAT WAS SUBMITTED TO
FRA IN TWENTY A SIXTEEN.
ARE AND AND IF O WE. WE WE
THINK THAT THERE IS AMPLE
EVIDENCE THAT THERE IS A
CONTINGENCY PLAN THERE I THINK
THIS COMMITTEE.
OUGHT TO BE ABLE TO SEE IT AND I
WOULD LIKE TO SEE IT AS WELL.
.
IF IT'S WHAT I THINK YOU'RE
REFERENCING I BELIEVE IT'S
AVAILABLE ON OUR WEBSITE AND IF
IT'S NOT AVAILABLE ON OUR
WEBSITE I'M HAPPY MAKE IT
AVAILABLE TO YOU IF YOU THERE IS
A REQUIREMENT THAT AS I SAID AT
THE OUTSET.
THAT WITH RESPECT TO THE
FEDERAL MONEY WE'RE USING THE
CENTRAL VALLEY WE HAVE TO APPLY.
A AND PROVIDE THEM WITH THE PLAN
OF OPERATION FOR THE ASSETS WE
BUILT.
AND WE DID PROVIDE THAT IN
OCTOBER TWENTY SIXTEEN I THINK
IT'S AVAILABLE ON OUR WEBSITE IF
IT'S NOT WILL MAKE IT AVAILABLE
COMMITTEE RIGHT AWAY RECREATE
AND IT'S CONSISTENT I WILL SAY
IT'S CONSISTENT WITH WHAT WE'VE
OUTLINED IN THE BUSINESS PLAN OF
HOW WE WOULD GO FORWARD. ARE.
BOB.
ARE ANALYSTS HAVE.
REPEATEDLY REQUESTED THAT
DOCUMENT YOU'LL HAVE IT TODAY
THANK YOU
WHICH IT.
THANK YOU THANK YOU MISTER FUNG.
I THINK IT WAS TO CARRY FOR
BEING HERE GET.
AGAIN AND AT THAT YOU FOR YOUR
TERM FOR TESTIMONY AT THE
TRANSPORTATION COMMITTEE I WON'T
REHASH A LOT OF THE CONCERNS
THAT WE HAD AT THEIR OR. I WAS
ONE OF KIND OF GO AND KIND OF A
DIFFERENT DIRECTION WHICH IS.
THE F. ORTIZ AGREEMENT WITH THE
FEDERAL GOVERNMENT REQUIRES THAT
ALL THE WORK IN THE CENTER
VALLEY PORTION.
THE COMPLETED BY DECEMBER THIRTY
FIRST OF TWENTY TWENTY TWO WHAT
HAPPENS IF THE AUTHORITY FAILS
TO MEET THAT DEADLINE.
WELL A COUPLE THINGS ONE.
WE PROBABLY HAVE TO ENGAGE IN
SOME KIND OF NEGOTIATION OF THE
UPPER A FOR AN EXTENSION IF
POSSIBLE WE'RE NOT THERE YET.
BUT I WOULD SAY.
THERE YOU KNOW YOU COULD BE
OPEN TO.
.
REPAYMENT PROVISIONS OF FEDERAL
FUNDS BUT AGAIN I THINK TIPPIT
WHAT'S HAPPENED BEFORE.
IS THAT WAS ONCE AN EARLIER
DEADLINE THAT WAS RENEGOTIATED
SOMETIME AGO WELL BEFORE I GOT
HERE OUT TO TWENTY TWENTY TWO
SO.
WE WORK WITH THE FRA ó ALL THE
TIME ON A WEEKLY DAILY BASIS AND
THAT WE WOULD OF PROBABLY BEING
DISCUSSES IT WITH THEM WELL IN
ADVANCE OF THE DEADLINE ABOUT
SHOULD IT MOVE BUT ARE. A
CERTAINLY OUR INTENTION IN MY
OBJECTIVE TODAY IS TO MEET THOSE
DEADLINES AS WE ARTICULATED THE
BUSINESS
SO THERE IS A CONCERN THAT THERE
WOULD BE REPAYMENT IF WE DID
MEET THAT DEADLINE MINUTES ABOUT
WHAT DOES. IT'S THEORETICALLY
POSSIBLE ALTHOUGH I THINK IN
PRACTICE AS WE'VE ALREADY SEEN
WE'VE
WE'VE WORKED WITH THE OPERATE
RENEGOTIATE DATES
BUT I THINK THE BIGGEST CONCERN
AS I AS I HEAR YOU ANSWER
QUESTIONS.
THERE'S A PASSIONATE AND TO AND
TO THE PUBLIC AT LARGE IS UP.
WE HEAR PHRASES LIKE UNFUNDED
ASSETS MISSING LINK. UP FUNDING
GAPS AND AT WHAT POINT IS THIS
PROJECT
COST HIM.
BUT IT IS THERE THAT ASSESSMENT
THAT YOU THAT YOU WOULD MAKE.
YOU KNOW FOR THE ENTIRETY OF THE
SYSTEM IN THE MOBILITY.
THE BENEFITS THAT IT WOULD
BRING. THERE WERE SOME WORK DONE
BACK IN TWO THOUSAND TWELVE THAT
SAID YOU KNOW WHAT ELSE WOULD
YOU HAVE TO DO TO PROVIDE THE
SAME LEVEL OF MOBILITY BENEFITS.
THROUGH HIGHWAY EXPANSIONS
AIRPORT EXPANSIONS AND OTHER
THINGS YOU KNOW IT'S ROUGHLY
DOUBLE THE COST OF OUR BASELINE
COST ESTIMATES.
SO I DON'T KNOW EXACTLY WHERE
THAT THAT LINE IS BUT THAT THAT
DATA IS OUT THERE TO BAIL BONE
IT'S PUBLIC.
.
A I.
BOB MY OBJECTIVE IN WHAT WE THAT
OUTLINE OF THE BUSINESS PLAN IS
TO PROCEED IN A WAY WHERE WE DO
NOT HAVE. STRANDED ASSETS WITH
THE ASSETS WE BUILT WE PUT INTO
USE.
A WE DO HAVE UNFUNDED PORTION
THE VALLEY TO VALLEY AND WE'RE
GONNA FOCUS EFFORT AND TIME ON
THAT. UP BUT THE STRANDED ACID
ISSUE IS ONE THAT I. WOULD PUSH
BACK ON LIGHTLY JUST BECAUSE OUR
OBJECTIVE IS TO INVEST IN A WAY
WE DO NOT HAVE STRANDED ASSETS
GOING FORWARD BUT THINGS ARE
BEING PUT INTO GIVES.
SO JUST JUST THERE REWRITE IT
THERE IS NO POINT THERE IS NO
THRESHOLD THAT.
IF THE COSTS CONTINUE TO GROW OR
EXPAND THAT YOU WOULD NOT AFFORD
NO MATTER WHAT NO PUN INTENDED
THAT THERE WOULD BE NO POINT.
THAT WOULD THINK THAT THE THE
PROJECT WOULD BE WE KNOW THAT WE
THINK WE NEED TO REASSESS AND
THAT THIS PROJECT MAY NOT BE THE
WAY TO. GO.
I DON'T KNOW WHAT THAT IS RIGHT
NOW TODAY I I THINK YOU KNOW
AGAIN I'M BUILDING SOMETHING.
WITH AVAILABLE REVENUES I HAVE
BEEN INCREMENTAL WAY WE HAVE A
COST ESTIMATE THAT WERE. UP FOR
THE VALUE VALLEY SECTION THAT I
THINK WILL BE A VERY USEFUL A.
SEGMENT
AND WE HAVE AN ESTIMATE THAT
WERE YOU KNOW.
WOULDN'T WE CAN CLOSE THE GAP
ON I'M PRETTY CONFIDENT OF GOING
FORWARD.
SO.
.
SO I DON'T HAVE A BETTER ANSWER
THAT TODAY ON THAT I'M I'M
FOCUSED ON TRYING TO GET IT
DONE.
AND AS THE MY LAST QUESTION
SINCE MAYES CERTAINLY VISIT.
BUDGET.
THIS TRAP BUSINESS PLAN HAS
EVOLVED SINCE THE BEGINNING OF
THE PROJECT.
YOU DO NOT SEE A POINT WHERE THE
PUBLIC SHOULD HAVE ANOTHER SAY
ON THIS PROJECT.
I MEAN I IT AGAIN.
YOU KNOW.
OUR I'M HERE TO TRY TO IMPLEMENT
THE VOTERS WILL AND AND TO ME.
YOU KNOW WE WENT TO THE VOTERS
AND ASK FOR ONE FIFTH OF THE
THEN. ESTIMATED COSTS AND THEY
APPROVED IT.
AND I'M SEEING NUMBERS IT
SUGGESTS ARE STILL GENERALLY
THAT SAME LEVEL OF SUPPORT IN MY
JOB IS TRIED TO IMPLEMENT WHAT
WE HAVE.
AND AND I'M FOCUSED ON THAT AND
THAT'S WHAT I'M DOING. AND.
LA I HAVEN'T REALLY THOUGHT
BEYOND A USING THE AT THE
RESOURCES I HAVE TO TRY TO
DELIVER THE PROJECT AS BEST I
CAN AND THAT THAT'S REALLY WHAT
MY FOCUSES BUT WOULD YOU SAY
WOULD YOU AGREE THOUGH THAT
THAT.
WHAT THE VOTERS VOTED ONLINE?
IMPROV WHEN A WHEN WHAT THE
PROJECT IS TODAY HAS CHANGED NOW
FOR ARE NOW I WOULD SAY THAT OUR
OBJECTIVE IS TO BUILD THE ONE A
SYSTEM AND WE HAVE TO BUILD IT
INCREMENTALLY. AND WAY TO BUILD
AN INCREMENTALLY BECAUSE WE
DON'T HAVE ALL THE MONEY WE NEED
TO BUILD ALL AT ONCE.
AND SO BUT OUR BUT WHAT WE WILL
BUILD WILL BE THE ONE A PROJECT
BUT THE BUSINESS PLAN HAS
CHANGED.
THE BIGGEST BUYERS OF ALL IF THE
BUSINESS PLAN. EVERY TWO YEARS
IS A SNAPSHOT OF WHERE THIS IS I
THINK THIS BUSINESS PLAN HAVE
SOME CONTINUITY WITH THE TWENTY
SIXTEEN BUSINESS PLAN IN TERMS
OF WHAT THE PRIORITIES ARE. AND
WHAT THE PRINCIPLES R. THAT WE
BRING. THERE ARE IMPORTANT
DIFFERENCES BETWEEN HOW WE
PRESENT THOSE THINGS IN THE
PAST.
AND HOW I PRESENT THEM TO YOU
ALL TODAY.
AND IT'S VERY CLEAR THAT WE
HAVE UNCERTAINTIES AND RISK THAT
WE HAVE TO DEAL WITH.
AND IT MAKES IT HARD TO BUILD A
MATE THAT MAKE A PROJECT.
BUT.
WE WERE YOU KNOW.
IT'S.
A CANDID DESCRIPTION OF WHAT
THOSE UNCERTAINTIES AND RISKS
ARE. AND OUR APPROACH IN THE
FACE OF THOSE THINGS.
AND.
.
AND THAT'S WHY I FEEL LIKE I'M
OBLIGATED TO PRESENT TO YOU ALL.
AND LAY OUT A STRATEGY FOR HOW
WILL GO FORWARD. AND.
AND AND THAT'S WHAT I'VE DONE.
WAS I I I APPRECIATE THAT YOUR.
.
YOUR TESTIMONY I THINK THAT AS
WE REVIEW THE BUSINESS PLAN.
I THINK THAT THERE ARE SITES
CERTAINLY THAT DIED THAT THE
FACT THAT THERE'S UNCERTAINTIES
IS AN UNDERSTATEMENT.
AND I THINK THAT THERE IS GOING
TO BE A POINT WHERE WE'RE GOING
TO HAVE TO DECIDE.
THROUGH REALISTICALLY AND
OBJECTIVELY AND LOOKING AT THIS
WITH LL THE FACTS.
AND FRONT OF US THAT WHETHER
THIS PROJECT SHOULD MOVE FORWARD
AT ALL. AND AND I HOPE THAT THE
AUTHORITY WOULD.
DO THAT DO THE SAME THING.
AND SAY IS THIS FEASIBLE
BECAUSE.
IF THE GAPS EXIST AND WE CAN'T
CONNECTED TO IT BUT TAKE A PASS
ISN'T BUILT WE HAVE TO STRANDED
LINE.
THAT MAY FUNCTION.
ON ITS OWN BUT THEY NEVER
CONNECTIN SO IF THE IF THE
ASSESSMENT IS WE'RE GONNA WE'RE
GONNA DO THIS NO MATTER WHAT BUT
WE DON'T KNOW WHERE THE MY.
FROM I THINK WE HAVE THAT WE
HAVE TO HAVE A REAL ASSESSMENT
OF WHETHER THAT'S.
WHETHER WE SHOULD GET YOU DOWN
THAT PATH SO I THINK YOU MAY
MOVE WE WILL CERTAINLY ENGAGED
IN THAT CONVERSATION GOING
TOWARD ABSOLUTELY FOR ME
PERSONALLY.
I.
I BELIEVE THE THE BENEFITS OF
THE PROJECT.
ARE.
SO IMMENSE THAT IN MY TIME DOING
TRANSPORTATION POLICY I HAVEN'T
SEEN A. SINGLE PROJECT THAT
OFFERS AS MUCH MOBILITY AND
ENVIRONMENTAL AND ECONOMIC
BENEFIT.
SO I'M SO I'M COMMITTED TO TRY
TO GET IT DONE IT JUST IGUESS
IT WHAT WHAT WAS THE WIDOW COSTS
OF THE PROJECT OWNED BY THE
PUBLIC NAY. I THINK IT WAS FORTY
FIVE BILLION REFERENCED IN THE.
IN THE VOTER PAMPHLET IS MY
RECOLLECTION AND AND NOW IT'S IN
SEVENTY SEVEN AND NINETY EIGHT
BILLION. YEAH AND AT ONE TIME IT
WAS THIRTY THREE AND SIXTY FOUR
WHAT THAT'S WHY. YOU KNOW I'VE
TAKEN APPROACH IN THIS BUSINESS
PLAN DID NOT. YOU KNOW COME
FORWARD WERE SO EARLY IN THE
PROJECT DEVELOPMENT TO TO TO TRY
TO SPECIFY SINGLE DOLLAR BUT TO
SAY HERE'S OUR. BEST ESTIMATE
HERE'S THE RANGERS WERE GOING TO
WORK IN. IN THAT MY MANAGEMENT
OBLIGATIONS TRY TO COME IN BELOW
THAT BASELINE BUT THAT I JUST. I
MEAN FROM MY PERSPECTIVE RIGHT
THIS IS THIS IS NOT A MONEY THIS
IS TAXPAYER MONEY AGAIN SO WE
GOTTA MAKE SURE THAT WE PROTECT
THAT AS MUCH AS POSSIBLE THANK
YOU VERY MUCH THANK YOU. KNOW I
WANT TO ASK A FOLLOW UP BOOK AND
TO MR FUNK'S.
QUESTION AND OTHER OF MISTER
KELLY YOU'RE THE CEO OF THE HIGH
SPEED RAIL AUTHORITY AND IF I'M
NOT MISTAKEN I SPEED RAIL
AUTHORITY. IS.
A AND AUTHORITY THAT IS
REQUIRED UNDER THE TERMS OF
BALLOT MEASURE.
IS THAT RIGHT I'M SORRY RECALL
HIGH SPEED RAIL AUTHORITY WAS
CREATED UNDER THE TERMS OF THE
BALLOT MEASURE.
PERCENT NO.
THE AUTHORITY ITSELF IS CREATED
STATUTES.
PRIOR TO THE.
TO THE TO THE BALLOT MEASURE TO.
PRIOR TO THE BALLOT MEASURE
PRIOR TO THAT YES MEASURE
YES AT ONE POINT IN TIME.
FORGIVE ME I MAY NOT HAVE ALL
THIS HISTORY EXECUTIVE BUT IT
WAS THE COMMISSION AT ONE POINT
IN TIME JUST WITH THE STUDY.
THEN IT BECAME A AND AUTHORITY
WITH APPOINTED MEMBERS THAN IT
WAS AT A BALLOT MEASURE THAT
PASSED AND SINCE THAT TIME
THEY'VE HAD SOME EXPANDED
ENABLING. STATUTES AND WHAT I'M
GETTING AT HERE IS OR WHERE I
WANT TO GO WITH THIS IS WHAT
EXACTLY ARE THE PARAMETERS OF OF
RESPONSIBILITY THAT ARE
ALLOCATED TO THE HIGH SPEED RAIL
AUTHORITY.
BECAUSE WHEN I HEAR.
MIKE RESPECTFULLY MY COLLEAGUES
ASKING YOU TO WEIGH IN ON
WHETHER.
YOU KNOW SOMETHING SHOULD GO TO
THE VOTERS ARE NOT THAT TO ME IS
SOMETHING THAT THE GOVERNOR MAY
ONE ASK US TO DO BUT IT IS
WITHIN. THE.
RESPONSIBILITIES OF THE
LEGISLATURE.
I THOUGHT I JUST.
IF YOU CAN CLARIFY FOR US WHAT
TO A.
YOUR RESPONSIBILITIES AT ME
GENERALLY THE AUTHORITIES
RESPONSIBILITIES ARE TO DEVELOP
AND IMPLEMENT THIS IS.
THE HIGH SPEED RAIL SYSTEM AND
THAT AT A VERY HIGH LEVEL LET'S
WITH THEIR CHARGED WITH DOING.
AND.
AYE PRIME ARE.
I'M APPOINTED BY THE BOARD.
AND. RESPONSIBLE TO THE BOARD
TO A MANAGE THE ORGANIZATION
TOWARD THAT TOWARD THAT
OBJECTIVE.
THANK YOU I JUST I THINK IT'S A
OF HEALTH FOR FOR US TO STEP
BACK SOMETIMES AND REMEMBER WHAT
THE STRUCTURE IS AND IT IS VERY
COMPLICATED DATA.
IT'S A COMPLICATED.
A STRUCTURE.
THAT DOES A WHO IS RESPONSIBLE
FOR A VERY COMPLICATED PROJECT.
AS WE LEARNED FINANCIAL BASIS.
MISTER MONNING OF COURSE.
YEAH THANK YOU MISTER CHAIR AND
THANK YOU MISTER KELLY FOR THE
PRESENTATION. FOR YOUR CANDOR.
A FOR YOUR PRIOR SERVICE.
AS ARE TRANSPORTATION SECRETARY
CAN THINK OF NO BETTER PERSON TO
TAKE OVER THIS.
HERCULEAN TASK.
THEN YOU UP PIECING THIS ALL
TOGETHER.
STATE AND FEDERAL AND WE NEED A
BETTER FEDERAL PARTNER.
A GOING FOR THERE'S NO QUESTION
ABOUT IT.
TO MAKE THIS ALL A REALITY IN
PARTICULAR WANT TO CALL OUT AND
AND.
THANK YOU FOR THE NOT
PARTNERSHIP WITH CALTRAIN YOU
MENTIONED THE.
EXTENSION TO GILROY WHICH WILL
BE CRUCIAL FOR PHASING OUT THE
DIESEL. ARE IN THAT WHAT IS
BEING CALLED THE NORTHERN
CALIFORNIA BOOK AND PROJECT I
KNOW WHAT IS THE CALICO TRAIN
ELECTRIFICATION PROJECT.
IN THOSE ULTIMATELY THE.
A SHARED SYSTEM.
WHICH IS A.
TRULY.
.
FUNDAMENTALLY IMPORTANT FOR ALL
THE SILICON VALLEY REGION A YOU
KNOW WE HAVE A VERY LOW
UNEMPLOYMENT RATE. LOTS OF.
REVENUE GENERATION OUT WELL
GENERATION.
BUT EMPLOYERS ARE HAVING LOTS
OF DIFFICULTY.
WITH RETAINING EMPLOYEES GIVEN
THE COST OF LIVING IN THAT AREA
BUT THIS ENTIRE ELECTRIFIED THE
PROJECT IS GOING TO. BE
TRANSFORMATIVE ECONOMICALLY
ENVIRONMENTALLY.
AND YOU HAVE BEEN AN EXCELLENT
PARTNER WHICH OF HARD THAT I SEE
SEAMUS MURPHY FROM CALTRAIN
HERE.
ALL I'VE SEEN.
GOVERNMENT AT WORK IN A
COLLABORATIVE WAY IN THAT ENTIRE
CORRIDOR LOOKING AT IT.
HOLISTICALLY NOT ONLY THE
CALTRAIN LINE
THE HIGHWAY ONE A ONE GIVEN THE.
A MAJOR EMPLOYERS WE HAVE AYE IN
THAT AREA AND THE ECONOMIC AND
BUDGET IMPORTANCE TO THE STATE
OF CALIFORNIA SO I'M GRATEFUL OF
FOR THE WORK. I IN THAT REGARD
AND.
LOOK FORWARD TO A CONTINUAL
UPDATES AND HOPEFULLY I AS THIS
PROJECT RULES OUT AND AS IT
BECOMES A REALITY.
WE CAN GET SOME MORE FEDERAL
ASSISTANCE TO MAKE THIS ALL. OUT
WORK BUT I THINK YOU FOR TAKING
ON.
THIS OF THE MASSIVE CHALLENGE
IN FRONT OF YOU AND I HAVE FULL
CONFIDENCE. IN YOUR ABILITIES
AND.
THE OVERSIGHT CAPABILITY HERE
OF SUB THREE AS WILL BE GETTING
CONTINUAL UPDATES OF ALL AS THE
PROJECT WAS FOR BUT THANK YOU
FOR THE PRESS TO.
THANK YOU SMALL.
PATTERSON.
WITH RESPECT TO COST AND TIME
AND AND IF I.
I'M NOT.
UNDERSTANDING IT.
PRECISELY.
IT APPEARS TO ME.
THAT BACK WHEN.
THE AUTHORITY GOT THE FEDERAL
MONEY.
THERE WAS A.
THERE WERE CONDITIONS ON IT TO
USE IT SO YOU GET IT OUT FAST.
MY UNDERSTANDING IS THAT AS A
RESULT OF THAT WE WERE WE WERE
ACTUALLY.
SHOVING A LOT OF MONEY INTO
CONSTRUCTION WHEN WE DID NOT
HAVE PROPERTY.
AND THAT'S THAT HAS BEEN A
SIGNIFICANT.
PROBLEM WITH RESPECT TO COST.
AND DELAY.
IT SEEMS TO ME THAT SOMEWHERE IN
SOME OF YOUR EARLY.
COMMENTS AND MAYBE IN THE MEDIA.
THAT YOU YOU ARE RECOGNIZED THAT
I THINK.
YOU CHARACTERIZED IT AS WE WE
DIDN'T.
WE COULD NOT BUT WE DIDN'T.
REALLY.
PRICE IN AND ANALYZE THE COST
AND DELAY RISKS OF.
THOROUGHLY AND THAT KIND OF
APPROACH.
NOW THAT YOUR AT THE HELM OUR
WILL THAT BE A.
SIGNIFICANTLY CHANGED APPROACH
ANOTHER WORDS.
YOU PUT THE MONEY OUT WHEN YOU
GOT THE PROPERTY AND NOT BEFORE.
I APPRECIATE THE QUESTION.
.
CHAPTER FOUR OF OUR BUSINESS
PLAN GOES INTO GREAT DETAIL ON
THAT ISSUE AND YOU'RE RIGHT
THAT.
.
THE FEDERAL DOLLARS THAT WERE
MADE AVAILABLE HAD AN
EXPENDITURE DEADLINE ON THEM.
TO SPEND BY SEPTEMBER TWENTY
SEVENTEEN.
