MEETING TO ORDER THE ASSEMBLY
TRANSPORTATION COMMITTEE THE
OVERSIGHT HEARING.
TODAY'S HEARINGS AN OVERSIGHT
HEARING TO REVIEW THE CALIFORNIA
HIGH SPEED RAIL AUTHORITIES
TWENTY NINETEEN PROJECT UPDATE
REPORT.
THE AUTHORITY IS REQUIRED TO
SUBMIT A PROJECT UPDATE REPORT
EVERY TWO YEARS.
NORMALLY THE PROJECT UPDATE
REPORT PROVIDES A STATUS UPDATE
ON THE PROJECT SINCE THE
PREVIOUS YEARS.
SINCE THE PREVIOUS YEAR'S
BUSINESS PLAN.
THE AUTHORITY IS NOT REQUIRED TO
PUT THE PROJECT UPDATE REPORT
OUT FOR PUBLIC COMMENT NOR DOES
IT HAVE TO BE APPROVED BYTHE
AUTHORITY BOARD OF DIRECTORS.
THIS YEAR THE REPORT TAKES ON
SPECIAL SIGNIFICANCE.
THE REPORT REFLECTS OUR NEW
GOVERNOR'S VISION FOR HIGH SPEED
RAIL.
AND THIS PROGRAM.
IT'S ALSO IT ALSO REFLECTS WORK
CONDUCTED BY THE EARLY TRAIN
OPERATOR A PRIVATE SECTOR REAL
OPERATOR FROM GERMANY.
THE EARLY TRAIN -- SKEWS ME THE
EARLY TRAIN OPERATOR WAS TASKED
WITH STUDY SETTING THE WRITER
SHIPPING COSTS.
FOR IN TERMS SERVICE OPTIONS.
WHEN AND WHERE WE CAN GET HIGH
SPEED TRAINS UP AND RUNNING?
THE REPORT WAS IT REPRESENTS A
SHIFT IN THE FOCUS OF THE HIGH
SPEED RAIL PROGRAM AWAY FROM THE
COMPLETION OF THE VALUE TO
VALLEY INITIAL OPERATING SEGMENT
OR IOS.
FROM SAN FRANCISCO TO
BAKERSFIELD. TO A SHORTER
BUILDING BLOCK A HIGH SPEED RAIL
LINE FROM MERCED TO BAKERSFIELD.
THE AUTHORITY ESTIMATES THE SO
CALLED CENTRAL VALLEY LINE WILL
COST EIGHTEEN POINT THREE
BILLION DOLLARS TO BUILD.
IT WILL BE OPERATIONAL BY.
TWENTY TWENTY EIGHT PLEASE
RECALL IN TWENTY EIGHT AND TWO
THOUSAND EIGHT THE VOTERS
APPROVED PROPOSITION. ONE EIGHTY
TO PROVIDE NINE BILLION DOLLARS
IN BONDS TO HELP BUILD A FIVE
HUNDRED MILE.
HIGH SPEED RAIL SYSTEM FROM SAN
FRANCISCO TO LOS ANGELES.
AT THAT TIME THE ESTIMATE FOR
THE FULL COST OF THE PROJECT WAS
FORTY FIVE BILLION DOLLARS.
IT WAS TO BE COMPLETED.
BY.
TWENTY TWENTY SINCE THAT TIME
WE'VE SEEN NUMEROUS VARIATIONS
ON WHERE THE REAL LINE WOULD BE
BUILT AND WHEN WE COULD EXPECT A
COMPLETED SYSTEM.
COSTA FLUCTUATED FROM.
FROM A HIGH OF NEARLY ONE
HUNDRED BILLION DOLLARS.
DOWN TO SIXTY FOUR BILLION AND
MOST RECENTLY NOW SEVENTY SEVEN
BILLION FOR THE FULL PHASE.
FULL PHASE ONE SYSTEM BY TWENTY
TWENTY THREE BY.
TWENTY THIRTY THREE ALTHOUGH THE
GOVERNOR REMAINS COMMITTED TO
BUILDING FULL SYSTEM THIS NEW
PLAN IS ABOUT WHAT THE STATE CAN
DO.
WITH THE RESOURCES THAT WE HAVE
NOW.
TODAY WE'RE HERE TO DISCUSS A
PLAN TO BUILD A HUNDRED AND
SEVENTY ONE MILE HIGH SPEED RAIL
SYSTEM.
FORMER SAID TO BAKERSFIELD.
AND CONTINUE TO CONSTRUCT EARLY
IMPROVEMENTS IN THE SAN
FRANCISCO BAY AREA A LOS ANGELES
FOR A TOTAL OF TWENTY POINT FOUR
BILLION. TO BE COMPLETED BY.
TWENTY TWENTY EIGHT TWO MEMBERS
THAT ARE HERE.
AS THE FUNDING PARTNER IN THIS
EFFORT WE THE LEGISLATURE SHARE
RESPONSIBILITY FOR THIS PROJECT.
GOVERNOR NEWSOME HAS CLEARL
ARTICULATED THAT HE WANTS TO
FOCUS THE LIMITED RESOURCES HE
STATE HAS TO DEMONSTRATE THE
VIABILITY.
OF HIGH SPEED RAIL IN CALIFORNIA.
THIS IS A PLAN TO DO THAT.
THE CHALLENGES AND THERE ARE
MANY.
OR THAT THE SUCCESS OF IN TERMS.
SERVICES HINGES ON NUMBER OF
VARIABLES.
SOME THERE UNDER THE CONTROL OF
THE AUTHORITY.
AND SOME THAT ARE NOT.
FIRST THE PLAN RELIES HEAVILY ON
COORDINATING SERVICE BETWEEN THE
HIGH SPEED RAIL SYSTEM.
AND THE EXISTING ACE COMMUTER
RAIL AND SOME SAND WORKINGS.
AMTRAK SERVICE.
THE PLAN ONLY WORKS IF THE
SYSTEMS COME TOGETHER TO PROVIDE
A SEAMLESS INTEGRATED TRAVEL
EXPERIENCE.
ALL THREE SYSTEMS MUST MEET IN
MERCED.
FOLLOWING SPECIFIC TIME LINES
AND BUDGETS [inaudible]
SECOND.
COSTS CONTINUE TO RISE.
THE PLAN REVEALS ANOTHER ONE
POINT EIGHT BILLION INCREASE IN
THE CURRENT CENTRAL VALLEY
CONSTRUCTION.
POINT EIGHT BILLION DOLLAR
INCREASE IT.
ADDITIONALLY THE ACTUAL PROJECT
COST OF THE CENTRAL VALLEY LINE
EXTENSIONS TO MERCED AND BIG
BAKER SO COULD ACTUALLY BE
HIGHER.
THIRD DO WE REALLY HAVE THE
FUNDING WE NEED.
THE CENTRAL VALLEY LINE RELIES
ON FUNDING FOR PROPOSITION ONE A
ALL OF THE FEDERAL FUNDING.
AND CAP AND TRADE.
ALL OF THESE SOURCES POSE THEIR
OWN UNIQUE RISKS.
AS WE HEARD LOUD AND CLEAR.
JUST LAST WEEK [inaudible]
AND FINALLY.
HOW DO WE DEAL WITH OUR FEDERAL
PARTNERS?
NOT ONLY DID THE FRA INFORMANTS
LAST WEEK THAT THEY ARE D.
OBLIGATING NEARLY A BILLION
DOLLARS.
IN FUNDING FOR THE PROJECT BUT
THE OUT FOR A HAS SYSTEMATICALLY
DISENGAGE FROM THE AUTHORITY IN
A VARIETY OF OTHER FRONTS.
TODAY'S HEARINGS ABOUT FULLY
UNDERSTANDING THE PLAN BEFORE US.
INCLUDING ALL OF THESE MOVING
PIECES.
SO THAT SO THAT WE THE
LEGISLATURE CAN MAKE INFORMED
DECISIONS ABOUT THE FUTURE OF
THIS PROJECT.
AND BETTER UNDERSTAND THE
ACTIONS THAT WE WILL NEED TO
TAKE IN THE COMING MONTHS.
WE WILL HEAR TODAY FROM THE NEW
CHAIR OF THE AUTHORITY BOARD OF
DIRECTORS MANY MEN DONE SIR.
WHO WE HAVE -- I'VE HAD THE
PLEASURE OF MEETING IN MY OFFICE
AND UNDERSTANDING HIS OBJECTIVES.
WE HAVE ASKED GERMAN DOES TO TO
LAY OUT THE GOVERNOR'S VISION
FOR THE PROJECT.
AND TO SHARE WITH US THE
INCREASED ACCOUNTABILITY AND
TRANSPARENCY MEASURES THE
GOVERNOR HAS COMMITTED TO
IMPLEMENTING.
AT THE AUTHORITY.
WE'LL ALSO HEAR FROM DANNY KERN
ONE OF THE CELL THE CELL THE
SPEAKERS APPOINTEES. TO THE
AUTHORITY BOARD HELLO I WANT TO
THANK HIM FOR HIS SERVICE ON THE
BOARD.
RIGHT NOW THIS WILL JOIN THE
PANEL TO TO REPRESENT THE IT'S
ALREADY AS MANY OF YOU KNOW IN
THE NEXT FEW WEEKS YOU'LL BE
LEAVING HIS POST AT CAL STUFF.
AS SECRETARY MOVING TO THE
AUTHORITY IS IS NEW CFO
CONGRADULATIONS BRIAN.
WE WILL THEN HEAR FROM THE
LEGISLATIVE ANALYST'S OFFICE WHO
CONTINUES TO PROVIDE EXPERT
ANALYSIS OF THE PROJECT WHICH I
CAN'T THANK YOU ENOUGH FOR DOING
SO.
INCLUDING HIGHLIGHTING IMPORTANT
CONSIDERATIONS FOR THE LID
LEGISLATURE TO CONSIDER.
WE ALSO HEAR FROM THE HIGH SPEED
RAIL.
YOU GROUP WHOSE WORK WE SHOULD
BE GREAT VERY GRATEFUL.
FOR THESE PRIVATE CITIZENS ARE
PUTTING THEIR YOU YEARS OF
EXPERTISE AND HELPING US GOVERN
THIS MONTH YOU MENTAL PROJECT.
AND WE OWE THEM A GREAT DEAL OF
GRATITUDE AND ALSO THANK YOU
AGAIN.
FOR YOUR PRESENTATION TO THE
DEMOCRATIC CAUCUS -- RECENTLY --
BELOW SIXTY MEMBERS THAT WAS
VERY -- INFORMATIVE.
FINALLY WE'LL HEAR FROM
REPRESENTATIVES OF OUR REGIONAL
PARTNERS WITHOUT HOME HIGH SPEED
RAIL SIMPLY COULD NOT WORK.
FIRST WE'LL HEAR FROM THE START
OF THE NEW CENTRAL VALLEY PLAN
STACY MORTENSEN FROM THE SAN
JOAQUIN REGIONAL RAIL COMMISSION
THE OPERATORS OF ACE AND AND THE
SAN JOAQUIN'S.
WE HAVE ASKED HER TO OUTLINE THE
VALLEY REAL PLAN AND WHAT THE
COMMISSION WILL NEED FROM THE
AUTHORITY TO MAKE IN TERMS
SERVICE WORK.
AND FINALLY WE WILL CHECK IN
WITH OUR BOOK IN PARTNERS FILL
WASHINGTON FOR LA METRO.
AND JIM CORNETTE HARTNETT FROM
CALTRAIN. TO UPDATE US ON THE
PROGRESS OF THEIR ONGOING
PROJECTS.
MEMBERS AS I'VE SAID BEFORE
PROCEEDING WITH THIS PROJECT
WILL NOT BE FOR THE FAINT OF
HEART.
SO LET'S GO.
INTO A FULLY INFORMED WITH A
CLEAR UNDERSTANDING OF WHAT IT
WILL TAKE.
HELLO WILL BE UP AGAINST.
MR FUNG WOULD YOU LIKE TO MAKE
SOME OPENING STATEMENTS.
I THANK YOU MISTER CHAIRMAN I'LL
BE VERY BRIEF -- CERTAINLY I
APPRECIATE YOU HOLDING THIS
HEARING AND IS INFORMATIONAL GOT --
GATHERING -- SO THAT WE CAN
REALLY GET DOWN TO THE BOTTOM OF
OF WHAT REALLY IS HAPPENING WHEN
IT COMES TO THE CATHOLIC HIGH TO
L. THIRTY IN THIS PROJECT.
AND WE HAVE TO BE HONEST WITH
THE CALIFORNIA PUBLIC AND THIS
PROJECT.
IS IN MY OPINION A WAY OFF TRACK --
THEY ARE CLEARING HOLES.
IN THE UPDATE THERE ARE A NUMBER
OF ASSUMPTIONS THAT WERE MADE
AND THE RECENT UPDATE REPORT --
A NUMBER OF THEM HAVE PROVEN NOT
TO BE TRUE THE LA -- HAS
OUTLINED THAT AT THIS UPDATE IS
RELIANT ON CLOSE WORKING
RELATIONSHIP WITH THE FEDERAL
GOVERNMENT.
IS RELIANT ON FEDERAL FUNDS
COMING.
THROUGH ITS RELIANT ON FEDERAL
APPROVALS AND AS OUTLINED BY THE
CHAIRMAN.
THAT IS NOT HAPPENING.
THE FEDERAL OF LOVE FOR THE
FEDERAL FUNDS -- NOW OR ARE NO
LONGER THERE --AND SO AND THEIR
RELATIONSHIP BETWEEN THE FEDERAL
GOVERNMENT AND HAS REAL
AUTHORITY -- IS NONEXISTENT.
AND SO WE HAVE TO BE HONEST.
AS THE LEGISLATURE WHO IS TASKED
WITH BEING STEWARDS OF THE TAX
DOLLAR -- IS THIS PROJECT VIABLE.
CAM THIS PROJECT BE DONE
REALISTICALLY AND WITHOUT MORE
COSTS BORNE BY.
THE CALIFORNIA PUBLIC AND SO --
I APPRECIATE THE CHAIR HOLDING
THIS -- HEARING AND I LOOK
FORWARD TO GETTING SOME ANSWERS
THANK.
THANK YOU MISTER FOLLOWING ANY
OTHER MEMBERS OF THE COMMITTEE
WOULD LIKE TO MAKE STATEMENTS --
PRIOR -- TO WAS CALLING THE
FIRST PANEL.
SEEING NONE.
SO MOVE ON LIKE I'D LIKE TO ASK
THE FIRST PANEL MEMBERS TO COME
FORWARD AND STAR PRESENTATION.
BATTLE ONE WILL INCLUDE LEADING
MAN DONE SO DANNY CURTAIN AND
BRAIN AND THIS.
IN THE MIDDLE.
GOOD AFTERNOON GENTLEMEN PLEASE
START WHEN YOU'RE READY.
THANK YOU
.
NOW IT'S ONTARIO GREAT.
THANK YOU GOOD AFTERNOON
CHAIRMAN FRAZIER AND COMMITTEE
MEMBERS I'M IN MY NAME AND DON'T
SIR.
GERMAN OF THE CALIFORNIA HIGH
SPEED RAIL AUTHORITIES BOARD OF
DIRECTORS.
THANK YOU ALL FOR INVITING US TO
SPEAK TODAY ABOUT THE STATUS OF
THE HIGH SPEED RAIL PROGRAM.
ALSO PRESENTING WITH ME AS YOU
MENTIONED IS THE CALIFORNIA
STATE TRANSPORTATION AGENCY
SECRETARY BRIAN ENNIS WHO IS
MENTIONED AS THE AUTHORITIES
INCOMING CHIEF FINANCIAL OFFICER.
AND DANNY CURTAIN OUR FELLOW
BOARD MEMBER.
AM I WILL FOCUS MY REMARKS ON
THE GOVERNOR STRATEGY AND
APPROACH. TO DEVELOPING HIGH
SPEED RAIL IN CALIFORNIA THAN
SECRETARY AND THIS WILL WALK YOU
THROUGH THE KEY ELEMENTS OF THE
PROJECT UPDATE REPORT.
AND A BOARD MEMBER.
CURTAIN WILL OFFER REMARKS IF
THAT'S OKAY.
SO MEMBERS THE HIGH SPEED RAIL
PROGRAM IN CALIFORNIA IS AT A
CROSSROADS.
IN A RECENTLY RELEASED PROJECT
UPDATE REPORT.
LAYS OUT HOW THE AUTHORITY PLANS
TO MOVE THE PROJECT FORWARD IN
THE MONTHS AND YEARS AHEAD.
THE PROJECT UPDATE REPORT
RECONFIRMS GOVERNOR NEWSOME'S
APPROACH TO HIGH SPEED RAIL.
THE VISION THAT HE LAID OUT
FIRST IN THE STATE OF THE STATE
IN FEBRUARY.
SOME OF SUGGESTED THAT THE STATE
SHOULD WALK AWAY FOR MORE THAN A
DECADE OF COLLABORATION IN
PROGRESS THE BOTH REPUBLICAN AND
DEMOCRATIC ADMINISTRATIONS IN A
GENERATION OF LEGISLATORS.
LEGISLATIVE LEADERS HAVE MADE TO
BRING THE PROJECT THIS FAR.
SUCH A PATH TO LEAVE CALIFORNIA
HAVING SPENT FIVE BILLION
DOLLARS.
WITH NOTHING BUT LAWSUITS JOB
LOSSES AND BILLIONS OF I USED TO
SHOW FOR OUR DEBTS.
GIVEN THOSE TWO OPTIONS.
THE PATH FORWARD IS CLEAR.
CALIFORNIA HIGH SPEED RAIL
AUTHORITY WILL CONTINUE ITS
EFFORTS TOWARDS GETTING A
WORKING SESSION COMPLETED
SECTION COMPLETED IN A
RESPONSIBLE AND TRANSPARENT WAY.
THERE WILL BE CHANGES IN
ACHIEVING THIS VISION. FOR
EXAMPLE THE FEDERAL GOVERNMENT
NOTIFYING US LAST THURSDAY.
OF THEIR DETERMINATION TO CANCEL
A PREVIOUSLY AWARDED GRANT TO
THE PROJECT OF NINE HUNDRED AND
TWENTY NINE MILLION DOLLARS.
WE WILL FIGHT THIS ILLEGAL
ACTION AS YOU SAW TODAY AND
CONTINUE OUR CONSTRUCTION OF
HIGH SPEED RAIL IN THE CENTRAL
VALLEY. TO MAKE THE FULL SAN
FRANCISCO TO LA SYSTEM A REALITY
WE FIRST NEED TO BUILD A WORKING
SEGMENT.
THAT DEMONSTRATES HIGH SPEED
RAIL TO THE CALIFORNIA PUBLIC.
BEFORE WE BEGIN DETAILING THE
KEY ELEMENTS OF THE PROJECT UP
THEY REPORT I'D LIKE TO SPEAK TO
FOR A MOMENT ABOUT CREDIBILITY.
SOMETHING THIS PROGRAM HAS
STRUGGLED WITH MAINTAINING
HONESTLY.
THIS HAPPENS ON MANY MEGA
PROJECTS THIS ONE IS GOING
THROUGH THE NECESSARY PROCESS OF
REORIENTATION.
GETTING OUR HANDS AROUND EXACTLY
WHERE WE ARE SO WE KNOW HOW TO
GET TO OUR DESTINATION.
WE KNOW WHERE WE WANT TO GO.
THE VOTERS GAVE US THAT
DIRECTION BACK IN TWO THOUSAND
EIGHT WHEN THEY APPROVED A BOND
MEASURE FOR HIGH SPEED RAIL IN
CALIFORNIA.
WE WILL MARCH FORWARD TO DELIVER
ON THAT VISION.
HOWEVER THIS CAN ONLY HAPPEN
WITH CREDIBILITY.
THE STORY WILL REESTABLISH
CREDIBILITY THROUGH THREE THINGS
[inaudible]
TRANSPARENCY.
KEEPING OUR COMMITMENTS.
AND DELIVERING HIGH SPEED RAIL
TRAINS WHILE LIVING WITHIN OUR
MEANS.
GOVERNOR NEWSOME HAS BEEN CLEAR.
HE IS FOR DELIVERING HIGH SPEED
RAIL FOR CALIFORNIANS IN A WAY
THAT IS TRANSPARENT [inaudible]
RESPONSIBLE REALISTIC AND
ACCOUNTABLE.
THIS IS THE APPROACH THE
GOVERNOR LAID OUT.
WHEN EXPRESSED HIS CONTINUED
SUPPORT FOR THIS PROJECT?
AND LET THERE BE NO DOUBT.
HE SUPPORTS HIGH SPEED RAIL IN
CALIFORNIA.
HE SAID SO.
HIGH SPEED RAIL IS MUCH MORE
THAN A TRAIN PROJECT IT'S ABOUT
ECONOMIC TRANSFORMATION.
AND UNLOCKING THE ENORMOUS
POTENTIAL OF THE VALLEY AND BY
THE VALIUM AT THE CENTRAL VALLEY.
LET'S TALK A LITTLE BIT ABOUT
TRANSPARENCY.
THE AUTHORITIES ALREADY
COMMITTED TO THIS VERY
AGGRESSIVELY UNDER MY LEADERSHIP.
MOST OBVIOUSLY THROUGH THIS STAB
WHICH MEANT AND STAFFING OF THE
FINANCE AND AUDIT COMMITTEE WHO
MET THIS MORNING.
WHERE PROJECT CHALLENGES TRENDS
AND OPPORTUNITIES ARE DISCUSSED
IN PUBLIC IN DETAIL AND OF
COURSE ALL OF THE EFFORT A
DOCUMENTS ARE AAILABLE ONLINE
FOR THE PUBLIC TO SEE?
WE'VE ADDED TWO NEW MEMBERS TO
THE FINANCE AND AUDIT COMMITTEE
AND NOW HAVE A MONTHLY UPDATE.
FROM THE EFFORT NAY CHAIRMAN
MISTER RICHARDS TO THE BOARD ON
THE COMMITTEE'S ACTIVITIES WHICH
WE ALSO DID TODAY.
THE TWO THOUSAND EIGHTEEN
BUSINESS PLAN WAS CANDID AND
TRANSPARENT.
IT WAS THE FIRST PLAN TO ASSIGN
DOLLARS IN TIMES TO IDENTIFIED
RISKS.
AND IT USE RANGES TO ESTIMATE
COSTS.
HAS BEEN THE CASE TO THE OUT THE
ENTIRE HISTORY OF THIS PROJECT
WE DO NOT HAVE ALL THE FUNDING
IN HAND TO DELIVER THE ENTIRE
SYSTEM NOW.
SO WE'RE GONNA GET THERE AS A
GOVERNOR SUGGESTED IN BUILDING
BLOCKS.
JUST LIKE ANY OTHER FINANCIALLY
CONSTRAIN TRANSPORTATION PROJECT
US.
THE GOVERNOR ASKED US TO DO MORE.
IN THIS AREA OF TRANSPARENCY AND
WE ARE. FOR THE GOVERNOR'S
DIRECTION WE'VE HOUSE
ESTABLISHED A TRANSPARENCY AND
ACCOUNTABILITY PAGE ON THE
WEBSITE.
WE'RE PROJECT CHANGE ORDERS CAN
BE FOUND FOR EACH CONSTRUCTION
PACKAGE.
THIS PAGE INCLUDES HUNDREDS OF
CHANGE ORDERS EXECUTED TO DATE
AND THE SITE WILL BE UPDATED
QUARTERLY GOING FORWARD.
ON KEEPING OUR COMMITMENTS.
LET'S BE CLEAR WHAT THE GOVERNOR
SAID.
WE HAVE COMMITTED TO FUND BOOK
AND IMPROVEMENTS IN THE BAY AREA
AND LOS ANGELES AND WE ARE
KEEPING THOSE COMMITMENTS.
THE NORTHERN CALIFORNIA.
THE AUTHORITY IS THE FUNDING
PARTNER TO CALTRAIN.
ELECTRIFICATION PROJECT WITH SIX
HUNDRED MILLION DOLLARS A PROP
ONE A PLUS ANOTHER HUNDRED AND
THIRTEEN MILLION IN CAP AND FUND
TRADES BEING DEPLOYED.
IN SOUTHERN CALIFORNIA THE
AUTHORITY AS DIRECTED SEVENTY
SEVEN MILLION DOLLARS TO THE
ROSECRANS MARK WHAT GRADE
SEPARATION PROJECT.
NUMBER ONE ON THE P. YOU SEE
LIST OF MOST DANGEROUS GRADE
SEPARATIONS.
THE REMAINING BOOK AND FUNDS
FOUR HUNDRED AND TWENTY THREE
MILLION DOLLARS ARE COMMITTED TO
THE LA UNION STATION
IMPROVEMENTS.
MOREOVER WE ARE COMMITTED TO
COMPLETE THE ENVIRONMENTAL WORK
FOR ALL SEGMENTS OF THE PHASE
ONE SYSTEMS.
BETWEEN SAN FRANCISCO AND LOS
ANGELES ANAHEIM AND WE'RE DOING
JUST THAT.
THE REQUESTED NEPA SIMON FROM
THE FEDERAL GOVERNMENT TO
STREAMLINE THE ENVIRONMENTAL
WORK.
AND WORK IS SCHEDULED TO BE
COMPLETED BY THAT ARE OF FEDERAL
FUNDING AGREEMENT DEADLINE.
THE STORY WAS VERY CLEARANCE TWO
THOUSAND EIGHTEEN BUSINESS PLAN
ABOUT THE LESSONS IT'S LEARNED
FROM GOING INTO CONSTRUCTION.
PRIOR TO FULLY ADDRESSING THE
CHALLENGES PRESENTED BY RIGHT OF
WAY ACQUISITION UTILITY
RELOCATION AND THIRD PARTY
AGREEMENT ISSUES.
WE'RE SMARTER NOW.
AND COMMITTED TO NOT REPEATING
THOSE MISTAKES.
COMPLETING ENVIRONMENTAL WORK IN
FRONT OF FUTURE CONSTRUCTION IS
NECESSARY TO REFINE OUR COST
ESTIMATES.
ADVANCED DESIGN IDENTIFY AND
MITIGATE RISKS TO DEVELOP
STRATEGIES FOR PROJECT
DEVELOPMENT WORK.
AND READY SHARED QUARTERS FOR
INVESTMENTS AS FUNDING
OPPORTUNITIES BECOME MORE
AVAILABLE.
MOREOVER THE AUTHORITY BOARD OF
DIRECTORS IS BROUGHT IN A NEW
LEADERSHIP TEAM THAT IS FOCUSED
ON PROJECT DELIVERY.
UNDER THE LEADERSHIP OF OUR
CHIEF OPERATING OFFICER JOE
HEDGES.
PROJECT CONTROLS ARE BETTER
MANAGE THAN THEY'VE EVER BEEN ON
THIS PROJECT.
RISK ISSUES ARE BEING IDENTIFIED
MANAGED MITIGATED AND QUANTIFIED
AND DISPLAYED VERY TRANSPARENTLY.
AND SECRETARY AND THIS IS GOING
TO DISCUSS HOW CONSTRUCTION WILL
PROGRESS THIS YEAR AS A RESULT
OF THAT HARD WORK.
AS I SAID IN AS HE GOVERNOR
SAID VERY CLEARLY THE PROJECT
DOES NOT HAVE ALL THE FUNDING
NEEDED TO COMPLETE THE ENTIRE
PROJECT STATEWIDE.
AND TO BE CLEAR IT NEVER HAS.
PROP ONE A WIN PASSED PROVIDED
ONLY 20% OF THE PROJECTS
ESTIMATED COST.
AND TODAY WITH THE STABLE CAP
AND TRADE PROGRAM THROUGH
[inaudible]
TWENTY TEN FEDERAL FUNDS.
AND PROP ONE A FUNDING THE STATE
HAS ACCESS TO JUST UNDER 30% OF
THE PROJECTS ESTIMATED COSTS THE
SET UP FROM 20%.
WHEN PROP ONE IT WAS PASSED?
SO HOW DO WE GO ABOUT MAKING
HIGH SPEED RAIL REAL IN
CALIFORNIA WITH IN THE FUNDING
THAT WE HAVE TODAY.
AUTHORITIES ALREADY BEEN BEGUN
LOOKING AT THIS WHEN WE BROUGHT
IN THE EARLY TRAIN OPERATOR IN
TWENTY SEVENTEEN TO ADVISE ON
OPERATIONAL ISSUES FOR THE STATE
OF CALIFORNIA.
THE AUTHORITY DIRECTED THE TEO
AS GERMAN FRAZIER MENTION TO
ANALYZE THE COST.
AND EARLY PASSENGER BENEFITS OF
TWO SEPARATE POTENTIAL INTERIM
EARLY SERVICE BUILDING BLOCKS
WITHIN THE CENTER SILICON VALLEY
TO CENTRAL VALLEY AND MAKE
RECOMMENDATIONS FOR EARLY IN
TERMS SERVICE.
THROUGH THIS WORK THE EARLY
TRAIN OPERATOR FOUND THE MERCED
FRESNO BAKERSFIELD IS THE ONLY
SERVICE LINE THAT MAKES SENSE
AND THE CENTRAL VALLEY.
THE ONLY PLACE IN THE STATE
WHERE THE ENVIRONMENT WORK IS
COMPLETE OR NEAR COMPLETE AND
CONSTRUCTION IS WELL UNDERWAY.
THE PROJECT UPDATE REPORT.
BRIAN WE'LL TALK ABOUT IN A
MOMENT IT LAYS OUT THE PATH
FORWARD.
USING THE MERCED FRESNO
BAKERSFIELD LINE A BUILDING
BLOCK THAT MATCHES WITH THE VEIL
FUNDING THAT WE HAVE.
IN ADDITION PROVIDES A
SUBSTANTIAL ECONOMIC BOOST TO
THE FAST GROWING DYNAMIC PARTS
OF THE STATE OR I GREW UP.
ANCHORING ECONOMIC DEVELOPMENT
FOR THE RURAL RESILIENCE OF THE
CENTRAL VALLEY.
SO TO SUMMARIZE THE
IMPLEMENTATION STRATEGY WE WILL
DELIVER HIGH SPEED RAIL IN
CALIFORNIA BY.
GETTING TRAINS ON THE GROUND AS
SOON AS POSSIBLE IN THE CENTRAL
VALLEY WHERE THE ENVIRONMENTAL
WORK IS NEAR COMPLETION IN
CONSTRUCTION IS ONGOING.
WE WILL COMPLETE THE
ENVIRONMENTAL WORK STATEWIDE BY.
TWENTY TWENTY TWO WE WILL
COMPLETE THE BOOK AND
COMMITMENTS IN NORTHERN SOUTHERN
CALIFORNIA.
AND WILL BEGIN TO EXPAND THE
SYSTEM CONSISTENT WITH PROP ONE
NAY AS FEDERAL AND OR PRIVATE
FUNDING OPPORTUNITIES MIDDLE
MATERIALIZE AS WE DEMONSTRATE
THAT WE CAN DELIVER.
WE'RE GONNA DO THIS BY BEING
TRANSPARENT ON THE OPPORTUNITIES
AND THE CHALLENGES WE FACE.
MAINTAINING OUR COMMITMENTS TO
DELIVERING HIGH SPEED RAIL WITH
WHILE DELIVERING WITHIN OUR
MEANS.
I'D LIKE TO CLOSE MY REMARKS.
BY REMINDING YOU THAT THE IDEA
OF A HIGH SPEED RAIL LINE
CONNECTING THE TWO MOST POPULOUS
REGIONS OF THE STATE THROUGH THE
CENTRAL VALLEY IS REALLY
SIGNIFICANT.
WHICH IS WHY IT'S BEEN CHAMPION
BY POLITICAL AND CIVIC LEADERS
AND ADVANCED BY VOTERS.
THE HIGH SPEED RAIL PROGRAM IS
ALREADY CREATED TENS OF
THOUSANDS OF JOBS SUPPORTED
HUNDREDS OF SMALL BUSINESSES.
CONTRIBUTED TO THREE BILLION
DOLLARS IN WAGES AND SEVEN POINT
SIX BILLION AND ECONOMIC INPUT.
OUTPUT EXCUSE ME.
MUCH OF THAT IN THE CENTRAL
VALLEY WORKS BADLY NEEDED.
VOTERS APPROVED THE PROJECT
BECAUSE IT WAS OUR BEST AND
PERHAPS OUR ONLY CHANCE TO
CONNECT NORTHERN AND SOUTHERN
CALIFORNIA IN ENVIRONMENTALLY
SOUND WAY.
HAVING SPENT MORE THAN A DECADE
AND BILLIONS OF DOLLARS HIGH
SPEED RAIL IS UNDER CONSTRUCTION.
PROGRESS YOU CAN SEE THROUGHOUT
THE CENTRAL VALLEY.
IN THIS PROJECT UP THEY REPORT
THE AUTHORITY FOCUS IS THE
LIMITED RESOURCES THE STATE HAS.
IDENTIFIED STATE IS IDENTIFIED
TO GET A WORKING SECTION THAT
CAN DEMONSTRATE THE VIABILITY OF
THAT BROADER PROJECT.
LET ME TURN IT OVER TO SECRETARY
AND SPENCER.
THIS.
GOOD AFTERNOON AND ONCE AGAIN
BRIAN ANISE FROM THE STATE
TRANSPORTATION AGENCY.
I'M GOING TO PRESENT AN OVERVIEW
WITH KEY THEMES INFORMATION
CONCLUSIONS OF THE PROJECT
UPDATE REPORT.
THE PROJECT UP THE REPORT DOES
BUILT ON THE TWENTY EIGHTEEN
BUSINESS PLAN WITH ADDITIONAL
INFORMATION ON EARLY SERVICE
OPTIONS AN UPDATED COST IN RISKS.
IT FOCUSES DELIVERY AROUND THE
BUILDING BALK BLOCK APPROACH.
DELIVERING WHAT WE CAN WITH WHAT
WE HAVE.
SHOWS THAT THE HIGH SPEED RAIL
CAN DELIVER IN BUILDS
CREDIBILITY THROUGH DELIVERY.
DEMONSTRATES THE BENEFITS OF
HIGH SPEED RAIL AS SOON AS
PRACTICABLE.
AND CONTINUES ADVANCING PROJECT
DEVELOPMENT FOR THE FULL FIVE
HUNDRED AND TWENTY MILES SYSTEM.
THE PROJECT UPDATE REPORT
ADDRESSES STATUTORILY REQUIRED
REPORTING ELEMENTS SUCH AS
UPDATES ON COST ACCOMPLISHMENTS.
ISSUES AND RISKS ADDITIONALLY
THIS YEAR'S PROJECT UPDATE
REPORT INCLUDES ADDITIONAL
INFORMATION THAT THE AUTHORITY
COMMITTED TO INCLUDE.
AT THE TIME OF LAST YEAR'S
TWENTY EIGHTEEN BUSINESS PLAN.
FIRST THE TWENTY EIGHTEEN
BUSINESS PLAN.
INDICATED A FUNDING GAP FOR THE
VALLEY TO VALLEY SEGMENT.
THERE WAS THE COST OF TIMING IN
THE PROJECT -- PASSED BETWEEN
YOUR AYE IN MADERA.
THE AUTHORITY INDICATED THE
PROJECT UPDATE REPORT WOULD
INCLUDE AN ANALYSIS OF EARLY IN
ARMS SERVICE IN THE CENTRAL
VALLEY AND SEPARATELY FOR THE
YOUR TO SANDWICHES CO SEGMENT.
THE AUTHORITY TASK THE EARLY
TRAIN OPERATOR TO COMPLETE THIS
ANALYSIS OF COST AND PASSENGER
BENEFITS FOR THESE TWO SEGMENTS.
SECOND THE AUTHORITY ASKED THE
GAO TO PERFORM A REVIEW OF OUR
CAPITAL COST ESTIMATES.
AND THIRD AFTER COMPLETING COST
RISK EVALUATION UPDATE ESTIMATES
AND APPLY MONEY CARLA RISK
ANALYSIS TO ASSESS COST RANGES.
AND FINALLY TO CONTINUE TO
ADDRESS RISK AREAS AND
MITIGATION STRATEGIES.
THE CHILL VALUE WAITED OPTIONS
FOR THE CENTRAL VALLEY IN THE
BAY AREA PENINSULA CONCLUDED
THAT FOR THE PENINSULA.
OPERATING IN EARLY HIGH SPEED
RAIL SERVICE OVER LANE ON THE
CALTRAIN SERVICE DOES NOT CREATE
A SUBSTANTIAL IMPACT.
RIDERSHIP OVERALL DOES INCREASE
A BIT.
BUT SOME CALTRAIN WRITER SHIFT
OVER TO HIGH SPEED RAIL.
THE RIDERSHIP GAIN IS NOT AS
GREAT AS IN THE CENTRAL VALLEY.
THE VEST SEGMENT FOR EARLY IN
ARM SERVICE WAS DETERMINED TO BE
THE MERCED TO BAKERSFIELD
SEGMENT AND THE CENTRAL VALLEY.
THAT SEGMENT WOULD DECREASE TRIP
TIMES BY NINETY TWO HUNDRED
MINUTES.
AND ALMOST DOUBLE RAIL RIDERSHIP
ACROSS ACE THE SAN JOAQUIN'S IN
THE NEW HIGH SPEED RAIL SERVICE.
IN EARLY INTERIM SERVICES NOT
NEW IT IS SOMETHING THE
AUTHORITIES BEEN DISCUSSING WITH
THE FEDERAL RAILROAD
ADMINISTRATION SINCE.
TWENTY THIRTEEN IT IS CONSISTENT
WITH THE AUTHORITIES BUILDING
BLOCK APPROACH AND PUTS HIGH
SPEED RAIL ASSETS TO USE.
THE EARLY TRAIN OPERATOR
CONCLUDED THAT THERE ARE
SIGNIFICANT BENEFITS FROM EARLY
OPERATION THE CENTRAL VALLEY
BETWEEN MERCED FRESNO AND
BAKERSFIELD.
SUCH AS THOSE LISTED HERE REDUCE
DEPENDENCY ON THE CURRENT
PRIVATE FREIGHT RAILROAD
INFRASTRUCTURE.
CONNECTIVITY AND HIGHER
FREQUENCIES TO LOCAL COMMUNITIES
THAT CONTRIBUTE TO THE ECONOMIC
DEVELOPMENT AND EASE OF ACCESS
TO OPPORTUNITIES THROUGHOUT THE
CENTRAL VALLEY.
REDUCED VALLEY TO VALLEY RAMP UP
PERIOD AS IT ALLOWS HIGH SPEED
RAIL OPERATOR TO TEST AND ADJUST
THE OPTIMAL RAIL SERVICE OFFERED
TO THE COMMUNITIES.
IMPROVED TOTAL QUARTER FAREBOX
RECOVERY IN THE CENTRAL VALLEY.
REDUCE CO TWO EMISSIONS.
AND SHORTER TRAVEL TIMES FOR
PASSENGERS ENHANCING THE
ATTRACTIVENESS OF PUBLIC
TRANSPORT IN RESULTING IN HIGHER
RIDERSHIP.
THIS SLIDE ILLUSTRATES THE EARLY
TRAIN OPERATORS ESTIMATES FOR
THE CENTRAL VALLEY QUARTER COST
IN REVENUES.
WITHIN WITHOUT HIGH SPEED RAIL
SERVICE.
THESE FIGURES INCLUDE ACE IN SAN
JOAQUIN SERVICE.
THE SERVICE IS CURRENTLY RECEIVE
OPERATING SUPPORT FROM THE STATE
AS DO ALL INNER CITY IN COMMUTER
RAIL SERVICES.
WITH THE ADDITION OF HIGH SPEED
RAIL AND THE RESULTING RIDERSHIP
AND FARE BOX INCREASE THE
OPERATING SUPPORT.
NEED WOULD DECLINE FROM
APPROXIMATELY EIGHTY THREE
MILLION TO APPROXIMATELY SIXTY
THREE MILLION.
SECOND THE EARLY TRAIN OPERATOR
REVIEW THE CAPITAL COST
ESTIMATES AND PERFORM
BENCHMARKING.
AGAINST -- COST CATEGORIES THAT
ARE NOT LOCATION DEPENDENT SUCH
AS TIMELY VIADUCTS AND BRIDGES
AND COMPARE THAT TO COST
EXPERIENCED IN GERMANY.
SOME CONDITIONS DIFFER BETWEEN
THE COUNTRIES FOR EXAMPLE U. S.
ISSUES AROUND SEISMIC
REQUIREMENTS AND STATE FEDERAL
REQUIREMENTS WHICH IS BY AMERICA.
THE ANALYSIS SUGGESTS SOME
OPPORTUNITY FOR COST SAVINGS
WHICH WILL FURTHER BE EXPLORED
DURING PRELIMINARY ENGINEERING
AND FINAL DESIGN PHASES.
THIRD THAT PROJECT UP THE REPORT
INCLUDES A MORE RIGOROUS AND
UPDATED CAPITAL COST REVIEW FOR
THE CENTRAL VALLEY.
AS INDICATED ON THE SLIDE.
THE PROJECT UP A REPORT MOVES
FROM HIGH PROBABILITY TEN TO A
RISK BASED PROBABILITY SEVENTY
CONFIDENCE LEVEL.
AND IN DOING SO INCREASES THE
BUDGET BY ONE POINT EIGHT
BILLION DOLLARS.
THIS IS A 17% INCREASE OVER THE
TWENTY EIGHTEEN PROGRAM BASELINE
OF TEN POINT SIX BILLION.
AND THERE ARE THREE MAIN DRIVERS.
NINE POINT 3% OF THE INCREASE IS
DUE TO ADDITIONAL CONTINGENCY TO
MANAGE RISK. FOUR POINT 5% IS
REVISED SPECIFIC COST ESTIMATES
AND THREE POINT 4% DISCO CHANGES.
THIS TOTALS TO A ONE POINT.
EIGHT ONE POINT EIGHT BILLION
DOLLAR INCREASE AND CREATES A
MORE PRUDENT CONTINGENCY.
OF ONE POINT FIVE BILLION TO
MANAGE RISKS.
THIS SLIDE COMPARES THE TWENTY
EIGHTEEN BUSINESS PLAN COST BASE
LINE AND RANGE TO THOSE FOR THE
TWENTY NINETEEN PROJECT UPDATE
REPORT.
AS INDICATED ON THE PRIOR SLIDE
THE LARGEST CHANGE IS USING A
MORE CONSERVATIVE PROBABILITY
SEVENTY BASELINE AND BUILDING
AND A HIGHER CONTINGENCY.
THE PROJECT UP THE REPORT ALSO
UPDATES FUNDING BOTH ACTUAL
REVENUES RECEIVED TO DATE AND
FUTURE ESTIMATES.
REVENUE COUNTED IS THROUGH
TWENTY THIRTY WHICH IS THE
CURRENT EXPIRATION OF THE
STATE'S CAP AND TRADE PROGRAM.
THE PROJECT AT THE REPORT
COMPARES FUNDING CAPACITY. TO
COST ESTIMATES.
THEY NOW ALSO SHOWS MORE THAN
SUFFICIENT FUNDING TO COMPLETE
FEDERAL THE FEDERAL PROJECT AND
FOR FILL REGIONAL BOOK AND
COMMITMENTS.
IT ALSO SHOWS THE MERCED FRESNO
BAKERSFIELD SEGMENT IS WITHIN
OUR FUNDING CAPACITY WITH
CONSERVATIVE CAP AND TRADE
REVENUE ASSUMPTIONS.
AND ASSUMING THE LEGAL FEDERAL
THE OBLIGATION OF FUNDS IS
ULTIMATELY UNSUCCESSFUL.
THIS CHARTER DEMONSTRATE SOME
RECENT AUCTION RESULTS FROM THE
CAP AND TRADE PROGRAM.
THE AUTHORITY IS CURRENTLY USING
A CONSERVATIVE ASSUMPTION OF
FIVE HUNDRED MILLION PER YEAR
FROM CAP AND TRADE AUCTION
PROCEEDS.
THE A STORY TO SHARE OF THE
FEBRUARY TWENTY NINETEEN CAP AND
TRADE AUCTION THE MOST RECENT
ONE REPORTED IS WAS TWO HUNDRED
AND THIRTEEN MILLION.
IN THE AUTHORITIES TOTAL SHARE
FROM THE LAST FOR CAP AND TRADE
OPTIONS.
IS SEVEN HUNDRED AND SIXTY SEVEN
MILLION DOLLARS.
THIS SLIDE SHOWS THE REVENUE
THAT IS DIRECTED TO THE HIGH
SPEED RAIL PROJECT.
A COUPLE OF NOTES.
THE FEDERAL RAILROAD
ADMINISTRATION HAS BEEN
INDICATED.
IS MADE A DECISION LAST WEEK TO
MOVE FORWARD TO DE OBLIGATE THE
TWENTY TEN GRANT.
I WANT TO MENTION THE GOVERNOR
STATEMENT ON THIS.
THE GOVERNOR SAID THE TRUMP
ADMINISTRATION ACTION IS A LEGAL
AND A DIRECT ASSAULT ON
CALIFORNIA ARE GREEN
INFRASTRUCTURE.
AND THOUSANDS OF CENTRAL VALLEY
WORKERS WHO ARE BUILDING THIS
PROJECT.
JUST AS WE HAVE SEEN FROM THE
TRUMP ADMINISTRATION'S ATTACK ON
OUR CLEAN AIR STANDARDS --
IMMIGRANT COMMUNITIES AND
COUNTLESS OTHER AREAS THE TRUMP
ADMINISTRATION IS TRYING TO
EXACT POLITICAL RETRIBUTION ON
OUR STATE.
THIS IS CALIFORNIA'S MONEY
APPROPRIATED BY CONGRESS AND WE
WILL VIGOROUSLY DEFENDED IN
COURT.
THIS TABLE ALSO SHOWS THE RANGE
OF CAP AND TRADE FUNDS TO THE
CURRENT EXPIRATION OF THE
PROGRAM IN.