UP SO OF THE AUTHORITY WAS QUICK
INTO GOING TO CAN CONSTRUCTION
CONTRACTS AND. A YOU KNOW IT'S A
LITTLE BIT OF A DOUBLE EDGED
SWORD ARE ON THE ONE HAND. THE
INVESTMENTS IN THE VALLEY HAVE
PAID OFF.
WITH SOME PRETTY IMPRESSIVE
ECONOMIC OUTPUT NUMBERS BY
GETTING THAT CONSTRUCTION GOING
YOU CAN SEE STRUCTURES AND
EMPLOYMENT IN THE AREA.
AND THAT'S ALL EXTRAORDINARILY
POSITIVE ON ON THE DOWN ON THE
FLIPSIDE.
YOU'RE RIGHT THEY DIDN'T HAVE
ALL THE RIGHT AWAY IN HAND A
PRIOR TO GOING A RELEASING THOSE
CONSTRUCTION CONTRACTS WHICH
MEANS.
YOU DON'T HAVE ALL THE RISK.
IDENTIFIED IN MITIGATED AND.
AS A MATTER PRACTICE GOING
FORWARD OF WHAT I'VE SAID IN
WHAT WE NOTED IN THE BUSINESS
PLAN IS THAT MOVING FORWARD.
WE WOULD NOT REPEAT THAT. THAT
APPROACH WE WOULD DATA.
WE WOULD SORT OF HAVE ALL THE
ALL THE THINGS IN THE BOX KNOWN
IDENTIFIED IN MITIGATED TO THE
BEST OF OUR ABILITY BEFORE WE GO
TO CONSTRUCTION CUT THAT HAS CUT
CONTRACTING AND AND.
.
COMMITTING BEFORE PROPERTY HAS
HAS ALSO LED.
BUT AT LEAST I'M AWARE OF ONE
LAWSUIT THERE MAY BE MORE WITH
RESPECT TO THE SMALL.
.
BOB BUSINESS OWNERS THAT HAD THE
CONTRACT.
AND IN A CUP AND THAT THERE'D
THE COMPANY CONTACT ME IN THEM
AND RESTRICT OFFICE AT WILL WITH
CONCERN OVER.
THEN NOT GETTING PAID ON TIME
THAT THERE THAT THEY REALLY NEED
TO BE GETTING PAID ON TIME BUT
BEYOND THAT. WHERE THE LEAST ONE
MAYBE TWO?
LAWSUITS MAKE MAYBE MORE ARE
ARE WITH.
SMALL BUSINESSES THAT MAYBE GOT
A MILLION DOLLAR CONTRACT
FOR UTILITY MOVEMENT AND THAT
MAYBE THEY HAD FIVE OR SIX
PARCELS THEY WERE ABLE TO.
COMPLETE A COUPLE OF THEM HE DID
NOT HAVE ACCESS TO THE BALANCE
OF THEM.
AND AS A RESULT THEY HAVE.
UTILIZED ALL OF THEIR.
.
SURE ANY BOND CAPACITY RIGHT
THAT.
VICTOR
PUT IT UP WHICH MEANS.
THEY DON'T HAVE ANY THE CAPACITY
TO GO AND BID OTHER.
PROJECTS OUTSIDE OF HIGH SPEED
RAIL.
IT SEEMS TO ME THAT COME
CONNECTS BACK TO.
DECISIONS.
TO CONTRACT AND PUSH MONEY OUT
BEFORE YOU HAVE THE PROPERTY
WHICH NOW HAD THAT. DOMINO
EFFECT OF HITTING SOME OF THE
SMALL BUSINESSES.
I'M AND I'M NOT SO I'M I'M EPRI
SHEET THAT YOU'RE AWARE OF IT
YOU UNDERSTAND IT AND DOWN
HOPEFULLY THAT IT DOES NOT
HAPPEN AGAIN.
I.
I AGREE THANK YOU APPRECIATE
THAT THANKLESS AND MISTER KELLY
I HOPE IT DOESN'T HAPPEN AGAIN
UP BUT I ALSO HOPE THAT WE DON'T
HAVE ANOTHER GREAT RECESSION AND
ONE OF THE REASONS. THAT THE
FEDERAL GOVERNMENT.
WAS PUSHING TO HAVE THAT MONEY
SPENT BY TWENTY SEVENTEEN IS TO
GET THAT FUNDING ON THE GROUND
PEOPLE HIRED AND WORKING.
IN ONE OF THE AREAS OF GREATEST
UNEMPLOYMENT.
CONTINUES TO BE THE CASE
UNFORTUNATELY.
BUT WAS ONE OF THE AREAS OF
HIGHEST UNEMPLOYMENT.
IN IN THE STATE AND MY
UNDERSTANDING IS THAT. ON FOR
THE FIRST TIME SINCE THE GREAT
RECESSION UNEMPLOYMENT AND
FRESNO COUNTY IS NOW DOWN BELOW
TEN PERCENT.
A AND THAT GROWTH THERE.
IN IN FRESNO COUNTY IS
OUTPACING THE REST TO THE STATE
THERE'S THIRTY ONE HUNDRED FULL
TIME JOBS THAT ARE.
.
EXISTING NOW AS A RESULT OF A
OF THIS PROJECT IN THAT AND THAT
FUNDING SO.
YE AYE I GET THE YOU KNOW THE
DOWNSIDE IS YOU ARE AND I'M NOT
FAULTING YOU FOR THIS BUT YOU
KIND OF GLOSSED OVER THE FLIP
SIDE OF IT POSITIVE BENEFIT.
THAT.
THOUGHT THAT THIS IS
BOB BROUGHT TO THE STATE YOU DID
MENTION A JOB THAT YOU DID A
VERY VERY QUICKLY. AND I ITEM I
THINK.
WHEN WE EVALUATED PROJECT OF
THIS MAGNITUDE WE HAFTA TO LOOK
AT EVERYTHING THAT'S OUR
RESPONSIBILITY HERE AND IN THIS
COMMITTEE AND.
THE OF THE ECONOMIC BENEFIT OF
A PROJECT LIKE THIS SIMPLY
CANNOT BE UNDERSTATED
PARTICULARLY IN A COUNTY THAT
HAS SUFFERED THE. WORST
UNEMPLOYMENT IN THE STATE OF
CALIFORNIA. CLUB FRESNO COUNTY.
HAS SEEN TWO BILLION DOLLARS IN
ECONOMIC ACTIVITY ABSENCE THE
PROJECT BROKE GROUND IN TWENTY
FIFTEEN.
THAT'S A LOT OF MONEY TO BE
SPENDING IN ONE COUNTY AND I'M
GLAD THAT WE ARE.
YES MISTER CHAIRMAN I IN I I
THINK I SAID WAS SORT OF A
DOUBLE EDGED SWORD THE UPSIDE
IT'S CERTAINLY BEEN ECONOMIC
IMPACT FROM THE. THE INVESTMENT
IN OUR WE MOVING FORWARD WITH
THE ASSETS THAT THAT ARE
IMPORTANT BUT.
YOU SAID EIGHTEEN HUNDRED TRADE
WILL QUOTE CRAP LABORS ARE OUT
WORKING ON THE JOB TODAY A THAT
NUMBER WILL GROW AS WE GET IT
EXPANDED CONSTRUCTION SITES.
GOING TO FOURTEEN THIRTY SEVEN
SMALL BUSINESSES AND AT A
CALIFORNIA BEEN WORKING ON THE
PROJECT FROM UP AND DOWN THE
STATE.
AND I THINK BY ONE ESTIMATE
ABOUT A THIRD OF THE JOB
CREATION INTO
ECKSTINE SEVENTEEN.
A PRESENT COUNTY WAS TIED TO
THIS PROJECT SO VERY PROUD OF
THAT AND THEN THINK THAT THERE'S
NO DOUBT IT IS HAD THIS GREAT
ECONOMIC IMPACT DESPITE. THE
INFUSION OF THE DOLLARS IN IN
THIS INVESTMENT AND THEN AS I
SAID. THERE ARE THREE ELEMENTS
OF THIS PROJECT THAT I AM SO
ATTRACTED TO IT FOR AND THAT IS.
ENVIRONMENTAL.
MOBILITY AND.
ANNA AND ECONOMIC
AND THE ECONOMIC NUMBERS ARE A.
ARE LOUD IN THE CENTRAL VALLEY
WILL EXPAND. AS WE.
IS WE MOVE THE PROJECT FORWARD.
NOW.
YOU ALSO RESPONDED TO AN
EARLIER QUESTION AND ABOUT THE.
.
A COST OF THE PROJECT AND DATA.
YOU KNOW WHETHER THE PROJECT
BILL HAS VALUE EVEN IF THE COST
GOES UP.
DIFFERENT NOT AND YOU MENTIONED.
THAT YOU NEEDS TAKE INTO
CONSIDERATION WHAT WERE
MEASURING AGAINST AND YOU
MENTIONED DATA.
HIGHWAY EXPANSION AND AIRPORT
EXPANSION AS TWO OF THOSE YOU'RE
THE FORMER TRANSPORTATION
SECRETARY SIERRA.
THE PROBABLY THE IDEAL PERSON
TO BE ASKING THIS QUESTION AND
THAT IS.
HOW MUCH CAPACITY DO WE HAVE IN
THE STATE OF CALIFORNIA TO
ACTUALLY SPEND MONEY TO A A
EXPAND HIGHWAYS? ARE AND AND TO
EXPAND AIRPORTS AND. ADDED A
LAWYER ANSWERING THAT QUESTION
OF YOU MIGHT WANT TO.
A TOUCH ON WHETHER OR NOT
AIRPORT EXPANSION HIGHWAY
EXPANSION IF WE COULD DO IT.
COMPORTS WITH OUR CLIMATE CHANGE
GOALS.
.
THE SHORT ANSWER IS IT'S VERY
CONSTRAINED IN.
MANY AREAS OF THE STATE
PARTICULAR URBAN AREAS IN TERMS
OF.
THE ABILITY TO EXPAND. HIGHWAYS
FURTHER IN SOME PLACES THE
HIGHWAY STRUCTURE IS LARGELY
BUILT OUT. IN AN URBAN AREAS.
IN OTHER AREAS THERE SOME
OPPORTUNITY AYE.
AYE.
AND OF COURSE I THINK EVERY
MAJOR AIRPORT IN CALIFORNIA IS
LOOKING TO EXPAND IN SOME WAY IN
THE HAVING GREAT DIFFICULTY IN
IN DOING SO.
I AS A SORT OF CLIMATE CHANGE A
MATTER OBVIOUSLY.
A TO ME THAT THAT THE BENEFIT
THAT THAT I SEE SO ATTRACTIVE
ABOUT THE OPPORTUNITY TO PROVIDE
CALIFORNIANS WITH AN ADDITIONAL
WAY TO MOVE BETWEEN TWO POINTS.
IN A FRACTION OF THE TIME IT
TAKES IN TO DRIVE TODAY IS THE.
IS TO ME THE ONE OF THE KEY
BENEFICIAL ELEMENTS OF THIS
PROJECT AND I'M TRYING TO
PROVIDE.
I CALIFORNIANS WITH AN
OPPORTUNITY GET BETWEEN A AND B.
HAD A FRACTURE THE TIME THEY CAN
OTHERWISE DO IT.
.
AND AND SO A THAT IS IS THE KEY
ELEMENT IN OBVIOUSLY.
SIMPLY.
ADDING MORE LANES AND MORE CARS
WOULD WOULD.
CONTINUE WHAT HAS BEEN OF A
LONG HISTORY CALIFORNIA OF
SERIOUS CONGESTION AND AIR
QUALITY ISSUES.
THAT IF YOU OVERLAY.
.
WHERE THIS PROJECT WOULD BE IT'S
MOST MOST?
THE AREAS MOST IMPACTED BY BOTH
THOSE ISSUES.
SO.
YOU KNOW IN SHORT IT'S A.
IT'S A GOOD TRAVEL ALTERNATIVE
MADE AVAILABLE TO CALIFORNIA'S
THAT HAVE A LOT OF UPSIDE IN
TERMS OF MOBILITY IN
ENVIRONMENTAL AND.
AND THAT'S WHY I'M SO INTERESTED
IN.
THANK YOU I OF MY COLLEAGUE FROM
SAN MATEO.
A MENTION THE HOUSING ISSUE AND
AND.
AT THE NEED TO MOVE PEOPLE FROM
A HIGH DROPS RICH AREAS TO
HOUSING RICH AREAS AND TO WORK
ACT. CREATE NEW OPPORTUNITIES
FOR HOUSING AND JOBS IN VARIOUS
PARTS. OF THE OF THE STATE I
CERTAINLY THINK THAT'S SOMETHING
THAT WE NEED TO FOCUS ON BUT WE.
.
I THINK OFTENTIMES LOSE SIGHT
OF THE FUNDAMENTAL REASONS THAT
THE HIGH SPEED RAIL.
.
THAT THAT THE REASONS FOR
BUILDING A HIGH SPEED RAIL
PROJECT.
AND TO IT'S WORTHWHILE FOR US
TOUCH ON THOSE PERIODICALLY. I A
FOR THOSE WHO OF A FOLLOW MY.
TWITTER ACCOUNT.
.
FOLKS HAVE SEEN MAY.
OUT GET UPSET AS I SIT ON THE
TARMAC.
AT AT AND LA ACTS BECAUSE THERE
AREN'T GATES OPEN.
I AND THAT AND WE HAVE TO THINK
ABOUT.
WHERE WE ARE IN TIME AND WHERE
WE WANT STATE OF CALIFORNIA TO
BE IN THAT IN A FEW YEARS TO WE
WANT OUR REMAIN STATIC AND NOT
BE ABLE TO IMPROVE OUR
INFRASTRUCTURE SO THAT WE CAN?
ACCOMMODATE A GROWING POPULATION
SO THAT WE CAN A ACCOMMODATE.
THE TRANSFER NAY TATIAN NEEDS OF
FLOOD OF COMING DECADES AND FOR
NOT THINKING BIG PICTURE ABOUT
THAT THAT I THINK WERE REALLY
MAKING A BIG MISTAKE.
SO I THANK YOU VERY MUCH FOR
YOUR PRESENTATION OF THERE'S NO
ADDITIONAL QUESTIONS WE HAVE
ACTUALLY HAVE TWO OTHER PANELS
ON THE. ON THIS.
TOPIC OF SUB TACTICS THEIR
RENDON TO WILLA. MOVE ON TO A
PANEL NUMBER TO THANK MISTER
CHAIRMAN.
REST YOUR STAFF CAN BE SO QUIET
EXTENT.
IF THEY THEY MIGHT PREFER IT
THAT WAY.
OF. PANEL TO.
IS AN EVALUATION OF THAT TWENTY
EIGHTEEN DRAFT BUSINESS PLAN WE
HAVE.
AT LEE THOMPSON THE CHAIR OF
THE CALIFORNIA HIGH SPEED. RAIL
PEER REVIEW GROUP. A AND THAT
TOM VAN HE.
IT'S GOING POLICY ANALYST WITH
THE.
LA JOH.
AND WE'LL START WITH MISTER
THOMPSON.
WELCOME SIR.
THANK YOU MISTER CHAIRMAN OF I'M
I'VE MONTH.
IT'S AN OPPORTUNITY THAT I'M
GRATEFUL FOR IT TO APPEAR BEFORE
YOU TODAY.
MY NAME IS LUKE THOMPSON I'M THE
CHAIRMAN OF THE PEER REVIEW
GROUP THE REPORTS THE
LEGISLATURE ON ISSUES RELATED TO
HIGH SPEED RAIL AUTHORITIES
BUSINESS PLANS AS YOU MAY KNOW.
THE PEER REVIEW GROUP WAS
CREATED AND PROPOSITION ONE A
THEY'RE SUPPOSED TO BE EIGHT OF
US THERE HAVE BEEN. DOING THREE
AND SEVEN THAT ONE TIME AT THE
OTHER.
AND OUR JOB OFFICIALLY IS TO
COMMENT ON THE BUSINESS PLANS
BUT WE ALSO HAVE COMMENTED ON
OTHER THINGS THAT THE AUTHORITY
IS DOING. THAT WE THOUGHT WOULD
BE OF INTEREST TO THE
LEGISLATURE WE HAVE THUS FAR
WRITTEN FIFTEEN LETTERS TO THE
LEGISLATURE ON ONE OR THE OTHER
TOPICS MANY OF THE BUSINESS
PLANS BUT. OTHER TOPICS THAT WE
HAVE THOUGHT WERE IMPORTANT.
WE SENT A LETTER TO THE
LEGISLATURE COMMENTING ON THE
DRAFT TWENTY EIGHTEEN BUSINESS
PLAN ON MARCH THE THIRTIETH.
I WANT TO SUMMARIZE YOUR
COMMENTS HERE TODAY THEY FALL
INTO TWO CATEGORIES ONE IS THE
POLICY CHANGES.
AND THE OTHER OR SOME
SUBSTANTIVE COMMENTS THAT WE
HAVE ON THE BUSINESS PLAN
ITSELF.
A POLICY ISSUES I BELIEVE ARE
MUCH MORE IMPORTANT THAN THE
DETAIL COMMENT SO I WANT TO
ADDRESS THEM FIRST.
THE GROUP BELIEVES THAT THE HIGH
SPEED RAIL PROJECT HAS NOW
REACHED A POINT WHERE DIFFICULT
DECISIONS NEED TO BE MADE ABOUT
THE PROJECTS FUTURE SCOPE IN
FUNDING. QUITE SIMPLY.
AS A RESULT OF COST INCREASES IN
CHANGES IN FUNDING SOURCES.
THE AUTHORITY CAN NO LONGER
COMPLETE THE LINK FROM THE
CENTRAL VALLEY TO EITHER THE LA
BASIN OR SAN JOSE AND THE
PENINSULA.
THE US AS IT STANDS TODAY THERE
IS LITTLE PROSPECT OF THE SYSTEM
THAT WOULD GENERATE ENOUGH CASH
FLOW. PICTURE HERE CONTRIBUTE TO
FUTURE INVESTMENT.
THIS BILL LIMIT DOES NOT COME AS
A SURPRISE IT HAPPENS NEARLY
EVERY TIME WHEN WE TRY TO
TRANSLATE A MEGA PROJECT FROM A
GRAND VISION.
INTO A WORKING SYSTEM AND IS NOT
NECESSARILY A REFLECTION ON THE
CONFIDENCE HER HONESTY OF THE
PEOPLE WHO ARE TRYING TO RUN THE
PROJECT.
THE CRITICAL QUESTION THOUGH IS
WHERE DO WE GO FROM HERE.
THE DRAFT PLAN DOESN'T REALLY
DISCUSS OPTIONS IN ADDRESSING
THIS QUESTION OF MISTER
PATTERSON YOU RAISED THIS
QUESTION.
THE GROUP PLAYED OUT FOR VERY
GENERAL OPTIONS IN OUR LETTER
BUT WE DON'T PRETEND THAT THESE
ARE THE ONLY ONES ARE THAT
PEOPLE COULDN'T COME UP WITH
BETTER ONES.
THE FIRST OPTION IS WE COULD
JUST STOP AND GO HOME PAYOFF
WATER WE HAVE TO PAY OFF IT
STOPPED.
THE SECOND IS WE COULD COMPLETE
THE WORK IN THE CENTRAL
VALLEY-ALONG WITH WHATEVER
CONTRACT
OBLIGATIONS WE HAVE ON THE
BOOKENDS.
THE THIRD WE COULD ADOPT WHAT IS
IN EFFECT THE PROPOSAL IN THE
DRAFT PLAN.
ANNA ANNA CONNECTION TO GILROY
IN BAKERSFIELD AND APPROVE THE
LA UNION STATION WHILE AWAITING
BETTER COMMAND OVER THE DESIGN
AND COST OF BETRAY CHO PASSED
PANELS.
MORE FOURTH WE COULD RE COMMIT
TO THE FULL PHASE ONE WITH THE
UNDERSTANDING THAT SUCH A
DECISION WOULD HAVE TO BE BASED
ON ADOPTION OF A CREDIBLE LONG
TERM. PLAN TO FINANCE THE
SYSTEM.
INCLUDING THE POSSIBILITY THAT
SYSTEM COSTS MIGHT WELL COMMAND
AT THE UPPER END OF THE RANGE.
WE DON'T DO THE FIRST OPTION
SIMPLY STOPPING AS CREDIBLE.
IT WOULD LEAVE CALIFORNIA WOULD
NOTHING USEFUL AND THE STATE
MIGHT HAVE TO PAY BACK THE
FEDERAL MONEY.
THE SECOND OPTION STOPPING WITH
THE CENTRAL VALLEY PLUS THE
EXISTING BOOKEND IMPROVEMENTS
WOULD WORK.
BUT IT WOULD ELIMINATE THAT IT
WOULD IT WOULD LIMIT THE VALUE
OF THE RESULT.
THE THIRD OPTION IS IN THE DRAFT
PLAN. PROBABLY MAKES THE BEST OF
THE EXISTING SITUATION
ESPECIALLY IN BRINGING NEAR TERM
BENEFITS TO THE MILLIONS OF
CURRENT PASSENGERS. ON THE
BOOKENDS.
BUT IT LEAVES THE STATE SHORT OF
THE SYSTEM THAT WILL BE ABLE TO
CONTRIBUTE TO FINANCING OF THE
REMAINDER OF THE SYSTEM.
THE FOURTH OPTION COMPLETING
PHASE ONE AS ORIGINALLY PLANNED
MEETS THE REQUIREMENTS OF
PROPOSITION ONE A. BUT CANNOT BE
DONE WITH THE CURRENT FUNDING
PROVISIONS AND SOURCES.
SIMPLY PUT WE DO NOT BELIEVE
THAT IT IS FAIR OR CREDIBLE ANY
LONGER TO ASK MANAGEMENT TO
DELIVER A LONG TERM PROJECT OF
THIS SIZE AND COMPLEXITY. WITH
SOURCES OF FUNDING BETTER
INADEQUATE IN TOTAL AND
UNRELIABLE IN ANY GIVEN YEAR.
IF THE PROJECT IS TO GO AHEAD
BEYOND ESSENTIALLY DISHONORABLE.
THE STATE WILL NEED TO DEVELOP A
SOURCE OF FUNDING THAT IS UP TO
THE TASK THIS IS NOT A NEW
ISSUE.
IT WAS HAS ALWAYS BEEN A FUNDING
GAP OF SUCH AS LOVE. MISTER
KELLY SAID AND IT WAS VERY CLEAR
IN THE TWENTY SIXTEEN BUSINESS
PLAN THAT THERE WAS A GAP. THAT
WOULD HAVE TO BE FUNDED IN ORDER
TO BUILD A SYSTEM TO THE POINT
WHERE IT COULD BEGIN TO GENERATE
POTENTIAL INVESTMENT FROM THE
PRIVATE SECTOR.
WHAT IS NEW IS INCREASING SIZE
OF THE GAP ALONG WITH THE CLEAR
UNDERSTANDING OF THE NEED TO
MAKE HIGH SPEED RAIL AUTHORITIES
FUNDING STABLE AND PREDICTABLE?
THEIR OBVIOUS WAYS TO FILL THE
GAP
INCREASED THE CAN'T SHARE OF CAP
AND TRADE RECEIPTS GOING TO THE
AUTHORITY. AND GUARANTEE THE
AUTHORITIES INCOME.
A TAX ON FUELS OUR SALES TAX WAS
PROPOSED IN THE TWO THOUSAND
BUSINESS PLAN.
THERE ARE OTHER SOURCES THAT
MIGHT EMERGE LIKE FUTURE FEDERAL
GRANT PROGRAMS FEDERAL PROBLEM
WILL NEED TO BE
ADDRESSED IN ONE WAY OR ANOTHER
IF EVEN THE THIRD OPTION IS TO
BE COMPLETED.
IN PARALLEL WITH DEALING WITH
THE NEED FOR AN IMPROVED
APPROACH THE FUNDING ESPECIALLY
THE STATE'S ROLE BECAUSE THE
STREETS ROLE IS LIKELY TO GROW.
WE RECOMMEND THAT THE
LEGISLATURE RE VALIDATE THE
PRIORITY THE HIGH SPEED RAIL IN
THE LIGHT OF THE COMPETING
THEY'LL USE ELSEWHERE IN
TRANSPORTATION AND ELSEWHERE IN
THE OVERALL BUDGET.
THIS IS A TASK AT THE GOVERNOR'S
OFFICE IN THE DEPARTMENT OF
TRANSPORTATION ALONG WITH THE
COMMUNITIES AFFECTED WOULD BE
WELL SUITED TO CARRY OUT FOR THE
LEGISLATURE.
WE DO HAVE SOME RECOMMENDATIONS
AS I SAID AT THE OUTSET FOR
SPECIFIC CHANGES IN THE FINAL
PLAN.
THEY SHOULD INCLUDE INPUTS FROM
NEARLY OPERATOR WE HAVE
RECOMMENDED FOR MANY YEARS AND
THE EARLY OPERATOR WOULD BE ABLE
TO ADVISE THEM ON HOW TO BUILD
THE SYSTEM AND HOW IT SHOULD BE
NATURE PLANT OPERATOR.
THOSE INPUTS ARE NOT YET
AVAILABLE BUT THEY SHOULD BE
MADE AVAILABLE AS SOON AS
POSSIBLE.
THEY SHOULD PROVIDER BETTER IT
AND IT EXPLANATION OF THE
BUSINESS MODEL.
IT MAY LOOK LIKE THIS IS A
CONSTRUCTION PROJECT RIGHT NOW
AND IT IS BUT THAT'S NOT WHAT IT
IS LONG RANGE THEY'RE ACTUALLY
BUILDING A BUSINESS TO SERVE THE
PEOPLE OF CALIFORNIA AND YET THE
THEY WAY IN WHICH THEY WANT TO
PROVIDE THAT BUSINESS INSTRUCTOR
THEMSELVES IS NOT AT. ALL CLEAR
AND THAT NEEDS TO BE CLARIFIED.
THEY NEED TO PUT MORE EMPHASIS
ON DEVELOPING DETAILED
AGREEMENTS WITH THE BOOK AND
OPERATORS AND THE PRE PARROTS
THUS FAR.
THOSE AGREEMENTS HAVE NOT
REACHED THE LEVEL AT WHICH THEY
REALLY NO HOW'S IT GOING TO
HAPPEN EIGHT HOW MUCH IS IT
GOING TO COST AND HOW WELL THEY
WORK TOGETHER.
THEY NEED TO DEVELOP A LONG
RANGE PROGRAM FOR ADDRESSING
GREAT CROSS
ESPECIALLY BECAUSE THE SECTION
GILROY TWO OF. SAN JOSE NOW WILL
BE MORE OF A CONVENTIONAL
OPERATIONS WILL BE EVEN MORE
GRADE CROSSINGS THAN THERE ARE
NOW.
AND HIGH SPEED TRAINS DON'T MIX
WITH GREAT PRICE.
THEY NEED TO CLARIFY THE
PERFORMANCE OF THE SYSTEM AS
THEIR SHOWN IN THEIR TRIP TIME
CALCULATIONS AND SCHEDULED
BECAUSE THE STRUCTURE OF THE
SYSTEM HAS CHANGED. AND
THEREFORE HOW WILL IT OPERATE
AND FUTURE.
THEY NEED TO CONTINUE THE
EMPHASIS ON SHOWING THEIR
PROJECTION AS RANGERS RATHER
THAN POINT ESTIMATES
ACTUALLY. THERE IS NO POINT
ESTIMATE THAT THE THERE'S A HIGH
LEVEL THERE'S A LOW LEVEL AND
ALL KINDS OF OUTCOMES IN BETWEEN
THERE MAY NEED TO DO A BETTER
JOB OF PRESENTING THAT.
AND THEY NEED TO PROVIDE BETTER
ACT OF BACKUP FOR THEIR CLAIMS
FOR BENEFITS IN PUBLIC BENEFITS
URBAN AND REGIONAL DEVELOPMENT.
WELL WE HOPE THESE CAN BE
ADDRESSED IN THE FINAL PLAN WE
BELIEVE THE LEGISLATURE'S
IMMEDIATE FOCUS SHOULD BE ON THE
FUNDING AND POLICY ISSUES.
THANK YOU.
THANK YOU MISTER THOMPSON NO YOU
ALWAYS FIND A VERY OUT OF THE
PRESENT US WITH A VERY
ORGANIZED.
AWARE FRAMING THE ISSUES I
REALLY. APPRECIATE THAT WE'RE
GONNA PAUSE FOR A MOMENT SINCE
WE HAVE A FULL. OF CRAP
COMPLEMENT TO HAVE FOR. A
COMMITTEE MEMBER SUBCOMMITTEE
MEMBERS HERE AND.
HANDLE OUR BUSINESS ON THE.
VOTE ONLY CALENDAR.
BUT FIRST WE WILL TAKE ROLE.
BLOOM.
HERE FARM. KALRA.
MULLIN.
PATTERSON.
MY UNDERSTANDING IS SAID THERE'S
AGREEMENT ON ISSUES ONE THREE
THREE SEVEN TEN THROUGH
EIGHTEEN.
AND TWENTY THREE TWENTY FOUR.
WANDA ON THE VOTE ONLY COUNTERS
ARE MOTION.
THANK YOU SO.
THE MOTION A SECOND LET'S VOTE%
BLOOM. AYE FONG. KALRA.
MULLIN PATTERSON.
WE ARE MOTION ON ITEM NUMBER TWO
ISSUE TO.
ON THE VOTE ONLY CALENDAR.
BLOOM.
I FONG.
KALRA.
MULLIN.
PATTERSON.
ISSUE EIGHT.
WE HAVE A MOTION.
BLOOM.
I FONG. KALRA.
MULLIN.
PATTERSON.
ISSUE NINE.
BLOOM.
I FONG.
LARA.
MULLIN. PATTERSON.
AND FINALLY ISSUE NINETEEN.
BLOOM AYE FONG KALRA. MULLIN.
PATTERSON.
THANK YOU THAT DATA COMPLETE THE
VOTE ONLY CALENDAR AND LET ME
WELCOME A. ASSEMBLY MEMBER CAR
WAY TO.
OUR.
ASSEMBLY SUBCOMMITTEE IS HERE
ON TEMPORARY ASSIGNMENT TO HAVE
TO GO FIND THIS.
INTERESTING TO.
WORTHWHILE.
TIME SPENT.
ALRIGHT WHO WE GOT NEXT.
DISTURBED AND HE.
GOOD MORNING GOOD MORNING I
BELIEVE A HAND OUT HAS BEEN
PASSED OUT AT ITS.
GREAT MY REMARKABLE PARALLEL
INTO TO FEEL FREE TO. FOLLOW
LONGTIME EQ WITH THE LA O. ROSS
BROWNER OFF HIS CAP AND TRADE
EXPERT IS ALSO HERE. WITH US
THIS MORNING PANEL TO ANSWER
QUESTIONS IN THAT REGARD
SPECIFICALLY.
AS YOU KNOW STATE LAW REQUIRES
THE CALIFORNIA HIGH SPEED RAIL
AUTHORITY TO PREPARE A BUSINESS
PLAN EVERY EVEN YEAR THAT
PROVIDE CERTAIN KEY INFORMATION
ABOUT THE PLAN HAS BEEN REAL
PROJECT OUR OFFICE TYPICALLY
REVIEWS THAT PLAN OFFERS
COMMENTS ANALYSIS IN A SETTING
SUCH AS THIS ONE.
THIS PRESENTATION THIS MORNING
GOING TO PROVIDE SOME BACKGROUND
INFORMATION ON THE PLAN TAKES BE
REAL SYSTEM.
DESCRIBE MAJOR CHANGES PROPOSED
IN THE DRAFT TWENTY EIGHTEEN
BUSINESS PLAN AND IDENTIFY
ISSUES FOR LEGISLATIVE
CONSIDERATION.
WE PICKING UP TO HAND OUT ON
PEACH TO AND.
WHICH IS SUCH THAT THE
BACKGROUND OF COURSE PROPOSITION
ONE A WE DISCUSSED THAT THIS
MORNING. IN ADDITION TO.
AUTHORIZING TEN BILLION DOLLARS
IN BONTA FORTY TO SUPPORT
CONSTRUCTION THE PROJECT THAT
ALSO SET A VARIETY OF. SYSTEM
CRITERIA FOR THE STUDENTS IN
NEED INCLUDING TRAIN SPEEDS AND
TRAVEL TIMES BETWEEN CERTAIN
KEY.
DESTINATIONS.
OVERALL THE PROJECT VISION HAS
BEEN DIVIDE INTO TWO PHASES
AB IS ONE OF THE SYSTEM WOULD
PROVIDE SERVICE FOR ABOUT FIVE
HUNDRED MILES. FROM SAN
FRANCISCO TO ANAHEIM PIECE TO
WOULD CONNECT THAT SYSTEM NORTH
OF SACRAMENTO AND SELF THE SAN
DIEGO.
IN TWENTY SIXTEEN THE AUTHORITY
ESTIMATED FEE IS ONE OF THE
SYSTEM WOULD BE COMPLETED IN
TWENTY TWENTY NINE. AT A COST OF
SIXTY FOUR BILLION DOLLARS AND
AT THIS TIME IS NOT PROVIDED
ESTIMATES OF THE COST OR
SCHEDULE FOR FEES TO.
ON PAGE THREE ALL DISCUSS THE
PROJECT DELIVERY PLAN FOR PHASE
ONE.
PLEASE ONE HAS BEEN DIVIDED INTO
SEGMENTS.
THE INITIAL OPERATING SEGMENTS
WHEN WE DISCUSSED THIS MORNING
THAT WOULD CARRY PASSENGERS FROM
THE SILICON VALLEY TO THE
CENTRAL VALLEY AND IS COMMONLY
REFERRED TO AS THE VALLEY TO
VALLEY WINE. IN TWENTY SIXTEEN
THE AUTHORITY ESTIMATED THAT THE
I. O. S. WOULD COST ABOUT TWENTY
ONE BILLION DOLLARS INITIALLY
OPERATE BETWEEN SAN JOSE. AND
ADJOURNMENTS OR THE BAKERSFIELD
STARTING IN TWENTY TWENTY FIVE.
CONSTRUCTION OF THE IOWA BEGAN
IN THE CENTRAL VALLEY WITH THE
ICE YES THAT THE INITIAL
CONSTRUCTION SEGMENT THAT'S THE
HUNDRED NINETEEN MILE SEGMENT
RUNNING THROUGH CENTRAL VALLEY.
FROM THAT ERA SOMEONE WITH THE
FRESN TO CHAPTER SOMEWHAT NORTH
OF BAKERSFIELD. IN TWENTY
SIXTEEN THE AUTHORITY ESTIMATED
COMPLETING CONSTRUCTION OF THE I
CS AT A COST OF SEVEN POINT
THREE BILLION DOLLARS.
A PAGE FOR ALL DISCUSS THE
THREE.
PRIMARY SOURCE THE CAPITAL
FUNDING THAT I GOT THE PROJECT
THUS FAR THOSE INCLUDE COURSE
PROPOSITION ONE A BONDS.
THE PROPOSITION AUTHORIZES STATE
SELL TEN BILLION DOLLARS IN
GENERAL OBLIGATION BONDS TO
SUPPORT THE DEVELOPMENT OF THE
HIGH SPEED RAIL SYSTEM.
AT THIS TIME THE STATUS SOLD
ABOUT TWO POINT THREE BILLION
DOLLARS OF THAT AUTHORITY. AND
SPENT WERE COMMITTED ABOUT ONE
POINT SEVEN BILLION DOLLARS OF
THOSE BONDS SOLD.
SECOND OR FEDERAL FUNDS THE
AUTHORITY HAS RECEIVED A TOTAL
OF THREE AND HALF BILLION
DOLLARS IN FEDERAL FUNDS
COMPRISE A GRANT THROUGH THE
AMERICAN RECOVERY AND
REINVESTMENT ACT.
AS WELL AS WHAT'S COMMONLY
REFERRED TO AS THE FY TEN GRANT
AND NINE HUNDRED TWENTY MAY
PUTTING A MILLION DOLLAR GRANT.
WHICH HAS NOT YET BEEN EXPENDED
ON LIKE THOSE ARE FUNDS WHICH
ARE FULLY EXPENDED BY THEIR
DEADLINE IS SEPTEMBER TWENTY
SEVENTEEN.
FINALLY CAP INTRODUCTION
REVENUES.
THE LEGISLATURE ADOPTED
LEGISLATION TO CONTINUOUSLY
APPROPRIATE BEGINNING IN TWENTY
FIFTEEN SIXTEEN TWENTY FIVE
PERCENT OF ANNUAL CAP AND TRADE
OPTION REVENUE FOR THE PLANNING
A CAPITAL COSTS OF FEES ONE. OF
THE HIGH SPEED RAIL PROJECT AT
THIS TIME A TOTAL OF ROUGHLY ONE
AND A HALF BILLION DOLLARS IN
CAP AND TREAT REVENUES HAVE BEEN
PROVIDED TO THE AUTHORITY.
AS OF DECEMBER TWENTY SEVENTEEN
THE AUTHORITY REPORTED SPENDING
ABOUT FIVE HUNDRED EIGHTY THREE
MILLION DOLLARS OF THOSE FUNDS.
ON PAGE SIX ALL BEGAN DESCRIBING
SOME OF THE MAJOR FEATURES OF
THE DRAFT TWENTY EIGHTEEN PLAN
ALTHOUGH CERTAINLY SOME THOSE
BEEN DESCRIBED ALREADY THIS
MORNING SO I WON'T DWELL ON THEM
TO WANT. AB FIRST IT'S WORTH
NOTING AGAIN THAT THE PROJECT
SCOPE TIME MIGHT HAVE CHANGED IN
THE DRAFT TWENTY EIGHTEEN PLAN
VERSES THE LAST ITERATION OF THE
OF A BUSINESS PLAN AND TWENTY
SIXTEEN. THE AYE AYE WEST NOW
WILL EXTEND FROM SAN FRANCISCO
TO BAKERSFIELD RATHER THAN FROM
SAN JOSE TO CHAPTER THAT'S
CONNECTING TO LARGER POPULATION
CENTERS.
THE PLAN ALSO SEEMS A DELAY IN
OPERATION OF THE IOS THAT NOW
PROPOSED TO OPERATE FOUR YEARS
LATER IN TWENTY TWENTY NINE AND
RATHER THAN TWENTY TWENTY FIVE
AS PREVIOUSLY ASSUMED.
THE BOTTOM OF PAGE FIVE HAS A
NAP BILL STREET IN THE VARIOUS
COMPONENTS OF THE PHASE ONE
PROJECTS THAT WHICH COULD BE
HELPFUL.
AS WE'VE HEARD ENTRANCE OFFICES
ARE PROPOSED ON COMPLETED
CONSTRUCTION SEGMENTS.
PREVIOUSLY UNDER THE TWENTY
SIXTEEN PLAN NO REAL SERVICES
WERE EXPECTED TO BEGIN UNTIL FOR
COMPLETION OF THE IOS.
HOWEVER THE DRAFT TWENTY
EIGHTEEN PLAN PROPOSES OPERATING
EARLY ENTRANTS OFFICES ON THE
INITIAL CONSTRUCTION SEGMENT AS
REFERRED AS WELL AS ON THE SAN
FRANCISCO TO GILROY CORD WORK.
THE PLAN SUGGESTS THAT THE
COMPLETED SEGMENTS COULD HOST
ENHANCE CALTRAIN OR AMTRAK
SERVICES WERE POTENTIALLY
ABBREVIATED HIGH SPEED RAIL
OPERATIONS.
PROJECT CONSTRUCTION COSTS HAVE
BEEN REVISED UPWARD AS WE'VE
HEARD THIS MORNING.
AT THE CENTRAL COST ESTIMATE
TODAY'S SEVEN SEVEN POINT THREE
BILLION DOLLARS WHICH IS ABOUT
THIRTEEN BILLION DOLLARS HIGHER
THAN IT WAS IN TWENTY SIXTEEN.
AT CAPITAL COST ESTIMATES ARE
PRESENTED THEM FOR PHASE ONE IN
THE TABLE AT THE BOTTOM OF PAGE%
SIX IN THOSE COMPARE COSTS
BETWEEN SIXTEEN AND EIGHTEEN
PLANTS FOR YOUR REFERENCE.
YOU THIRTY STATES THAT GREATER
CONTINGENCY ESTIMATES COST
ESCALATION TO SCHEDULE BELIEVES
AND INCREASED COSTS FOR
CONSTRUCTION OF THE INITIAL
CONSTRUCTION SEGMENT ACCOUNT FOR
MOST OF THE OVERALL COST
INCREASE FOR THE PROJECT.
TODAY THE DRAFT PLAN REFLECTS AN
INCREASING CONSTRUCTION COSTS
WOULD BE AYE WES FROM TWENTY
POINT SEVEN BILLION DOLLARS TO
TWENTY NINE POINT FIVE.
THE PROJECT FUNDING PLANNED TO
DATE IDENTIFIES FOR FUNDING FOR
THE INITIAL CONSTRUCTION SEGMENT
RIVER THAT THAT HUNDRED NINETEEN
MILES THROUGH THE CENTRAL
VALLEY.
THE SOURCES INCLUDE PROPOSITION
ONE A BOND FUNDS FEDERAL GRANTS
AND CAP AND TRADE REVENUES.
THE PLAN ASSUMES THE FURTHER
EXTENSION OF THE CABINETRY
PROGRAM AND THEN THE
SECURITIZATION OF THOSE REVENUES
TO COMPLETE THE IOWA THING A
FULL OPERATING SEGMENT BETWEEN
SAN FRANCISCO BAKERSFIELD.
THAT MEANS IS EXTENDING THE
PROGRAM THROUGH TWENTY FIFTY
AND.
WHILE THAT PERMITS CURRENTLY
ONLY AUTHORIZED THROUGH TWENTY
THIRTY.
FINALLY THE PLAN ASSUMES
ADDITIONAL FUNDING BECOMES
AVAILABLE FOR THE REMAINDER FACE
ONE. AT THIS TIME THE BALANCE OF
FEES ONE WHICH WOULD BE
CONSTRUCTING SOUTH FROM
BAKERSFIELD INTO WHAT SINGLE
ANAHEIM IS EXPECTED TO COST
FORTY SEVEN POINT EIGHT BILLION
DOLLARS. AND THE DRAFT PLAN
ASSUMES A FUND BECOMES AVAILABLE
TO SUPPORT THOSE COSTS
WHILE THE PLANT IS NOT IDENTIFY
SPECIFIC FUNDING SOURCES AND
AMOUNTS IT DOES DISCUSS THE
POTENTIAL OPTIONS INCLUDING A
COMBINATION OF FEDERAL SOURCES.
WE'RE BORROWING AGAINST THE NET
OPERATING REVENUES OF THE
INITIAL OPERATING SEGMENT.
THE PLAN RAISES SEVERAL ISSUES
FOR LEGISLATIVE CONSIDERATION
THE FIRST BEING THAT THE ACTUAL
PROJECT COST COULD BE EVEN
HIGHER THAN THE SET FOR COST
ESTIMATE INDICATES.
AS WE'VE HEARD THIS MORNING THE
AUTHORITY NOW INTRODUCES COSTS
ANY RANGING THAT IS AN
IMPROVEMENT IN THIS PLAN IS MORE
TRANSPARENT ON THE FULL
POTENTIAL COST OF CONSTRUCTION.
IT DOES MEAN HOWEVER THAT.
PHASE ONE COULD COST AS MUCH AS
NINETY EIGHT BILLION DOLLARS AND
HAS PUT THE SEVENTY SEVEN
BILLION DOLLARS IN THE CENTRAL
COST ESTIMATE.
SECOND THERE SIGNIFICANT
UNCERTAINTIES REGARDING FUNDING
TO COMPLETE THE IOS.
A LARGE PORTION OF THE FUNDING
IDENTIFIED FOR THAT PROJECT
WOULD COME FROM BORROWING
AGAINST FUTURE CAP AND TRADE
AUCTION REVENUES THROUGH TWENTY
FIFTY.
THE US WITHOUT LEGISLATIVE
ACTION TO EXTEND THE CAP AND
TRADE PROGRAM.
IT'S UNLIKELY THAT THOSE FUNDS
WOULD BE AVAILABLE.
TO THE EXTENT THAT THE LEVEL OF
OXEN REVENUES ASSUMED IN THE
DRAFT PLAN DO NOT MATERIALIZE
WERE THE PROJECTS COSTS ARE MUCH
HIGHER THAN ESTIMATED.
THE STATE WOULD ALSO NEED TO
IDENTIFY OTHER FUNDS WERE TO TO
HELP FINANCE THE I WAS INCLUDING
POTENTIALLY THE GENERAL FUND.
THIRD THERE'S NO COMPLETE
FUNDING PLAN FOR THE REMAINDER
OF FEES ONE WHILE THE PLAN
DISCUSSES THE POSSIBILITY OF
SECURE TYPE THING THE NET
OPERATING REVENUES OF THE
INITIAL OPERATING SEGMENT. THERE
ARE POTENTIAL CHALLENGES THIS
APPROACH.
FIRST IT'S UNCLEAR THAT INITIAL
SYSTEM WILL GENERATE AN
OPERATING SURPLUS.
SECOND YOU FORTUITOUS PIZZA
SECURITIZED IN THE NECK CASH
FLOW WOULD MAKE ADDITIONAL
FUNDING AVAILABLE NO SOONER THAN
TWENTY THIRTY TWO. EVEN THOUGH
FUNDS WOULD LIKELY BE NEEDED
EARLIER TO COMPLETE PHASE ONE BY
TWENTY THIRTY THREE AT THE SUIT.
THIRD THE PLAN ESTIMATES THAT
THE AMOUNT OF FUNDING THAT CAN
BE GENERATED WOULD FALL
SUBSTANTIALLY SHORT OF THE LEVEL
NEEDED TO COMPLETE PHASE ONE
DOES NOT SPECIFICALLY IDENTIFY
HOW THAT SHORTFALL.
BE THAT.
IF YOU OF THOSE CONCERNS ARE OUR
FOURTH ISSUE FOR CONSIDERATIONS
MORNING IS THAT IF WILL FUNDING
PLAN. IS CRUCIAL FOR THE HIGH
SPEED RAIL PROJECT SUCCESS
AND AT THIS TIME IT COMPLETE
VITAL FUNDING PLAN DOES NOT
EXIST.
HAPPY DAY ENTERTAIN QUESTIONS.
THANK YOU FOR YOUR REPORT SAID
WE HAVE A QUESTIONS.
PATTERSON FAIRVIEW BACK INFO
ABOUT MISTER PHONE.
I I WANTED.
I WANNA VISIT THAT THAT THE
SPECIFIC PROPOSAL IN THE.
A BUSINESS PLAN WITH RESPECT TO.
.
AND I'M READING FROM THE PLAN.
.
PROHIBIT THE LEGISLATURE FROM
RESTRICTING RE DISTRIBUTING OR
IMPAIRING THE AUTHORITIES CAP
AND TRADE APPROPRIATION FOR
THIRTY YEARS.
EXTENSION OF THE CAP AND TRADE
PROGRAM THROUGH TWENTY FIFTY.