TWENTY THIRTY IT DOES NOT
INCLUDE REVENUE AT THIS TIME FOR
AN EXTENSION OF CAP AND TRADE
BEYOND.
TWENTY THIRTY AND AS PREVIOUSLY
MENTIONED AT THE BASELINE
REVENUE ASSUMPTIONS ASSUMES CAP
AND TRADE AT THE BOTTOM OF THE
RANGE AT FIVE HUNDRED MILLION
PER YEAR.
THIS CHART ON ON THIS SLIDE
COMBINES BOTH REVENUES AND COST
CURRENT COMMITMENTS THE FIRST
BAR ON THE BAR CHART.
INCLUDING A HUNDRED NINETEEN
MILE CENTRAL VALLEY CONSTRUCTION
COMPLAINING SAN FRANCISCO TO LA
ANAHEIM ENVIRONMENTAL WORK IN
BOOKING COMMITMENTS ALL THESE
TOTAL FIFTEEN POINT SIX BILLION
DOLLARS.
AT IN THE EXTENSION OF
BAKERSFIELD IN PURCHASING TRAINS
THE SECOND BAR.
INCREASES THE TOTAL COST TO
SEVENTEEN POINT NINE BILLION AND
FINALLY THE EXTENSION TO MERCED.
ON THE THIRD BAR BRINGS THE
TOTAL TO TWENTY POINT FOUR
BILLION.
THE TOP GREEN LINE SURE THE
REVENUE LEVEL IF THREE DIFFERENT
ASSUMPTIONS OF CAP AND TRADE.
FROM -- FOR ABOUT FIVE HUNDRED
MILLION A YEAR TO UP TO SEVEN
HUNDRED AND FIFTY MILLION PER
YEAR ON THE TOP GREEN BAR.
PROJECT UP THE REPORT AS
SUMMARIZES AS THE LAW REQUIRES
SOME OF THE ACTIVITIES THAT HAVE
OCCURRED SINCE THE BUSINESS PLAN.
INCLUDING SUBMIT MAJOR
ACHIEVEMENTS IN FEBRUARY OF THIS
YEAR A STATE ROUTE NINETY NINE
FOR EXAMPLE WAS COMPLETED AND
OPENED A PUBLIC -- YEAR PRIOR --
THE ARE A GRANT -- REIMBURSEMENT
DEADLINE WAS MET BY THE
AUTHORITY.
AND MEANWHILE -- THERE'S BEEN
MORE THAN TWENTY SEVEN HUNDRED
CONSTRUCTION JOBS -- CREATED
SINCE THE START OF THE PROJECT.
PROGRAM RISK.
AS AN EXTENSIVE EXTENSIVE
SECTION ON RISK -- WHICH LOOKS
AT BOTH A DISCUSSION OF THE ON
GOING RISK AND MITIGATION
MEASURES THE AUTHORITY IS IS
TAKING TO TRY TO REDUCE THESE
RISK.
AT THE AUTHORITY DOES HAVE A
RISK A ROBUST RISK MANAGEMENT
PROCESS TO ASSESS CONTROL AND
MONITOR RISK ONCE IDENTIFIED.
IN IS A COUPLE EXAMPLES OF OF
HOW WE MITIGATE RISK -- LAST
YEAR WORKING WITH THE
LEGISLATURE A BILL WAS PASSED SB
ELEVEN SEVENTY TWO WHICH
STREAMLINES THE RIGHT AWAY
ACQUISITION PROCESS AND WE
APPRECIATE THE LEGISLATURE
SUPPORT IN THAT
AND THIS IS REDUCING THE RISK
FROM RIGHT AWAY ACQUISITION
BECAUSE IT STREAMLINES THE
PROCESS TO GIVE THE AUTHORITY
SOMETHING SIMILAR TO WHAT
CALTRAIN CALTRANS.
AND THE US STATE -- WATER
RESOURCE -- STEVE THAT
DEPARTMENT OF WATER RESOURCES
EMPLOYEES.
A COUPLE KEY A KEY TAKE AWAYS
FROM THE PROJECT UP THE REPORT.
NUMBER ONE THE EACH YEAR
CONCLUDED THAT THE MERCED TO
BAKERSFIELD IS THE BEST OPTION
FOR EARLY SERVICE IN THE CENTRAL
VALLEY.
THE P. T. O. WILL CONTINUE TO
REVIEW THE TO THE THE T. O. COST
REVIEW YIELDED SEVERAL
OPPORTUNITIES TO REFINE COST AND
WILL CONTINUE TO WORK ON THOSE.
COST -- UPDATED COST AND SCOPE
HAVE BEEN -- REVIEWED WITH THE
MONTECARLO RISK ANALYSIS APPLIED
IN AGAIN ON THIS CHART WE SHOW
THE UPDATED COST ESTIMATES FOR
THE PROJECT.
FUNDING SHOW THAT THE FRESNO
BAKERSFIELD -- SEGMENT SHE
MERCED FRESNO BAKERSFIELD
SEGMENT IS WITHIN THE FUNDING
CAPACITY.
THE LASTLY.
THERE'S MANY REST OF THE PROJECT
IS THE CHAIR NOTED THAT WE NEED
TO FACE HEAD ON AND AN ADDRESS.
UPCOMING IMPLEMENTATION STEPS --
THE BOARD I BELIEVE AT THIS
MORNING'S MEETING ADOPTED A NEW
TWENTY NINETEEN A PROGRAM
BASELINE OF SCOPE SCHEDULE COSTA
BUDGET -- OTHER ACTIVITIES AHEAD
WILL BE SENT AS SELECTING SITES
FOR CENTRAL VALLEY OPERATING AND
MAINTENANCE FACILITIES.
LONG LEAD PROCUREMENTS THE TRACK
AND SYSTEMS PROCUREMENT IS
ALREADY OUT TO FOR COMMENT FROM
THE CONTRACTORS.
OTHER LONGLEY PROCUREMENT SUCH
AS TRAIN SETS AND CIVIL --
CONTRACTS -- THIS STORY IS
PROCEEDING WITH THE SEQUEL FIRST
STRATEGY ENDING UP FOR A RE
ENGAGEMENT.
CONTINUING TO BUILD
ORGANIZATIONAL CAPACITY.
AND WE'RE APPRECIATIVE OF THE
BUDGET SUB COMMITTEES APPROVING
MORE STATES STAFF THAT WILL TAKE
OVER WORK FROM SOME OF THE
PRIVATE CONSULTANTS ON THAT
PROGRAM OVERSIGHT ACTIVITY.
CONTINUING TO WORK WITH THE
LEADERSHIP BASED IN SAN JOAQUIN
AMTRAK AN INTEGRATED SERVICE
PLANNING.
AND LASTLY DELIVER DELIVER
DELIVER.
AT TWO ILLUSTRATE DELIVERY --
THIS CHART -- IT SHOWS HOW THE
AUTHORITY IS CLOSELY TRACKING
PROGRESS OF EACH STRUCTURE IN
EACH CRIED WAY SEGMENT TO FLAG
AND RESOLVE ISSUES.
THIS SLIDE AND THE NEXT SHOW THE
STRUCTURE BY STRUCTURE AND
SEGMENT BY SEGMENT PROGRESS FOR
CONSTRUCTION PACKAGE.
ONE THE GRAPHIC INDICATES WHAT
STRUCTURES ARE COMPLETE IN
PROGRESS AND PENDING.
THE NEXT SLIDE SHOWS THE PLANNED
PROGRESS FOR THE HAVE TO BE
ACHIEVED BY THE END OF THIS
CALENDAR YEAR.
THE THE BLUE IF YOU CAN -- SEE
THE COLORS A REPRESENT --
COMPLETED -- PROJECTS THE GREEN
OUR CONSTRUCTION THAT'S UNDER
WAY.
IN THE RED AND YELLOW REPRESENT
PENDING ISSUES -- THIS IS FROM
JANUARY TWENTY NINETEEN THE NEXT
SLIDE.
WILL SHOW DECEMBER.
TWENTY NINETEEN AND IT
ILLUSTRATES AND NUMBER OF REDS --
TURNING TO GREEN AND SOME OF THE
GREEN STRAINING THE BLUE.
SO THIS IS ANOTHER WAY THAT THE
AUTHORITY IS BEING TRANSPARENT
AND BEING OPEN TO ACCOUNTABILITY
BECAUSE THE DELIVERY CHALLENGE
NOW IS TO DELIVER ON THESE
COMMITMENTS.
IN ONE BY ONE COMPLETE ALL THE
STRUCTURES AND ALL THE GUIDE WAY
IN BETWEEN STRUCTURES.
I JUST QUICKLY -- SAME THING FOR
CONSTRUCTION PACKAGE TO THREE
SINCE THE JANUARY -- STATUS OF
ALL THE WORK ALONG THAT SEGMENT
IN THE CIRCLES OF THE STRUCTURES
THE LINES IN BETWEEN.
ARE THE GUIDEWAY MILES.
LOT OF RED IN THERE.
AS WE GO TO DECEMBER WE SEE --
THE GREEN TURNING TO BLUE BEING
COMPLETED IN SOME OF THE RED
TURNING TO GREEN.
LASTLY CONSTRUCTION PACKAGE FOR
THE SAME.
CURRENT STATUS IN JANUARY.
AND WHERE THE AUTHORITY PLANS TO
BE IN DECEMBER OF THIS YEAR.
SO I'D LIKE TO CONCLUDE WITH THE
SUMMARY OF THE SIGNIFICANT
BENEFITS FOR RAILING CALIFORNIA
UPON IMPLEMENTATION OF THE
VESTMENTS OUTLINED IN THIS
PROJECT UPDATE REPORT.
FIRST CALTRAIN ELECTRIFICATION
IN THE BAY AREA.
ON A FIFTY MILE SEGMENT USED
INITIALLY BY CALTRAIN AND LATER
SHARED WITH HIGH SPEED RAIL.
THIS INVESTMENT IMPROVE SPEEDS
CAPACITY AND IMPROVES AIR
QUALITY.
SECOND CENTRAL VALLEY HIGH SPEED
RAIL EARLY IN ARMS SERVICE ON A
HUNDRED SEVENTY MACH ONE MILE
SEGMENT.
LINKING MERCED FRESNO AND
BAKERSFIELD.
AND LINK TO ACE AND SAN JOAQUIN
RAIL FOR BAY AREA AND SACRAMENTO
CONNECTIVITY.
THIS GETS HIGH SPEED RAIL ON THE
GROUND IN CALIFORNIA.
LOS ANGELES UNION STATION RUN
THROUGH TRACKS IN THE ROSE
CURRENTS.
MARQUARDT GRADE SEPARATION
INCREASING SPEEDS AND CAPACITY
THREE SOUTHERN CALIFORNIA'S
BUSIEST RAIL QUARTER.
INITIALLY BENEFITING METROLINK
IN THE AMTRAK SURFLINER SERVICE.
IN LATER SHARED WITH HIGH SPEED
RAIL.
PLEADING ENVIRONMENTAL ANOTHER
SEGMENTS TO CAN STAND NEW
CONSTRUCTION HAS FUNDING IS
IDENTIFIED -- THIS CONCLUDES
THAT MY PART OF THE PRESENTATION
AND I'M HAPPY TO TURN IT OVER TO
DIRECTOR CURTAINS.
MISTER CHAIR IF I COULD.
TO ASK A COUPLE QUESTIONS OF THE
EXPERIENCE OF THE PANEL.
SURE IF YOU WOULDN'T MIND THE TO
SHORE THE OKAY HOLD.
A PRIVILEGE THANK YOU.
OKAY THANK YOU MISTER CHAIRMAN
FOR THE INVITATION THANK YOU
MEMBERS GOOD AFTERNOON.
MY NAME IS DANNY CURTAIN AND I
AM VERY PROUD TO BE THE SPEAKER
OF THE CALIFORNIA ASSEMBLY
SUPPORT T. TO THE HIGH SPEED
RAIL AUTHORITY.
INITIALLY BY SPEAKER ATKINS AND
RECENTLY A RE APPOINTED BY
SPEAKER RENDON.
MY GUIDANCE -- WAS VERY LIMITED
BUT VERY CLEAR FIRST DO NO HARM.
AND SECOND USE COMMON SENSE SO
YOU GONNA GET A LAYMAN'S
PERSPECTIVE HERE.
I UNDERSTOOD THOSE INSTRUCTIONS
AND I PLAN ON CONTINUING WITH
THAT APPROACH.
LET ME START BY SAYING I
ABSOLUTELY SUPPORT THE
CALIFORNIA HIGH SPEED RAIL
AUTHORITY GOAL BUILDING A HIGH
SPEED TRAIN TO FUNCTION AS THE
BACKBONE OF CALIFORNIA'S RAIL
TRANSPORTATION SYSTEM.
CONNECTING NORTH AND SOUTH AND
THE CENTRAL VALLEY IN BETWEEN.
AS RESULT DRAMATICALLY IMPROVING
CONNECTIVITY IN TRANSPORTATION
CARTER'S THROUGHOUT THE STATE.
AND A WHOLE HOST OF ANCILLARY
ECONOMIC AND SOCIAL BENEFITS
THAT GO WITH IT.
IT'S A TRANSFORMATIONAL PROJECT.
AS THE FUNDAMENTAL QUESTION FOR
ME WAS AND STILL IS HOW DO YOU
PROCEED TO REACH THAT GOAL IN A
WAY THAT BRINGS THE MOST VALUE
TO CALIFORNIA DURING THE PROCESS.
NOT JUST AT THE END OF THE
PROCESS.
I WANT TO MAKE IT CLEAR I'M NOT
HERE TO CRITICIZE PAST DECISIONS
I WAS PART OF THOSE DECISIONS
FOR ALMOST FOUR YEARS.
I B FULLY BELIEVE THAT THE
MANAGEMENT AND THE BOARD OF THE
HIGH SPEED RAIL AUTHORITY
INCLUDING OUR CURRENT GOVERNOR
PAST GOVERNORS AND PAST
GOVERNORS HAVE OPERATED IN GOOD
FAITH TO FULFILL ITS MANDATE.
BUT IT IS IMPORTANT TO REMEMBER.
THIS IS AN AGENCY FOCUSING ON A
CLEAR MISSION TO GET A HIGH
SPEED TRAIN UP AND RUNNING AS
SOON AS POSSIBLE.
EVERY BUSINESS PLAN IN EVERY
PROJECT UPDATE CONTINUES TO
EMPHASIZE THAT MISSION.
THE COROLLARY BENEFITS ECONOMIC
DEVELOPMENT TRANSIT HUBS VIBRANT
DOWNTOWN DEVELOPMENT HOUSING
JOBS INCREASED MOBILITY.
GREENHOUSE GAS REDUCTION ARE ALL
PROUDLY TOUTED CORRECTLY.
AND WITH GREAT ENTHUSIASM.
THE ANALYSIS YOU SEE IN THE TWO
THOUSAND NINETEEN PROJECT UPDATE
REPORT IS AN ATTEMPT TO QUOTE
ADAPTER CURRENT CIRCUMSTANCES IN
PURSUIT OF HIGH SPEED RAILS
GUIDING PRINCIPLE AGAIN QUOTE.
SELECT THE LINE ESTABLISH A
FUNDING PLAN BEGIN OFFERING A
HIGH SPEED HIGH SPEED PASSENGER
SERVICE AS QUICKLY AS POSSIBLE.
LET ME GO BACK A LITTLE BIT TO
THE TWO THOUSAND SIXTEEN
BUSINESS PLAN THAT PLAN
PRIORITIZE THE NORTHERN ROUTE
REFER TO AS THE VALITY VALLEY
SEGMENT.
THAT DECISION WAS AN ADAPTATION
TO CHANGING CONDITIONS FROM THE
TWO THOUSAND FOURTEEN BUSINESS
PLAN.
INSTEAD OF GOING SOUTH FROM THE
CENTRAL VALLEY IT SWITCH SWITCH
TO GO NORTH AGAIN TO ADVANCE THE
MISSION QUOTE AN OPERATIONAL
HIGH SPEED RAIL LINE AS QUICKLY
AS POSSIBLE.
IT ALSO CONTINUE TO INCLUDE
QUOTE COLLABORATING WITH OUR
PARTNERS TO ADVANCE HIGH VALUE
STRATEGIC INVESTMENTS STATEWIDE.
AND CONCURRENT INVESTMENTS IN
THE BURBANK LA ANAHEIM CAR DOOR.
THE TWO THOUSAND EIGHTEEN
BUSINESS PLAN ADOPTED A PHASED
APPROACH TO THE NORTHERN SEGMENT.
AGAIN ADAPTING TO THE
RECOGNITION OF QUOTE A FUNDING
SHORTFALL. FOR CONNECTING GILROY
TO MADERA.
THOSE ARE THE BUILDING BLOCKS
THEY WERE WITH THE WE WERE.
FOR TWO AS A CONSEQUENCE OF THE
SHORTFALL WHICH BY THE EARLY
OPERATOR HIRED BY THE AUTHORITY
AS AN ADVISER WAS INSTRUCTED BY
THE HIGH SPEED RAIL AUTHORITY TO
STUDY THE POTENTIAL OPERATION.
OF MERCED BAKERSFIELD FOR SAN
FRANCISCO TO GILROY SEGMENTS.
THE SEGMENTS ON EITHER SIDE OF
THE PROJECT TO PASS.
DEUTSCHE BAHN DETERMINED THAT
THE SAN FRANCISCO GILROY SEGMENT
WOULD HAVE A RELATIVELY SMALL
IMPACT ON CAR TO RIDERSHIP.
AS MR ANAS POINTED OUT THANK
INCLUDED QUOTE MERCED FRESNO
BAKERSFIELD SERVICE INTEGRATED
WITH ACE IN SAN JOAQUIN SERVICE
WAS THE ONLY EARLY OPERATION THE
GENERATED INCREMENTAL VALUE ALL
ACROSS ACROSS ALL SERVICES.
THEY MADE A CHOICE BASED ON PAST
DECISIONS BETWEEN TWO OPTIONS
WHETHER ONE AGREES OR DISAGREES
IT'S NOT AN ILLOGICAL OR UNDER
REASONED DECISION.
HOWEVER THIS LEGISLATURE BECAUSE
YOU REPRESENT DIFFERENT AREAS
THROUGHOUT THE STATE.
BRING A FUNDAMENTALLY DIFFERENT
WAY OF LOOKING AT THE PROJECT
BOTH AS INDIVIDUALS AND
COLLECTIVELY.
IT IS APPROPRIATE FOR YOU TO
LOOK AT A DIFFERENT RANGE OF
CHOICES.
AS THE APPOINTEE OF THE CURRENT
SPEAKER AND THE PREVIOUS SPEAKER
IT IS ESPECIALLY IMPORTANT TO ME.
THAT THE SPEAKER OF THE ASSEMBLY
HAS PUBLICLY RAISE CONCERNS
QUOTE.
ABOUT COST AND SCHEDULE.
PAUSE FOR REASSESSMENT.
WE ABSOLUTELY HAVE TO LOOK AT
THE LOWEST COST OPTIONS TO GET
SOME CONNECTIVITY.
THE CURRENT PLAN BENEFITS WILL
NOT REACH THE STATE'S POPULATION
CENTERS IN THE SOUTH.
A MORE RIGOROUS REVIEW OF THE
CONSTRUCTION OPTIONS THROUGHOUT
THE STATE ON THE PROPOSED HIGH
SPEED RAIL CORRIDOR.
AND THE BENEFITS THEY MAY
PROVIDE IS NOT AN UNREASONABLE
INQUIRY FOR THIS LEGISLATURE.
PENDING ON YOUR POINT OF VIEW
BENEFITS PRODUCED IN THE PROCESS
OF DEVELOPMENT OF A FULL HIGH
SPEED RAIL SYSTEM.
AS OPPOSED TO THE EARLIEST
POSSIBLE COMPLETION OF INITIAL
OPERATING HIGH SPEED RAIL
SEGMENT.
CAN BE SEEN AS EQUALLY OR MORE
IMPORTANT. FOR EXAMPLE REDUCE
TRAFFIC CONGESTION IN URBAN
CORRIDORS ARE SCREAMING FOR
RELIEF.
THE MASS OF HOUSING CRISIS MEANS
LOOKING FOR IMPROVE CONNECTIVITY
TO LOW COST IN FOR THE
AFFORDABLE HOUSING AREAS.
THE URGENCY OF CLIMATE CHANGE IN
REDUCING CARBON EMISSIONS THE
FOCUS ON MORE RAIL PASSENGER
MILES IN HEAVILY TRAFFICKED
CORRIDORS AND LESS AUTOMOBILE
TRAFFIC.
COULD MEAN THAT URBAN FAST TRAIN
SERVICE MAY PROVIDE GREATER
GREENHOUSE GREAT GAS SAVINGS
SOONER.
TIMELINE FOR A DELIVERY FOR
DELIVERY OF A PROJECT SEGMENT IS
AN IMPORTANT FACTOR.
ARE THERE LOCAL SEGMENTS THAT
CAN BE COMPLETED THAT IMPROVE
LOCAL MOBILITY AND REDUCE
GREENHOUSE GASES SOONER.
THESE CONCERNS ARE NOT RIGHT OR
WRONG THEY'RE DIFFERENT.
HOW YOU MEASURE MEASURE A
SITUATION DEPENDS ON WHERE YOU
VIEW IT FROM?
THAT'S COMMONSENSE IT'S ALSO
FEINSTEIN THEORY OF RELATIVITY.
ASSEMBLY AND QUIRK IS LISTENING.
ARE THERE CORRIDORS WERE HIGH
SPEED RAIL FUNDS AND LOCAL
MATCHING FUNDS CAN BE UTILIZED
TO THE BENEFIT OF BOTH THE HIGH
SPEED RAIL AND LOCAL
TRANSPORTATION SYSTEM.
WITH LACKEY WITH LOCAL MATCHING
FUNDS CAN WE GET OTHER CARTER'S
TO PROVIDE INDEPENDENT UTILITY
BEYOND THE CENTRAL VALLEY.
CAN THE AUTHORITY PARTNER WITH
LOVE LOCAL AGENCIES TO BE
RESPONSIBLE FOR CONSTRUCTION
DELIVERY.
IS THERE A WAY TO MORE
EFFECTIVELY UTILIZED ALREADY
CONSTRUCTION CONSTRUCTED HIGHEST
SPEED RAIL STATIONS.
IS THERE THE POTENTIAL FOR
PRIVATE SECTOR INVESTMENT IN ANY
PART OF THE HIGH SPEED RAIL
CORRIDOR OR CONNECTING CORRIDORS
WHICH I THINK IS WORTHY OF A
INVESTIGATION -- THERE SOME MORE
THINK ABOUT I'LL TRY TO SPEED IT
UP -- POLICY INTEGRATION.
I BELIEVE WE NEED OVERSIGHT
SYSTEM CAPABLE OF WHAT OF A
WIDER OVERVIEW.
AND I HAVE TO SAY THE TWO
THOUSAND AND EIGHTEEN STATE RAIL
PLAN WAS A GREAT START.
ACTUALLY DEPARTMENT TO
CONSOLIDATE FUNDING UNDER THE
REAL PLAN UMBRELLA.
MAYBE A SPECIAL GUBERNATORIAL
LEGISLATIVE TASK FORCE HOPEFULLY
WITH SOME AUTHORITY.
THAT CAN BRING HARMONY TO
COMPLEX PROBLEM SOLVING THAT TOO
OFTEN OCCURS IN ISOLATION --
WITH A MORE ROBUST A ROBUST RAIL
PLAN GOVERNANCE WITH THIS
LEGISLATURE BE MORE WILLING. TO
EXPLORE NEW SOURCES OF FUNDING
FOR LOCAL RAIL FOR HIGH SPEED
RAIL AND FOR TRANSPORTATION
CONNECTIVITY IN GENERAL THAT'S
AN IMPORTANT QUESTION.
DON'T WAIT FOR THE FEDS WE NEED
TO FIND MORE RESOURCES AT HOME.
BUT IT IS CLEAR BECAUSE OF THE
THREATS AND ACTIONS FROM THE
TRUMP ADMINISTRATION THE
CHALLENGE FOR HIGH SPEED RAIL
RIGHT NOW.
THE CHALLENGES ARE GREATER THAN
EVER.
I DO WANT TO SPECIALLY THANK THE
GOVERNOR FOR HIS FORTHRIGHT AND
IMMEDIATE PUBLIC RESPONSE TO
THAT ACTION.
THE LARGEST INFRASTRUCTURE
PROJECT IN THE COUNTRY IS TOUGH
ENOUGH WITHOUT UNNECESSARY
HURDLES WE HERE IN CALIFORNIA
NEED TO FIND A COMMON PURPOSE.
IF WE CONTINUE TO VIEW EACH
OTHER AS COMPETITORS OR WORSE
ADVERSARIES BY REGION OR
DISTRICT OR SYSTEM FOR SCARCE
RESOURCES.
THERE WILL BE WINNERS AND LOSERS
BUT WE WILL BE FAR LESS
SUCCESSFUL BUILDING WHAT WE NEED
A STATEWIDE TRANSIT SYSTEM WITH
HIGH SPEED RAIL AT ITS CORE.
SO THE QUESTION REMAINS HOW DO
WE BRING THE MOST VALUE TO
CALIFORNIA IN THE PROCESS OF
BUILDING A HIGH SPEED RAIL
SYSTEM.
THERE'S A SAYING IN EVERY CRISIS
THERE IS OPPORTUNITY.
IF THE F. R. IN THE PRESIDENT
WANT TO BLOCK OR SLOW DOWN
EXPANSION IN THE CENTRAL VALLEY
BAKERSFIELD WARMER SAID THAT'S
ON THEM.
WE FIGHT BACK WE BUILD THE
CENTRAL VALLEY SEGMENT AGREED
UPON WITH THE F. R. A. BUT WE
ALSO NEED TO LOOK AT
ALTERNATIVES THAT MIGHT BE
HARDER FOR ANYONE TO MEDDLE WITH.
THAT MIGHT GET MORE TRACK ON THE
GROUND AND THE BENEFITS THAT GO
WITH IT.
LET'S ADAPT TO CURRENT
CIRCUMSTANCES.
THERE ARE OPTIONS OUT THERE SOME
SMALL SOME BIG.
BUT IF THERE'S ANY STATE IN THE
UNION CAPABLE OF BUILDING FOR
THE FUTURE CAPABLE OF TURNING
MILLIONS OF VOICES INTO ONE
CHORUS.
IS CALIFORNIA.
THANK YOU FOR YOUR TIME.
THANK YOU MISTER MISTER DALY OF
QUESTIONS THANK YOU YES --
MISTER ANISE -- MENTIONED -- AND
MAYBE MR MEN DON SO ALSO
[inaudible]
THE PROJECTED DOUBLING OF
RIDERSHIP FROM BAKERSFIELD
TUMORS SAID -- AFTER THE SEGMENT
IS COMPLETED -- WHAT ARE THE
NUMBERS WHAT IS THE CURRENT
RIDERSHIP IN THAT [inaudible]
IN THAT.
WHERE IS THAT?
DOUBLING COME FROM.
I'M NOT EVEN IS THERE EVEN A
REAL HOOK UP RIGHT NOW.
ANY SORT OF RAIL HOOK UP FROM
BAKERSFIELD TO MERCED -- WELL
YES -- SO CURRENTLY -- THE SAN
JOAQUIN SERVICE OF AMTRAK THAT
CENTRIC SERVER SO CORRECT YEAH
THAT SAID TRAVELS FROM A
BAKERSFIELD -- FRESNO MERCED --
STOCKTON THERE'S A SPLIT THERE
WERE SOME OF THE LINES GO TO
SACRAMENTO SOME GOING TO OAKLAND
GOTCHA.
YEAH AND THE RIDERSHIP NUMBERS --
I DON'T HAVE THOSE IMMEDIATELY
SHARE THEM WITH YOU IT'S I I
BELIEVE -- YOU KNOW WE SEE SOME
OF THESE EXISTING SERVICES LIKE
THE SAN JOAQUIN'S -- ARE IN THE
NEIGHBORHOOD OF CURRENTLY.
ABOUT A MILLION AND A HALF
WRITERS A YEAR.
AND LOOKING AT AGAIN OF THAT I
THINK AN 85% INCREASE IN THAT
NUMBER -- SO GET HAPPY TO TO
SHOW MORE DETAIL ON THAT BUT
AGAIN THESE ARE -- THE REALLY
THE HIGH SPEED RAIL -- PORTION
ITSELF ABOUT ONE POINT SEVEN
MILLION RIDERS A YEAR SO LOOKING
AT ABOUT A DOUBLING OF RIDERSHIP
IN THE CENTRAL VALLEY
[inaudible]
AND HOW MUCH OF THAT APPROXIMATE
DOUBLING.
IN A LOOK FORWARD TO THE NUMBERS
IF YOU COULD FOR THEM THOSE
NUMBERS TO US SO.
A LITTLE BIT MORE SPECIFICALLY
WOULD BE HELPFUL.
HOW MUCH OF THAT DOUBLING?
IS DEPENDENT ON THE VALLEY TO
VALLEY CORRIDOR -- EXPECTATION.
THE WORDS THE EXISTENCE THE
FUTURE EXISTENCE OF VALLEY TO
VALLEY AND NO CONSTRUCTION HAS
STARTED YET HAS A VALID VALLEY
IS IS A FUTURE.
PROJECT SURE WILL VALLEY TO
VALLEY IN THE TWENTY EIGHTEEN
BUSINESS PLAN IS DESCRIBED AS
SAN FRANCISCO TO BAKERSFIELD SO
THE CENTRAL VALLEY SEGMENT THE
CALTRAIN STATEMENT WOULD BE
ALTERNATELY PART OF THE VALLEY
TO VALLEY.
I'M TALKING ABOUT -- ON THE MAP.
BETWEEN MADERA AND WERE SAID.
THERE'S A LINE THAT GOES OVER TO
GILROY.
YES NO CONSTRUCTION STARTED ON
THE RIGHT HOW MUCH OF THE
DOUBLING IN RIDERSHIP FROM
BAKERSFIELD TO MERCED IS BASED
UPON COMPLETING THAT SEGMENT.
NONE OF IT SO THAT THE MODELING
THAT WAS DONE BY THE EARLY TRAIN
OPERATOR LOOKED AT COMPLETING
HIGH SPEED RAIL FROM ARE SAID TO
BAKERSFIELD.
AND THEN THE CONNECTIVITY AND
MERCED TO CASE AND THE SAN
JOAQUIN SERVICES AND ASSUME ANY
FURTHER CONSTRUCTION FOR THE
PURPOSE OF THAT MODELING.
ALL RIGHT THANK YOU AND AGAIN IF
THOSE NUMBERS TO BE HELPFUL TO
HAVE -- GOING FORWARD -- I'D
LIKE TO GET ON THE TABLE -- I
GUESS A LARGER QUESTION.
WHICH IS.
THERE ARE LIMITED FUNDS.
BETWEEN NOW AND TWENTY THIRTY
ARE THERE IS THIS UNCERTAINTY
ABOUT THE FEDERAL PARTICIPATION.
EVEN IF THE STATE WINS THAT
LAWSUIT AND I HOPE WE DO --
IT'LL BE HARD TO EXPECT ANY
OTHER.
FUNDS FROM THE FEDS FOR THE
FORESEEABLE FUTURE -- WON'T IT
SERVE MORE PERSONS IN THE STATE
OF CALIFORNIA [inaudible] TO
EXPEDITE [inaudible]
THE IMPROVEMENTS FROM ANAHEIM TO
LA IN LA TO BURBANK.
I JUST WANT TO PUT THAT ON THE
TABLE AS A AS A CONCEPT AND I'M
NOT SURE HAS BEEN FITTED VERY
THOROUGHLY PUBLICLY IT MAY HAVE
BEEN VETTED FIRE CONSULTANTS AND
SO FORTH.
BUT WITH MONEY BEING AS PRECIOUS
AS IT IS AND THE POPULATION
CENTER BEING IN.
GREATER LA AREA -- YOU'VE
COMMITTED FOUR HUNDRED MILLION
DOLLARS TO THE UNION STATION.
PROJECT AND ANOTHER SEVENTY
MILLION DOLLARS TO THE THE OVER
CROSSING.
PROJECT IN SANTA FE SPRINGS.
BUT NOTHING BEYOND THAT.
AND THERE'S NO.
PROMISE OR HOPE.
IN.
IN THE PLAN BEYOND THAT.
SHE CANIS THERE A WAY TO DO A
AN ANALYSIS. TO HAVE GENUINE
CHOICES ON THE TABLE.
AN ANALYSIS FROM THE PERSPECTIVE
OF HOW MANY PERSONS.
WILL BE IMPACTED BY THE
EXPENDITURE OF MONEY IN THE
FORESEEABLE FUTURE.
MAYBE BY TWENTY TWENTY FIVE
TWENTY TWENTY SIX A YEAR WE CAN
SEE ON THE HORIZON. TWENTY
THIRTY IS A LONG WAY OFF.
AND EVEN TWENTY THIRTY THERE'S
NO.
PROMISE OF ANY FUNDING BEING
SPENT.
IN SOUTHERN CALIFORNIA.
BEYOND THE FOUR HUNDRED MILLION
DOLLARS FOR UNION STATION AND
THE SEVENTY FOR THE OVERPASS.
YEP MAY I MAYBE ANSWER THAT IN
TWO PARTS IF I COULD -- FIRST ON
THE STATE FUNDING -- WITH THE
HIGH SPEED RAIL YOUR CORRECTLY
ARTICULATING THAT.
BOOK IN FUNDING -- PROP ONE A
ALSO INCLUDED SO CALLED TO
CONNECTIVITY FUNDING AND WITH
THAT WITH THE ENVIRONMENTAL WORK
THAT HIGH SPEED RAIL IS DOING --
THE FUNDING ASSOCIATED WITH
SOUTHERN CALIFORNIA FROM HIGH
SPEED RAIL IS ABOUT ONE POINT
FOUR BILLION DOLLARS -- ON TOP
OF THAT -- WITH CAP AND TRADE I
WAS SENATE BILL -- ONE WITH SOME
OF THE OTHER FUNDING SOURCES
AVAILABLE FOR RAIL IN THE STATE --
ABOUT FOUR POINT FOUR BILLION
DOLLARS AND HAS BEEN DIRECTED TO
SOUTHERN CALIFORNIA SINCE ABOUT
TWENTY TWELVE SINCE THE FIRST
APPROPRIATION -- INCLUDING PROP
ONE MONEY.
AB XP SP ONE EXCUSE ME SB ONE MY
DIRECT CORRECT I'M TALKING ABOUT
[inaudible]
AS IN I I DIDN'T MEAN -- I
SHOULD HAVE MENTIONED THE
OBVIOUSLY THE ENVIRONMENTAL.
FUNDING COMMITMENT IS
SIGNIFICANT.
AND WILL BE HELPFUL CORRECT I AM --
I MEANT TO SAY CONSTRUCTION
MONEY SURE SURE.
AND AT THE THE PROJECT UPDATE
REPORT TO HAVE FOCUSED.
AS AS WAS SAID COMMITTEDLAST
YEAR WITH A BUSINESS PLAN TO
LOOK AT THOSE TWO VALLEY TO
VALLEY -- SEGMENTS BUT I KNOW
THIS ISSUE FOR TEENS AROUND THE
STATE WAS WAS DISCUSSED AT THE
BOARD THIS MORNING.
YEAH SO SAY COUPLE THINGS UP FOR
SMALL TO VERY GOOD QUESTION
THANK YOU FOR ASKING IT -- THE
P. T. O. IN THEIR DIRECTION.
TO THE NEXT STEPS FOR LOOKING AT
WHAT THE CENTRAL VALLEY PORTION
OF IT WAS SUGGESTED THAT -- THE
EARLY TRAIN OPERATIONS IN THE
CENTRAL VALLEY SHOULD UNDERTAKE
A MORE DETAILED STUDY OF THE
COST RIDERSHIP AND REVENUE
POTENTIAL AS YOU WERE SUGGESTING.
AND WE AGREED THIS MORNING TO
UNDERTAKE THAT.
SO WE WILL HAVE A MORE DETAILED
REVIEW OF EXACTLY WHAT THAT
LOOKS LIKE INCLUDING.
THE COMMERCIAL LEGAL STRUCTURING
ETCETERA FOR MERCED TO
BAKERSFIELD SO WE'LL HAVE ALL OF
THE THE NUMBERS THAT YOU WERE
ASKING ABOUT BUT THE MORE
REFINED.
BUSINESS PLAN ESTIMATE DONE IN
CONJUNCTION WITH KPMG AND THE
EARLY TRAIN OPERATOR.
WE ALSO AGREED AT THE HIGH SPEED
RAIL BOARD THAT FORTY THIS
MORNING TO CONDUCT A PARALLEL
ANALYSIS FOR A SET OF LINES AS
YOU SUGGESTED INCLUDING THE ONES
IN SOUTHERN CALIFORNIA.
JUST TO MAKE SURE THAT WE ARE
HAVING AN HONEST AND TRANSPARENT
DISCUSSION AROUND WHAT THOSE
ALTERNATIVE LOOK LIKE. TO BE
ABLE TO COMPARE -- AGAINST THE
ONE OF THE GOVERNOR AND
SUGGESTED IN HIS STATE OF THE
STATE.
IN WHAT THANK YOU FOR THAT
THAT'S BELT THAT WOULD BE VERY
HELPFUL AND I I REALLY
APPRECIATED.
WHAT WILL BE MEASURED THOUGH IN
THOUGH IN THAT COMPARATIVE
ANALYSIS IS IT WILL BE POTENTIAL
RIDERSHIP YES OKAY?
AND COST YES [inaudible]
COST VERSES [inaudible]
RIDERSHIP OKAY.
THANK YOU.
MR FUNG.
THE JACKET I'M SORRY TO
INTERRUPT I JUST MR DAILY ASSN
EARLIER QUESTION AND SOME STAFF
BROUGHT UP A RESPONSE SO HE CAN
YOU KNOW YOU'RE RIDERSHIP
QUESTIONS.
YEAH THE SAN JOAQUIN'S --
WITHOUT HIGH SPEED RAIL
ESTIMATED TO RIDERSHIP IN -- IN
TWENTY TWENTY SIX TIME PERIOD BE
ABOUT ONE POINT SEVEN MILLION
RIDERS A YEAR.
AND THAT'S PROJECTED TO GROW TO
THREE POINT THREE MILLION A YEAR --
WITH -- HIGH SPEED RAIL AS PART
OF THE CENTRAL VALLEY SYSTEM.
AT ACE IS PROJECTED TO BE ABOUT
TWO POINT FOUR MILLION WRITERS A
YEAR GROWING TO A FOUR POINT
THREE MILLION RIDERS A YEAR.
AND AS I MENTIONED HIGH SPEED
RAIL SEGMENT RIDERSHIP PROJECTED
TO BE ABOUT ONE POINT.
SEVEN MILLION A YEAR.
THANK YOU VERY MUCH MISTER
MENACE IN MISTER.
MINT ON SOME.
LET [inaudible]
SISTER FOLK.
UP.
I THANK YOU FOR YOUR TESTIMONY --
I APPRECIATE TO YOU GUYS BEING
HERE I APPRECIATE THAT AND
DOLLARS THE FACT THAT WE NEED TO
ACTUALLY DO HAVE SOME
CREDIBILITY AND IN IN A REAL
BUSINESS PLAN A REAL UPDATE.
AND SO LOOKING I APPRECIATE
MISTER AND IS BEING HERE TO
TESTIFY IN FRONT OF BUDGET
SUBCOMMITTEE AT THREE LAST WEEK
AND IT WAS INDICATED AT THE AT
THAT HE AT THAT HEARING THAT
THERE ARE.
CLEAR ASSUMPTIONS THAT NOW ARE
NOT TRUE.
SO I'M READING FROM PAGE THIRTY
FOR THE REPORTS IS THE
SIGNIFICANCE A SCHEDULE RISK
FACING -- DETTORI TODAY IS THE
FEDERAL THE MINISTRATIONS
WITHDRAWING COMPLETING HIS
RESPONSIBILITIES ON THE NATIONAL
LEVEL POLICY ACT AND THEN A GIRL
ALSO GOES ON TO SAY -- THE CALL
BACK AT THE FEDERAL FUNDS SO.
I NOTICED THAT IN YOUR
PRESENTATION YOU SPENT THIRTY
SECONDS TALKING ABOUT PUBLIC THE
BIGGEST GLARING HOLE IN THE ROOF
UPDATE WHICH IS.
THAT THE NINE HUNDRED AND TWENTY
EIGHT MILLION DOLLARS THAT YOU
ARE ASSUMING TO BE IN YOUR
FUNDING PLAN IS NO LONGER THERE.
SO THEN HOW DO YOU.
HOW CAN YOU HOW IS THIS HOW IS
THIS UPDATE CREDIBLE?
WELL.
FIRST DRIVE THE PROJECT AT THE
REPORT CLEARLY LAYS OUT THE
FEDERAL RISK AT THAT FIRST
FEDERAL LETTER WAS RECEIVED IN
FEBRUARY OF THIS YEAR -- SO THAT
PROJECT UPDATE REPORT INCLUDES
THAT CLEAR DISCUSSION OF THAT
RISK -- ON THURSDAY OF LAST WEEK
A LETTER WAS RECEIVED FROM THE
FEDERAL GOVERNMENT.
INDICATING THEY ARE PROCEEDING
TO DE OBLIGATE THOSE FUNDS.
CAN IS WAS MOVED MISSION BY THE
CHAIR -- THIS MORNING --
CALIFORNIA -- FILED THE LAWSUIT --
TO HAVE A CORD -- REVERSE THAT --
ACTION DID YOU GET A GUARANTEE
THAT'S GONNA HAPPEN.
NO I CAN NOT KNOWING GET CORRECT
RIGHT IN AND THEN ON TOP OF THAT
THERE IS NO.
RELATIONSHIP OR A WORKING
TOGETHER RIGHT NOW BETWEEN THE
FEDERAL AUTHORITY AND DIES AT
LAST.
AND I'M NOT GOING TO PROJECT
WHAT THAT WHY THAT HAS OCCURRED
BUT IT DOESN'T EXIST CORRECT
[inaudible]
THAT IS.
NO DOUBT A CHALLENGE TO THE
PROJECT -- FEDERAL GOVERNMENT IS
DISENGAGED IN SEVERAL WAYS --
THE FUNDING ISSUE DO YOU REYES
BUT IN ADDITIONAL A SOME OF THE
PARTICIPATION AND ENVIRONMENTAL
DOCUMENTS IS ADDITIONALLY A RISK --
THE SEGMENT UNDER CONSTRUCTION
NOW THE HUNDRED NINETEEN MILES
IN THE CENTRAL VALLEY THAT DOES
HAVE CLEARED ENVIRONMENTAL.
BUT FOR THE EXTENSIONS -- THAT'S
CLEARLY AN AREA WHERE WE NEED TO
FEDERAL PARTICIPATION THROUGH
THAT SO YOU AND I ARE SAYING THE
EXACT SAME THING.
I LIVE IN BAKERSFIELD I'M
PROBABLY THE ONLY MEMBER HERE
THAT REPRESENTS THE CENTER
VALLEY.
I SEE THE IMPACT OF THIS THIS
PROJECT.
IN MY COMMUNITY.
I DRIVE PASSAGE EVERY SINGLE
WEEK.
SO HOW IS THIS REPORT CREDIBLE
NOW THAT WE BOTH AGREED THAT THE
GLARING HOLES EXIST.
WELL AGAIN SIR RIGHT I BELIEVE
THIS REPORT IS FULLY CREDIBLE
BECAUSE WE'RE TRANSPARENTLY
SIDING ON THESE RISK AND CITING
WHAT WE'RE WORKING ON TOO MANY
WE CAN REPEAT THE RISKS.
THE REST A REAL RIGHT.
YOU INDICATING THIS REPORT THAT
YOU HAVE TWENTY POINT FOUR
BILLION DOLLARS TO FINISH A
SEGMENT THAT COST TWENTY POINT
FOUR BILLION.
NOW THE FEDERAL GOVERNMENT.
HAS SAID THAT THEY'RE GOING TO
TRY TO TAKE BACK OR ARE TAKING
BACK NINE HUNDRED AND TWENTY
EIGHT MILLION DOLLARS.
SO YOU HAVE A WHOLE AT A MINIMUM
WITHOUT ANY COST OVERRUNS OF
NINE HUNDRED AND TWENTY EIGHT
MILLION DOLLARS SO HOW DO YOU
MAKE UP THAT DIFFERENCE.
WHAT IF THE FEDERAL GOVERNMENT?
DOES HARM IN TRYING TO PULL BACK
THE FUNDING THAT'S BEEN GRANTED
TO THE STATE OF CALIFORNIA SO
THAT NINE HUNDRED TWENTY NINE
MILLION.
IS HARMFUL TO THIS TO THIS
PROJECT THERE'S NO DOUBT ABOUT
THAT -- THE THAT PARTICULAR
FEDERAL MONEY BECAUSE OF THE
AGREEMENT WITH THE FEDERAL
GOVERNMENT IS A PART OF THIS
TAPER MAX SO -- AT THIS POINT IN
TIME THE MONEY BEING SPENT ON
CENTRAL VALLEY CONSTRUCTION IS
ALL STATE MONEY.
SO WILK WE CONTINUE OUR
CONSTRUCTION OF THE HUNDRED
NINETEEN MILES WITH THE STATE TO
THERE'S NO FEDERAL MONEY THAT
GOES INTO THE CENTRAL VALLEY
PROJECT -- THERE HAS BEEN -- THE
THE REASON WHY YOU CHOSE A
CENTRAL VALLEY IS BECAUSE THE
FEDERAL AUTHORITY GRANTED HIM
THIS PROJECT I WORKED IN
CONGRESS AT THAT TIME.
I WAS THERE.