AND GUARANTEE THAT THE
LEGISLATURE WILL BACK FEEL ANY
SHORTAGE IF CAP AND TRADE
AUCTIONS BRING IN LESS REVENUE.
ARE THEN.
.
PROJECTED.
EARLIER AYE AYE AYE QUESTIONED
NO. WITH RESPECT TO THE
VIABILITY OF DOING THIS WITHOUT.
THEY VOTE OF THE PEOPLE BECAUSE
OF THE LEGISLATIVE COUNSEL'S
ADVICE PARTICULARLY THAT.
.
BUT WHAT THE PEOPLE GOING TO BE
REQUIRED.
WHO FUTURE LOOK BUT THE
LEGISLATURE TO COMMIT CRIMES OR
PROHIBIT?
A FUTURE LEGISLATURE FROM
CHANGING AND AN APPROPRIATION.
IT SEEMS TO ME THAT THEY.
FINANCE PLAN WE'RE LOOKING AT
RIGHT NOW.
IS IS I THINK VERY MUCH IF.
BECAUSE I THINK IT'S GOING TO
REQUIRE.
.
BUT A VOTE BECAUSE THE
CONSTITUTION I THINK IT'S PRETTY
CLEAR THAT YOU YOU JUST CAN'T DO
THIS KIND OF.
COMMITMENT.
LEGISLATOR LEGISLATURE THE
LEGISLATURE OVER A LONG PERIOD
OF TIME.
DO YOU CONCUR THAT THAT
FINANCING PLAN DOES HAVE A.
AND ELEMENT TO IT THAT'S GOING
TO REQUIRE OF A VOTER
ENGAGEMENT.
IT COMES DOWN TO THE SPECIFICS
OF THE PROPOSED FINANCIAL.
PACKAGE AND WE HAVEN'T CONFERRED
WITH COUNSEL THIS TIME SOME NOT
POSITION GIVE A DEFINITIVE
ANSWER THAT QUESTION BUT IT
WOULD CERTAINLY DEPEND ON ON THE
DETAILS OF THE PROPOSED
FINANCING. IT'S NOT
INCONCEIVABLE THAT IT WOULD BUT
AS I MENTIONED WITHOUT
CONFERRING WITH COUNSEL IT CAN'T
SEE ANYMORE. WITH RESPECT TO
USING.
IN CAP AND TRADE REVENUE OVER
AN EXTENDED PERIOD OF TIME.
.
I THOUGHT THE PRESUMPTION WITH
RESPECT A CAP AND TRADE THAT
THAT WAS THAT IT WAS GOING TO
DECLINE OVER TIME AS.
THE THE REQUIREMENT TO THE
PURCHASE AND AND TRADE THESE.
.
ALLOWANCES WILL IN FACT CHANGE
OF BEHAVIOR AND THAT.
CO TWO WOULD IN FACT DECLINE
OVER TIME AND THAT.
BUT ULTIMATELY.
CAP AND TRADE SHOULD FULFILL ITS
IT'S.
EXPECTATIONS ON ESSENTIALLY AT
SOMEPLACE GO AWAY.
IT SEEMS TO ME THAT IF YOU'RE
ASKING.
PRIVATE INVESTMENT PEOPLE THE
UNDERWRITERS.
TO TAKE A SIGNIFICANT RISK WITH
THAT KIND OF FINANCING.
WHEN THERE IS A.
THIRTY YEAR BOND REQUIREMENT.
WITH A FLATTENING OR DECLINING.
STREAM OF REVENUE TO PAY
PRINCIPAL AND INTEREST.
THAT IT JUST SEEMS TO ME.
TO BE A.
STREAM OF REVENUE THAT CANNOT BE
COUNTED ON OVER TIME.
WOULD YOU CONCUR WITH THAT IS
THAT A RISK FACTOR IN THIS KIND
OF FINANCING.
CROSS BROWN WITH THE LA EL
ASSEMBLYMAN A MEMBER PATTERSON
CERTAINLY THERE IS.
QUITE A BIT OF UNCERTAINTY
AROUND FUTURE CAP AND TRADE
REVENUES WE'VE DONE SOME LOOKS
OUT TO TWENTY THIRTY BUT
CERTAINLY IF YOU'RE EVEN LOOKING
BEYOND THAT THERE'S EVEN GREATER
UNCERTAINTY ABOUT WHAT THAT
REVENUE STREAM WOULD LOOK LIKE.
I THINK ARGUE AT LEAST IN THE
MEDIUM TERM IT'S NOT ENTIRELY
CLEAR ON THE LONG TERM BUT IN
THE MEDIUM TERM THERE A COUPLE
DIFFERENT FACTORS THAT COULD.
AFFECT THE REVENUE SOME OF THEM
HAVE SORT OF A.
DOWNWARD PUSH ON THE MATTER
REVENUE AS YOU MENTIONED THE
NUMBER OF ALLOWANCES PERHAPS
THAT ARE SOLD IS DECREASING.
THAT'S OFFSET AND TO SOME EXTENT
IT MAY BE EVEN MORE THAN OFFSET
BY POTENTIAL INCREASES IN THE
PRICES OF THOSE ALLOWANCES. SO
LEAST THROUGH TWENTY THIRTY YOU
CAN SORT OF SEE WHERE THOSE
MIGHT.
BALANCE EACH OTHER OUT AND SO
IT'S NOT NECESSARILY THAT A
DECLINE IN REVENUE STREAM. BUT
YOUR POINT ABOUT BUT I BUT ALSO
IT IS IT.
WOULDN'T IT BE TRUE THAT ANY
EXTENSION OF CAP AND TRADE WILL
HAVE TO REACH THE TWO THIRDS
VOTE THRESHOLD NOT MERELY A
MAJORITY VOTE.
BUT I'M NOT SURE WE COULD SORT
SAY WITH ONE HUNDRED PERCENT
CERTAINTY I THINK AT THE VERY
LEAST F.
AN EXTENSION WERE APPROVED WITH
A MAJORITY VOTE THAT WOULD BE A
LOT OF LEGAL UNCERTAINTY AROUND.
YET THE ABILITY TO DO THAT IN
THE PROGRAM AND SO YOUNG AND
THAT CREATES POTENTIAL PROBLEMS
FOR TRYING TO FINANCE BASED ON
THAT.
SO YOUNG THAT I THINK THAT'S A
LEGAL QUESTION THERE WHERE
THERE'S NOT HER PRESENT
UNCERTAINTY BUT CERTAINLY TWO
THIRDS VOTE WOULD.
PROVIDE A LOT MORE UNCERTAINTY
ABOUT THE FUTURE PROGRAM AND
AGAIN I'M I'M I'M BASICALLY
LOOKING AT THIS.
THROUGH THE VIABILITY OF A
FINANCE PLAN THAT HAS THESE
KINDS OF UNCERTAINTIES. AND
THOSE KINDS OF UNCERTAINTIES
INVESTORS GOING TO KNOW ABOUT
AND THE RATING AGENCIES ARE
GOING TO KNOW ABOUT THIS AND YOU
YOU JUST CAN'T HIDE THIS KIND OF
UNCERTAINTY.
AND SO I DO THINK IT'S A RATHER
DUBIOUS APPROACH.
TO THE BIG PICTURE FINANCE AND
AND AND I THINK.
.
IT HAS BEEN SUGGESTED HERE.
THAT SOONER OR LATER THIS
LEGISLATURE IS GOING TO DECIDE
WHETHER IT'S GOING TO FULLY FUND
THIS OR WHETHER IT IS NOT.
AND THAT I BELIEVE IS GOING TO
REQUIRE A A A VOTE OF THE PEOPLE
WE COMMITTED TO CERTAIN THINGS
AND CERTAIN. TIMELINE CERTAIN
SPEED CERTAIN COSTS.
BUT IF WE ARE GOING TO REALLY.
A.
PUT MONEY WHERE ARE OUR OUR
MOUTH IS IT'S GOING TO REQUIRE.
SERIOUS ACTION BY THE THE BUT AT
AND THE AND THE PEOPLE STATE
CALIFORNIA GOING HAVE TO WEIGH
IN ON THAT DAY. THEY WERE THEY
VOTED ON THIS INITIALLY.
AND I THINK IF YOU'RE GOING TO
MAKE.
HUGE AND CAN AT AND AND AND DEEP
CHANGES IN HOW IT'S FINANCED.
A AND THE RISK FACTORS INVOLVED
IN IT IT'S GOING TO REQUIRE THE
SAME KIND OF TRANSPARENCY OPEN
THE SCHOOL TO THE
DISCUSSION DEBATE AND I THINK A
VOTE OF THE PEOPLE.
ANOTHER WHICH I THINK WE SHOULD
LEADERSHIP OUGHT TO REALLY
RECOGNIZE THAT THIS IS IN A
SERIOUS SERIOUS PLACE.
AND THAT.
ASKING THE VOTERS.
AGAIN.
WE'RE NOT BUILDING WHAT WE WE
SAID WE WERE GOING TO BILL IT
ISN'T GOING TO.
PRODUCE THE SPEEDS THE TIME.
THE COSTS ARE.
VERY EXCESSIVE AND HERE'S HOW
WE'RE GOING HAVE TO FUND I THINK
WE OWE TO THE PEOPLE TO ASK THEM
AGAIN.
UNDER THESE. WITH THESE COSTS
SHOULDN'T WE ASK THE PERMISSION
A AT THE BALLOT BOX IF WE'RE
GOING TO CHANGE A HUGE
SIGNIFICANT DATA.
COMMITMENT OF GENERAL FUND MONEY
OR OR A GENERAL OBLIGATION BOND
MONEY FOR FOR THESE PURPOSES.
MISSION THANK YOU THANK YOU
MISTER PASS AND THEY ASK FOR A
CLARIFICATION FROM YOU MISTER
PATTERSON.
DID YOU INDICATE THAT THERE'S A
WRITTEN OPINION FROM.
THE.
.
LEGISLATIVE ANALYST'S.
APPARENTLY NOT.
IT'S IT AT.
THE OPINION HAS BEEN GIVEN TO US
INFORMALLY.
AND WE'RE ASKING THAT IT BE.
FORMALIZED.
BUT.
I WOULD SUGGEST THIS.
ASK.
ARE.
ASK OUR LEGAL COUNSEL ABOUT AT
DON'T THEY'LL GIVE YOU THE SAME
ANSWER THAT THEY
TO US.
I WILL BE SURE TO DO THAT.
UPON.
I OPTED.
I THINK IF WE JUST WERE I I
GUESS MY MY FOCUS I GUESS IS TO
TRY TO I THINK IT'S IMPORTANT
FOR ALL OF US OPERATE ON THE
SAME INFORMATION. SO I'M HEARING
THAT THAT THE GAP IN THE FUNDING
GAP HAS GROWN OVER OVER TIME
WHAT IS THE CURRENT FUNDING GAP.
IF IF.
TO TALK TO THE LA HOW COULD
ANSWER THAT.
HOW MUCH MONEY DO WE HAVE NOW
AND HOW MUCH MONEY DO WE NEED?
YET SO.
OUR LOOK AT THE.
PRESENTLY AVAILABLE REVENUE
SUGGESTED THE AUTHORITY MIGHT
HAVE SOMEONE WORTH OF TWENTY ONE
BILLION DOLLARS AVAILABLE
THROUGH TWENTY THIRTY IF YOU IF
YOU INCLUDE CAPTURED REVENUES AT
THEIR. DESTINATION ABOUT SEVEN
HUNDRED FIFTY MILLION DOLLARS A
YEAR THROUGH TWENTY THIRTY.
THIRD POINT THIRTY AT.
TO FUND CONSTRUCTION OF INITIAL
OPERATING SEGMENT AS YOU SEE THE
BUSINESS PLAN THE EXPECTED
CAPITAL COST OF CONSTRUCTION IS
SOMEWHERE CLOSER TO THIRTY
BILLION DOLLARS.
SO I WILL LEAVE YOU WITH A
FUNDING GAP OF.
ROUGHLY EIGHT
BILLION PETER I DON'T I GET YOU
WE HAVE TWENTY ONE BILLION
DOLLARS.
RIGHT NOW OF THE TWO TO TWENTY
THIRTY IDENTIFIED IDENTIFY
RESOURCES THAT WILL COME TO THE
AUTHORITY.
OKAY BUT THE CURRENT THE TOTAL
PROJECT COST SEVENTY SEVEN TO
NINETY EIGHT BILLION THAT'S
REALLY WHOLE FEES ONE CORRECT
PHASE ONE ALRIGHT SO THEY HAVE
TWENTY ONE BILLION DOLLARS NOW.
RIGHT AND THE WHOLE COSTS IS ANY
SEVEN TO NINETY EIGHT BILLION.
SO THE SO THE DELTA IS LARGER.
THAT EIGHT BILLION IT'S.
THE SIX
IF I AM FIFTY SIX BILLION TO.
.
SEVENTY SEVEN BILLION.
YES I WAS AFRAID TO TALK PRETTY
SEGMENT NOTHING. SO THE SO THE
INITIAL OPERATING SEGMENT JUST
TO GET IT DONE IS EIGHT BILLION.
BUT DON'T TO FINISH THE WHOLE
THING IT'S FIFTY SIX TO SEVEN
SEVEN DIED THAT'S RIGHT IS
MISTER KELLY INDICATED THAT'S
ROUGHLY THE IDENTIFY POSSIBLE TO
TAKE A PASS.
TOTALING SEGMENT AND SO YEAH BUT
IT WOULD TAKE A PASS AS THAT
ABOUT MONEY HAS BEEN IDENTIFIED.
THAT'S MISSING.
SO WE DON'T EVEN KNOW THAT.
DO YOU KNOW HOW MUCH THE PROJECT
A PASSING A COST.
THERE IT CENTER COST ESTIMATES
ARE SOMEWHERE IN THAT BALLPARK
AROUND A BILLION BUT I DEFERRED
VIEW FORTY TO GIVE YOU A BETTER
NUMBER. OF.
SO.
SO IF I WAS GONNA IF IF.
TO THE TO THE GENERAL PUBLIC.
WE NEED SAID THAT THE SIX OR
SEVEN SEVEN BILLION DOLLARS TO
FINISH THIS WHOLE PROJECT.
WHAT WITH WITH UNDERSTANDING
STIPULATING THAT THE AT THE
AUTHORITY HAS IDENTIFIED TWENTY
ONE BILLION DOLLARS?
THAT'S ABOUT RIGHT.
AND THEN IN.
TO TO MISTER THOMPSON YOU YOU
YOU SPOKE TO SOMETHING THAT PART
BY.
.
I GUESS THAT I DIDN'T ADDED KNOW
THIS BUT YOU MENTIONED BEFORE
THAT IN THE PREVIOUS BUSINESS
PLAN THERE WAS THAT. THERE WAS
IDENTIFICATION OF A SALES TAX OR
TAX ON FUELS.
TO FINISH THIS PROJECT CAN YOU
ELABORATE ON THAT THE TWO
THOUSAND DISMISS PLAN
FIRST ONE ó WAS TO BE FINANCED
WITH THE SALES TAX.
I DON'T THINK ANYONE IS EVER
MENTIONED A SALES TAX ON FUELS
AND MANY OF THE BUSINESS PLAN
OKAY BUT YOU YOU YOU IDENTIFIED
AS A POTENTIAL LONG TERM REVENUE
STREAM.
AMONG A LOT OF OTHERS OKAY.
WELL IT RIGHT FEDERAL FEDERAL
FUNDS TO MEET.
.
IN TERMS OF.
.
I GUESS IF IF IF THE GAP IS.
IF THE DELTA IS FIFTY SIX
SENATOR BILLION.
AND THERE'S NO COMPLETE FUNDING
PLAN NOW.
.
AS YOU INDICATED IN ON PAGE
EIGHT OF YOUR ANALYSIS.
.
THEN IT.
THEN HOW SHOULD THE LEGISLATURE
PERSON.
AND AND ASSESSING THIS PROJECT.
BUT THE QUESTION FOR THE
LEGISLATURE DECIDED THERE MANY
OPTIONS AVAILABLE TO YOU IS
THERE ALWAYS HAVE BEEN AS.
YOUR THOUGHTS NEGATED. BAD FOR
THE ONES THAT SPRING TO MIND
INCLUDE GOING INTO THE PROJECT.
BUT TRICKING THE SCOPE OF THE
PROJECT PURSUING THAT.
PROJECT AS IDENTIFIED IN THE
DRAFT EIGHTEEN PLANNER FUNNY WAY
TO COMMIT SUFFICIENT FUNDING TO
COMPLETED THROUGH TO THE END OF
PHASE ONE AND.
A VARIETY OF OPTIONS ARE
AVAILABLE IN THAT RESPECT AS
WELL INCLUDING ADDITIONAL
DEDICATED TAXATION REVENUES.
EXPAND OUTREACH ALLOCATION TO
THE PROJECTS ADDITIONAL BONDING
AUTHORITY WERE ALLOCATING
GENERAL FUND MONIES TO TO
PROJECT OKAY BUT IN TERMS OF
WHAT THE AS OUTLINED IN THE JEFF
THIS IS PLANNED.
AS I IF I'M UNDERSTANDING
CORRECTLY EVEN BONDING AGAINST
UNCERTAIN A CAP AND TRADE
REVENUE STREAM THAT. EVENT JACK
CREATES EVEN MORE UNCERTAINTY
RIGHT EVER IF IF IF WARY BUT IF
WE ARE FORCED TO LOOK AT THE
DRAFT IS HIS PLAN.
IF IT IS MY UNDERSTANDING
CORRECT IS THAT IS THAT THE
CREDIT THE CORRECT ASSESSMENT.
I'M NOT QUITE SURE
SURE.
I I MEAN I THINK CERTAINLY
THERE THERE'S NO AS AS WE
DISCUSS THERE'S A LOT OF
UNCERTAINTY AROUND FUTURE CAP
AND TRADE REVENUES. THEIR
POTENTIAL WAYS TO STRUCTURE IT
WHERE PERHAPS THERE'S A LITTLE
BIT LESS UNCERTAINTY FOR THE
PIECE THAT WOULD MAYBE GOT HIGH
SPEED RAIL FOR EXAMPLE RATHER
THAN THE. PERCENTAGES A FIXED
AMOUNT THOSE TYPES OF THINGS
BUT.
YET CAP AND TRADE IS IS ANYA AS
IT STANDS RIGHT NOW IS IS
UNCERTAIN.
FORMA REVENUE.
IN.
AND IN TERMS OF THE.
THE LOOKED A BUSINESS PLAN AND
IF I LOOK AT THE FOUR OPTIONS.
BUT OUTLINED BY THAT PEER REVIEW
RIGHT NOW WE'RE ON A PATH.
TO CREATE TWO SEGMENTS THAT
DON'T CONNECT
AT THE MOMENT BECAUSE IT'S OF
THE BECAUSE A FUND OF THE
FUNDING GAP IS THAT CORRECT.
YES.
AND AND THEN IN TERMS OF THE
SPEEDS BECAUSE OF THE BLENDED
SYSTEM. THERE ARE CERTAIN PORT
PARTS PORTIONS OF THE HIGH SPEED
RAIL SYSTEM THAT WON'T BE AS
HIGH SPEED.
CORRECT.
THE CURRENT PLANS WOULD BE
EXPAND IN AFFECTED CALTRAIN
SYSTEM TO GILROY THAT SECTION
FROM SAN JOSE TO GILROY WOULD BE
OPERATED AT A HUNDRED AND TEN
MILES AN HOUR.
SOME HIGHER SPEED YES OKAY THANK
YOU.
KALRA MISTER MON QUESTIONS.
MR MILLER.
A GOOD OKAY.
WELL THERE'S NO FURTHER
QUESTIONS THANK YOU VERY MUCH.
FOR YOUR TESTIMONY HERE TODAY I
THINK.
.
IT WAS SEPARATE YOU GIRLIE
INSIGHTFUL A TO HEAR PREMIUM
MISTER THOMPSON REGARDING CA.
HOW WE FRAME THE ISSUE GOING
FORWARD AND I'M GONNA GIVE SOME
THOUGHT TO?
?
THAT QUESTION OF WHERE DO WE GO
FROM HERE NOT SO MUCH WHAT MY
ANSWER IS BUT HOW.
THAT WE AS THE OF THOSE WHO
HAVE OVERSIGHT OVER THIS PROJECT
SHOULD BE LOOKING AT THE PROJECT
AND.
AT IN THE CONTEXT OF THAT
LOOKING MORE CLOSELY AT HOW WE
DEVELOP THE SOURCE OF FUNDING.
AND THE I THINK THE OTHER A BIG
POINT YOU MADE IS THE TO.
CLARIFICATION OF THE FUTURE. OF
BUSINESS OPERATIONS AND HOW
THAT'S GONNA OF GOING TO WORK IS
ALSO SOMETHING THAT WE SHOULD
BE.
DISCUSSING WILL BE HAVING A
CHANGED ADMINISTRATION.
AS PART OF OUR A.
.
A DEMOCRACY IN THE IN THE COMING
MONTHS AND IT'S I THINK A GOOD
OPPORTUNITY FOR US TO.
A GIVEN THAT CHANGE IN
LEADERSHIP AT THE HIGH SPEED
RAIL AUTHORITY.
AND THE CHANGES THAT WE'VE SEEN
A SADLY AT THE FEDERAL LEVEL IN
TERMS OF WILLINGNESS TO FUND THE
PROJECT AT LEAST IN THE NEAR
TERM I'M. HOPEFUL AS MR MULLIN
MENTIONED THAT WILL BE ABLE TO
TURN THAT AROUND IN RELATIVELY
SHORT ORDER. BUT TARA OF FOR THE
TIME BEING I THINK WE NEED TO
LOOK AT HOW WE'RE GOING TO GO
THIS ALONE AS A. AS A STATE AND
TAKE STOCK OF.
OF THE VARIOUS RESOURCES THAT
WE HAVE.
AND TRIED A FIND THE RIGHT WAY
TO.
TO MOVE FORWARD SO THANK YOU
FOR FOR FRAMING THOSE ISSUES AND
IT LOOKS LIKE YOU'RE UNHAPPY
DOESN'T RESPOND THE LEGISLATION
THAT CREATED US AS YOUR
ADVISORS.
OF WHAT MAY INVITE ANY OF YOU IF
WE CAN PROVIDE INFORMATION OR
ADVICE OR SIT DOWN AND DEBATE
HERE. PLEASE FEEL FREE TO DO SO.
THANK YOU APPRECIATE THAT WE
WILL.
I THANK YOU.
A TO THE LA GOES WELL FOR HER A.
VERY INSIGHTFUL COMMENTS.
WE WILL MOVE ON TO OUR THIRD
PANEL NOW AND THEN WE'LL TAKE A
PUBLIC COMMENT ON.
OR ON THE ON THAT DRAFT
BUSINESS PLAN.
AND I THINK ISSUE NUMBER TO.
BUT WILL WELCOME US HASAN A
CROWD OF THE CHIEF EXECUTIVE
FAN.
OF. OF SOUTHERN CALIFORNIA
ASSOCIATION OF GOVERNMENTS AND
SEAMUS MURPHY EXECUTIVE DIRECTOR
OF.
WELCOME.
SCREWED UP.
OF.
I MISSTATED YOUR POSITION I
APOLOGIZE.
IT WILL CORRECT THE RECORD
POOREST.
WELL.
THANK YOU FOR YOUR ATTENTION TO
BIXEL YOU INTO THE SEISMIC FOR
INVITING US TO SHARE LOCAL
PERSPECTIVE ON THE DRAFT HIGH
SPEED RAIL BUSINESS PLAN ON
SEAMUS MURPHY CHIEF
COMMUNICATIONS OFFICER FOR THE
CALTRAIN COMMUTER RAIL SYSTEM
YOU DON'T WANT THE PROMOTION
YEAH NOT YET.
ASSEMBLY OUT WE MIGHTILY UPSET
IF.