THE OUR FUNDS HAVE BEEN FULLY
REIMBURSED AFTER THE CENTRAL
VALLEY WORK.
CURRENTLY THE STATE MONEY IS
BEING SPENT UPON MEETING THE
MATCH REQUIREMENTS THEN -- THE
FEDERAL MONEY THE NINE HUNDRED
TWENTY NINE MILLION IS SCHEDULED
TO BE USED FOR THAT PHASE AROUND
TWENTY TWENTY ONE PERIOD.
SO AGAIN BUT YOU HAVE TO FINISH
THIS PROJECT BY WENT.
TWENTY TWENTY TWO THAT'S WHAT
THE FEDERAL GOVERNMENT CLOSED
BACK EVERYTHING.
RIGHT UNDER THE STIMULUS OTHERS
UNDER A ARE A THE IN EXCHANGE
FOR THESE FUNDS YOU HAVE TO
FINISH A BY.
TWENTY TWENTY TWO THE STATE
AUDITOR'S SAYS THAT YOU'VE GOT
TO RAMP UP SO LARGE THAT YOU MAY
NOT MAKE THE TWENTY TWENTY TWO
DEADLINE.
WE WE HAVE TO COMPLETE THE
HUNDRED NINETY MILES BY TWENTY
TWENTY TWO NOT THOUGHT THE TIRE
RIGHT ON TWENTY TO HUNDRED RIGHT
BUT THAT THAT IS IT SEEMS THOUGH
SOME OF THE FUNDING BEING THAT
RIGHT.
THE THOUGHT THE AND AND THE
ENVIRONMENT A CLEARANCE.
THEFARM THE HUNDRED NINETY
MILES IS ALREADY CLEAR OKAY SO
BUT WHAT WE DO KNOW WE WE WE
NEED A FEDERAL PARTNER THAT'S
COLLABORATING WITH US.
AND PUT IT BUT TO ACCESS THE THE
PROBLEM NAY FUND YOU HAVE TO GET
THE MOMENT SENSIBLE SEGMENT
CRACKED UNDER PROP ONE A IT'S
PART OF PART OF THE FEDERAL
GRANT AGREEMENT.
WELL THE PART OF THE FEDERAL
GRANT AGREEMENT THIS IS CLEARING
THE ENVIRONMENTAL DOCUMENTS FOR
THE SAN FRANCISCO DALY ANAHEIM
SEGMENT.
A PART OF THAT IS A COMMITMENT
OF THE FEDERAL GOVERNMENT TO
CLEAR THE NEPA WHEN THOSE
DOCUMENTS ARE SUPPLIED TO THE
FEDERAL GOVERNMENT SO WE WILL
CONTINUE.
THE ENVIRONMENTAL -- PROCESS --
AND WILL CONTINUE TO SUBMIT
THOSE DOCUMENTS TO THE FEDS IT
WOULD BE THEIR RESPONSIBILITY TO
COMPLY WITH THE GRANT AGREEMENT
BY DOING THEIR WORK ON THOSE
ENVIRONMENTAL DOCUMENTS.
THE ONE THING I I GUESS IT MIGHT
I'M HEARING IS I'M HEARING.
I DIDN'T I CAN IMAGINE I I COULD
HEAR MORE UNCERTAINTY BUT I'M
HEARING MORE UNCERTAINTY EVERY
PRESENTATION I HEAR ON HIGH
SPEED RAIL.
I MEAN IS THAT DEEP DO YOU NOT
SEE THAT.
I CAN TRY THAT I THINK WHAT
WE'RE TRYING TO DO IS PROVIDE
TRANSPARENCY ABOUT WHAT THE
UNCERTAINTY IS AND AS WE KNOW
WHAT IT IS AND CAN QUANTIFY IT.
WE ARE COMMUNICATING IT AND SO
THAT THAT'S WHAT NOT TO BE
TECHNICAL BUT THE THE MONEY
CARLO ANALYSIS MOVING FROM AN A
PROBABILITY OF 10% OF
PROBABILITY OF 70% IS JUST BEING
MORE SPECIFIC ABOUT WHAT THE
RISKS ARE QUANTIFYING THEM SO
WE'RE JUST AS WE GET MORE
INFORMATION WE CAN.
BE ABLE TO QUAN WHETHER WE'RE
ALL MAKING DECISIONS ON IN
PERFECT INFORMATION.
BUT WITH THE MORE INFORMATION WE
GET.
THE MORE IMPERFECT THIS PROJECT
SEEMS TO BE.
I MEAN I I'M READING FROM PAGE
FOURTEEN OF THE OF THE F. R. A. --
DECISION -- TO TO TO CALL BACK
THE THE FUNDS IN TABLE THREE
SAYS THESE ARE THE DELIVERABLES
PROGRAM MEASURE PLAN DELIVERY
DATE.
TWENTY SIXTEEN THAT CUT
CALIFORNIA'S ZERO THIRTY FAILED
TO ADDRESS EFFORT REYES
COMMONSENSE ACTUALLY TWENTY
SEVENTEEN REJECTED TWENTY
EIGHTEEN REJECTED THE ANNUAL
WORK PLANS TWENTY SIXTEEN
CALIFORNIA'S WE WROTE THIRTY
FAILED TO ADDRESS EFFORT REYES
COMMON SATISFACTORY. TWENTY
SEVENTEEN SAID THE SAME THING
TWENTY EIGHTEEN SAID THE SAME
THING TO CENTRAL VALLEY PROJECT
FINANCIAL PLAN TWENTY SIXTEEN C.
H. RIGHT THE CALIFORNIA'S REAL
FORTY FAILED TO ADDRESS EFFORT
REYES COMMENTS AS FACTORY.
TWENTY SEVENTEEN REJECTED TWENTY
EIGHTEEN PROJECTED.
THE ONLY PREDICTOR.
A FUTURE BEHAVIOR IS PAST
BEHAVIOR THE APPARATUS MADE THIS
DECISION NOW YOU CAN SAY.
I GET ALL THE RHETORIC I GET
THAT YOU WANT TO BLAME THE
ADMINISTRATION -- NUMBER THINGS
BUT WE GET A DEAL REALITY.
WE HAVE A REAL TAX DOLLARS
ONLINE HERE.
AND WE AT THE END RIGHT WE DON'T
HAVE ANY YOU DON'T HAVE IN THIS
PLAN THIS UPDATE ANY FUNDS POST.
TWENTY THIRTY ON CAP AND TRADE
CORRECT GOT IT AND IF I ANY
FUNDING POSE.
TWENTY THIRTY THAT'S CORRECT
THAT'S CURRENT LAW SO WE TOOK
THE CONSERVATIVE APPROACH OF NOT
ASSUMING THAT EXTENSION FOR
PURPOSES OF THE PROJECT GOT
SUPPORT BUT YOU'RE ASKING US TO
ASSUME A PROJECT NOW POST TWENTY
THIRTY CORRECT.
WELL WHAT WE'RE TRYING TO DO IN
THIS PLAN AGAIN AS AS THE THE
EARLIER PRESENTATION INDICATED.
LOOK AT THE RESOURCES WE HAVE
TAKE A REALISTIC LOOK AT COST --
WE WERE MORE CONSERVATIVE IN THE
SENSE OF A HIGHER PROBABILITY
MODELS SO COSTS WENT UP A BIT
HIGHER CONTINGENCY.
LOOKING AT REVENUES WE ACTUALLY
IN A SENSE BROUGHT REVENUES DOWN
A BIT WE DIDN'T ASSUME CAP AND
TRADE BEYOND TWENTY THIRTY FOR
THOSE THIS PURPOSE.
AGAIN LOOKED AT THE REVENUE WE
HAD.
AND THE COST AND PROVIDED IN THE
PROJECT UPDATE REPORT A VERY
SUBSTANTIAL RAIL BENEFIT OF
INVESTMENT OF THE MONEY WE HAVE
AND LOOKING AT THE BENEFITS THAT
CAN PRODUCE.
NOT JUST IN THE CENTRAL VALLEY
BUT IN KEEPING THE COMMANDMENTS.
BAY AREA.
DELIVERABLES FOR CALTRAIN --
UNION STATION ECCENTRIC SO LET
ME I NEED -- THESE DIVE INTO A
LITTLE BIT OF A MISTER DALY WAS
TALKING ABOUT THE RIDERSHIP
NUMBERS THE NUMBERS I HAVE AT
LEAST.
THE AMTRAK SAM LOOKING RIDERSHIP
NUMBERS IN TWENTY SEVENTEEN FOR
SAID TO BIGGEST FILLED.
HAS THE IS IS A TOTAL OF
300-310-00500.
SEVENTY TWO AND THEN IN THE IN
THE RIDERSHIP NUMBERS THAT YOU
HAVE IN TERMS OF WHO WOULD RIDE
HIGH SPEED RAIL.
THAT SAME QUARTER YOU HAVE IT AT
ONE POINT SIX MILLION WRITERS
THAT'S A FIVE FOLD INCREASE WHAT
ASSUMPTIONS OF GOT INTO IT. TO
ASSUME THAT AT SUCH A LARGE
RIDERSHIP BOB.
WELL NOT A STRAIN NOT YOU KNOW
NOT THAT NOT THE BOOKENDS JUST.
BECAUSE RIGHT NOW WE'RE THE
WE'RE ONLY TALKING ABOUT THE
CENTRAL VALLEY WAIVERS WERE SAID
TO SHAFT WELL I THINK CHAPTER.
I MEAN YOU YOU YOU CAN SAY THAT
YOU HAVE MONEY TO BIXEL BUT I
THINK YOU DO BUT LET'S STIPULATE
MERCED BIXEL HOW DO YOU GET THAT
FIVE FOLD INCREASE.
WHAT WAS MODELED WAS THE HIGH
SPEED RAIL SERVICE A RUNNING
TRAINS ABOUT EVERY HOUR?
AND CONNECTING TO SAN JOAQUIN'S
AN ACE IN MERCED AND LOOKING AT
THE ENTIRE SYSTEM.
OF THOSE OF THOSE -- THE
SERVICES THAT ARE INTEGRATED --
TOGETHER AND THAT'S HOW THE THE
RIDERSHIP NUMBERS WERE
CALCULATED.
IN YOU THE A FIVE FOLD INCREASE
IS REALISTIC.
WHAT'S A SUBSTANTIAL INCREASE IN
THE SERVICE.
SO YES -- THESE -- MODELING
NUMBERS -- WERE BASED ON AT THE
ANALYSIS USE FOR THE STATE RAIL
PLAN -- SO -- WE STAND BESIDE
THESE THESE ESTIMATES.
MR FONG A WE HAVE OTHER USER AYE
AYE AYE AYE AYE PROCEDURE I I
JUST ABSOLUTE I I APPRECIATE YOU
GUYS BEING HERE I I APPRECIATE
YOU GUYS TAKING THE GRILLING
THAT I THAT I AM -- THAT THAT --
HE'S CLEARLY -- I BELIEVE
JUSTIFIED BECAUSE I THINK
CALIFORNIANS ARE GROWING WEARY
AND THEY'RE GOING MORE UPSET.
THEY THEY THIS PROJECT IS AS I
SAID IN MY OPENING STATEMENT WAY
OFF TRACK THE THE HOLES ARE
GETTING LARGER.
NOW THE DELAYS ARE GETTING
LARGER TO COST OVERRUNS CONTINUE
TO PROCESS THEY'RE STILL -- FOR
FEDERAL FUNDS THAT NO LONGER
THAT THEY'RE THERE FOR A FUNDS
NOW THAT NO LONGER EXIST.
AND SO I MEAN IF WE'RE REALLY
GOING TO BE SERIOUS AS AS A BODY
AS BUSINESS THE LEGISLATURE TO
TO BE STEWARDS OF THE TAX DOLLAR
THIS PROJECT HAS TO BE
REEVALUATED.
AND I THINK AT LEAST AT A
MINIMUM THE VOTERS SHOULD HAVE A
SAY EITHER VOTE AGAIN ON THIS
PROJECT THANK YOU.
MR THANK YOU MISTER FONG MISTER
FRAZIER ASKED ME TO CHAIR THE
MEETING IN HIS ABSENCE WILL BE
RETURNING SOON I HOPE -- I WANT
TO GIVE OTHER MEMBERS A CHANCE
TO MAKE COMMENTS OR ASK
QUESTIONS AND I THINK MISTER
CUNNINGHAM -- IS NEXT TO MISTER
NAZARIAN DO YOU ARE YOU GOING TO
HAVE ANY QUESTIONS OR COMMENTS
OKAY COULD ALSO GO TO MISTER
CUNNINGHAM.
MISTER FRASIER'S BACK SO I'M
GIVEN THE GAVEL BACK TO HIM.
GO AHEAD GEORGE THANK YOU MISTER
CHAIR.
SOME LOOKING AT PAGE FOURTEEN OF
THE OF THE SLIDE THAT YOU GUYS
PREPARED -- WANT TO DRAW YOUR
ATTENTION TO THAT.
IT'S IT'S STATES VERY CLEARLY --
THE THE PROJECT DOESN'T HAVE ALL
THE FUNDING NEEDED TO COMPLETE
THE ENTIRE PROJECTS STATE WIDE
AND IT NEVER HAS.
IT POINTS THAT'S A QUOTE IT
POINTS OUT IN TWO THOUSAND EIGHT
THE PROP ONE A PAWN MEASURE
PASSED WHICH PROVIDED 420% OF
THE PROJECTS THAN ESTIMATED
COSTS WHICH WILL NOW HAVE
INCREASED SENSE.
I BELIEVE THE CONTEMPLATION AT
THE TIME WAS THAT THERE WOULD BE
PRIVATE INVESTMENT IT WOULD BE
SIGNIFICANT FEDERAL INVESTMENT
AND THEN THE PROP TWENTY BONDS
WOULD.
WOULD MATCH.
AS WELL SO THAT THERE WAS SORT
OF THREE FUNDING SOURCES TO GET
THE PROJECT COMPLETED.
I KNOW YOU GUYS WERE NOT IN THE
POSITION YOU'RE IN NOW BACK THEN
BUT IN PLEASE CORRECT ME IN YOUR
ANSWER OF THE FUN MISTAKEN ABOUT
THAT.
BUT THAT'S MY RECOLLECTION FROM
THEN -- AND THEN IT NOTES IN.
TWENTY EIGHTEEN WITH A STABLE
JOB WHAT WE CALL GHG OUR FUNDS A
PROGRAM THROUGH.
TWENTY THIRTY PLUS FEDERAL FUNDS
PLUS PROP ONE A FUNDING THE
AUTHORITY HAS ACCESS TO JUST
UNDER 30%.
OF TODAY'S ESTIMATED PROJECT
COST SO I WANT TO GIVE YOU ALL A
CHANCE RESPOND I WANT TO ASK THE
QUESTION MY CONSTITUENTS ASK ME.
ALL THE TIME.
HOW IS THIS THING GOING TO BE
COMPLETED WHERE'S THE OTHER 70%
BECAUSE WE KNOW THE FEDS ARE
TRYING TO CLAW BACK MONEY I GET
THERE'S A LAWSUIT OVER?
SO THAT'S OUTCOME UNCERTAIN -- I
BELIEVE CORRECT ME IF I'M WRONG
BUT THAT THE PRIVATE INVESTMENT
IS NEVER MATERIALIZED.
AND THE PROP ONE A FUNDS THAT
ARE LEFT ARE -- WOEFULLY
INADEQUATE TO PAY FOR THE ENTIRE
SYSTEM SO WHERE IS THE OTHERS IF
IF WE ASSUME THAT THE ALL THAT.
WE HAVE THROUGH THE SOURCES
IDENTIFIED 30% WHERE'S THE OTHER
70% COME FROM.
WELL THIS -- A PROJECT LIKE.
OTHER AT BIG TRANSPORTATION OF
THE PROJECTS OF THE PAST MY
MENTION LIKE THE INTERSTATE
HIGHWAY SYSTEM AS AN EXAMPLE --
CAM PROCEED IN BUILDING BLOCKS
WHERE YOU HAVE USABLE SEGMENTS --
WERE YOU HAVE SIGNIFICANT
BENEFITS -- WITH INITIAL
SEGMENTS BEFORE THE ENTIRETY OF
THE SYSTEM IS BUILT OUT -- SO IS
INDICATED HERE -- THE WITH A CAP
AND TRADE IN THE REVENUE
IDENTIFIED -- THROUGH A TWENTY
THIRTY THAT STE ENDS UP BEING
ABOUT 30% OF THE OVERALL PROJECT
COST -- WITH THAT FUNDING WE
BELIEVE AS AS ONE OF THE SLIDES
I GUESS THE SLIDE THAT STILL UP
THERE ARE ARTICULATE AND THEIR
SIGNIFICANT BENEFIT TO THE
SYSTEM.
I HAVING.
UPON DELIVERING SOME OF THOSE
BENEFITS -- BELIEVES THE THE
BENEFIT OF HIGH SPEED RAIL WILL
WILL BE DEMONSTRATED CLEARLY --
ALSO -- AS YOU SAY AT THE
FEDERAL GOVERNMENT -- HAD ABOUT
A TWO YEAR PERIOD OF FIVE
SIGNIFICANT INVESTMENT IN HIGH
SPEED RAIL NOT JUST IN
CALIFORNIA BUT ACROSS THE
COUNTRY -- THAT'S TWO THOUSAND
IT WITH THE OUR FUNDS AND THEN
THE FEDERAL FISCAL YEAR TWENTY
TEN SINCE THEN THEY HAVE NOT
COMMITTED SIGNIFICANT NEW MONEY --
FOR HIGH SPEED RAIL ANYWHERE IN
THE IN THE COUNTRY BUT OTHER
STATES ARE ALSO PURSUING HIGH
SOME POINT THE FEDERAL
GOVERNMENT WILL COME BACK.
AND BE A FUNDING PARTNER WITH
NEW MONEY. FOR THE SYSTEM AND IN
TERMS OF THE PRIVATE SECTOR --
COURSE THEY LOOK -- TO DE RISCO
PROJECTS AND SO -- THEY'VE BEEN
ENVISIONED AS A PART OF THE
LATER -- FUNDING PARTNERS --
THERE ALSO -- I THINK LOOKING
FOR A DEMONSTRATION OF THE
BENEFIT OF HIGH SPEED RAIL THAT
WILL BE DEMONSTRATED BY
RIDERSHIP AND OTHER FACTORS WE
WERE ABLE TO GET INITIAL SERVICE
UP AND RUNNING.
OKAY MY NEXT QUESTION IS IS
THERE ARE PRESENTLY A VIABLE
PLAN TO CONNECT.
I GUESS WHAT WOULD BE
BAKERSFIELD THE SOUTHERNMOST
POINT OF THE CENTRAL VALLEY
STATEMENT. TO DOWNTOWN LOS
ANGELES OR SOMEWHERE.
DOWNTOWN LOS ANGELES AND WHAT
WOULD THAT PLAN ENTAILS BECAUSE
IT SEEMS TO ME AND I'VE DRIVEN
THE GRAPEVINE ON I FIVE MANY
MANY TIMES -- THAT'S A
CHALLENGING THING. TO GET TO GET
RAIL SYSTEM EITHER OVER UNDER
AROUND THAT SEEMS LIKE THAT
WOULD BE QUITE A CHALLENGE.
AND I I'M NOT.
TRYING TO HOLD YOU GUYS ANYTHING
I GET THE PEOPLE ARE LOOKING AT
THIS BUT IS THERE PRESENTLY A
VIABLE PLAN TO CONNECT
BAKERSFIELD TO LOS ANGELES.
WELL THAT DOES -- I THINK
ACTUALLY TWO SEGMENTS THAT ARE
UNDERGOING THE ENVIRONMENTAL
REVIEW RIGHT NOW BAKERSFIELD TO
PALMDALE IN PALMDALE TO BURBANK.
AS SO THAT IS UNDER STUDY IN THE
ENVIRONMENTAL PROCESS THAT'LL
HELP -- FURTHER REFINE OF THE
COST OF THE ROUTE -- THOSE TYPE
OF FACTORS -- IN THE MEANTIME --
THERE ARE PASSENGERS TODAY --
THAT MAKE A A BY RAIL TICKET --
TO COME FROM SOUTHERN CALIFORNIA
NORTHERN CALIFORNIA -- SOME OF
THEM WILL TAKE THE COAST
STARLIGHT ON THE COAST OTHERS
SAY DO A BUS CONNECTION FROM LOS
ANGELES THAN CONNECTING
BAKERSFIELD.
AND A BOARDING A TRAIN ON
BAKERSFIELD HIT THE THE POINTS
TO THE NORTH -- THROUGH RAIL
SERVICE -- WITH THE MERCED TO
BAKERSFIELD -- EARLY BUILDING
BLOCK OR INTERNET SERVICE --
THAT OPPORTUNITY WOULD STILL
EXIST -- SOME CUSTOMERS WOULD
CONTINUE -- TO TRAVEL INTO
REGIONALLY -- WITH A FAST
CONNECTION BETWEEN AT
BAKERSFIELD IN SOUTHERN
CALIFORNIA.
BUT ULTIMATELY FOR THE SERVICE
THAT HAVE.
I THINK AT HIGH SPEED RAIL
PROVIDES -- YOU KNOW BUSES ARE
CERTAINLY NOT GOING TO GET YOU
THERE ARE YOU NEED TO DO THAT
FOR HIGH SPEED RAIL INVESTMENT --
FROM BAKERSFIELD LINKING TO PALM
DOWN ULTIMATELY TO BURBANK AND
LOS ANGELES AREA -- WOULD YOU
AGREE THAT THAT.
WAS.
SOMETHING THAT THE PROP ONE A
VOTE WAS PREDICATED UPON.
I BELIEVE THE VOTERS WERE MORE
TOLD THE THE HIGH SPEED RAIL
SERVICE WOULD CONNECT LOS
ANGELES TO SAN FRANCISCO.
IN IN UNDER TWO AND A HALF HOURS
IF I RECALL CORRECTLY THAT'S
CORRECT YEAH AND THE SYSTEM AS
IT'S BEING BUILT IN BUILDING
BLOCKS IS DESIGNED TO MEET THOSE
REQUIREMENTS.
OKAY THAT'S ALL I HAVE THANK YOU.
MISTER IS THERE ANY JEFF
QUESTIONS.
I DID THANK YOU -- AND I DIDN'T
WANT TO FOCUS TOO MUCH ON THIS
FIRST OF ALL THANK YOU VERY MUCH
FOR FOR BEING HERE AND FOR
OFFERING UP.
UPDATE -- BUT GIVEN ONE OF THE
QUESTION OF THE QUESTIONS THAT
OF ONE OF OUR COLLEAGUES WAS
ASKING.
I THINK SOMEONE OF THE SIMPLE
RESPONSES WOULD BE -- TO
DEMONSTRATE HOW MUCH MONEY HAS
BEEN SPENT SO FAR AND THE
CENTRAL VALLEY.
AND HOW MANY JOBS HAVE BEEN
CREATED BECAUSE OF THAT AS A
SMALL PART OF THIS WHOLE THING.