CALTRAIN APPLAUDS THE CALIFORNIA
HIGH SPEED RAIL AUTHORITY ON THE
RELEASE OF THEIR DRAFT TWENTY
EIGHTEEN BUSINESS PLAN.
PARTNERSHIP INSIGNIFICANT
INVESTMENT FROM THE AUTHORITY
CALTRANS BEEN ABLE TO PROCEED
WITH EFFORTS TO ELECTRIFY THE
CALTRAIN CORRIDOR BETWEEN SAN
FRANCISCO AND SAN JOSE. AND THAT
SECURE THE INVESTMENT NEEDED TO
REPLACE SEVENTY FIVE PERCENT OF
THE SYSTEMS DIESEL FLEET WITH
HIGH PERFORMANCE ELECTRIC
TRAINS.
I'M PLEASED TO REPORT THAT WE
HAD ARE PART OF THAT HAVE IT WE
HAD OUR PROJECT GROUNDBREAKING
IN JULY TWENTY SEVENTEEN.
CONSTRUCTION HAS BEEN ON GOING
FOR MONTHS IN THE FIRST POLLS
HAVE BEEN INSTALLED ALONG THE
CORRIDOR.
HIGH PERFORMANCE ELECTRIC TRAINS
THAT ARE BEING MANUFACTURED IN
SALT LAKE CITY ARE EXPECTED TO
BEGIN SERVING OUR WRITERS AND
TWENTY TWENTY TWO.
THE DRAFT TWENTY EIGHTEEN
BUSINESS PLAN PROPOSES NEW
STRATEGIES THAT WOULD EXPAND
ELECTRIFICATION OF THE CALTRAIN
COURT OR SOUTH OF SAN JOSE TO
GILROY. ENSURING THAT ALL
COMMUNITIES CURRENTLY SERVED BY
CALTRAIN WILL BENEFIT FROM THE
ADVANTAGES OFFERED BY ELECTRIC
TRAINS INCLUDING INCREASED
SERVICE FREQUENCY REDUCE TRAVEL
TIMES ENHANCE RELIABILITY. AND
IMPROVE AIR QUALITY.
THIS NEW APPROACH WHICH IS PART
OF THE PHASED IMPLEMENTATION OF
A SILICON VALLEY TO CENTRAL
VALLEY LINE IS A CONTINUATION
AND AN ENHANCEMENT OF THE
AUTHORITIES LONG STANDING
COMMITMENT. TO EVENTUALLY
CONNECT THE STATE WITH HIGH
SPEED RAIL SERVICE IN A WAY THAT
ALL ALSO OFFERS IMMEDIATE
BENEFITS IN IMPROVEMENTS TO
EXISTING REGIONAL RAIL SERVICES
INCLUDING CALTRAIN.
THE APPROACH ALSO FOCUSES ON THE
IMPLEMENTATION OF EARLY INTERIM
HIGH SPEED RAIL SERVICE BETWEEN
SAN FRANCISCO AND GILROY AS
EARLY AS TWENTY TWENTY SEVEN.
THE ADDITION OF HIGH SPEED RAIL
SERVICE TO THE CALTRAIN CORRIDOR
HAS GREAT POTENTIAL FOR
MAXIMIZING THE BENEFITS OF
CORRIDOR ELECTRIFICATION. AND
FOR PROVIDING COMMUNITIES ALONG
THE CORRIDOR WITH NEW MOBILITY
OPTIONS THAT WILL BE A VALUABLE
PART OF OUR EFFORTS AS A REGION
TO ADDRESS GROWING TRAFFIC
CONGESTION AND MAINTAIN OUR
ECONOMIC COMPETITIVENESS.
CALTRAIN IS CURRENTLY LEADING
EFFORTS TO DEVELOP THE CALTRAIN
BUSINESS PLAN WHICH INCLUDES AN
IN DEPTH TECHNICAL ANALYSIS OF
THE ISSUES AND CONSIDERATIONS
RELATED TO THE EXPANSION OF
SERVICES WITHIN THE CORRIDOR.
INCLUDING THE ADDITION OF HIGH
SPEED RAIL OF MANY OF THESE
ISSUES WILL SPEAK TO THE.
GOOD NEED AS MISTER THOMPSON
SUGGESTED THE NEED FOR
AGREEMENTS BETWEEN THE RAIL
OPERATORS ON THE BOOKENDS AND
THE AUTHORITY.
MOVING FORWARD TO ADD THAT SPEAK
TO THE OPERATION OF THE SYSTEM
ON THOSE SHARE FACILITIES.
CALTRAIN LOOKS FORWARD TO
CONTINUED INVOLVEMENT FROM THE
AUTHORITY AND OUR LOCAL AND
REGIONAL STAKEHOLDERS TO
COMPLETE THE CALTRAIN BUSINESS
PLAN AND TO BETTER DEFINE
STRATEGIES FOR ENHANCE
CONNECTIONS.
BETWEEN OUR COMMUNITIES ON THE
CORRIDOR AND FOR EVENTUAL%
CONNECTION OF OUR REGION TO THE
REST OF THE STATE.
CALTRAIN ALSO LOOKS FORWARD TO
WORKING WITH THE AUTHORITY IN
OUR PARTNERS IN SAN FRANCISCO TO
ENSURE THAT CALTRAIN AND HIGH
SPEED RAIL SERVICE OR EXTENDED
DOWNTOWN TO SAN FRANCISCO'S
TRANSPAY TRANSIT CENTER AS SOON
AS POSSIBLE.
THE EXTENSION OF HIGH QUALITY
RAIL SERVICE TO THE TRANSLATE
TRANSIT CENTER HOLDS DRAMATIC
POTENTIAL FOR THE EXPANSION OF
CALTRAIN SERVICE TO NEW MARKETS
AND WILL HELP FACILITATE
CONGESTION RELIEF AND ENHANCE
MOBILITY THROUGHOUT THE ENTIRE
COURT OR. SIMILARLY WERE EXCITED
TO BE WORKING IN PARTNERSHIP
WITH THE AUTHORITIES THE CITY OF
SAN JOSE AND SANTA CLARA VALLEY
TRANSPORTATION AUTHORITY TO
ENVISION A NEW DEAR IT ON
STATION A PROJECT THAT WILL
CREATE REGIONAL. AND STATEWIDE
CONNECTIVITY ENHANCEMENTS AND
TRANSFORM THE SOUTHERN TERMINAL
OF OUR RAILROAD. THANK YOU I'D
BE HAPPY TO RESPOND TO ANY
QUESTIONS.
THANK YOU MISTER CRADDICK
WELCOME AT THANK YOU MISTER
CHAIRMAN FOR YOUR LEADERSHIP ON
ON THIS AND OTHER ISSUES THAT
IMPACT CALIFORNIA GOOD GOOD
MORNING COMMITTEE MEMBERS.
I I CAME HERE TO YOU TODAY TO
PRESENTING SOMETHING CALIFORNIA
NINETEEN MILLION PEOPLE HOW FOR
THE STATE.
OF CALIFORNIA AND THE.
TO OFFICIALS THANK YOU FOR YOUR
WORK ON THIS AND SANK THE HIGH
SPEED THEIR LAST WEEK YOU FOR
MAKING.
AND ASSIGNING ANIMAL YOU'LL.
WOULD THE CCAC BACK IN TWENTY
TWELVE.
THAT THE MORE YOU.
.
PRETTY MUCH SAID WE'RE GOING TO
INVEST IN THE EXISTING SYSTEMS
ON THE HIGH SPEED THEY'LL COME.
NOW WE ARE READY.
AND I'M VERY PLEASED TODAY THAT
THE DRAFT BUSINESS PLAN
INCLUDED.
.
HALF A BILLION DOLLARS.
FROM HIGH SPEED RAIL.
.
PROP A FUNDS.
TO FUND AND.
ROSS CON MONKEYS. AND UNION
STATION.
AND FOR THOSE OF YOU WHO'VE BEEN
TO UNION A STATION IT'S GETTING
VERY BUSY PLACE.
WE HAVE THE NORTH EAST SCATTERED
THAT WHICH IS THE SECOND BUSIEST
IN THE COUNTRY THAT COMES FROM
SANTIAGO AND LOUIS HUNT WAS
OBISPO.
THIS IMPROVEMENT WOULD.
SAVE A LOT OF TIME FOR PEOPLE
COMING INTO UNION STATION.
BUT ALSO IN A REMINDER THAT THE
FOUR HUNDRED TWENTY MILLION
DOLLARS COMING KING THE STATION.
IS GONNA BE MATCHED BY MORE THAN
THAT.
SO WE'RE TALKING ABOUT THE
PROJECT WELL OVER A BILLION
DOLLARS.
THAT'S GONNA COME SO THAT'S
SIGNIFICANT.
I ALSO WANT TO REMIND YOU THAT.
OUR COMMITMENT AND I WOULD WORK
WITH WITH HIGH SPEED RAIL IS
ABOUT IMPROVING THE SYSTEM AND
GETTING SOME BENEFITS RIGHT AWAY
AND CREATING JOBS AND ECONOMIC
DEVELOPMENT TIGHTLY.
WE LOOK FORWARD TO WORKING WITH
HIGH SPEED RAIL AUTHORITY ON
THAT REMAINING HALF A BILLION
DOLLARS.
ALL OF PROJECT IN SOUTHERN
CALIFORNIA.
GRANTED IT'S BEEN AWHILE SINCE
WE SIGNED THEM WE'LL WE'RE VERY
PLEASED THAT WE FINALLY AND AND
I WANT TO THANK YOU MISTER BROWN
FOR YOUR LEADERSHIP FINALLY
GETTING TO THAT'S WHAT WE SEE.
AND SHOW THE PEOPLE WOULD HAVE
PRESENTED THAT WE ARE INVESTING.
IN THE FUTURE OF CALIFORNIA.
I ALSO.
ONE ANY MIND YOU THAT
I'VE BEEN IN THIS BUSINESS FOR
THIRTY YEARS.
AND.
I AM I'M A JUNKED PROFESSOR
TEACHING YOUNG PEOPLE ABOUT
PLANNING AND TRANSPORTATION.
AND I REVIEW WITH THEM
HISTORICALLY THAT AND THERE WERE
NOT ONE SINGLE. MAJOR
INFRASTRUCTURE PROJECT THAT WAS
EASY.
OR THAT CAME UNDER COST.
OR UNDER BUDGET.
OR HAD THE LENDING OF THE BANK
AYE ID MIND YOU WILL. TEACH OUR
KIDS IN THE FUNDING SCHOOL ABOVE
THE BAR TO EXPERIENCE WHEN
PEOPLE WHAT I NEED YOU AND OR OR
THE WHATEVER PROJECT OR LAND TO
THE STATE SYSTEM EVEN.
SO BIG PROJECTS TAKE TIME AND
TAKE MONEY.
I BELIEVE THE IMPROVEMENT WE'RE
DOING SO WITH THE MEMORANDUM OF
UNDERSTANDING AND IN UNION
STATION ANOTHER AGGRESSIVE
SOFTEN CALIFORNIA I'M GONNA BE
BENEFICIAL.
REGARDLESS OF HOW LONG AND WIN
THIS PROJECT WILL WILL TAKE
HOLD.
BUT ALSO REMIND YOU IF WHO WANT
TO PROVIDE CHOICES FOR
CALIFORNIANS.
WE HAVE TO INVEST THOSE CHOICES.
AND GOD KNOWS WE DO I NEED TO
MAKE CHOICES.
I MEAN I EIGHT. MISTER KELLY
MENTION.
ECONOMIC BENEFITS BUT THERE IS
ALL KIND OF BENEFITS
ENVIRONMENTAL ECONOMIC.
WE NEED INFRASTRUCTURE BIG
INFRASTRUCTURE PROJECTS.
LAST YEAR I HAD THE OPPORTUNITY
TO VISIT IN CHINA AND TAKE THE
HIGH SPEED RAIL FROM SHANGHAI TO
VISION.
I THINK AVERAGE SPEED TO THREE
HUNDRED FIFTY KILOMETERS PER
HOUR.
I AS AN AMERICAN AS CALIFORNIAN
WE SAY WHY NOT US WHY NOT
PROVIDE OPTIONS.
AND AGAIN I WANT TO THANK THE
HIGH SPEED DETAILS THANK YOU FOR
YOUR WORK AND I HOPE.
YOU MAKE THE MONEY AVAILABLE
FOR US TO TO START. WORKING ON
THIS PROJECT
THANK GOODNESS.
THANK YOU FOR A FEW YEARS AGO I
WROTE THE HIGH SPEED RAIL FROM
AS SHANGHAI TO BEIJING ALSO AND
ASK MYSELF THE SAME QUESTION.
I THANK YOU FOR THAT MISTER
KALRA.
THANK YOU MISTER CHAIRMAN AND
THANK YOU SIR FOR MY
DEMONSTRATING THAT AS WE TALK
ABOUT THE THIS AND MANY PRIZES
BUT IN THIS ONE PARTICULAR THAT
IT'S NOT A STATE PROJECT.
THAT REALLY IT'S IT'S REALLY
ABOUT.
REGIONS AND CITIES AND
COMMUNITIES.
AND I THINK ARTICULATED IT WELL
THAT WE HAVE TO THINK MORE THAN
JUST A IT'S NOT JUST A TRAINS AT
REBUILDING. RIGHT AND I THINK
AND SHAME AS YOU KNOW AS ALWAYS
GREAT TO SEE YOU. APPRECIATE THE
WORK THAT WE DID TOGETHER BY ONE
THOUSAND CALTRAIN BOARD THAT YOU
CONTINUE TO WORK.
IN IN TERMS THAT WHAT WHAT
CALTRAIN HAS BEEN ABLE TO DO IN
PARTNERING WITH HIGHSPEED RAIL
THIS SOUNDS LIKE A SOUTHERN
CALIFORNIA THE SAME THING IS
HAPPENING AND SO. MONEY IS BEING
INVESTED IS BEING INVESTED IN.
NOT SYSTEMS LIKE CALTRAIN THAT
ARE KNOWN SYSTEMS.
THAT THAT ARE CRITICALLY VITAL
FOR OF FOR MOVING PEOPLE
CERTAINLY IN THE BAY AREA.
I THINK THAT.
THE WILL YOU BE WHEN YOU LOOK
AT.
.
THE TRAFFIC CONGESTION THAT'S
INCREASED IN THE BAY AREA THAT I
COULDN'T IMAGINE IT WOULD BE
LIKE IF THERE IF CALTRAIN WAS IN
THERE. AYE TAKING.
WHO LITERALLY MILLIONS OF AND
VEHICLE MILES TRAVELED COME OFF
OF ONE ON ONE AND TWO EIGHTY?
?
AND SO YOU KNOW I I I APPRECIATE
THE LOCAL PERSPECTIVE BECAUSE
MANY OF US COME.
FROM LOCAL JURISDICTIONS
ACQUITTED ON STATION IS MY
ASSEMBLY DISTRICT I AM VERY
EXCITED AT THE OPPORTUNITY.
MAGISTERS ECONOMIC DEVELOPMENT
REALLY BY THE MOVEMENT OF PEOPLE
BECAUSE ULTIMATELY CAN'T KEEP ON
BILL BUILDING LANES ARE FREEWAYS
IT'S NOT SUSTAINABLE IT'S NOT
SMART IS NOT GOOD FOR THE
ENVIRONMENT IS NOT GOOD FOR OUR
ECONOMY.
AND SO I LOOK FORWARD TO
CONTINUING TO PARTNER.
CERTAINLY BUT OUR LOCAL
JURISDICTION CALTRAIN AN MBTA
AND OTHERS.
AS WELL AS OUR PARTNERS IN
SOUTHERN CALIFORNIA AND
THROUGHOUT THE STATE BECAUSE WE
NEED TO.
YOUR REGIONAL LEADERSHIP BUT WE
ALSO NEED YOUR INPUT AS TO WHAT
KIND OF POSITIVE IMPACTS OF THAT
DON'T ALWAYS MAKE IN THE
HEADLINES THAT THEY'RE THEY'RE
NOT ALWAYS AS PROVOCATIVE.
BUT THEY'RE. EQUALLY IF NOT
EVEN MORE IMPORTANT THAN WHAT
TENDS TO MAKE IT MY HEADLINES
AND AND THAT'S THE REAL WORLD
REAL TIME VALUE. THAT WE'RE
SEEING I'M THE HIGH SPEED RAIL
PROJECT AND THESE REGIONAL
PROJECTS THAT ARE PARTNERING
WITH AND BENEFITING FROM. OF
THAT INVESTMENT SO THINK ABOUT.
ANY OTHER QUESTIONS.
THANK YOU VERY MUCH BOTH OF YOU
OF THE SHIP PRESENTATIONS.
THAT WAS AN INFORMATION ONLY.
ITEM. WE. ARE GOING TO.
.
I HEAR ISSUE NUMBER WELL WHAT WE
TAKE PUBLIC COMMENT ON ISSUE
ONE.
AND THEN WE'LL MOVE ON TO ISSUE
TO.
THANK YOU MISTER CHAIRMAN
COMMITTEE MEMBERS KEITH ON HER
BEHALF DISSOCIATION CAO FREE
HIGH SPEED TRAINS WHAT'S BEEN
SAID ABOUT THIS PROJECT AND HOW
WE'RE MOVING FOR A GUESS I WOULD
JUST LIKE TO. ADD OF A BRIEF
COMMENT.
ABOUT THAT THE NATURE OF
BUILDING THESE MASSIVE.
INFRASTRUCTURE PROJECTS
THROUGHOUT THE CALIFORNIA IN THE
UNITED STATES THE FACT IS THAT
WE DON'T.
UP COME INTO THESE PROJECTS WITH
ALL THE FUNDING THE FACT IS IS
THAT THE FUNDING IS LEVERAGE
FUNDING IS PIECED TOGETHER AND
THIS IS NOT UNIQUE WITH HIGH
SPEED RAIL THE SAME APPROACH IS
TAKEN AND I HAVE THE OPPORTUNITY
PROFESSIONAL WORK ON ROADS
TRANSIT AND DAMS.
THROUGHOUT OUR STATE IN THE
NATION THE FACT IS THAT THE
MONEY IS NEVER ALL THERE WHEN
YOU START THESE PROJECTS I DON'T
WANT PEOPLE TO WALK AWAY
THINKING THAT YOU GO IN WITH A
BIG BAG F. FUNDING THAT YOU'VE
ALL PUT TOGETHER AND THEN YOU GO
OUT YOU DON'T PROJECT THE
REALITY IS IS THAT.
THERE'S COMPETITION NOT ONLY
WITHIN ARE STATE FOR THE FUNDING
FOR THIS PROJECT BUT NATIONALLY.
AND WE WILL CONTINUE TO COMPETE
AND COMPETE VERY WELL BECAUSE
THIS IS AN INNOVATIVE PROJECT
THAT'S NOT ONLY GOING TO CHANGE
HOW WE DELIVER OUR.
OUR ARC CITIZENS TO THEIR JOBS
AND HOMES BUT ALSO HOW WE IMPACT
OUR ENVIRONMENT IT'S GOING TO
HELP ENHANCE OUR POLICY GOALS
THAT WE'VE ALL. BEEN VERY
SUPPORTIVE OF THROUGHOUT THE SAY
THE THING THAT MENTION THREE
GUARDS TO AIRPORTS.
IS.
WE ARE VERY SUPPORTIVE AND VERY
AWARE OF THAT ECONOMIC BENEFIT
THAT THAT ARE MANY MILITARY
BASES HERE IN THE STATE OF
CALIFORNIA PROVIDER CITIZENS.
THE FACT IS THAT THEY HAVE
DEDICATED AIR SPACE WITHIN OUR
STATE THE PUTS RESTRICTIONS ON
THE ABILITY FOR IN FLIGHT IN
STATE FLIGHTS SOONER SOME.
BUILT OUT IN OUR AIR SPACE SO
NOT ONLY DO WE HAVE A BUILT OUT
IN OUR HIGHWAYS SYSTEMS AND
ROADWAYS WITH.
BUSINESSES AND HOMES BUT OUR AIR
IS DEDICATED TO MILITARY
FACILITIES WHO BRING GREAT
ECONOMIC ENGINES TO THE STATE.
AND EMPLOY THOUSANDS UPON
THOUSANDS AND PROVIDE BILLIONS
AND BILLIONS OF DOLLARS OF
ECONOMIC BENEFIT TO OUR STATE
SO.
HIGH SPEED RAIL IS NOT ONLY THE
BEST ALTERNATIVE BUT REALLY THE
ONLY ALTERNATIVE THAT WE HAVE.
WITHIN CALIFORNIA TO MOVE
RESIDENTS AND BUSINESSES AND.
AND AND MOVE OUR ECONOMY AND SAY
WITHOUT IMPACTING THESE THESE
INDUSTRIES THAT WERE NOT OF US
WANT TO SEE LEAVE THAT PROVIDE A
CRITICAL.
ECONOMIC BOOST TO CONTINUE TO
HEAR IN OUR STATE A CALIFORNIA
SUCH THANKS VERY MUCH FOR TIME.
I THINK.
THANK YOU MISTER CHAIRMAN OF THE
COMMITTEE JEREMY SMITH THEY ARE
BEHALF OF THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL.
THE PREVIOUS SPEAKER REALLY
SAID ALL I WOULD LIKE TO
ASSOCIATE MYSELF WITH ALL HIS
COMMENTS IN JUST. AT AGAIN FOR
THE RECORD THAT.
THERE ARE YOU KNOW.
DESTRUCTION WORKERS WORKING
BECAUSE OF THIS PROJECT IN AREAS
THE STATE THAT THEY WEREN'T
WORKING IN BEFORE AND THOSE
JOBS.
IN THIS PROJECT HAVE LEAD TO
OTHER INDUSTRIES BEING A OR THE
OTHER BUSINESSES BEING CREATED
AND EMPLOYING. OTHER PEOPLE THIS
THIS IS HAPPENING IT IT'S NEEDS
TO HAPPEN WE NEED A THIRD.
HOW OPTION FOR TRANSPORTATION
THE STATE?
?
TO ADD TO THE HIGHWAY SYSTEM AND
THE.
.
STATE OF THAT THAT THE STATE
REPORT SYSTEM BUT THE THE
AIRPORTS WE HAPPINESS IN THE
STATE WE NEED HIGH SPEED RAIL TO
MOVE FORWARD AND BE PREPARED FOR
THE INFLUX OF PEOPLE ON THE
STATE AND TWENTY FIFTY RECALL
WHAT HAD TOWARDS FIFTY MILLION.
SO I LIKE TO THINK OF THE CEO
FOR BEING HERE TODAY AND OF
BEING VERY TRANSPARENT AND
THAT'S THE LAST THING I WANT TO
SAY.
HIS TRANSPARENCY THE
AUTHORITIES TRANSPARENCY OVER
THE LAST DECADE.
IS UNPARALLELED IN MY OPINION
I'VE BEEN.
DO AND DOING THIS FOR FIFTEEN
YEARS NOW AND I CAN'T THINK OF A
SINGLE THING. A SINGLE PROJECT
THAT HAS BEEN.
COME ASK BUT ASKED TO COME
BEFORE THE LEGISLATURE. AND IT
HAD TO COME OVER THE LEGISLATURE
TO THE BUDGET SUB COMMITTEES AND
BUSINESS TRANSPARENT THIS
PROJECT HAS BEEN. A WE KNOW
WHERE THE MONEY IS GOING.
WE KNOW SOME OF.
WHERE THE PROJECTS GOING?
US WENT PLEASED TO HEAR YOU WILL
SUPPORT TODAY AND A REJECTING IS
PUT IT IN THE FUTURE THANK YOU.
THANK YOU ALL FOR YOUR COMMENTS
SAID THAT CLOSES OUT ISSUE
NUMBER ONE WE SPENT A GOOD DEAL
OF TIME.
ON THE ISSUE THIS MORNING BUT
IT'S AN IMPORTANT ONE AND WILL
CONTINUE TO. HAVE CONVERSATIONS
AROUND IT AND.
THIS COMMITTEE WILL CONTINUE TO
PROVIDE THE APPROPRIATE
OVERSIGHT.
WILL MOVE ON NOW TO ISSUE NUMBER
TWO WHERE WE DO HAVE REQUEST
FOR.
ACTION BUT.
THAT IS.
ON THE INITIAL OPERATING
SEGMENT TO.
REAPPROPRIATION.
WELCOME BACK MISTER KELLY.
HE WAS CHAIRMAN.
WHENEVER YOU'RE READY THANK YOU.
OF THE TWENTY A TWO THOUSAND
EIGHTEEN NINETEEN GOVERNOR'S
BUDGET REQUESTS.
.
A FOR THE HIGH SPEED RAIL
AUTHORITY.
INCLUDES THE REQUEST TO RE
APPROPRIATE.
.
FUNDS THAT WORD ORIGINALLY
APPROPRIATE IN TWO THOUSAND
TWELVE. BUT HAVE AN EXPIRATION
DATE TO THEM OF JUNE. OF TWO
THOUSAND EIGHTEEN WE ARE SEEKING
TO EXPAND THAT APPROPRIATION OF
FORTY THROUGH. A JUNE OF TWENTY
TWENTY TWO OF THE AMOUNT OF THE
REAPPROPRIATION IS.
JUST UNDER ONE POINT SIX
A BILLION DOLLARS FIVE HUNDRED
TWENTY EIGHT MILLION OF WHICH IS
ASSOCIATED WITH. A FEDERAL AND
BOND FUNDS THAT ARE BEING
UTILIZED FOR THE. A CONSTRUCTION
SEGMENT IN THE CENTRAL VALLEY
AND.
JUST UNDER ONE POINT ONE
BILLION OF IT IS FOR A BOOK AND
PROJECTS IN BOTH A SOUTHERN
CALIFORNIA AND NORTHERN
CALIFORNIA.
THOSE ARE THE CALTRAIN
ELECTRIFICATION IN THE NORTH.
AND IN THE SOUTH.
THE ROSECRANS ABOUT MARQUARDT
GREAT SEPARATION PROJECT.
AND AND.
ULTIMATELY THAT THE. BY EL
UNION STATION.
RECONSTRUCT PROJECT AS WELL.
AGAIN ORIGINALLY AS BE TEN
TWENTY NINE TWO THOUSAND TWELVE
MADE THIS APPROPRIATION. OF WITH
THOSE DEADLINES AND WE ARE
SIMPLY HERE SEEKING AN EXTENSION
OF THAT. ATTITUDE UNIT TWENTY
TWENTY.
THANK YOU.
ILIO COMMENTS.
NOTHIN RIGHT A DEPARTMENT OF
FINANCE
NO CONCERNS.
THANK YOU.
WE HAVE A RECOMMENDATION TO
HOLD THIS ITEM OPEN AS ANY
PUBLIC COMMENT.
LET STAFF JEFF THANK YOU MISTER
CHAIR.
I'M MATTER ROBINSON ON THE
OTHER CALTRAIN AND JAMES MURPHY
STUNT DOUBLE.
WE FULLY SUPPORT THE ACTION
WHEN THE TIME IS APPROPRIATE FOR
THIS BODY TO MOVE BY THE
EXTENSION REVERBERATION CALTRAIN
IS RELYING ON SIX HUNDRED
MILLION DOLLARS OF THIS FUNDING.
A COUPLED WITH ABOUT SEVEN
HUNDRED FORTY FIVE MILLION
COMING FROM THE FEDERAL
GOVERNMENT WILL LAST AGENCY TO
GET ENOUGH FTA. OUT OF THE FEDS
HOPE WE WILL BE MORE.
AND THEN WE HAVE ABOUT THE SAME
AMOUNT OF MONEY COMING OUT FROM
LOCAL AND REGIONAL PARTNERS SO I
THE STATE'S PIECE OF THIS PUZZLE
IS EXTREMELY IMPORTANT AND WE
ARE CURRENTLY. WORKING WITH HIGH
SPEED RAIL AUTHORITY TO ENSURE
THAT THAT MONEY FLOWS TO THE
PROJECT IN THE VALLEY HOW WHICH
IS NOW UNDER CONSTRUCTION THANK
YOU. THANK YOU.
FAMOUS CHAIRMAN KEYSTONE HER
BEHALF DISSOCIATION CHO FOR HIGH
SPEED TRAINS IN SUPPORT OF
KEEPING THIS I AM OPEN BUT
EVENTUALLY MOVING IT TO BEING A
SUPPORT POSITION I THIS IS HOW
WE BUILD THESE INNOVATIVE
PROJECTS BUILDING OUT. ONLY
STATION AND MAKE THOSE
IMPROVEMENTS IN ADDITION OF THE
CALTRAIN ARE GOING TO HELP US
MEET OUR ENVIRONMENTAL GOALS. BE
GREAT FOR CITIZENS AND MOVING
THEM AND.
TO THEIR JOBS FROM HOMES AND
WE'VE ASKED FOR YOUR SUPPORT.
THANK YOU MISTER CHAIRMAN FOR
THE COMMITTEE JEREMY SMITH HERE
ON BEHALF OF THE STATE BUILDING
AND CONSTRUCTION TRADES COUNCIL
ALSO SUPPORT OF THIS
REVERBERATION THINKING.
THANK YOU WE DO HAVE A
RECOMMENDATION TO HOLD ITS OPEN
AND I THINK WE'LL DO THAT.
FOLLOW THE RECOMMENDATION TO GO
TO THANK YOU VERY MUCH
REPRESENTATION AND.
THAT CLOSES OUT THE HIGH SPEED
RAIL AUTHORITY SECTION OF OUR
MEETING WILL MOVE ONTO THE.
A DEPARTMENT OF TRANSPORTATION.
CALTRANS ISSUE NUMBER ONE WILL
START WITH ROAD REPAIR CAO
ABILITY ACT IMPLEMENTATION.
THIS ITEM WE ALSO HAVE VERY A
RECOMMENDATION TO HOLD OPEN.
TALK ABOUT.
PLEASE.
OKAY GOOD MORNING I'M LAURIE
BERMAN I'M THE BRAND NEW
CALTRANS DIRECTOR.
AND.
BEFORE WE START WITH THE FIRST
ITEM I WANT TO JUST GIVE A VERY
QUICK I RECOGNIZE HER BUT HE'S
BEEN SITTING FOR AWHILE AND JUST
GIVE IT VERY QUICKLY OVER THE
OTHER. OF SP ONE.
AYE ROADWAYS AND BRIDGES ARE IN
IN VARIOUS STAGES OF DISREPAIR
DUE TO TRAFFIC WEATHER AND
PROLONGED NEGLECT. FUNDING FOR
CALIFORNIA'S ROADS AND BRIDGES
COMES FROM FEDERAL HIGHWAY TRUST
FUND IN THE STATE HIGHWAY
ACCOUNT. PRIOR TO S. B. ONE
CALIFORNIA'S FUEL TAXES HAD LOST
ABOUT HALF OF THE BUYING POWER
DUE TO INFLATION. CONTRIBUTING
TO THE BACKLOG OF REPAIR WORK
THAT WE NOW FACE.
WITH THE PASSAGE OF SB ONE
TRANSPORTATION FUNDING WAS
INFUSED WITH FIFTY FOUR BILLION
DOLLARS OVER THE NEXT DECADE.
EVENLY SPLIT BETWEEN STATE AND
LOCAL AGENCIES ESSENTIALLY
DOUBLING THE AVAILABLE
TRANSPORTATION FUNDING FOR OUR
LOCAL COMMUNITIES AND STATE
HIGHWAY SYSTEM.
SINCE THE PASSAGE OF SB ONE
CALTRANS HAS BEGUN THE DESIGN
ENVIRONMENTAL CLEARANCE OF OVER
TWO HUNDRED PROJECTS.
WE'VE AWARDED OR BEGUN
CONSTRUCTION ON ALMOST SEVENTY
PROJECTS WE HAVEN'T XCELERATED
MORE THAN TWO HUNDRED. FIX IT
FIRST PROJECTS INCLUDING THE
NINETY MAJOR FIX IT FIRST
TRANSPORTATION PROJECTS NEARLY
TWELVE HUNDRED LANE MILES OF
PAVEMENT REPAIR AND OVER SIXTY
BRIDGES.
TO ENSURE TRANSPORTATION
INVESTMENT DECISIONS ARE BASED
ON QUALITY INFORMATION AND WELL
DEFINED OBJECTIVES CALTRANS
DEVELOPED A TRANSPORTATION ASSET
MANAGEMENT PLAN WHICH IS A
STRATEGIC PLAN. FOR MANAGING
ASSETS TO AN AGREED SERVICE
AGREED STANDARD OF SERVICE FOR
MAINTENANCE AND DELIVERY AND
LAST MONTH THE FEDERAL HIGHWAY
FEDERAL HIGHWAYS APPROVE THIS
THIS WAS THE FIRST.
TRANSPORTATION ASSET MANAGEMENT
PLAN APPROVED IN THE COUNTRY.
INFORMS THE PREPARATION OF THE
TENURE PERFORMANCE TARGETS
SUPPORTING LONG RANGE INVESTMENT
STRATEGIES AND THAT ULTIMATELY.
LEADS TO THE DEVELOPMENT LED TO
THE DEVELOPMENT AND CTC ADOPTION
OF THE TWENTY EIGHTEEN SHOP AT
THE LAST COMMISSION MEETING.
BASED ON TENURE PERFORMANCE
GOALS OVER THE OVER THE NEXT
DECADE CALTRANS IS COMMITTED TO
FIXING MORE THAN SEVENTEEN
THOUSAND. LANE MILES OF PAVEMENT
FIVE HUNDRED BRIDGES FIFTY FIVE
THOUSAND COLOR CULVERTS AND
SEVENTY SEVEN HUNDRED TRAFFIC
MANAGEMENT SYSTEM IMPROVEMENTS
SUCH AS RAMP METERS. TRAFFIC
CAMERAS AND ELECTRONIC HIGHWAY
MESSAGE BOARDS.
A TWENTY EIGHTEEN SHOP CONSISTS
OF OVER A THOUSAND PROJECTS
TOTALING NEARLY EIGHTEEN BILLION
DOLLARS WHICH INCLUDES SIX POINT
FOUR BILLION DOLLARS IN FUNDING
PROVIDED BY SP ONE.
AND I WANTED ALSO TOUCH A LITTLE
BIT ON.
THE THE THINGS THAT S. B. ONE
REQUIRES WHICH ISN'T TO ENSURE
THE CALTRANS IS OPERATING IN AN
OPEN AND TRANSPARENT MANNER WE
HAVE LAUNCHED A PROGRAM. WEBSITE
REBUILDING CALIFORNIA.
BUT THAT PROVIDES GENERAL
INFORMATION AND IDENTIFY STATE
LOCAL SP ONE PROJECTS AND A LOT
OF OTHER DETAILS BUT MORE THAN
THAT S. B. ONE REQUIRED. THE
HIRING OF A NEW INDEPENDENT
INSPECTOR GENERAL WHO WILL
PROVIDE INDEPENDENT OVERSIGHT TO
THIS PROGRAM AND THE CDC HAS
ALSO TAKEN ON AN ADDITIONAL
OVERSIGHT ROLE.
SO MOVING ON TO THE ROAD REPAIRS
ACCOUNTABILITY IMPLEMENTATION
PLAN THE DEPARTMENT OF
TRANSPORTATION REQUESTS ONE
POINT EIGHT BILLION DOLLARS IN
STATE SUPPORT. AND CAPITAL
FUNDING AND FOUR HUNDRED NEW
MAINTENANCE POSITIONS FOR
TRANSPORTATION PROJECTS UNDER SP
ONE. FISCAL YEAR EIGHTEEN
NINETEEN S. B. ONE REVENUES AND
LOWERING LOAN REPAYMENTS PROVIDE
APPROXIMATELY. FOUR POINT SIX
BILLION DOLLARS FOR LOCAL AND
STATE TRANSPORTATION PRIORITIES.
THIS REQUEST SEEKS TO CONTINUE
IMPLEMENTATION CONSISTENT WITH
THE LEGISLATION.
THANK YOU I BELIEVE ELLIOT HAS
SOME COMMENTS.
YEAH PUDDLE THIS KEY WITH THE LA
SO.
UNDER SB ONE A LOT OF THE
FUNDING IS ALLOCATED PURSUANT TO
FORMULAS TO DIFFERENT PROGRAMS
ON BUT THERE'S ONE. THREE OF
PART OF OF FUNDING THAT SUBJECT
TO THE BUDGET ACT AND THAT'S HOW
YOU ALLOCATE FUNDING BETWEEN.
THE HIGHWAY MAINTENANCE PROGRAM
AND THAT THE SHOP PROGRAM THE
SHOP PROGRAM PERFORMS.
A MORE EXTENSIVE REHABILITATION
WORK ON HIGHWAYS.
UNDER THE GOVERNOR'S PLAN HE
ALLOCATES A SOMEWHAT MORE
FUNDING TO SHOP VERSUS THE
MAINTENANCE PROGRAM.
AND WE THINK THAT YOU SHOULD
CONSIDER MODIFYING.
THE PROPOSAL TO WAIT THE
ALLOCATION IN THE OTHER
DIRECTION.
BOTH PROGRAMS HAVE LARGE BACK
LOTS OF PROJECT IN FUNDING
SHORTFALLS.
BUT THERE'S THREE REASONS WHY WE
THINK THE MAINTENANCE PROGRAM.
MIGHT MERIT MORE FUNDING AND
THOSE ARE FIRST.
MAINTENANCE CAN SAVE
SIGNIFICANT MONEY IN THE LONG
RUN THROUGH PREVENTION.
CALTRANS ESTIMATES FOR EACH
DOLLAR OF MAINTENANCE WORK SAVES
BETWEEN FOUR AND TWELVE DOLLARS
BY POSTPONING SHOT PROJECTS.
AND SECOND AS I MENTIONED THE.
WE ESTIMATE THAT THE FUNDING
SHORTFALL FOR MAINTENANCE A
SOMEWHAT LARGER THAN FOR SHOP.
AND LASTLY MENTIONS PROJECTS
DON'T REQUIRE AS MUCH DESIGN AND
ENGINEERING WORK AND SO THEY
COULD BE COMPLETED MORE QUICKLY
IF YOU WANT TO SEE.
RESULTS FROM SB ONE FASTER.
THANK YOU A ADDRESS DEPARTMENT
OF FINANCE. COMMENTS.
NOT IN THIS TIME TO. THANK YOU
OF MS BERMAN DO YOU WANT TO
RESPOND TO COMMENTS ABOUT THE
SPLIT BETWEEN THE SHOP AS A.
MAINTENANCE FUNDING.
SO WE NEED TO DO BOTH WE NEED TO
SPEND MONEY ON THE SHOP AND ON
THE MAINTENANCE PROGRAM AS I
MENTIONED.
WE HAVE DEVELOPED AN ASSET
MANAGEMENT PLAN THAT GUIDES ARE
INVESTMENT IN THE IN THE
PROGRAM.
AND AFTER YEARS OF UNDERFUNDING
A LOT OF THE HIGHWAY SYSTEM HAS
DETERIORATED BEYOND THE POINT
THAT THE MAINTENANCE PROP UP
PROJECTS WILL. ARE A VIABLE
OPTION SO WE LOOK AT EACH
SEGMENT THE NEEDS REPAIRS WE
LOOK AT WHETHER IT MAKES SENSE
TO CONTINUE TO DO A SHORTER TERM
MAINTENANCE FIX. OR THE BIGGER
SHOP OF THE PROJECT
AND AND IT'S REALLY IMPORTANT
BECAUSE OF THE LONG TERM.
NEGLECT OF THE SYSTEM THAT WE
WE START WITH THE THAT WE FEEL
THAT WE HAVE THE APPROPRIATE MIX
OF SHOPPING MAINTENANCE DOLLARS.
THANK YOU ARE THERE ANY OTHER
QUESTIONS.
PUBLIC COMMENT.
IT WAS FUN I'M SORRY.
THAT'S RIGHT UP I WANT TO
WELCOME A NEW CATCH AS DIRECTOR
LOOK FOR TO WORKING WITH YOU. I
JUST WHAT JUST A QUICK QUESTION.
AND MAYBE IT MAYBE IT'S THAT
THE THAT WENT WITH THAT YOU
COULD ANSWER ME WITH ELIO AS
MORE FOR MISSION BUT. DO YOU
HAVE AN ASSESSMENT OF THE
SKETCHES OF AN ASSESSMENT ON THE
IMPACT OF. OF LONG TERM OF IN
THE COVERS EXECUTIVE ORDER IN
THE PUSH FOR ELECTRIC VEHICLES.
THE OF WAS A FIVE MILLION TO
BUY TWENTY FORTY ON THE IMPACT
ON A GAS TAX REVENUE AND OUR
INABILITY TO TO ADDRESS ROAD
NEEDS.
IS.
YOU'RE ASKING IF WE'VE ESTIMATED
THE AFFECT OF AN INCREASE IN
ELECTRICAL GAUGE YET IS A.
WE HAVEN'T DONE THAT ANALYSIS
RECENTLY I DON'T KNOW IF THE
ADMINISTRATION HAS THE PART OF
FINANCE DOES YES. SO BY TWENTY
TWENTY FIVE TWENTY SIX THE GAS
EXCISE TAXES ARE ESTIMATED TO
BRING IN ABOUT EIGHT POINT THREE
BILLION DOLLARS.
AND AYE INTHAT YEAR AND OF THAT
NOT BE THREE BILLION WILL BE
ATTRIBUTABLE TO SP ONE.
RIGHT ACROSS THIS UGLY AT THE AS
THAT INFRASTRUCTURE INITIATIVE
WOULD DISPLACE A SMALL AMOUNT OF
THAT REVENUE BY REDUCING THE
CONSUMPTION KATHLEEN THAT WOULD
HAVE REDUCED THAT BY ABOUT FORTY
MILLION HOWEVER.
BECAUSE THE THERE IS A THAT THE
THAT IS PART OF THAT BE ONE.
THAT WOULD INCREASE FROM OUR
INITIAL ESTIMATE OF THIRTY
MILLION TWO HUNDRED EIGHTY
MILLION SO THE TOTAL REDUCTION
WOULD BE ABOUT TWO HUNDRED FIFTY
MILLION. AND THAT WE ABOUT THREE
PERCENT OF THAT DEEPLY THREE
BILLION TOTAL.
SO IT TOO OKAY SO A REDUCTION TO
IN A FIFTY MILLION THAT'S
ASSUMING FIVE MILLION LECTURE
VEHICLES OR THEY DID TO THE THE
MEETING OF THE AS A DESERVE
EXECUTIVE ORDER.
AT ITS CORE.
THAT'S THAT'S ASSUMING OF THAT
REACHING THE ONE POINT FIVE
MILLION GOAL BY TWENTY FIVE
TWENTY SIX.
CLIVE I MIGHT BY TWELVE AS IS
NOT ONE THAT I'VE MILLION DOLLAR
GOALS OUT BEYOND THE ESTIMATES
THAT WE HAVE FOR OUR OUR OUR TEN
YEAR ESTIMATES ON THE SP ONE
BUCKET SO SO THAT THAT IS THAT.
THAT AS A.
ANALYSIS IS ASSUMING ONE POINT
FIVE MILLION SETS THAT'S
ASSUMING THAT THE ADOPTION OF
ONE POINT FIVE BILLION MILLION
ZEPP VEHICLES BY THE TWENTY FIVE
TWENTY SIX TARGET.
TWENTY FIVE.
THANK YOU VERY MUCH.
THANK YOU NOAH IS ANY PUBLIC
COMMENT.
ITEM.
ALRIGHT.
.
IS BERMAN A OF STICKING AROUND
FOR THE NEXT ISSUE YES SAM GREAT
POSTERS ROLL RIGHT INTO IT.
THE DEPARTMENT OF TRANSPORTATION
ACROSS A PERMANENT INCREASE OF
FIFTY EIGHT MILLION DOLLARS
WHICH WILL FIX A BUDGET
SHORTFALL CREATED DURING THE
CONVERSION TO FISCAL. AND PASSED
EMPLOYEE COMPENSATION
ADJUSTMENTS
THIS PICKS WILL FULLY FUND
BENEFIT RETIREMENT COSTS FOR
EXISTING POSITIONS PREVIOUSLY
AUTHORIZED BY THE LEGISLATURE.
BECAUSE OF THE SHORTFALL
CALTRANS HAS NOT BEEN ABLE TO
COMPLETELY FILL ALL OF OUR
AUTHORIZED POSITIONS.
POSTFIX WILL ALLOW CALTRANS TO
FILL POSITIONS HELD VACANT DUE
TO THE FUNDING SHORTAGE DOING SO
WILL ALLOW THE DEPARTMENT TO
FOCUS ON AREAS OF LAGGING
PERFORMANCE. AND PROVIDE BETTER
SERVICE TO THE STATE INTO THE
PUBLIC AND THE DEPARTMENT OF
FINANCE CAN ADDRESS ANY
TECHNICAL QUESTIONS.
I APOLOGIZE
DESTRUCTIVE.
DID YOU COMPLETE IT COMMENT ON.
.
ILIO.
SIR AS YOU HEARD THE PROPOSAL
IS TO APPROVE FIFTY EIGHT
MILLION TO FILL VACANT
POSITIONS.
THIS FUNDING WOULD OTHERWISE BE
AVAILABLE FOR HIGHWAY CAPITAL
PROJECTS SO THAT'S.
THE MAIN TRADE OFF HERE IN
TERMS OF APPROVING THE PROPOSAL.
THE PROPOSAL DESCRIBED SORT OF
AT A HIGH LEVEL OF WEAR THE
VACANCIES WERE BUT IT DIDN'T
PROVIDE SPECIFIC INFORMATION ON
THE SPECIFIC WORKLOAD THAT
HASN'T BEEN PERFORMED DUE TO THE
VACANCIES.
WE THINK THAT THAT INFORMATION
WOULD BE HELPFUL FOR YOU TO
CONSIDER.
AND DECIDING TO PROVE THE
PROPOSAL SO WE'D.
RECOMMEND YOU REQUIRE THE
ADMINISTRATION TO PROVIDE MORE
DETAIL BEFORE TAKING ACTION ON
THIS ONE.
WITH BERMAN WHAT WOULD IT TAKE
TO PROVIDE THAT INFORMATION. SO
WE WERE PLANNING TO DO WITH THAT
IS.
HAVE MORE MAINTENANCE EMPLOYEES
MORE BOOTS ON THE GROUND TO DO
THE MAINTENANCE WORK THAT WE
DISCUSSED IN THE LAST ITEMS SUCH
AS FIXING POTHOLES INCREASING
CRAP REPAIRS.
EXEN. DAMAGE GUARDRAIL AT SUCH
A. REDUCING THE TIME IT TAKES TO
HIRE NEW EMPLOYEES.
SPEED UP.
WELL INCREASE THE HEALTH OF THE
TRANSPORTATION MANAGEMENT SYSTEM
ELEMENTS THESE ELEMENTS IS
CONGESTION AND ALERT THE
TRAVELING PUBLIC TWO UPCOMING
ROAD CONDITIONS.
OUR GOAL IS TO BE AT NINETY
PERCENT IN GOOD CONDITION BY
TWENTY TWENTY WERE CURRENTLY
ABOUT SEVENTY TWO PERCENT.