BUT I THINK THAT'S THAT'S OF KEY
POINT THAT -- IN THE QUESTION
AND ANSWER.
IT WAS NOT ADDRESSED ANDWHAT
BENEFITS HAVE BEEN DERIVED
LOCALLY -- AND ALSO TO POINT OUT
HOW MANY OF THOSE JOBS --
EMPLOYED INDIVIDUALS WERE LOCAL
FORCES INDIVIDUALS ARE EXPERTS
COMING IN FROM.
OTHER PLACES SO I IF WHEN YOU
GET A CHANCE I'D APPRECIATE YOU.
NOT NOW BUT LATER ON PROVIDING
THAT INFORMATION BECAUSE I THINK
THAT.
IS A GREAT DEAL OF BENEFIT THAT
MANY OTHER COLLEAGUES HERE WOULD
HAVE BEEN -- PLEASED TO HAVE
RECEIVED IN THEIR DISTRICTS --
THAT'S ONE COMMENT WAS MADE A
LITTLE WHILE AGO ABOUT OVERSIGHT
A PLEA BY MR CURTAIN.
I WANTED.
TO KNOW WHAT IN A PERFECT.
WORLD SCENARIO THAT OVERSIGHT
PROCESS WOULD LOOK LIKE AND AND
MISTER CHAIRMAN HAVE YOU OTHER
QUESTIONS ON FOLLOWING UP SO --
BECAUSE WE'VE OVERSIGHT IS A
WRESTLING IN A PERFECT WORLD
WHAT THAT WOULD LOOK LIKE I HAVE
NO IDEA.
THEY'LL NEVER BE SUCH A MISTER
CURTAINS WORLD YEAH WELL MY
MISTER CURTAINS WORLD WOULD BE
THE ABILITY TO SOMEHOW OVERCOME
THE SILOS THAT.
EVERYBODY OPERATES IN AND IT'S
JUST YOU MAY NATURE.
IF THERE'S A WAY TO HAVE A BODY
THAT OVERSEES THE WHOLE PROCESS
SO THAT YOU INTEGRATE FUNDS IN A
WAY THAT MAKES SENSE -- SO THAT
DIFFERENT SYSTEMS CAN INTEGRATE
TOGETHER IT'S VERY HARD
INDEPENDENTLY -- NOBODY WANTS
PUT THEIR CARDS ON THE TABLE SO
YOU NEED A AND AND THE REAL
PLANTS A GOOD START -- YOU KNOW
MY THINKING HERE AND I BELIEVE
THE BOARD SHOWS SOME INTEREST IN
EXPRESSING THIS AND I DON'T WANT
TO SPEAK TO FOR A LINE FOR THE
BOARD BUT WE WILL BE LOOKING AT
THE POTENTIAL FOR MATCHING MONEY
WHEN WE ARE ADAPTING TO THE
CIRCUMSTANCES.
AND THAT'S WHAT WE HAVE TO DO I
THINK SOME OF THE POINTS MADE
ABOUT THE MONEY IS ARE GOING TO
BE DEALT WITH AS THE
CIRCUMSTANCES ALLOW.
BUT WE HAVE TO LOOK OUTSIDE AND
SEE IF THERE'S PRIVATE MATCHING
MONEY OR PUBLIC MATCH I MEAN A
LOCAL MATCHING MONEY -- I KNOW
THERE ARE IS A PRIVATE.
TRAIN BEING DISCUSSED FROM VEGAS.
TO VICTORVILLE PALMDALE.
THAT'S POSSIBLE PRIVATE MONEY IN
THE IN THE LINKAGE TO OUR TRAIN
BUT ALL OF THESE LOCAL
TRANSPORTATION AGENCIES HAVE
MONEY IF THEY WOULD IF WE WOULD
GET MATCHING MONEY SO THAT MIGHT
MAKE OUR MONEY GO FURTHER.
THIS IS WHAT WE DO WE ADAPT
[inaudible]
SO.
RAY ARE AT A COUPLE THINGS THAT
THE QUESTIONS FIRST ON WE
DEFINITELY WILL GET YOU THE
NUMBERS ON THE ECONOMIC IMPACT
BUT JUST TO GIVE A SENSE OF THAT.
BETWEEN JULY SEVENTEEN IN JUNE.
TWENTY EIGHTEEN ABOUT 18% OF THE
FOURTEEN THOUSAND JOBS THAT WERE
CREATED IN THE CENTRAL VALLEY OR
FROM HIGH SPEED RAIL.
AND IN FRESNO COUNTY.
ABOUT ROUGHLY 50% OF THE TOTAL
JOBS ADDED DURING THAT TIME
PERIOD WEREFROM HIGH SPEED RAIL
ONE AND 30% OF THOSE DIRECT FROM
DIRECT EMPLOYMENT BY THE HIGH
SPEED RAIL PROJECT SO IT'S A
SUBSTANTIAL.
ECONOMIC IMPACT AND WE DO HAVE
ALL THOSE NUMBERS BROKE DOWN AS
WELL AS A HOW MANY OF THOSE ARE
IN DISADVANTAGED COMMUNITIES
SMALL BUSINESSES THAT CENTERS
WILL BE HAPPY TO GET THOSE --
AND THEN ARE ON OVERSIGHT I VIEW
THIS AS AN EXTREMELY IMPORTANT
PART OF THE ROLE BOTH OF THE
HIGH SPEED RAIL AUTHORITY BOARD.
TO MAKE SURE THAT WE ARE ASKING
THE HARD QUESTIONS THAT SORT OF
FINANCE AND AUDIT COMMITTEE
REVIEW AND ALL THAT AND VERY
TRANSPARENT WAY.
AND IT'S ALSO OBVIOUSLY -- THE
LEGISLATURE'S ROLE AS WELL TO
PROVIDE THAT OVERSIGHT TO MAKE
SURE THAT WE CAN BUILD
CONFIDENCE THAT WE ARE.
DISPLAYING AS TRANSPARENTLY AS
WE CAN WHAT'S GOING ON WHAT THE
RISKS ARE WHAT WE'RE DOING ABOUT
THAT THAT'S HOW YOU REBUILD
CONFIDENCE SO.
WHILE SOME OF THESE QUESTIONS
ARE NOT THE MOST ONE WANTS TO
ANSWER THAT'S WHAT OUR JOBS ARE
SO WE APPRECIATE THE HARD
QUESTIONS [inaudible]
SO. TWO THINGS -- FIRST OF ALL I
I DO APPRECIATE WHAT YOU'RE
SAYING BUT PART OF THE CHALLENGE
AND PART OF THE FRUSTRATION I'VE
HAD BEING HERE.
IS THAT -- OF UNDER.
GOVERNOR BROWN THERE WAS A
FOCUSED ATTEMPT TO BRING A LOT
OF THE RESOURCES.
THE CENTRAL VALLEY.
AND PUSH THAT FORWARD.
A LOT OF IT SOME OF IT ALSO
BEING CONTINGENT ON FEDERAL
FUNDS THAT WERE GOING TO BE MADE
AVAILABLE [inaudible]
OF INSTEAD OF INSTEAD OF
CHALLENGING SOMETHING THAT WILL
ALSO GO THERE BECAUSE THE
GOVERNOR WILL.
PUSH FOR THAT. FOR THAT'S FOR
FOR WHAT HE WANTED TO DO
ACCOMPLISH -- I THINK I CAN
SPEAK FOR MYSELF BUT I'M SURE
SOME OF US.
HERE'S WHAT WENT ALONG WITH THAT
EVEN THOUGH WE WOULD HAVE SEEN.
THE FIRST SEGMENT OF THE PROJECT
BE IN A DENSER SETTING.
WHERE WE COULD DEMONSTRATE THE
NUMBERS BASED ON THE USAGE?
IF THIS PROJECT STARTED IN
SOUTHERN CALIFORNIA.
SPECIFICALLY FROM LET'S SAY
BAKERSFIELD OR EVEN PALMDALE
LANCASTER DOWN.
TO LOS ANGELES AN THEN ANAHEIM
BURBANK LOS ANGELES AND ANAHEIM
BUT THAT TIME BURBANK WASN'T
REALLY BEING DISCUSSED BUT
BURBANK LOS ANGELES IN ANAHEIM --
THE THE TURN AROUND ON THE
LESSENING OF THE IMPACT WOULD BE
SO SIGNIFICANT.
THAT I THINK THE REST OF THE
PROJECT WOULDN'T.
HAVE AS MUCH.
CHALLENGE.
MAYBE IT'S JUST WISHFUL THINKING
ON MY PART BUT I THINK WHEN YOU
SEE START SEEING THE TRAFFIC.
OF WHITE LIGHTS SOUTH HEADED
SOUTHBOUND ON THE FIVE FREEWAY
STARTING AT ABOUT FOUR THIRTY IN
THE MORNING -- IT'S ALSO VERY
EASY TO SEE HOW -- HOUSING IS
IMPACTED BY TRANSPORTATION.
AND TO WHAT EXTENT WE COULD HAVE
HIT TWO BIRDS WITH ONE STONE BUT
DON'T WANNA.
CONTINUE DOING A MONOLOGUE ON
THAT.
BUT I'M JUST STRESSING THE
IMPORTANCE OF I THINK.
HOW IMPORTANT IT IS?
TO MAKE SURE THAT THE
INVESTMENTS AND THE FOCUS IN
SOUTHERN CALIFORNIA -- IS MADE
TO THAT EXTENT WHEN.
MATCHING FUNDS ARE BEING
DISCUSSED.
WHAT EXACTLY ABOUT LOCAL
MATCHING FUNDS LA HAS PASSED ITS
MEASURE THIS SB ONE FUNDING
AVAILABLE -- I AM NOT LOOKING AS
MATCHING FUNDS.
I'M NOT INTERPRETING MATCHING
FUNDS TO BE.
PRIVATE FUNDS [inaudible]
SO PLEASE.
THAT THEY COULD BE IF A PRIVATE
SECTOR HAVE INTEREST IN THAT
PARTICULAR RAIL LINE AND THEY
COULD FIND A WAY TO EITHER
OPERATOR TO HELP BUILD IT.
BUT THE MATCHING FUNDS I MEAN
SPECIFICALLY.
THERE'S LOTS OF PROJECTS GOING
ON BURBANK AIRPORT IS RE.
POSITIONING ITS TERMINALS THEY
HAVE MONEY FOR THAT WE HAVE
PLANS FOR THE BURBANK AIRPORT
FOR POTENTIAL STATION THERE.
THOSE FUNDS PUT TOGETHER COULD
GET THAT DONE AND I DON'T KNOW
IN WHAT TIME LINE I DON'T KNOW
WITH THE DISCUSSIONS ARE AND I'M
WE LET BRIAN DEAL WITH THAT.
THAT'S THE CONCEPT OF MATCHING
FUNDS WITH BOTH ELEMENTS OR
THREE OR FOUR EIGHT ELEMENTS
METROLINK HAS COUNTIES HAS ALL
KINDS OF MONEY.
AND WE COULD CONTRIBUTE IN THE
SENSE THAT IT IMPROVES THE
ABILITY FOR US TO GET TRACK.
HIGH SPEED TRACK OR URBAN HIGH
SPEED TRACK.
THAT'S THE CONCEPT OF MATCHING
FUNDS THAT THAT'S NOT HAPPENED
MATCHING FUNDS IN THE VALLEY
HAVE HAPPENED AS WITH FEDERAL
FUNDS.
THERE'S NOT MORE NOW I BELIEVE
THERE'S NO MORE MATCHING AT THE
LOCAL LEVEL SO THAT'S THAT'S A
THAT'S IN QUESTION IT'S
IMPORTANT QUESTION.
AND I AND I DO THINK AS WE ARE
ABLE TO DEMONSTRATE THAT WE CAN
DELIVER THERE WILL BE INCREASING
INTEREST FROM PRIVATE SECTOR
INVESTING BOTH BECAUSE ARE SHOWN
WE CAN DELIVER.
AND SOME OF THE RISKS OF LOWER
WHEN YOU CLEAR THE ENVIRONMENTAL
WORK MAKES IT MUCH MORE
ATTRACTIVE FOR PRIVATE PARKING
PARTICIPATE.
AS OPPOSED TO THEY DON'T WANT TO
COME IN AND EARLY STAGE WHERE
THEY HAVE TO TAKE ALL OF THAT
ENVIRONMENTAL RISK.
SO WE ARE WE BELIEVE THIS
PROJECT OVER TIME. TO BE ABLE TO
BE MEETING ITS FULL POTENTIAL
WILL REQUIRE.
FUNDING PARTNERS FROM THE
FEDERAL GOVERNMENT EVERY MAJOR
INFRASTRUCTURE PROJECT HAS AND
THE FEDERAL GOVERNMENT HAS BEEN
UNDER INVESTING IN
INFRASTRUCTURE FOR YEARS NOT
JUST RAIL.
AND IT ALSO REQUIRE.
PARTNERS BOTH AT THE LOCAL LEVEL
WITH THE END WITH THE PRIVATE
SECTOR AND WE FULLY EXPECT THAT
THOSE WILL COME AS WE SHOW THAT
WE CAN DELIVER.
SO GOING BACK TO THE BURBANK
AIRPORT THAT'S A WONDERFUL
OPPORTUNITY WHAT WHAT
CONVERSATIONS HAVE BEEN HAD SO
FAR.
AND I THINK I SEE MISTER FOR
WASHINGTON IN THE AUDIENCE AS
WELL SO I DON'T KNOW AT SOME
POINT IF HE WAS.
GONNA BE SPEAKING TO SOME OF
THESE ISSUES AS WELL BECAUSE I
THINK THAT WOULD BE A WONDERFUL
OPPORTUNITY.
TO CONNECTS AND FERNANDO VALLEY
TO PASADENA AS WELL.
BUT THAT'S A DIFFERENT TOPIC --
WHAT WHAT ARE SOME OF THE THING
WHAT WOULD HAVE BEEN SOME OF THE
CONVERSATIONS THAT HAVE TAKEN
PLACE? TO COMPLY I DO NOT KNOW
SURE HE HAD NOT TRYING TO
BURBANK AIRPORT SPECIFICALLY I
DID WANT TO ADD THOUGH THAT --
TERMS AND MATCHING FUNDS -- THE
PROP ONE NAY DOES REQUIRE A 50%
MATCH -- WONDER ONE MATCH FROM
OTHER FUNDING SOURCES SO WHERE
BOOK IN FUNDS HAVE BEEN ABLE TO
INVEST IN THE CALTRAIN A SYSTEM
OR IN UNION STATION.
OTHER FUNDS HAVE MATCH THOSE
DOLLARS.
SO IN CALTRANS CASES OTHER LOCAL
FIND SAYS STATE FUNDS THAT HAVE
BEEN BROUGHT TO MATCH THE ONE A
FUNDS AND THAT'S THE SAME WITH
THAT ROSECRANS MARQUARDT PROJECT
IN THE LA UNION STATION PROJECT
AS WELL SO -- YEAH THAT DOES --
THAT MATCHING IS NOT EXCLUSIVELY
THE FEDERAL GOVERNMENT -- AND
AND THAT SAID DEFINITELY A GOOD
MODEL -- TO LOOK AT THIS BROADER
PARTICIPATION BECAUSE THAT'S
REALLY HOW THE BIGGEST PROJECTS
GET DONE.
IS THROUGH SUCCESSFUL
PARTNERSHIPS FEDERAL STATE AND
LOCAL.
SO WELL WE WILL GET BACK TO ON
THE BURBANK I DON'T KNOW WHAT TO
TELL OKAY.
BUT THAT'S SOMETHING THAT IS
VERY.
CRITICAL TO ME -- THE BURBANK
STATION BURBANK AIRPORT IS JUST
OUTSIDE OF MY DISTRICT BUT IT'S
A REGIONAL -- FIGHTER AND SO
IT'S AND I'VE I'VE I DON'T THINK
IN THIS AREA SPEAKING JUST FOR
MYSELF BUT FROM HEARING A
CORRECTLY FROM.
MY COLLEAGUE IN ORANGE COUNTY --
I I CAN'T EXPRESS HOW VALUABLE.
THIS INVESTMENT IS GOING TO BE
AND TO WHAT EXTENT I THINK YOU
HAVE -- PARTNERS HERE THAT ARE
WILLING TO HELP PUSH ALONG.
ALL CONVERSATIONS AND MAKE SURE
THAT THE LOCAL.
INVESTMENT OR THE MATCHING AND
IF THERE'S MATCHING OPPORTUNITY
INVESTMENT IS TAKING PLACE.
THAT'S SOMETHING THAT I'D BE
HAPPY TO WORK WITH THE ONE YOU
WANNA SEE REALIZED [inaudible]
THANK YOU.
SO WELL TO STIR FINISH UP TO
THIS PANEL.
BRIAN -- WILL BE IN IN TERMS OF
HIGH SPEED RAIL SERVICE IN THE
CENTRAL VALLEY REQUIRES STATE
SUBSIDY. TO OPERATE.
AND IS THAT A VIOLATION OF PROP
ONE EIGHTY THE STATE'S OF THE
PLANNED PASSENGER TRAIN SERVICE
TO BE PROVIDED BY THE AUTHORITY
OR PURSUANT TO ITS STORY WILL
NOT REQUIRE AN OPERATING SUBSIDY.
AND IF YOU COULD JUST FINISH OFF
WITH NOW WITH THIS NEW.
THOUGHT PROCESS WHEN YOU HAVE
ALL OF THESE CONNECTIONS THAT
ARE.
LA TO MOVE BY BUS TO BAKERSFIELD
HIGH SPEED RAIL TUMOR SAID THEN.
US THE SAN JOAQUIN.
A STEW -- ANOTHER CONNECTION
POINT AND THEN CALTRAIN.
I'M CERTAIN ACOSTA WRITER.
IT IS GOING TO BE AFFORDABLE.
WITH ALL OF THESE INCREASED
PRICES SURE WELL THIS AT THE
MODEL TO HIGH SPEED RAIL SERVICE
IN THE CENTRAL VALLEY THIS MODEL
THAT THE AMTRAK.
COST RATES SO COURSE AT WITH THE
CURRENT AMTRAK SERVICE THAT IS
THE FIFTH MOST POPULAR AMTRAK
SERVICE IN THE COUNTRY.
YOU KNOW STILL -- A LOT OF
POTENTIAL TO GROW THEIR OF THAT
THAT IS A SUCCESSFUL A SERVICE
CURRENTLY IF YOU CUT NINETY
MINUTES OFF THAT RIDE -- YOU DO
SEE BENEFITS SO IN SOME
PASSENGERS AS YOU SAY AND MAY
CONTINUE TO OTHER SERVICES SOME
MAY TRAVEL.
BETWEEN MERCED AND BAKERSFIELD.
SO IS GONNA BE OUT.
OPERATE WITHOUT A SUBSIDY SURE
WHEN ON THAT QUESTION IS YOUR
NOTING HIGH SPEED RAILS NOT ABLE
TO OPERATE THIS SERVICE AND
RECEIVE A SUBSIDY -- BUT PROP
ONE NAY CONTEMPLATES -- OTHER
PASSENGER RAIL -- SERVICES USING
HIGH SPEED RAIL INFRASTRUCTURE.
AND IT'S WITH THAT THAT THE THE
BOOKING FINDINGS WAS WAS CRAFTED --
CALTRAIN FOR EXAMPLE.
IN DALY UNION STATION FOR
METROLINK AND SURFLINER -- THOSE
ARE SERVICES THAT I WILL RECEIVE
INVESTMENTS UPGRADES FROM HIGH
SPEED RAIL MONEY -- FOR USE FOR
OTHER PASSENGER RAIL SERVICES
AND ULTIMATELY HIGH SPEED RAIL
WILL USE THEM -- THAT'S THE SAME
LEGAL STRUCTURE IS IN THE
CENTRAL VALLEY -- THESE AS THAT
SERVICE -- HIGH SPEED RAIL CAN
ALLOW USE BY.
THE SAN JOAQUIN SERVICE OR OTHER
OPERATORS ULTIMATELY WHEN THAT'S
CONNECTED TO THE VOWED TO SAN
JOSE -- THAT'S WHERE YOU SEE
HIGH SPEED RAIL BEING THE MORE
DIRECT OPERATOR IN BEING ABLE TO
PROVIDE THAT SERVICE WITHOUT ME
FORMS OF THE WAY.
IS THE FAREBOX RECOVERY GOING TO
BE ABLE TO COVER THE DEBT
SERVICE.
OF BY THIS PROJECT -- NO I'M
ACTUALLY THE THE HENCE YOU WOULD
NEED A SUBSIDY.
CORRECT YEAH AND IN THE THE
OPERATING SUBSIDY REQUIREMENT
FOR HIGH SPEED RAIL PROVIDED
SERVICE NOT TO COVER THE
CONSTRUCTION COST SIXTY CAN.
COVER THE OPERATING COST
OPERATION AND MAINTENANCE COST.
BUT HERE WHEN YOU'RE DURING THE
MERCED TO BAKERSFIELD SEGMENT
THAT'SNOT A HIGH SPEED RAIL
PROVIDED NON OPERATING SUBSIDY
SERVICE THAT'S MORE CAN TO THE
CALTRAIN OR THE SOUTHERN
SERVICES WHERE.
THOSE OTHER PASSENGER RAIL
SERVICES THEY CURRENTLY RECEIVE
OPERATING SUPPORT WOULD CONTINUE
TO RECEIVE OPERATING SUPPORT TO
PROVIDE THE SERVICE SO I GUESS
ONE OF THE THINGS I'D LIKE TO
SEE SERENITY.
WHAT THE AND YOU -- PERCEIVE THE
COST TO BE FOR A TICKET TO RIDE
ON THIS PROJECT.
AND I THINK THAT'S A FAIR
QUESTION -- THE QUESTION FOR YOU
BRIAN. TO COMPLETE THE CENTRAL
VALLEY LINE THE THIRTY WILL NEED
THE REMAINING PROPOSITION ONE A
FUNDS.
ROUGHLY FOUR POINT ONE BILLION
DOLLARS LEFT.
NUMEROUS STEPS TO TAKE IN PLACE
FOR THAT TO HAPPEN INCLUDING
SOME MIDDLE OF FUNDING PLAN.
AND PROCREATION BY THE
LEGISLATURE.
WHEN DOES THE EIGHT FORTY
PLANNED TO COME TOWARD A TO THE
LEGISLATURE OF WITH THIS REQUEST?
I THINK WE'RE STILL EVALUATING
THAT THE TIMING OF THAT THE
PROJECT UPDATE REPORT INDICATES --
SOMETIME IN TWENTY TWENTY ONE
AND MAYBE THAT THE IT OF
STARTING.
TO NEED SOME OF THAT THAT CASH --
THAT COULD DOES SLIP PERHAPS
INTO TWENTY ONE TWENTY TWO IN
TERMS OF THE CASH NEEDS -- BUT
AS YOU'RE I THINK YOU'RE AS
STAFF RIGHT OUT YOU KNOW
INDICATES A OF FALL -- TWENTY
NINETEEN THAT WOULD THAT BE THE
CASE IF THE JANUARY -- BUDGET
INCLUDES THAT THE REQUEST BUT
AGAIN ON A CASH BASIS -- DON'T
APPEAR TO NEED THAT MONEY -- ON
THAT TIMELINE THE WILL CONTINUE
TO EVALUATE THAT AS THE PROJECT --
PROGRESSES.
THANK YOU AND MISTER CHAIRMAN.
YOU SEE THE ROLE OF THE
AUTHORITY BOARD OF DIRECTORS
CHANGING.
AND HOW WILL THE BOARD HAVE MORE
INDEPENDENCE.
AND OVERSIGHT.
BECAUSE RIGHT NOW WE HAVE THE
STAFF DIRECTING THE BOARD.
I'M I BELIEVE THAT THE BOARD HAS
HAD INCREASING OVERSIGHT I
MENTIONED EARLIER THE EXPANSION
OF THE FINANCE AND AUDIT
COMMITTEE WITH THE MUCH MORE
AGGRESSIVE ROLE IN OVERSEEING IN
REVIEWING EACH OF THE
INFORMATION IS COMING TO THEM.
IT IS STAFF GENERATED REPORTS
BUT THERE HAVE ACCESS TO ALL OF
THE STAFF MEMBERS TO ASK
DETAILED QUESTIONS ON ANYTHING
THAT'S TRUE FOR ANY BOARD MEMBER.
BUT PARTICULARLY BASS THE
FINANCE AND AUDIT COMMITTEE TO
DO A THOROUGH SCRUB IN ADVANCE
OF THE BOARD MEETING -- ARE ALSO
BELIEVE THAT WE ARE AS WE
DEMONSTRATE THROUGH THE SETS OF
QUESTIONS THAT WE ASK AND THE
REPORTS THAT WERE ASKING FOR
BOTH FOR THE BOARD MEETINGS
WHICH ARE ALL PUBLIC.
AS WELL AS WHAT WE MAKE
AVAILABLE ON THE WEB SITES.
OF THE INFORMATION WE ARE DOING
AS BEST WE CAN WITH THE
INFORMATION THAT WE FEEL IS
NECESSARY TO PROVIDE THAT
OVERSIGHT FUNCTION.
I ALSO THINK WE WILL CONTINUE TO
HAVE THE OPPORTUNITY IN THOSE
MEETINGS AS WELL AS IN THE
DISCUSSIONS IN THE QUESTIONS
THAT WE ASK INCLUDING WHAT WE
ASKED FOR TODAY AS RECOMMENDED
BY.
THE EARLY TRAIN OPERATOR TO
PROVIDE. TO ALSO ASK FOR
INDEPENDENT ASSESSMENT OF THE
QUALITY OF THE RESULTS THAT ARE
BEING DONE SO WE ARE ASKING FOR
A FINANCIAL ANALYSIS FOR THE
BUSINESS PLAN BOTH WITH THE
EARLY TRAIN OPERATOR WHICH IS A
WORLD CLASS.
BEST IN CLASS TRAIN OPERATOR
FROM GERMANY ISSUE NO TORCH UPON
AS WELL AS KPMG TO MAKE SURE
THAT WE'RE GETTING AS BEST WE
CAN.
INDEPENDENT ASSESSMENTS ON THE
QUALITY OF THE WORK THAT'S BEING
DONE IN A REVIEW OF ALL OF THOSE
THAT'S NOT TO SAY WHAT THE BOARD
SHOULD BE DOING IS PROVIDING
MANAGEMENT THAT'S MANAGEMENT'S
ROLE.
BUT OUR JOB IS TO BE GOOD
GOVERNMENT.
AND PROVIDE THAT OVERSIGHT IS AN
INDEPENDENT BODY TO DO THAT AS
WELL AS REPORT BACK TO THE
PUBLIC AND AS APPROPRIATE TO THE
LEGISLATURE IN OUR ONGOING
UPDATES AROUND ARE WE PROVIDING
THE SORT OF SORT OF FIDUCIARY
RESPONSIBILITY THAT WE NEED --
TO SO THIS PROJECT UPDATE IS
BASICALLY AN UPDATED BUSINESS
PLAN -- DID THE PEER REVIEW COME
CLOSE COMMITTEE OR THE BOARD
HAVE A CHANCE TO WEIGH IN ON THE
DRAFT.
THE ON THIS.
THE BOARD GOT -- PREVIEWS OF ALL
OF THIS.
AND YOU CAN ASK THE THE PEER
REVIEW COMMITTEE WHEN THEY COME
UP ABOUT THEIR ENGAGEMENT WITH
THAT AND WHEN WE GET TO THE NEXT
UPDATE THE BUSINESS PLAN AND
TWENTY FIVE NEXT YEAR.
AT THAT WILL ABSOLUTELY BE PART
OF THE PROCESS EVERYONE WILL
HAVE A CHANCE.
TO HAVE THEIR INPUT INTO WHAT
QUESTIONS NEED TO BE ASKED TO
MAKE SURE THAT THEY GET A CHANCE
TO ASK THAT IN REVIEW BEFORE
BECOMES FORWARD TO THE PUBLIC.
SO I JUST HAVE ONE MORE QUESTION.
WITH THIS PANEL SO BACK WHEN WE
APPROVE THE APPROPRIATION OF THE
CAP AND TRADE FUNDS 25%. ONE OF
THE SELLING POINTS WAS THE TO
PROVIDE CERTAINTY. TO THE
PRIVATE SECTOR. FOR INVESTMENT
IN THIS AS A PART TRYING TO
CREATE A PARTNERSHIP. THIRTY
SEVEN COMPANIES WERE APPROACHED
THIRTY SEVEN COMPANIES.
DECLINED.
TO INVEST IN THIS PROJECT.
ARE WE CONTINUING THAT PROCESS
GOING FORWARD AND WITH OUR
EXCUSE OR OF COURSE PEAS OR
ANYTHING GOING FORWARD NOW THAT
WE HAVE.
HE A NEW VISION.
THIS BUILDING BLOCK.
GOING FORWARD WITH ANY KIND OF I
KNOW WE'VE HAD FOR COUNTRY SHOW
INTEREST.
OF BUT THIS LEGISLATURE WAS SOLD
ON THE APPROPRIATION THAT WILL
PROVIDE CERTAINTY. FOR A PRIVATE
INVESTMENT AND THAT HAS NOT
OCCURRED -- SO WHAT EFFORTS ARE
BEING DONE [inaudible]
TO PROVIDE THAT -- INITIAL.
WHAT WE TOLD THE LEGISLATURE
WHAT WE'RE GONNA GET FOR THIS?
FOR SURE SO FIRST OF ALL THE CAP
AND TRADE FUNDS ARE REALLY
IMPORTANT PART OF THE FUNDING
STREAM AND THAT'S ESSENTIAL TO
DELIVERING IT.
I'M AS WE MENTIONED EARLIER THEY
HAVE BEEN COMING AND LARGER THAN
WHAT WE ARE PLANNING ON AND IN
THE BUDGET GOING FORWARD WHICH
IS.
IS HELPFUL -- WE DO AS I SAID
BELIEVE THAT THIS PROJECT TO GET
TO ITS FULL COMPLETION WILL
REQUIRE.
A PRIVATE SECTOR INVESTMENT
ALONG SIDE THIS AND WE ARE
GETTING.
INCREASING INTEREST FROM PRIVATE
INVESTORS TO SAY THEY WANT TO
HAVE CONVERSATIONS WERE NOT AT
THE POINT TO BE ABLE TO MAKE
THAT REALLY CONCRETE ABOUT WHAT
THAT MIGHT LOOK LIKE.
BUT CERTAINLY FROM THE BOARD'S
PERSPECTIVE AND FROM MY
DIRECTION -- WE ARE GOING TO BE
EXPLORING THOSE IN AT THE RIGHT.
ACE AND TIME WHEN THERE IS A
HIGH QUALITY INVESTMENT TO BE
MADE THAT I WITH.
WITH A STRAIGHT FACE COULD SAY
IF I WERE ON THE OTHER SIDE OF
THAT TRANSACTION I WOULD FEEL
COMFORTABLE THAT THAT'S A GOOD
INVESTMENT SO I THINK WE HAVE TO
BE ABLE TO DELIVER.
CLEAR LOWER THE REST TO MAKE
THAT HAPPEN BUT IT'S AN
IMPORTANT PART OF THE SUCCESS
GOING FORWARD.
I APPRECIATE THAT AND SO I'M
HOLDING IN MY HAND.
A GRAPH ABOUT THE BUSINESS PLANS
FROM TWO THOUSAND EIGHT TO THE
PRESENT [inaudible]
AND SO.
EACH ONE IS DRAMATICALLY
DIFFERENT EACH TIME IT'S BEEN
ISSUED.
HOW WERE WE ARE SURE THAT THIS
PLAN MOVING FORWARD?
IS NOT GONNA BE ANY DIFFERENT
THAN THE SIX THAT ARE HERE --
WHO'S GONNA BE RESPONSIBLE IF IT
DOESN'T HAPPEN [inaudible]
AB.
I CAN'T SPEAK TO THE PRIOR ONES
BECAUSE I WASN'T INVOLVED WITH
THEM I DON'T KNOW THE PAGER YOUR
SHOWN.
BUT YOU KNOW THE RESPONSIBILITY
FOR DELIVERY ON THIS PROJECT
LIES WITHTHE EXECUTIVE TEAM.
AND WITH THE BORDERS OVERSEEING
AND ALTERNATELY THE VOTERS AND
THE LEGISLATURE WILL HOLD US
ACCOUNTABLE TO THAT.
SO WE NEED TO DELIVER.
I WANTED TO ENSURE THAT THE PLAN
REPRESENTS REALISTIC.
AND IT'S TRANSPARENT AND SO
THAT'S WHAT WE'RE COMMITTED TO
DEAL WILL BE BACK WITH THAT IN
THE TIME FRAME THAT WE COMMITTED
TO THE LEGISLATURE.
AND IF WE IF THE IT'S NOT
DELIVERED THAN THOSE OF US ARE
RESPONSIBLE FOR DESERVED TO BE
HELD ACCOUNT.
YOUR I'VE HAD SOME PRIVATE
DISCUSSIONS AND I APPRECIATE
YOUR CANDOR AND YOUR WILLINGNESS
TO TALK TO ME AND LISTEN.
TO OF MY CONCERNS OF AFTER
TOURING THE PROJECT A COUPLE
TIMES.
AND BEING IN THE CONSTRUCTION
INDUSTRY FOR THIRTY SEVEN YEARS.
OF I REALLY FIRMLY BELIEVE.
THEY'RE ALL EFFORTS NEED TO BE
MADE. TO CREATE A PARTNERSHIP
WITH THE LEGISLATURE -- THAT
HASN'T HAPPENED.
WE'VE HAD A HAND IN OUR CHEST WE
KNOW WE'RE DOING.
JUST GIVE US MONEY -- SO I LOOK
FORWARD TO THAT.
I'M A PROPONENT I UNDERSTAND THE
THE IMPACT OF THIS PROJECT WILL
CREATE IN CALIFORNIA I TOWARD
SPAIN'S HIGH SPEED RAIL.
SAW THE DRAMATIC IMPROVEMENT OF
THEIR GDP BECAUSE OF THIS --
UNDERSTAND THAT YOU KNOW THIS
WAS ABOUT A CONCEPT IN NINETEEN
NINETY TWO CHINA THE SAME TIME
CHINA HAS SIXTEEN THOUSAND MILES
OF HIGH SPEED RAIL NOW -- HOW
MUCH WE HAVE?
JUST SAYING SO [inaudible]
AGAIN.
I I I I NEED TO SEE EFFORTS ON
COST SAVINGS TO EVERY TIME I SEE
A BUSINESS PLAN COME OUT.
THE THE COST GETS MORE MORE MORE
I THINK DESIGN THE DESIGN
ELEMENT HAS TO CHANGE AND
UNDERSTAND THAT WE NEED TO DO.
MORE WITH LESS.
GOING FORWARD IS JUST IT'S
IMPERATIVE.
AND SO I LOOK FOR TO HEAR YOUR
SUCCESS I THINK TO THE RIGHT GUY
TO TO MOVE THIS FORWARD WITH JOE.
I THINK THIS TEAM IS A AND BRIAN
AND THE OTHER BRANDS.
I THINK WE'RE GONNA BE ABLE.
TO GET THE BALL ROLLING BUT MY
EXPECTATION IS THAT.
YOU KNOW PAST.
PERFORMANCES BEEN DISMAL.
AND MY EXPECTATION IS.
I'M PUTTING THIS ON MY CALENDAR
WHAT WAS TOLD TO HAPPEN TO ME.
IN THIS IN THIS.
SEGMENT HERE.
AND WILL HAVE A DISCUSSION WHEN
WHEN WE GO FORWARD BUT I LOOK
FOR TO POSITIVE UPDATES.
TO SO THANK YOU VERY MUCH FOR
YOUR YOUR PARTICIPATION TODAY
AND WE LOOK [inaudible]
FOR TO SUCCESS.
PANEL NUMBER.
TWO HELLO CHRISTINE HOW THE
FIRST PRINCIPLE FISCAL POLICY
YET ANALYSIS -- WITH THE
LEGISLATIVE AND ANALYSIS OFFICE
ELLIE OKAY AND LEWIS'S THOMPSON
THE CHAIR OF THE HIGH SPEED RAIL
PEER REVIEW GROUP -- I RELY ON
HEALTH ONLY.
HELLO ONCE YOU GO HEAD START.
THANK YOU SO MUCH CHAIR -- GOOD
AFTERNOON MY NAME IS TELLING
CRISTINA THE LEGISLATIVE
ANALYST'S OFFICE I THE SURGEONS
ARE PASSING OUT OF HAND THAT
WHICH YOU SHOULD ALSO HAVE IN
YOUR PACKETS AS WELL -- THAT
ACCOMPANIES MY REMARKS TODAY IT
PROVIDES A BRIEF BACKGROUND ON
THE PROJECT IT SUMMARIZES THE
PROJECT AT THE REPORT AND IT
ALSO IDENTIFIES SOME ISSUES FOR
LEGISLATIVE CONSIDERATION.
HI SO GIVEN THE COMMITTEES
EXTENSIVE KNOWLEDGE ON THIS
ISSUE AND ALSO -- IN THE
INTEREST OF TIME I'M GOING TO
SKIP AHEAD -- TO PAGE SEVEN
WHERE -- WE QUICKLY HIGHLIGHTING
THE MAJOR ISSUE MAJOR FEATURES
AT THE TWO THOUSAND NINETEEN
PROJECT UPDATE REPORT I'LL GO
PRETTY QUICKLY BECAUSE I THINK
MANY OF THESE WERE TOUCHED ON BY
PREVIOUS SPEAKERS BUT JUST
WANTED TO HIGHLIGHT A FEW THINGS --
SO THE FIRST THING AS WAS
MENTIONED EXTENSIVELY IS THAT
THIS PROJECT UPDATE REPORT SORT
OF REFOCUSES THE PROJECTS ON
MERCED TO BAKERSFIELD -- AND
ANTICIPATES OF LAUNCHING EARLY
INTERIM SERVICES ON THAT SEGMENT.
HI THIS IS REALLY DRIVEN BY A
COUPLE OF FACTORS FIRST IS THE
ANALYSIS DONE BY THE EARLY TRAIN
OPERATOR WE HEARD A LITTLE BIT
ABOUT THAT -- SO THE EARLY TRAIN
OPERATOR WAS -- WAS TASKED BY
THE AUTHORITY WITH FOCUSING ON
REALLY TWO DIFFERENT SEGMENTS
LOOKING AT THE SAN FRANCISCO TO
GILROY SEGMENT AND WERE SAID TO
BAKERSFIELD -- THE EARLY TRAIN
OPERATOR MADE A VARIETY OF KEY
ASSUMPTIONS AND ITS ANALYSIS FOR
EXAMPLE IT MADE SOME ASSUMPTIONS
ABOUT OTHER CAPITAL PROJECTS
OTHER TRANSPORTATION CAPITAL
PROJECTS OCCURRING ALSO -- IT
MADE SOME ASSUMPTIONS ABOUT
SEAMLESS INTEGRATION WITH OTHER
TRANSPORTATION PROVIDERS ON BOTH
REAL PROVIDERS AS WELL AS BY
SERVICES -- AND IT ALSO ASSUMES
THE TERMINATION OF THE EXISTING --
COMPETING SAN JOAQUIN SERVICE
OUT THAT MERCED.
SO GIVEN THESE ASSUMPTIONS THE
EARLY TRAIN OPERATOR CONCLUDED
THAT THE MERCED TO BAKERSFIELD
LINE WOULD BE THE PREFERRED
OPTION OVER THE SAN FRANCISCO TO
GILROY SEGMENT.
US A SECOND -- BASICALLY THIS --
DECISION TO FOCUS ON WERE SAID
TO BAKERSFIELD WAS INFORMED BY
THE REVISED COST ESTIMATES SO
THE TWO THOUSAND AND NINETEEN
PROJECT UPDATE REPORT --
REFLECTS AN INCREASE OF ONE
POINT EIGHT BILLION DOLLARS IN
THE COST OF THE INITIAL
CONSTRUCTION SEGMENT TO A TOTAL
OF TWELVE POINT FOUR BILLION
DOLLARS.
AS YOU HEARD FROM THE AUTHORITY
THIS IS DRIVEN PRIMARILY BY AN
INCREASE IN THERE CAN ESTIMATES
FOR CONTINGENCIES.
SO ONE THING I JUST WANTED TO
MAKE URE WAS CLEARING A THERE'S
SOME DISCUSSION ON THE P. TEN
AND P. -- SEVENTY BUT I JUST
WANTED TO TO ALSO HIGHLIGHT THAT
AGAIN BECAUSE I THINK IT'S A
REALLY IMPORTANT POINT.
THAT'S WHAT THE AUTHORITY SAYS
IS THE MAIN DRIVER BEHIND THIS
COST INCREASE SO ESSENTIALLY
PREVIOUSLY WHAT THEY WERE DOING
IS SETTING THEIR BASELINE COST
ESTIMATE.
SUCH THAT THERE IS A 90% CHANCE
THAT BASED ON THEIR MODELING THE
PROJECT WOULD GO OVER THAT BASED
ON COST ESTIMATE.
US THAT WAS A PRETTY AGGRESSIVE.
APPROACH AND NOW THEY'RE TAKING
WHAT THEY CONSIDER TO BE A MORE
OF AN INDUSTRY STANDARD APPROACH
FOR THAT MERCED TO BAKERSFIELD
MINE.
AND THEY'RE TAKING WHAT THEY
WHAT THEY CALL A P. SEVENTY
ESTIMATES THEY'RE SETTING THE
BASELINE COST ESTIMATES SUCH
THAT THERE IS A 30% CHANCE THAT
THEY'LL GO OVER BUDGET RATHER
THAN A 90% CHANCE -- SO THEY'RE
DOING THAT WITH THAT MERCED TO
BAKERSFIELD SEGMENT.
pREVISE THE COST ESTIMATES FOR
THE REMAINDER OF THE PROJECT
THESE BEYOND MERCED TO
BAKERSFIELD.
THE PROJECT UPDATE REPORT ALSO
IDENTIFIES FUNDING FROM A
VARIETY OF SURF SOURCES AS WAS
AS WAS MENTIONED INCLUDING
PROPOSITION ONE A BOND FUNDS
FEDERAL FUNDS AND CAP AND TRADE
REVENUE THROUGH.
TWENTY THIRTY IN TOTAL THE
AUTHORITY ESTIMATES THAT IT WILL
HAVE A TOTAL OF TWENTY POINT.
FIVE BETWEEN TWENTY POINT FIVE
IN TWENTY THREE POINT FIVE
BILLION DOLLARS FROM THOSE
SOURCES AT THREE TWENTY THIRTY
THE AUTHORITY ALSO ESTIMATES
THAT THE COST OF BOTH
CONSTRUCTING THAT WERE SAID TO
BASE BAKERSFIELD SEGMENT AS WELL
AS THE OTHER COMMITMENTS THAT
THE AUTHORITY HAS -- HAS MADE
INCLUDING A THE ENVIRONMENTAL
WORK FOR ALL OF PHASE ONE AND
THOSE BACK IN PROJECTS THAT WE
HEARD ABOUT.
ON THAT THAT WOULD TOTAL ABOUT
TWENTY POINT FOUR BILLION SO
THAT THEY'LL HAVE -- SUFFICIENT
FUNDING TO COMPLETE THAT.
IF YOU TURN TO PAGE NINE THERE'S
A TABLE THAT THAT SUMMARIZES
BOTH THE FUNDING THAT THEY
BELIEVE IS AVAILABLE AS WELL AS
THE COSTS THAT ARE ESTIMATED AS
OF THIS POINTS. FOR THAT MERCED
TO BAKERSFIELD MINE.
US SO WE ALSO NOTE THAT THE
PROJECT AT THE REPORT ASSUMES
THE AVAILABILITY FOR OF
ADDITIONAL FUNDING FOR THE
COMPLETION OF PHASE ONE BUT
DOESN'T IDENTIFY SPECIFIC
FUNDING.
IF YOU TURN TO PAGE TEN WE
HIGHLIGHT SOME ISSUES FOR
LEGISLATIVE CONSIDERATION AND
THAT REALLY FLOW FROM THOSE
MAJOR FEATURES OF THE PROJECT
AFTER REPORT THAT I HIGHLIGHTED
PREVIOUSLY.
I SO FIRST WE NOTE THAT THE
SUCCESS OF THAT INTERIM SERVICE
IS REALLY GONNA DEPEND VERY
HEAVILY ON A VARIETY OF FACTORS
SO AS I MENTIONED THE EARLY
TRAIN OPERATORS ASSUMPTIONS.
OR ANALYSIS WAS REALLY PROMISED
ONLINE A VARIETY OF THINGS
HAPPENING IN TERMS OF CAPITAL
PROJECTS IN TERMS OF OTHER
OPERATIONS.
I'M TO THE EXTENT THOSE THINGS
DON'T HAPPEN ARE THE RIDERSHIP
THE REVENUE ESTIMATES THAT ARE --
CURRENTLY EXPECTED MAY NOT
MATERIALIZE SO WE WANTED TO
HIGHLIGHT THAT.
SECOND WE WANTED TO NOTE THAT
THE ACTUAL PROJECT COSTS COULD
BE HIGHER THAN ARE CURRENTLY
ANTICIPATED.
PART OF THAT IS AS WE KNOW THIS
IS A VERY LARGE PROJECT IT'S HAD
ITS HAD PASSED COST INCREASES --
IT WOULDN'T BE SURPRISING AT ALL
IF IT HAS FUTURE COST INCREASES
PART OF THIS IS JUST YOU KNOW.