AND THERE'S DEPARTMENT FIND
ITSELF COMMENTS YESTERDAY REALLY
IS AN ECLECTIC TO IDENTIFY
MYSELF THIS IS THE NEWMAN NOW
I'M GONNA FINANCE I JUST WANT TO
CLARIFY UM'S IN THE ALLEYS THAT
ELLIOTT SAID A MOMENT AGO THAT
WAS. YES THIS IS FUNDING TO FILL
POSITIONS OF THIS IS FUNDING TO
A COMPLETE THE FUNDING OF
EXISTING POSITIONS HAVE WITHIN
CALTRANS YOU CAN PULL THE MIKE
TO YOU IF YOU WANT BUT NO A LOT
VERY UNCOMFORTABLE AT THEIR.
THANK YOU.
ANY QUESTIONS.
ALRIGHT I THINK HOLD THIS ITEM
OPEN ALSO AND TO. MOVE ON TO
ISSUE NUMBER THREE.
OKAY THE DEPARTMENT OF
TRANSPORTATION REQUEST THE
EXTENSION OF FIVE LIMITED TERM
POSITIONS AND THREE POINT TWO
MILLION TO UTILIZE A WORD TO
GRANT FUNDS. AND CONTINUE TO
EXPLORE MORE EFFICIENT EQUITABLE
AND SUSTAINABLE TRANSPORTATION
FUNDING ALTERNATIVES.
FEDERAL HIGHWAYS APPROVED A ONE
POINT SEVEN MILLION DOLLAR GRANT
IN OCTOBER OF TWENTY SEVENTEEN
FOR CALTRANS TO DEMONSTRATE
MECHANISMS TO COLLECT MILEAGE
BASED REVENUE IN DATA IT FUELING
STATIONS. THE THREE POINT TWO
MILLION INCLUDES TWO AND A HALF
MILLION ONE TIME COSTS FOR
CONSULTANT SERVICES.
HELLO.
SO THE THE PROPOSAL IS TO
CONTINUE A OF WHAT'S CALLED THE
ROAD USAGE CHARTS STUDY TO
EXAMINE OUR OKAY.
.
A METHOD OF COLLECTION
COLLECTING THE REVENUE FOR THE
CHARGE.
AT THE GAS PUMP.
AT THE TIME WE'VE REVIEWED THIS
PROPOSAL CALTRANS IS STILL
ASSURING AN RFI.
TO ASSESS THE COSTS THAT WE
WOULDN'T REALLY HAVE COMPLETE
INFORMATION TO MAKE A
RECOMMENDATION ON AT. HOME BUT
IF THEY.
COULD PROVIDE ADDITIONAL
INFORMATION IF THEY KNOW ARM IN
MORE DETAIL NOW THAT THEY'VE
DONE OUR IF I THE COST AND WE.
WOULD HAVE A BETTER
UNDERSTANDING.
SURE IF THE REQUEST FOR
INFORMATION OF THE RFA WAS
RELEASED ON JANUARY EIGHTH AND
CONCLUDED ON FEBRUARY FIFTEENTH.
WE RECEIVED EXCUSE ME ELEVEN
RESPONSES AND ARE IN THE PROCESS
OF ASSESSING EACH RESPONSE.
THE RESPONSES SPAN A WIDE RANGE
OF TECHNOLOGIES INCLUDING
HARDWARE AND SOFTWARE
DEVELOPMENT POINT OF SALE
SYSTEMS AND.
DATA PRIVACY AND SECURITY THEIR
SPONSORS CONTINUE TO BE
EVALUATED IN THE RESULTS OF THE
ARE BY WILL BE REPORTED BACK TO
THE LEGISLATURE. TELETYPE RAN ON
THE.
JERRY SNAPPING A TENTATIVE
TIMELINE NUMBER ARE FIVE REVIEW.
IT'S A JUNE THIRTIETH WHO NEEDS.
ALRIGHT THANK YOU.
DEPARTMENT FINANCE.
NOTHING THAT AT THIS TIME.
THANK YOU.
WE HAVE A RECOMMENDATION HOLD
ITS OPEN AS WELL.
AND TO MISTER MALONE HAS
QUESTION.
THANK YOU MISTER.
.
I UNDERSTAND THAT THERE WERE.
THOSE FIVE METHODS THAT WERE
ALREADY TESTED.
SO WHAT IS THE STATUS OF THAT
EVALUATION OF THOSE FIVE MATHIS
IS THAT AN ONGOING.
EVALUATION HAS THAT WRAPPED UP
ITS KIND OF WHAT'S WHAT'S THE.
STATUS THERE.
SO THE THE ORIGINAL ROAD CHARGE
PILOT.
PROGRAM FINAL REPORT WAS
RELEASED ON DECEMBER SEVENTH
TWENTY SEVENTEEN AND THE CTC
PER.
CALIFORNIA TRANSPORTATION
COMMISSION PROVIDED THE
RECLAMATION RECOMMENDATIONS TO
THE LEGISLATURE AND THEIR TWENTY
SEVENTEEN ANNUAL REPORT.
SO THIS WILL BUILD ON THE
INFORMATION WE GATHERED IN THAT
THAT FIRST.
SO THAT REPORT THAT WAS RELEASED
THAT.
WHILE SOME OF THE THE EFFICACY
OF THOSE FIVE METHODS THAT WERE
WERE TESTED SO OKAY IT DETRACT
AT PORT GREAT THANK YOU.
THANK YOU.
WILL MOVE ON TO.
ISSUE NUMBER FOUR.
OKAY.
THE DEPARTMENT OF TRANSPORTATION
REQUESTS OF ONE TIME INCREASE OF
UP TO TWO MILLION DOLLARS IN
STATE HIGHWAY ACCOUNT FUNDS TO
DEVELOP. AN INFORMATION
TECHNOLOGY ROADMAP THIS ROADMAP
WILL PROVIDE THE GUIDANCE FOR
SUSTAINABLE AND ADAPTABLE
INFORMATION TECHNOLOGY
ENVIRONMENT.
CONTINGENT UPON THE COMPLETION
OF AN APPROVAL FROM THE
DEPARTMENT OF FINANCE CALIFORNIA
STATE TRANSPORTATION AGENCY AND
CALIFORNIA DEPARTMENT OF
TECHNOLOGY. PROVISIONAL LANGUAGE
WOULD ALLOW CALTRANS TO REQUEST
A ONE TIME INCREASE OF TWELVE
MILLION DOLLARS. FOR THE
REPLACEMENT OF EQUIPMENT THAT
HAS REACHED ITS END OF LIFE.
THANK YOU ALEJO.
.
REGARDING THIS PROPOSAL LAST
YEAR YOU THELEGISLATURE
APPROVED.
TWELVE MILLION DOLLARS FOR THE
DEPARTMENT TO BEGIN REPLACING
ITS IT DEVICES I'M NOT THAT
TIME.
THEY SAID THAT THEY WERE WORKING
ON A MORE COMPLETE PLAN FOR TO
MAKE SURE THAT THEY'RE REPLACING
THE DEVICES AS COST EFFECTIVELY
AS POSSIBLE.
I MEAN THEY'RE GONNA START WITH
THE AUGMENTATION FROM WASHER
JUST REPLACING BLUNTS AT
GREATEST RISK OF FAILURE.
THEY THEY WERE ABLE TO COMPLETE
THAT PLAN WHICH IS WHY THE
REQUESTING THAT TWO MILLION
DOLLARS THEY DETERMINED THAT
THEY WOULD NEED TO HIRE.
CONSULTANTS TO HELP THEM WITH
IT.
AND AS YOU HEARD THEY WANT A
COMPLETE THE PLAN IN EIGHTEEN
NINETEEN.
BUT IN ADDITION I ALSO HAVE THE
AUTHORITY TO START SPENDING
MONEY TO IMPLEMENT IT.
WE THINK THAT'S A LITTLE
PREMATURE WE THINK THAT THEY
SHOULD DO THE PLAN IN EIGHTEEN
NINETEEN FIRST SO WE THINK THEY
SHOULD APPROVE THE TWO MILLION
DOLLARS FOR THAT. AND THEN HAVE
THEM COME BACK NEXT YEAR TO
REQUEST FUNDING TO IMPLEMENT THE
PLAN.
DEPARTMENT OF FINANCE AND THEN
LOSE BERMAN.
I AVAIL THINK OF HILLARY
INTRODUCED MYSELF TO ASSIST THE
WEALTH DEPARTMENT OF FINANCE.
LAST YEAR YOU THAT THE
DEPARTMENT IDENTIFIED.
OVER SIXTY MILLION DOLLARS
WORTH OF EQUIPMENT THAT IS
PASSED IT'S FAR PAST IT'S IT'S A
TIME TO BE REPLACED.
AND.
IN DOING SO LAST YEAR WE PUT
TOGETHER THE. ONE FIFTH OF A
TWELVE MILLION DOLLAR REQUEST
FOR THE EQUIPMENT THAT HAD THE
HIGHEST CRITICALITY.
AND.
THE THE MOST OF THE POTENTIAL
TO CAUSE PROBLEMS NOT BE
REPLACED.
HOWEVER THAT STILL LEAVES YOU
KNOW CLOSE TO FIFTY MILLION
DOLLARS IN EQUIPMENT THAT IS YOU
KNOW THAT HAS BEEN ALREADY
IDENTIFIED.
THE DEPARTMENT DID CREATE A
PLAN.
UP PLAN FOR HARDWARE.
REPLACEMENT.
AND IN THE PROCESS OF REPLACING
THAT PLAN.
YOU KNOW IT IS PART OF REVIEW
THAT PLAN WE WE WANTED TO THEN
EXTEND.
THE IDEA OF LOOKING AT.
.
IT'S SORT OF A SYSTEM WIDE SO
IT'S NOT JUST A HARDWARE
REPLACEMENT PLAN BUT A PLAN FOR
HOW WE'RE MOVING FORWARD WITH
THE I. T..
SYSTEM TO WHAT'S GOING TO BE
STORED IN THE CLOUD WHAT YOU
KNOW WHAT ARE THE DIFFERENT
OPTIONS HOW DOES THIS.
HOW DID THESE HARDWARE
REPLACEMENT?
PLANS PALACES HEART REPLACEMENT
PLAN FIT IN WITH THE OVERALL IT
PLANTS SO. THIS TWO MILLION
DOLLARS THAT WE'RE ASKING FOR
HERE IS ESSENTIALLY TO LOOK AT
THAT PLAN IT'S A IT'S A
PROGRESSION FROM THE PLAN THOSE
RD PUT TOGETHER REGARDING THE
HARDWARE.
IT'S OUR PROPOSAL IS TO IT NOT
UNTIL THAT PLANET DEFIES TO
ENSURE THAT THIS THE HARDWARE
THAT WE HAVE THAT WE WANT TO
REPLACE. IS.
IS PART OF THE FUTURE PLANS
OVERALL SO THE WE'RE NOT
REPLACING THINGS THAT WE'RE THEN
GOING TO TURN TURN AROUND AND.
USE A DIFFERENT METHODOLOGY OR
USE A DIFFERENT.
TYPE OF.
IF IT IT UP PLAN.
AND WE WILL NOT.
CONTINUE WITH THE REPLACEMENT
OF ANY ADDITIONAL EQUIPMENT
UNTIL THAT PLANET TO IS IS
IDENTIFIED SO THAT'S WHY WE
WANTED TO HAVE.
OF UPON IDENTIFICATION OF THAT
THE ABILITY TO STILL REPLACE THE
TWELVE MILLION DOLLARS FOR THE
HARDWARE BECAUSE.
WE'VE IDENTIFIED FAR GREATER
THAN THAT THAT'S GOING TO MEET
DE TO REPLACE.
AND ANY DELAY JUST.
THE STATE AT RISK ON THIS
IT'S ON A FAILURE ON MY TEETH.
ANYTHING YOU WANT TO ADD TO THAT
OR HAS BERMAN AND. I HAD A
FEELING THAT THE PUBLIC HAVE.
ALRIGHT WELL THANK YOU VERY
MUCH I WILL HOLD THIS ITEM OPEN
AS RECOMMENDED AND. THAT TAKE
THAT'S ISSUE NUMBER FIVE.
.
WE'RE BACK TO HIGH SPEED RAIL IN
REIMBURSABLE LOOKED OR HE.
OKAY THE DEPARTMENT OF
TRANSPORTATION REQUEST THE
EXTENSION OF FOURTEEN EXISTING
LIMITED TERM POSITIONS BEGINNING
JULY ONE TWENTY NINETEEN TO JUNE
THIRTIETH TWENTY TWENTY ONE.
THIS REQUEST CONSISTS OF TWO
POINT EIGHT MILLION FOR PERSONAL
SERVICES OPERATING EXPENSES IN
LITIGATION COSTS WILL PROVIDE
ONGOING LEGAL SERVICES TO CUT.
THE CALIFORNIA HIGH SPEED RAIL
AUTHORITY IN REAL PROPERTY
ACQUISITION AND MANAGEMENT.
THIS REQUEST FACILITATES A
REDUCTION IN THE AVERAGE
ATTRITION RATE OF SEVENTY NINE
MONTHS ASSOCIATED WITH LIMITED
TERM POSITIONS THIS REQUEST WILL
PROVIDE CONTINUITY OF SERVICES
WITH EXISTING STAFF. TO MANAGE
THE CURRENT MADERA CHAPTER
SEGMENT WORKLOAD.
WELL I WOULDN'T HAVE ANY
CONCERNS WITH THIS.
DEPARTMENT FINANCE.
NOTHING AT.
THANK YOU SO ARE MY NOTES
INDICATE THAT.
THIS IS SOMETHING THAT WE'VE
DEALT WITH ON AN ANNUAL BASIS
AND.
IN PRIOR YEARS THE.
REQUEST WAS MADE IMMEDIATELY
BEFORE THE POSITIONS EXPIRED AND
THIS TIME YOU'RE OUT THE FRONT
OF IT IS THERE SOME. A. A
RATIONAL FOR THAT THAT.
WE SHOULD KNOW ABOUT IT'S JUST
A LITTLE MORE EFFICIENT FOR US
TO KNOW THAT WE'LL.
THE SAME ATTORNEYS ONBOARD SAME
STAFF ON BOARD.
PREDICTABILITY IS GENERALLY A
GOOD THING.
ALRIGHT ANY OTHER QUESTIONS.
WILL HOLD THAT ITEM OPEN AND TO.
.
UNLESS YOUR LAST ISSUE.
SO HOW DO WE HAVE ANY PUBLIC
BEFORE YOU KNOW IT LET'S A
GRAMMY PUBLIC COMMENT ON. ISSUES
ONE THROUGH FIVE UNDER A
CALTRANS.
SEEING NONE.
THANK YOU THIS IS YOUR FIRST
APPEARANCE BEFORE THE COMMITTEE
PASSED WITH FLYING COLORS. HER
HOME HOPEFULLY IT WASN'T TOO
STRESSFUL FOR YOU IT DIDN'T YOU
AGENCIES THREATENS. EXECUTIVES
NOT.
AND ARE NEXT TO THE ITEM WILL BE
ISSUE NUMBER ONE UNDER
DEPARTMENT OF MOTOR VEHICLES WE
HAVE THREE ISSUES.
TO REVIEW.
WELCOME IS FROM A LOT OF.
GOOD MORNING GOOD MORNING I'M
HOPING TO BE ABLE TO CONTINUE TO
SAY GOOD MORNING.
UNTIL WE COMPLETE THE MEANING
WHICH MEANS WE'VE GOT TWENTY TWO
MINUTES TO FINISH OKAY I'LL BE
BRIEF. OF THAT WORD IF YOU SO
GOOD MORNING.
DIED CHAIR BLOOM AND COMMITTEE
MEMBERS I'M JEANNE CHIMO THE
DIRECTOR OF THE DEPARTMENT OF
VEHICLES. WITH ME HERE TODAY IS
ROBBERY ROBBIE CROCKETT OUR
BUDGET OFFICER. SO THANK EVEN UP
TO TO SPEAK BEFORE YOU FIND IF
YOU AREOF THE PHONE PROPOSALS
FOR US THE REPLACEMENT OF DVDS
OUTDATED VEHICLE. REGISTRATION
CAPTURING SYSTEMS
REAPPROPRIATION FOR THE DELANO
INGLEWOOD SAN DIEGO IN SANTA
MARIA FIELD OFFICE REPLACEMENT
PROJECTS.
CONTINUATION OF THE CAPITAL
OUTLAY PROJECTS FOR TWO FIELD
OFFICES THE OXNARD
RECONFIGURATION AND THERE.
REALLY REPLACEMENT AND STATE BY
PLAYING PROPOSAL FOR A FUTURE
FILLED OFFICE RENOVATIONS BY
KNOW FIRST ON THE AGENDA IS A
DISCUSSION ON A MOTOR VEHICLE
COUNT OF FUN. LAGUNITAS AT BACK
OVER TO FINANCE.
GAZA WITHOUT DISCUSSING WHO DO
THAT AND I THINK THAT'S GOING
ON.
RIGHT PAPER SCISSORS GODDESS.
MINT MOSQUITO DEPARTMENT
FINANCE.
THE GOVERNOR'S BUDGET INCLUDES.
.
ONE POINT TWO BILLION.
SURE FROM THE MOTOR VEHICLE
ACCOUNT.
FOR. DEPARTMENT OF MOTOR
VEHICLES.
IN THAT IS EIGHTY THREE PERCENT
INCREASE IN FUNDING FROM.
.
FROM CURRENT YEAR.
AND A HAPPY TO TAKE ANY ANY
QUESTIONS ON.
LOT OF PEOPLE COME.
THAT WAS COMPLICATED.
OBVIOUSLY WE HAVE FOR. OTHER
ISSUES WITH THE A MOTOR VEHICLE
ACCOUNT EXPENDITURES. OTHER NOT
PARTICULARLY RELEVANT TO
DEPARTMENT OF MOTOR VEHICLES ON
BUT AS A ALEJO HAVE ANY COMMENTS
ON THIS ITEM.
WELL JUST NOTE THAT THAT STARTUP
HE WITH THE LA O. WILL JUST KNOW
THAT THE NBA IS CURRENTLY BOUNCE
THE ADMINISTRATION'S PROJECTIONS
INDICATE A REASONABLE RESERVE
THROUGH THE. FORECAST WINDOW BUT
IT'S WORTH BEARING IN MIND THAT
ADDITIONAL COST PRESSURES COULD
ARISE IN THE FUTURE.
AND LEGISLATURE MIGHT WISH TO
REPAIR THESE MIGHT THAT MAKES
DECISIONS REGARDING THE ACCOUNT.
SOME IS COST PRESSURES INCLUDE
THE POSSIBILITY OF DEFERRED
MAINTENANCE COSTS GROWING ABSENT
A PLANNED ADEQUATELY ADDRESS
THOSE.
THE PENDING RENEGOTIATION OF CHP
OFFICER SALARIES AND BENEFITS
THOUGH THE ADMINISTRATION DOES
MAKE AN ASSUMPTION FOR THOSE AND
IN THEIR PROJECTIONS. UNTIL
THOSE NEGOTIATIONS ARE COMPLETE
THERE'S ALWAYS THE POSSIBILITY
OF THOSE MIGHT CHANGE.
AND.
OF COURSE THE POSSIBILITY THAT
NEW CEDAR FEDERAL REQUIREMENTS
COULD EMERGE UP WITH ADDITIONAL
BURDENS ON ON THE NBA.
THANK YOU AND I SHOULD POINT OUT
ON ALL THREE OF OUR.
OF THE ISSUES WITH THE DMP WE
HAVE A RECOMMENDATION TO HOLD
OPEN AND WILL ACT IN ACCORDANCE
WITH THAT RECOMMENDATION. HOLDUP
PUBLIC COMMENT AFTER WE.
HERE ISSUE NUMBER THREE.
I AND SHOWING MOVE ONTO ISSUE WE
HAVE A QUESTION FOR MR FUNG.
IS THAT WHAT ONE QUICK QUESTION
JUST TO GET THE DMV PERSPECTIVE.
A WE WE HAD A DISCUSSION ABOUT
THE MOTOR VEHICLE COUNT IN TERMS
OF THE.
.
THE A SHIFT OF SOME MONEY TO THE
DEPARTMENT OF FISH WILDLIFE DOES
DMB HAVE A PERSPECTIVE ON THAT
AND WHAT THEIR THOUGHTS ARE ON.
AND
SO AGAIN LIKE GOOD DEPARTMENT
INDIAN DOES HE FEAR FUNDED BY
THE MOTOR VEHICLE COUNT BUT THEN
WE GO WITH ADMINISTRATION'S OF
RECOMMENDATION ON ON FUNDING. SO
YOU HAVE NO PERSPECTIVE ON THE
NEXUS.
UNQUESTIONED THE NEXUS QUESTION
OF WHETHER IT'S THE APPROPRIATE
USE OF THE MONEY.
AS
SURE THAT THE FINANCE EFFECTS OF
WILDLIFE ON THE ROAD.
AND BE MINISTRATION BELIEVES
THAT THAT PROPOSAL IS CONSISTENT
WITH ARTICLE NINETEEN OF.
UP CALIFORNIA CONSTITUTION WHICH
ALLOWS FOR THE USE OF MOTOR
VEHICLE. REVENUES.
.
NOT FOR THE TO MITIGATE THE
EFFECTS OF A MOTOR VEHICLES ON
THE ENVIRONMENT.
AND.
VEHICLE WILDLIFE.
COLLISIONS ARE LEAVING BECAUSE
OF OTHER WILDLIFE MORTALITY IN
CALIFORNIA AND MANAGING WILDLIFE
POPULATIONS REQUIRES THE STATE
TO IDENTIFY AND IMPLEMENT
MITIGATION MEASURES. FOR THESE
MENTALITY FACTORS AND THIS
PROPOSAL IS AN ATTEMPT TO DO
THAT.
THANK YOU AND OF COURSE WE HAD
THAT DISCUSSION AT A PRIOR
MEETING GO WENT DEPARTMENT OF
FISH AND WILDLIFE WAS HERE AND.
THERE WAS SOME SKEPTICISM
EXPRESSED WILL CONTINUE TO HOLD
THIS ITEM OPEN AND LOOK AT THE
AND ENTIRE ISSUE.
LET'S MOVE ON TO YOUR ISSUE
NUMBER TWO WITCHES.
CAPITAL OUTLAY PROPOSALS.
SO A AYE CAPABLY PROPOSED DATES
ARE FOR OF THE DELAY NO FIELD
OFFICE REPLACE REAPPROPRIATION.
OUTGREW REQUEST WE APPROPRIATION
OF SEVEN HUNDRED NINETY FIVE
THOUSAND DOLLARS FOR THE WORKING
DRAWING PHASE. AND
REAPPROPRIATION OF SIX HUNDRED
THIRTY TWO THOUSAND DOLLARS FOR
THE ACQUISITION PHASE FOR THIS
FIELD OFFICE.
OF FOR SAN DIEGO NORMAL STREET
ONSITE REPLACEMENT
REAPPROPRIATION WERE SKING FOR
REAPPROPRIATION OF ONE POINT
FIVE. MILLION DOLLARS FOR THE
WORKING DRAWING PHASE OF THIS
FIELD OFFICE.
UPPER SANTA MARIA FIELD OPS
REPLACEMENT REAPPROPRIATION
ASKING FOR THE REAPPROPRIATION
OF NITROGEN FOURTEEN THOUSAND
DOLLARS. UP FOR THE WORKING
DRAWING FACE.
BUT OXNARD FIELD LOS
RECONFIGURATION REQUESTING FOUR
HUNDRED FOURTEEN THOUSAND
DOLLARS DIVIDE THE WORK INTO
WORKING TRYING PHASE OF THIS
PROJECT.
FOR THE RELIEF FILLED THOUGHTS
REPLACEMENT REQUESTING ONE POINT
ONE MILLION DOLLARS TO FUND THE
PLAYER A PLAN FACE OF THIS FIELD
LOS REPLACEMENT.
OFFER INGLEWOOD FILLED OFFICE
REPLACEMENT REAR ASKING FOR THE
REAPPROPRIATION OF FIFTEEN POINT
ONE MILLION DOLLARS FOR THE
CONSTRUCTION PHASE.
AND DIED RAZA ASKING FOR
STATEWIDE PLANNING ASIDE
IDENTIFICATION OF TWO HUNDRED
THOUSAND DOLLARS.
FOR MONIES TO DO STUDIES FOR
FUTURE DEVELOPMENTS OF
RECONFIGURATION AND RENOVATION
OF THESE PROJECTS ARE HAPPY TO
ANSWER ANY QUESTIONS BUT I KNOW
THESE ARE GONNA BE HELD OPEN.
KELLY OVER DEPARTMENT OF FINANCE
YEAH.
MANY CUTS A PART OF FINANCE WE
WOULD JUST NOTE THAT ALL OF
THESE ARE CONTINUING PROJECTS SO
THEY HAVE BEEN. UP PREVIOUSLY
APPROVED BY THE LEGISLATURE.
THANK YOU.
THERE'S NO COR OUT YES ILARIO
MIGHT PART OF FINANCE JUMPED IN
FRONT OF YOU THAT HAPPENED.
THAT'S MODERATE AND NO MAJOR
CONCERNS NO JUST WANT TO
UNDERSCORE THAT THE TWENTY
EIGHTEEN PLAN DOES SIGNAL A
SLOWDOWN FOR FUTURE OFFICE.
PROJECTS YOU TO PROPONENTS FOR
PROJECTS IN A IN A FEW KEY AREAS
AND A DELAYED A PROPOSED
REPLACEMENT SACRAMENTO
HEADQUARTERS AND TOGETHER THAT
HELPS TO REDUCE COST PRESSURES
ON THE NBA HELPING THAT ACCOUNT
MEDINA RESERVE DUTY.
THANK YOU 럋'S
ISSUE NUMBER THREE.
SO THIS IS THEIR FINANCES STATE
ABILITY PROPOSAL IT'S A MULTI
YEAR INCREMENTAL TECHNOLOGY
UPGRADE. A PROJECT THAT WOULD
ENSURE CONTINUITY OF OPERATIONS
FOR THE VEHICLE REGISTRATION
CASHIERING FUNCTIONS FOR THE
DEPARTMENT OF VEHICLES.
WE HAVE WORKED VERY CLOSELY WITH
THE CALIFORNIA DEPARTMENT OF
TECHNOLOGY AND PUTTING THIS
PROJECT TOGETHER. REQUESTING
FIFTY MILLION DOLLARS IN TWENTY
EIGHTEEN NINETEEN A TOTAL OF
EIGHTY NINE MILLION DOLLARS FOR
THE FIVE YEAR PROJECTS.
YOU'RE THE DEPARTMENT COLLECTS
OVER EIGHT BILLION DOLLARS AND
WITH MAJORITY THOSE FUNDS BEING
DISTRIBUTED TO LOCAL GOVERNMENTS
LAW ENFORCEMENT. AND A WIDE
VARIETY OF STATE AGENCIES
WITH OUR EXISTING LEGACY SYSTEMS
DEVELOPMENT NINETEEN EIGHTIES
THE LANGUAGE AND OPERATE SYSTEMS
ARE SUPPORTED TODAY BY A VERY
LIMITED NUMBER STAFF.
THE PROGRAMMERS IN OUR CURRENT
OPERATIONS ARE AT RISK.
WITH THE AGENT COMPLEXITY OF THE
SYSTEMS MAINTAIN SUPPORT IS
IMPERATIVE WE NEED TO BEGIN THIS
REPLACEMENT PROJECT.
WITH THIS COMMITTEES
UNDERSTANDING OF THIS CRITICAL
PROJECT. THOUGHT THE NEED TO
UPGRADE OURSYSTEMS LAST YEAR
PROVISIONAL FUNDING FOR A FEW
KEY PROJECT TASK AND NOT
REQUESTING THE FUNDING FOR THE
ENTIRE PROJECT.
THE CALIFORNIA DEPARTMENT
TECHNOLOGY OF PLAY A PRIMARY
ROLE IN THE PROJECT AND YOU WE
UTILIZE THE AGILE METHODOLOGY TO
DOUBT THE NEW SYSTEM IN PHASES
WITH THE DEVELOPMENT OF. THE
BUSINESS PART OF FUNCTIONALITY
FIRST THEN AUTO CLUBS AND FUNNY
THE DB FIELD OFFICES EACH PHASE
WILL BUILD OFF THE PREVIOUS
PHASE.
WITH ALL THE WORK THE DB STEP IS
DONE WITH THE ASSISTANCE OF THE
DEPARTMENT TECHNOLOGY WE ARE
SCHEDULED PUT OUT A REQUEST FOR
PROPOSAL.
I BEGAN TO FISCAL YEAR TWENTY
EIGHTEEN NINETEEN WITH THE PLAN
TO AWARD A CONTRACT IN EARLY
TWENTY NINETEEN.
THIS PROPOSAL ALSO INCLUDES
TRAILER BILL LANGUAGE THAT
AUTHORIZES THE DEPARTMENT
CLINTON ADDITIONAL ONE DOLLAR
FOR THE BUSINESS PARTNERS FOR
EACH TRANSACTION. THEY PROCESS
TO THE DEPARTMENT COVER
PROPORTIONAL SHARE THE ONE TIME
COSTS FOR IMPLEMENTING THIS
SYSTEM.
SO I'M HAPPY TO ANSWER ANY
QUESTIONS.
THANK YOU LA ILIO BELIEVE YOU
HAVE SOME COMMENTS.
YES WHILE MODERNIZING THE IT
SYSTEMS CERTAIN HIS NARRATIVE
IT'S CONSISTENT WITH LEGISLATIVE
DIRECTION WE THINK IT'S
PREMATURE TO PROVIDE FUNDING FOR
THE PROJECT AT THIS TIME GIVEN
WHERE THE DEPARTMENT IS IN THE
PLANNING PROCESS TYPICALLY. AT
THE PROJECT WITH WERE FORCED THE
TWENTY PROCESS BEFORE THE
LEGISLATURE MIGHT APPROVE
FUNDING FOR IT WE'RE CURRENTLY
ENTERING STAGE THREE OF THAT
PROCESS SO.
APPROVING THE FUNDING AT THIS
TIME WOULD UNDERMINE THE
LEGISLATOR THE LEGISLATURE'S
OVERSIGHT OF OF THE PROJECT.
AT.
DO I RECOMMEND THE LEGISLATURE
DOT.
IT'S OF LITTLE REPORTING
LANGUAGE AT THAT WOULD REQUIRE
THE DMV TO PROVIDE A STATUS
REPORT ON THE PROJECT THE
LEGISLATURE. AT FOLLOWING THE
CDT IS APPROVAL OF SPEECH WERE
OF THAT PLANNING PROCESS.
THANK YOU BARBARA FINANCE.
WE NOTE THAT.
DEPARTMENT TECHNOLOGY INDIAN HE
WORKED CLOSELY TOGETHER. ON THIS
PROJECT.
IN DEVELOPING STAGE TWO OF THE
PALACE PROCESS AND. IN THAT
STAGE OF FULL FISCAL ANALYSIS IS
DONE BY DEPARTMENT TECHNOLOGY.
BUT IT'S THE BEST ESTIMATE OF
COSTS OF THAT PROJECT. AT THIS
TIME IN THE BCP IN FRONT OF YOU.
AS A RESULT OF THAT
COLLABORATION AND THAT FULL
FISCAL ANALYSIS
BUT SINGLE WIDE. DEPART IF I'D
LIKE.
I TAKE A LA DOES POINT WIDE
APART FROM THE NORM.
KNOW HOW WE NORMALLY JUST.
THIS IS A.
QUITE LARGE PROJECTS.
AND THERE HAVE BEEN
SEVERAL OTHER PROJECTS AND
STATE.
ON BELIEVE.
.
I CAN GET GET HIT WITH.
SOME OF THOSE PROJECTS BUT. A
FEW OTHERS HAVE
BEEN FUNDED ON THE MULTI YEAR
BASIS WELL OKAY WOMAN WHO IN THE
SIDE OF COME BACK BECAUSE WE'RE
HOLDING IT OPEN.
AND I THINK THERE'S A
RECOMMENDATION FOR SOME
SUPPLEMENTAL REPORTING LANGUAGE.
THAT WE WOULD CONSIDER THAT
OKAY
MAYBE MAYBE IT'LL HELP RESOLVE.
SOME OF THE ISSUE.
IS THERE ANY PUBLIC. COMMENT.
OKAY SEEING NONE THANK YOU VERY
MUCH YOU WILL SEE YOU AGAIN
THAT.
IN THE NOT TOO MANY WEEKS.
AND OUR LAST DEPARTMENT IS.
THE CALIFORNIA HIGHWAY PATROL.
WELCOME SIR THIS IS I YOUR FIRST
MEETING IN FRONT OF US TOO I
THINK YES THEY MIGHT SLOW
WELCOME VICKY.
IT'S GOOD TO HAVE YOU HERE YOU
CAN PROCEED AND TRY.
GOOD MORNING CHAIRMAN BLOOM IN
MEMBERS OF THE COMMITTEE AND
COMMISSIONER ONE STANLEY IN
APPRECIATE THIS OPPORTUNITY TO
COME BEFORE YOU TO DISCUSS OUR.
TWO THOUSAND EIGHTEEN NINETEEN
BUDGET THIS PRIVILEGE FOR ME TO
TALK TO YOU ABOUT THE PORT WORK
BESEECH BE.
AND OUR EFFORTS TO IMPROVE OUR
EFFICIENCY AND STEWARDSHIP OF
THE PUBLIC FUNDS.
BEFORE I BEGIN I WANT TO THANK
YOUR AND A COMMITTEE STAFFER
HELPING US PREPARE FOR TODAY.
AND MANY OF THE BUDGET ITEMS ARE
ON VOTE ONLY IN IT APPEARS ONLY
ITEM OPEN FOR DISCUSSION.
IT'S OUR CAPITAL OUTLAY SO I
WOULD LIKE TO START THEIR.
IN ADDITION TO THE
COMMUNICATIONS RELATED CAPITAL
OUTLAY PROPOSALS THAT ON VOTE
ONLY. WE HAVE SIX PROPOSALS
RELATED TO REPLACEMENT OF OUR
FIELD OFFICES.
THROUGHOUT THE STATE WE HAVE A
HUNDRED AND THREE FIELD OFFICE
IS RESPONSIBLE FOR PATROL
FUNCTIONS.
AND IN FISCAL YEAR TWO THOUSAND
THIRTEEN THE ADMINISTRATORS
ADMINISTRATION INITIATED PLANTER
PLAYS MOST OF THOSE OUTDATED
OFFICES.
MOST OF ITS FACILITIES ARE
DECADE SO THEY'RE UNDER SIZE AND
UNABLE TO MEET OUR CURRENT
OPERATIONAL NEEDS.
THE MAJORITY OF THEM ARE ALSO
UNABLE TO MEET SEISMIC SAFETY
CRITERIA FOR ESSENTIAL SERVICES
BUILDINGS.
SELECT RENT THE ROOM. RIGHT NOW
VERSES ARE SANTA FE SPRINGS
OFFICE.
AND AND FOR ONE POINT NINE
MILLION DOLLARS AND PERFORMANCE
CRITERIA PHASE.
BALLING PARK IS THAT ONE POINT
SEVEN MILLION DOLLARS ALSO IN
THE PERFORMANCE CRITERIA PHASE.
THE OTHER FOUR FACILITIES ARE
THE QUINCY AREA OFFICE FOR
THIRTY SIX POINT NINE MILLION
AND IN THE DESIGN BILL PHASE.
EL CENTRO FOR FORTY POINT THREE
MILLION.
AS THAT'S ALSO DESIGNED BILL
PHASE.
AND THEN THE HAYWARD EVERY
OFFICE FORTY EIGHT MILLION
DOLLARS THAT'S IN THE DIVINE
BILL PHASE.
AND WHAT WE WILL DO ONCE THAT
OFFICE IS COMPLETED WE WILL TAKE
OUR PERSONNEL THE CASTRO VALLEY
OFFICE.
AND CONSOLIDATE THEM MOVIMENTO
TO THE.
HEBERT OFFICE.
AND IN THE LAST OFFICES DECEMBER
MEDINA OFFICE FOR FORTY POINT
THREE MILLION DOLLARS ALSO ON
THE DOT DESIGN PAYS.
OUR PROPOSAL FOR THE PERFORMANCE
CRITERIA FOR SANTA FE SPRINGS
IMBABA PARK.
REPLACEMENT PROJECTS.
WOULD BE FUNDED THROUGH THE NBA.
OUR PROPOSAL FOR THE DESIGN BILL
PHASE FOR QUINCY EL CENTRO SAN
BERNARDINO.
AND HE WORKED INCLUDES A SHIFT
IN FUNDING FROM THE NBA NBA TO
THE PUBLIC BUILDINGS CONSTRUCTED
FUND.
WHICH ARE LEASE REVENUE BONDS.
AND WE DIVERT YOUR APARTMENT
PARTNERS FROM THE DEPARTMENT OF
FINANCE TO PROVIDE MORE
INFORMATION ABOUT THIS FUNDING
STRUCTURE.
AND IF YOU HAVE ANY OTHER
QUESTIONS ABOUT OUR CAPITAL
OUTLAY MYSELF AND. ASSISTANT
CHIEF AT RICH DESMOND WILL HEAR
ANSWERS QUESTIONS.
THANK YOU.
SAYING NO QUESTIONS OF WHO ARE
LIKE IN OUT HERE THIS MORNING
BUT YEAH I WILL ASK THE LA OF
THE LA WHO HAS THE COMMENTS HE
SHOT MIGHT WITH THE LEGISLATIVE
ANALYST'S OFFICE WHO'S. LIKE IN
AT THAT THAT THE CHANGE FROM THE
PAYS YOU GO APPROACH TO A
FUNDING AREA OFFICE REPLACEMENT
WHICH WAS THE APPROACH THAT THAT
THAT THE ADMINISTRATION TOOK
LAST YEAR. TO LEASE REVENUE BOND
FUNDING FOR AREA OFFICE
REPLACEMENTS I AM.
KAMALA JUST GENERALLY SLOW DOWN
THE PACE OF THE REPLACEMENTS
WOULD ALLOW THE PROJECTS TO
CONTINUE AND.
IMPROVE THE CONDITION OF THE
MOTOR VEHICLE ACCOUNT. ON.
HOWEVER IT WOULD LOCK IN FUTURE
MOTORVEHICLE ACCOUNT COSTS.
DEPARTMENT FINANCE.
YEAH. READY BECAUSE THE PART OF
FINANCE. AND I THINK WE WERE
JUST MOVED OUT OF SOME OF WHAT
THE LA OF SAYS THAT.
IT WOULD ALLOW THEM TO CONTINUE
THE.
THE ALTERNATE WOULD BE.
THAT WE'D HAVE TO BASICALLY
PAUSE MOST OF ASSOCIATES FEES
PROJECTS FOR A NUMBER OF YEARS.
ON A NET PRESENT VALUE THE STRAP
AND IT WOULD BE.
THAT ABOUT TWENTY PERCENT MORE
EXPENSIVE THAN PAY GOES TO PAY
GOES WOULD BE PREFERRED. BUT THE
COST OF A MULTI YEAR DELAY WOULD
ALSO. INCREASE THE PROJECT BY
TWENTY PERCENT OR SO.
WE ALSO NOTE THAT THESE REVENUE
AND THAT SHOULD BE A COMMON
MECHANISM FOR FINANCING CAPITAL
OUTLAY PROJECTS IT'S USED. TO.
BY DOZENS OF OF DEPARTMENT
STATEWIDE.
WE WOULD ALSO DEFERRED THE
UTILITY OF OF THOSE IMPROVEMENTS
A BY HOWEVER MUCH LIGHTER WEIGHT
EXACTLY THAT THE REASON WHY. THE
OLD OFFICERS NEED TO BE
REPLACED.
RIGHT.
OKAY WELL THANK YOU.
.
I IS ANY PUBLIC COMMENT ON THIS
ITEM.
WELCOME MISTER REED.
PORTANTINO.
GOD DON'T THINK THAT YOU HAVE
SIX MINUTES.
MEMBERS WHO GUARANTEED REPRESENT
A CALIFORNIA ASSOCIATION OF
HIGHWAY PATROL OFFICERS.
OF WANTED TO COMMENT ON THE OF
FUND CONDITION THAT WAS PART OF
YOUR CONVERSATION WITH THE AND
THE A IT IS PARIS FLEA. LOW A
EVEN IF THEY DO BOND FINANCING.
THE BALANCE THE IN YOUR
ANALYSIS WHICH IS VERY WELL
WRITTEN AND RESEARCHED.
A SHOWS HITS LIKE THREE HUNDRED
MILLION AND CHANGE.
A AND IF THEY DO THE BOND
FINANCING THAT THAT LEVEL STAYS
BUT IF THEY DON'T THEN IT'S LIKE
HUNDRED AND FORTY. MILLION OUT
OF.
THAT HOW MANY BILLION IS A TOTAL
OF THREE POINT EIGHT BILLION. I
CAN'T DO THE PERCENTAGESIN MY
HEAD BUT IT'S A PRETTY LOW
PERCENTAGE TO HAVE AS A. BUFFER.
ALL BECAUSE WE'VE HAD SO MANY
EMERGENCIES THAT REQUIRE THE CHP
TO EXPEND FUNDS THAT THEY DIDN'T
ANTICIPATE SUCH AS THE BIG
FIRES.
IN NORTH AND SOUTH OF THE
VENTURA FIRE THIS THOMAS FIRE
THE TUBS FIRED ALL THE OTHERS SO
THERE'S THERE'S COSTS THAT THEY
CAN ANTICIPATE.
SO WE WE KNOW THAT THE FUND
CONDITION IS IS SHAKING.
AND WHO YOU KNOW FINANCES TRYING
TO.
PATCHES AS BEST THEY CAN WITH
THIS IDEA REVENUE BONDS BUT I'M
NOT SURE IT'S A GOOD IDEA TO.
FINANCE BECAUSE AND YOU HAVE
HUNDRED AND FIFTY MILLION OF OF
FINANCING COSTS THAT YOU HAVE TO
BEAR SO ONE WHERE ANOTHER
REPAYING. BUT IN THE LONG RUN IF
YOU FINANCE YOUR PAYING MORE.
A SO I JUST WANTED TO MAKE THAT
COMMENT A URINALYSIS ALSO POINTS
OUT SOMETHING THAT'S BEEN DONE
WHERE A I KNOW DMV SELLS
INFORMATION TO INSURANCE
COMPANIES ON DRIVERS RECORDS.
AND THAT MONEY IS NOT PROTECTED
BY ARTICLE NINETEEN SO THERE'S
EIGHTY EIGHT MILLION DOLLARS
THIS COLLECTED BUT THOSE MONIES
ARE SENT TO THE GENERAL FUND.
AND THE ANALYSIS POINTS OUT IT'S
A POSSIBILITY TO CONSIDER
KEEPING THAT IN THE NBA CAO
INSTEAD OF SENDING OUT IT'S ONLY
BEEN TRANSFERRED OUT. A
ACCORDING THE ANALYSIS SINCE
TWENTY TWELVE A A COURSE WE HAD
SOME SERIOUS BUDGET OF PROBLEMS
BACK IN THOSE YEARS SO MY
CONSIDER RETAINING. THAT EIGHTY
EIGHT MILLION THAT LEGITIMATELY
IN THE NBA BUT IT'S NOT
PROTECTED BY ARTICLE NINETEEN
BECAUSE IT WAS A SALE OF
INFORMATION RATHER THAN. A
REGISTRATION FEES.
SO I POINT THAT OUT.
.
THE LAST THING I WOULD MENTION
IT IN I SENT AS WELL AS THE
PRESIDENT HE ASSOCIATION SENT A
LETTER FOR FUTURE HEARING IS
SOMETHING TO THINK ABOUT. A THE
STAFFING OF THE HIGH WITHDRAW
I'VE BEEN REPRESENTING FORTY
YEARS.
AND STAFFING HAS BEEN AN ISSUE
PRETTY MUCH FOR ALL FORTY OF
THOSE YEARS. AND THEY DON'T
COMPLAIN AND THEY TELL ME OKAY
IN ORDER DON'T RAISE IT WILL
JUST KEEP DOING THE BEST WE CAN
WITH WHAT WE'VE GOT. AND THAT'S
HOW THEY ARE PRETTY SSUE FLARED
UP AGAIN THIS YEAR AT A BOARD
MEETING COMMISSIONER STANLEY WAS
HERE AND HE HAD TO DEAL WITH. A
PRETTY HOSTILE QUESTIONS ABOUT
STAFFING IS SO LOW. AND IN IN
THE LETTER POINT OUT THAT IT'LL
INCREASE WITH THE PASSAGE OF SB
ONE. A BECAUSE THERE'S MORE
CONSTRUCTION OF PROJECTS AND
THEY PRESIDE PER PROVIDE THAT
PROTECTION IN CONSTRUCTION ZONES
AND WILL SCRATCH THE STAFF EVEN
FURTHER.
BUT.
THEIR STAFF IS LOW WITHOUT SP
ONE IF YOU TAKE THAT OUT THERE
STILL VERY VERY LOW IN WE HAVE
CHARTS IT WILL SHOW THE NUMBER
OF OFFICERS PER ONE HUNDRED
THOUSAND LICENSED DRIVERS. PER
ONE HUNDRED THOUSAND REGISTERED
VEHICLES AND MAYBE MORE
IMPORTANTLY. PER MILLION MILES
OF VEHICLE TRAVEL WE CALL VMT
VEHICLE MILES OF TRAVEL.
AND THE RATIO OF OFFICERS DAHLE
THOSE WORKLOAD INDEXES HAS GONE
DOWN. A WE WRITER.
STRONG GUESS STRENGTH
WHEN REAGAN WAS GOVERNOR
SO FOR THE LAST FIFTY YEARS
WE'VE STEADILY GONE DOWN.
AND THAT'S WITH THE CHARTS SHOW
OF IN ITS HITS SOMETHING THAT.
SOMEBODY NEEDS TO RAISE YUSHIN
OF FINANCE WON'T BECAUSE THEIR
JOB IS TO TRY TO CONTAIN COSTS
AND I UNDERSTAND THEIR ROLE. MY
ROLE IS TO POINT OUT TO YOU THAT
YOU'RE TRYING TO SERVICE ALMOST
FORTY MILLION PEOPLE NOW
POPULATIONS DOUBLED.
SINCE I STARTED DOING THIS WORK.
ARE SO I'M JUST SAYING THAT.
STAFFING IS IS A REAL PROBLEM OF
WITHOUT REGARD TO SP ONE IT'S A
PROBLEM SO I JUST WANT TO PUT ON
YOUR RADAR AND MAYBE I'LL VISIT
WITH YOU AND IT'S ELEVEN FIFTY
NINE. YEARLING I'M DONE AND
THANK YOU VERY.
PAST THE NOON HOUR. COMMISSIONER
THANK YOU VERY MUCH FOR YOUR
PRESENTATION.
WE DO HAVE THAT LETTER MYSTERY
THEN WILL.
TAKE INTO CONSIDERATION.
AT THANK YOU VERY MUCH FOR.
FOR EVERYTHING THIS MORNING AND
TO THAT BRINGS OUR MEETING TO A
CONCLUSION WILL STAND ADJOURNED