THESE KIND OF PROJECTS DO YOU
FROM TIME TO TIME HOWEVER THERE
SOME SPECIFIC ASPECT OF THIS
PROJECT THAT I THINK -- RAISE
THE LIKELIHOOD OF POTENTIAL COST
INCREASES ONE IS SCHEDULING
SLIPS WHICH MAY WELL HAPPEN
PARTICULARLY GIVEN ALL THE
ISSUES WITH THE FEDERAL
GOVERNMENT THAT WERE
ENCOUNTERING -- AND THAT WOULD
NATURALLY PROBABLY HAVE RAISE
SOME COST PRESSURES SO THAT'S
ONE THING TO NOTE -- BUT ALSO
JUST THIS AS IF THAT THE SCALE
OF THIS PROJECT I AM FINALLY I
JUST WANTED TO KIND OF COME BACK
TO THAT P. SEVENTY P. TEN I KNOW
IT'S A LITTLE BIT -- TECHNICAL
OF AN ISSUE BUT AS I MENTIONED
IN THE EARLIER THEY REVISED
THEIR METHODOLOGY FOR THAT
MERCED TO BAKERSFIELD SEGMENT
BUT NOT FOR THE ENTIRE PROJECT.
SO THEY'RE STILL USING THAT P.
TEN APPROACH WHICH IS A MORE
AGGRESSIVE BUDGETING APPROACH
FOR THE REMAINDER OF THE PROJECT
AND SO THAT PROBABLY RAISES THE
LIKELIHOOD THAT THERE COULD BE.
ADDITIONAL COST INCREASES FOR
THE PROJECT.
THE THIRD ONE IS TO NOTE THAT
IT'S UNCLEAR IF THERE'S GONNA BE
SUFFICIENT FUNDING TO COMPLETE
MERCED TO BAKERSFIELD.
US SO AS WAS NOTED THE CURRENT
ESTIMATE IS THAT THERE WILL BE
SUFFICIENT FUNDING BUT AS WE
HEARD ALSO THERE'S UNCERTAINTY
ABOUT THE FEDERAL FUNDS THE
FEDERAL GOVERNMENT HAS -- HAS
TAKEN ACTION TO TRY TO RESCIND
THAT ROUGHLY ONE BILLION DOLLAR
PORTION THEY'VE ALSO THREATENS
THE OTHER TWO POINT FIVE BILLION
SO THERE'S SOME CHANCE THAT THE
STATE WILL LOSE SOME OR ALL OF
THOSE FEDERAL FUNDS.
ADDITIONALLY CAP AND TRADE IS
YOU KNOW BY ITS NATURE SOMEWHAT
UNCERTAIN SO IT'S UNCLEAR
WHETHER REVENUES WILL COME IN AS
PROJECTED FOR THAT FUND SOURCE.
AND OF COURSE IF COSTS INCREASE
FOR THE PROJECT THAT COULD ALSO
MAKE IT MORE DIFFICULT TO HIM TO
FULLY FUNDS WHAT -- IS IS
CURRENTLY ENVISIONED WITHIN THE
FUNDING AVAILABLE.
IF YOU TURN TO PAGE -- ELEVEN WE
ALSO AND ALSO HIGHLIGHT THAT
THERE'S NO FUNDING PLAN BEYOND
MERCED TO BAKERSFIELD.
SO REALLY THE BULK OF THE COST
OF THE PROJECT ARE BEYOND MERCED
TO BAKERSFIELD AS ARE THE SORT
OF MOST COMPLEX ENGINEERING
COMPONENTS OF THE PROJECT.
AT THIS TIME IT'S UNCLEAR HOW
THE STATE WOULD FUND THAT -- IT
SEEMS LIKELY THAT THE STATE
WOULD PROBABLY HAVE TO FIND MUCH
OF THAT FROM THE GENERAL FUND IF
IT'S TO COMPLETE THIS PRACTICE
PROJECT AT THIS POINT -- IN LESS
MOTHER FUNDING TO REALIZES --
FIFTH JUST WANTED TO ALSO
HIGHLIGHT THAT THE LEGISLATURE
HAS ADDITIONAL OPTIONS IN THIS
WAS MENTIONED BY PREVIOUS
SPEAKERS AS WELL BUT I THINK IT
REALLY BEARS REPEATING THIS IS
AN ARGUE OF IT REALLY -- GOOD
TIME TO LEGISLATURE TO STEP BACK
AND THINK ABOUT THE OPTIONS THAT
MIGHT WANT TO PERCEIVE GOING
FORWARD THE ADMINISTRATION'S
SIGNALING A LITTLE BIT OF A
CHANGE IN APPROACH WE HAVE THIS
BIG FUNDING GAP -- REALLY I
THINK IT'S A GOOD TIME TO TO
STEP BACK AND THINK ABOUT WHAT
OPTION SHOULD BE PURSUED.
I NEED TO NOTE THAT REALLY THE
MERCED TO BAKERSFIELD -- OPTION
IS NOT THE ONLY ONE ON THE TABLE
IT'S NOT THE ONLY ONE THAT'S
THAT'S OUT THERE THE LEGISLATURE
COULD THINK ABOUT DOING A
SMALLER SEGMENT OR LARGER
SEGMENT AND THAT.
THE LEGISLATURE COULD COMMIT TO
THE HIGH SPEED RAIL AND REALLY --
PURSUE THAT OR COULD LOOK AT
OTHER KINDS OF PURCHASE BOTH ON
AN INTERIM BASIS OR POTENTIALLY
ON A LONG TERM BASIS SO REALLY --
THEY'RE PROBABLY A VARIETY OF
OPTIONS THAT ARE THAT ARE OUT
THERE -- IF YOU TURN TO PAGE
TWELVE WE HIGHLIGHT SOME
QUESTIONS THAT THE LEGISLATURE
MAY WISH TO ASK AS ITS EXPLORING
THOSE DIFFERENT OPTIONS -- THE
FIRST IS COST SO THAT'S GOING TO
BE A CRITICAL PIECE OF ANY KIND
OF DECISION.
I THE INITIAL CONSTRUCTION
SEGMENTS THE TWELVE POINT FOUR
BILLION CURRENT ESTIMATE --
THOSE WERE SAD AND BAKERSFIELD
EXTENSIONS ARE CURRENTLY
ESTIMATED. TO ADD TWO POINT FIVE
BILLION OR ONE POINT FOUR
BILLION RESPECTIVELY -- SO THAT
THOSE ARE GONNA BE TRADE -- FOR
THOSE COSTS -- OR EVEN EXTENDING
IT FURTHER FOR EXAMPLE.
I NEXT TRANSPORTATION BENEFITS I
THINK A REALLY IMPORTANT THING
FOR THE LEGISLATURE TO CONSIDER
IS WHAT ARE THE TRANSPORTATION
BENEFITS PROVIDED BY EACH
DIFFERENT OPTION AND HOW DO THEY
COMPARE -- ESPECIALLY.
YOU KNOW CAN ONSIDERING OTHER
ALTERNATIVE USES OF THE FUNDS
AND I KNOW THAT SOME OF THE
QUESTIONS PREVIOUSLY WERE
GETTING AT THAT.
ON FOR EXAMPLE IN TERMS OF
RIDERSHIP ON HOW MUCH DOES YOU
TO DO THESE OPTIONS ARE PROVIDE
IN TERMS OF RIDERSHIP BENEFITS
VERSUS OTHER OPTIONS PER PERHAPS
IN SOME OF THE MORE POPULATED
AREAS OF THE STATE.
I THE NEXT ISSUE TO CONSIDER IS
THE EFFECTS ON LOCAL COMMUNITIES
AND THOSE BOTH ARE THINGS LIKE
CONSTRUCTION IMPACTS BECAUSE IT
CAN BE VERY DESTRUCTIVE TO
COMMUNITIES TO HAVE THIS KIND OF
COULD -- CONSTRUCTION BUT ALSO
THE ECONOMIC BENEFITS OF HAVING
THESE JOBS IN AND WE HEARD A
LITTLE BIT ABOUT THAT AS WELL.
AND THEN FINALLY MAJOR RISKS AND
UNCERTAINTIES ARE VERY CRITICAL
HERE WE'VE ALSO I KNOW THE
COMMITTEE IS VERY FAMILIAR WITH
MANY OF THESE RISKS AND
UNCERTAINTIES BUT CERTAINLY
THERE'S CONSTRUCTION COST
INCREASED RISK.
BUT IS ALSO RISK ASSOCIATED WITH
OUR COMPLIANCE WITH PROPOSITION
ONE A AS WELL AS THE FEDERAL
REQUIREMENT SO THOSE ARE ALL THE
KINDS OF THINGS THAT.
ARE THE LEGISLATURE'S GONNA HAVE
TO KEEP IN MIND.
WE THINK AS IT'S REVIEWING
POSSIBLE OPTIONS. FOR MOVING
FORWARD WITH THE PROJECT.
THANK YOU FOR THAT.
WHO?
GOT IT MISTER CHAIRMAN FIRST I
THANK YOU FOR THE OPPORTUNITY TO
BE HERE TODAY -- I'VE HAD THE
PLEASURE WORKING WITH YOU OVER A
IN A NUMBER OF YEARS NOW AND AND
I HOPE IT'S BEEN USEFUL.
I ALSO WANT TO SAY THAT IT'S
BEEN A PLEASURE WORKING WITH
YOUR STAFF THEY HAVE DONE
EXTREMELY PROFESSIONAL WORK
PREPARING FOR THESE HEARINGS --
AND I CAN SEE THE VALUE OF THESE
PROCEEDINGS OVER A PERIOD OF
TIME I WOULD ALSO SAY THAT I
HATE TESTIFYING AFTER THE LA --
BECAUSE I NOT SURE WHAT I HAVE
TO ADD THAT I MY TENDENCY IS TO
SAY WHAT SHE SAID AND THEN DO
YOU HAVE ANY QUESTIONS BUT I'M
NOT GOING TO DO THAT AT LEAST I
WILL SUMMARIZE THIS.
THERE HAVE SO FAR BEEN SEVEN
BUSINESS PLANS BEGINNING IN TWO
THOUSAND AND ENDING THUS FAR IN
TWENTY EIGHTEEN BUT WHAT WE'RE
LOOKING AT TODAY IS ALMOST A
REVISED TWENTY EIGHTEEN BUSINESS
PLAN.
OR TWENTY NINETEEN OVER THIS
TIME THE PROJECT HAS EVOLVED
FROM A PROJECT THAT WAS GONNA
SERVE SAN FRANCISCO LOS ANGELES
SAN DIEGO IN SACRAMENTO WITH
HIGH SPEED RAIL.
THE ONE WHICH NOW ONLY PROPOSES
TO COMPLETE THE CENTRAL VALLEY
SECTION ADDING -- MERCED AND
BAKER SEAL.
THIS EVOLUTION THAT WE HAVE
WATCHED HAS BEEN DRIVEN
INEXORABLY BY ADJUSTMENTS NEEDED
TO RESPOND TO THREE DIFFERENT
FORCES.
ONE CONTINUALLY INCREASING
CONSTRUCTION COSTS AS THEY'VE
INQUIRED ACTUAL EXPERIENCE.
SECOND REDUCTIONS IN THE
ESTIMATES OF MONEY THAT THEY HAD --
CREDIBLY COULD HAVE.
AND THIS IS WITH THE PROJECT AND
HAS BEEN UNDERFUNDED SINCE THE
BEGINNING.
AND FINALLY THE IMPACT OF THE
FRA GRANTS OF THAT SPECIFIED
THAT THE WORK WOULD BEGIN IN THE
CENTRAL VALLEY.
IN VERY BROAD TERMS TO THE
PROJECT UPDATE REPORT PER FOR OF
RESPONDS BY SAYING THAT THE
GOVERNOR.
OF IS COMMITTED TO AN OVERALL
VISION OF COMPLETING THIS SYSTEM
BUT HE WANTS TO SEE THE SNOW
CENTRAL VALLEY SECTION.
COMPLETED FIRST IN ORDER TO
DEVELOP IMMEDIATE BENEFITS TO
DEMONSTRATE FEASIBILITY.
AND TO DEMONSTRATE MANAGEMENT
CONFIDENCE I THINK THIS WOULD BE
CRITICAL IF THEY CAN DO THAT.
THEY ARGUE THAT THE UTILITY A
CENTRAL VALLEY SECTION CAN BE
SIGNIFICANTLY ENHANCED BY ADDING
THE LINKS TO MERCED AND THE
BAKERS FEEL.
THEY STATE THAT THE AUTHORITY
WILL BE ABLE TO COMPLETE ALL THE
ENVIRONMENTAL WORK FOR PHASE ONE
AS IT'S BEEN PROMISED TO THE F.
R. A..
IN NETWORK WILL CONTRIBUTE TO A
BETTER ESTIMATE OF THE COST OF
THINGS LIKE THE JAYCO TUNNELING
FOR EXAMPLE.
THE HIGH SPEED RAIL EXTENSION TO
MERCED -- IN CONNECTION WITH SAN
JOAQUIN WILL BE GOOD FOR ALL OF
THE SERVICES OF THE PROJECT AS
WE'VE DISCUSSED EARLIER THAT IT
WOULD INCREASE THE DEMAND FOR
ALL.
THREE IN RESULT IN A TOTAL
REDUCTION TO THE STATE OF ABOUT
TWENTY MILLION DOLLARS ANNUALLY
IN THE SUBSIDY FOR ALL THREE
SERVICES -- IT IS NOT CLEAR WITH
THE SPEED RAIL SERVICE PER SE
WILL OPERATE AT A DEFICIT BUT
THEY ARGUED THAT THE THE SOME OF
THE THREE WILL LOSE THIRTY
MINUTE OF TWENTY MILLION LESS.
A CRITICAL ASSERTION IS THAT THE
CENTRAL VALLEY SECTION INCLUDING
THE ADDED LINKS FOR SEVEN
BAKERSFIELD CAN BE FINANCED
WITHIN EXISTING RESOURCES.
I WANT TO EMPHASIZE TO YOU THAT
THIS PROPOSAL IS BASED ON THE
NUMBER OF US ASSUMPTIONS
DISCUSSED IN THE PROJECT -- PLAY
A REPORT THAT WE HAVE GOT TO BE.
OUT ON THE TABLE.
ONE IS IT THE STATE WILL RETAIN
THE TWO AND A HALF BILLION ERA
MONEY AND THE NINE HUNDRED
TWENTY NINE MILLION.
IN THE FY TWO OH TEN
APPROPRIATION WHICH IF ALREADY
HAS NOW FORMALLY DE OBLIGATED.
THE SECOND IS IT THE RECEIPTS
FROM CAP AND TRADE NEED TO
AVERAGE AT LEAST FIVE HUNDRED
MILLION DOLLARS ANNUALLY.
EVEN THEN IF THE RECEIPTS ONLY
AVERAGE FIVE HUNDRED MILLION
THERE WOULD BE A TEMPORARY GAP
OF ABOUT ONE POINT FOUR BILLION
TO GET TO THE END OF THE PROJECT.
RECEIPTS WOULD HAVE TO BE
CONSIDERABLY HIGHER A TO AVOID
THE NEED FOR BRIDGE FINANCING OR
TO TRY TO MAKE UP FOR THE LOSS
OF THE NINE HUNDRED TWENTY NINE
MILLION IF THAT IS.
IS FINAL.
THE PROPOSAL TO GENERATE
OPERATING REVENUES FROM THE SALE
OF CARBON CREDITS IS NEW AND
NOVEL I'VE NOT SEEN THIS BEFORE
IN EFFECT IT PUTS THE HIGH SPEED
RAIL.
AUTHORITY IN THE IN THE POSITION
OF GETTING 25% OF THE RECEIPTS
FROM THE SALE OF THE CREDITS AND
AT THE SAME TIME HAVING
OPERATING AGENCY THAT SELLING
THE CREDITS.
I DON'T KNOW THAT THIS IS WRONG
OR RIGHT BUT I'VE NOT SEEN THIS
BEFORE.
NEXT THE CONSTRUCTION COST HAVE
TO FALL WITHIN CURRENT ESTIMATES
WIN ONE THERE IS NO EXPERIENCE
WITH ELECTRIFICATION SIGNALING
TRACKWORK ROLLING STOCK AND
SHOPS.
INTO THE ESTIMATES THE NUMBER
SAID THE MADERA AND SHELLFISH
AFTER TO BAKERSFIELD LINKS
AROUND FOUR BILLION DOLLARS.
OR AT A VERY EARLY STAGE OF
DESIGN.
FINALLY THE PROPOSED LANGUAGE
WITH ACE IN SAN JOAQUIN SERVICES
CAN BE ESTABLISH AN OPERATOR
THIS PLAN WHEN IN FACT THESE
PLANS ARE OR FOR PRELIMINARY AT
BEST.
AND IT ALSO ASSUMES THAT THE
IDEA OF HAVING ANOTHER AGENCY
ASSUME THE OPERATING OFFICES IN
ORDER TO AVOID PROPOSITION ONE A
LITIGATION ASSUMES THAT WILL
PASS MUSTER. FOR THESE REASONS
WE CONCLUDE THAT THE PROPOSAL IS
SUBJECT TO A WIDE RANGE OF
UNCERTAINTY WITH AN ADVERSE
OUTCOME AT ALMOST ANY POINT
CAUSING FURTHER PROBLEMS FOR THE
PROJECT.
INCLUDING LEGAL DELAYS AND
POTENTIALLY A NEED FOR FURTHER
FINANCE.
AS DISCUSSED IN OUR EARLIER
LETTERS IN TESTIMONY EARLIER
THIS YEAR THE LEGISLATURE DOES
HAVE OPTIONS I DON'T WANNA GO
THROUGH THESE IN GREAT DETAIL WE
ALREADY HAVE BUT YOU COULD JUST
STOP.
PAY THE CLAIMS AND WALK AWAY.
I DON'T THINK THIS ANYONE THINKS
THIS IS A CREDIBLE OPTION
BECAUSE YOU'D LOSE ALL THE VALUE
OF THIS CREATED.
YOU COULD DO THE MINIMUM TO KEEP
THEIR OWN MONEY COMPLETE THE
EXISTING CONTRACTS USE IT FOR
LOWER SPEED OPERATION AND THEN
STOP.
MAKING A SHORT CONNECTION WITH
THE SAN JOAQUIN ROUTE AT MADERA
AND IT CHAPTER WOULD PERMIT USE
OF THE HIGH SPEED RAIL ALIGNMENT
FOR SLOWER TRAINS.
IT WOULD SAVE THE BEFORE BILLION
DOLLARS EXTRA TO MAKE THE HIGH
SPEED CONNECTIONS.
AND IT WOULD SAVE THE COST OF
ELECTRIFICATION WHICH IS AROUND
A BILLION DOLLARS AND THE COST
OF HIGH SPEED ROLLING STOCK
WHICH IS AROUND SEVEN HUNDRED
MILLION DOLLARS.
THIS WOULD BE A DISAPPOINTING
CHOICE IN WOULD CLEARLY NOT MAKE
THE BEST USE OF THE WORKTHAT'S
BEEN DONE SO FAR BUT IT IS A
VALID CHOICE.
YOU COULD ADOPT THE THE PROPOSAL
AS IN THE PROJECT UPDATE REPORT
MAKING THE ADDED CONNECTIONS
MERCED IN BAKERSFIELD USE HIGH
SPEED ROLLING STOCK AND RE ROUTE
THIS AND LIKE TEAMS.
IF THE LEGISLATURE UPS TO
APPROVE THIS HOWEVER IT SHOULD
REQUIRE A MORE DETAILED AND
AGREED OPERATING PLAN FOR THE
SYSTEM INCLUDING THE
INTERACTIONS WITH ACE IN THE SAN
JOAQUIN'S.
IN ADDITION SINCE DECISIONS TO
GO BEYOND THE CENTRAL VALLEY
WILL BE DEFERRED
THE LEGISLATURE MAY WANT TO
REQUIRE THE AUTHORITY TO
UNDERTAKE A THOROUGH VALUE
ENGINEERING ANALYSIS OF THE OF
THIRTIES MAJOR COST DRIVERS FOR
THE FUTURE.
ESPECIALLY THE TUNNELING
CONTACTS WHICH OF THE LARGEST
SINGLE UNCERTAINTY ABOUT THE
REMAINING CONSTRUCTION AND THE
PROJECT OR YOU COULD REMIT READ
JUST RECOMMIT TO FACE.
ONE THIS WOULD REASSURE BOTH THE
SOUTHERN CALIFORNIANS IN
NORTHERN CALIFORNIA JUST AT THE
PROJECT WILL REACH THEM
EVENTUALLY.
BUT IT WOULD HAVE TO BE
ACCOMPANIED BY A CREDIBLE
FINANCING SOURCE.
IN ASSESSING THESE OPTIONS THERE
APPEARED TO BE SEVERAL STEPS
THAT REALLY OUGHT TO BE DONE ONE
IS TO CLARIFY THE ACTUAL
COMMITMENT TO THE ERROR TO GET
THE ERROR OF MONEY.
IT IS MY UNDERSTANDING THAT THIS
ONLY INVOLVES CREATING A
RAILROAD TRACK BASICALLY FROM
MADERA IT TO SCHEFTER THAT'S ALL.
DOESN'T REQUIRE ELECTRIFICATION
DOESN'T REQUIRE SIGNALING A FOR
HIGH SPEED IT DOES REQUIRE
ROLLING STOCK ONLY BUILDING A
RAILROAD LINE FROM ONE TO THE
OTHER.
BUT IT'S DANGEROUS TO RELY ON MY
LEGAL OPINIONS THIS SHOULD BE --
VERIFIED.
SECOND YOU SHOULD OBTAIN FROM
THE AUTHORITY THEIR OPINION AS
TO THE IMPLICATIONS OF PROP.
ONE EIGHTY VIS A VIS ANY OF
THESE DECISIONS.
AS DISCUSSED THE INTERIM
OPERATION OF THE CENTRAL VALLEY
LINE WILL INVOLVE OPERATING
DEFICITS IN THIS MIGHT CLASH
WITH THE REQUIREMENT OR PROP UP
WHEN A THE PROHIBITS AN
OPERATING SUBSIDY.
THAT'S THIS GOOD BEE.
SUBSIDY COULD BE CARRIED BY
ANOTHER AGENCY.
IN ADDITION A DECISION TO LIMIT
THE LINE TO CONVENTIONAL SPEED
FOR MADERA DISH AFTER IN THE
INTERIM.
MIGHT CLASH WITH THE SPEED AND
TRIP TIME REQUIREMENTS OF
PROPOSITION ONE A SO WE NEED TO
KNOW WHAT'S WHAT'S THE STORY
HERE.
I WAS I WAS VERY HAPPY TO HEAR
MISTER MADONNA AND DANCES SAY
EARLIER.
THAT I THINK YOU NEED A MUCH
MORE COMPLETE REPORT ON THE
INTERCONNECTIONS WITH ACE IN THE
SAN JOAQUIN SERVICE HOUSES GOING
TO WORK WHO'S GONNA DO WHAT.
WHAT KIND WITH THE CUP WITH THE
COST WITH THE DEMANDS WOOD OF
THE OVERALL PLAN SO IT SHOULD BE
MADE FOR THIS?
AND I THINK THAT THE STATE AND
ITS STATE REAL PLAN SHOULD ALSO
BE COMMITTED INVOLVED AND
COMMITTED IN THE ANALYSIS OF THE
RESULTS OF THAT YOU HAVE A
BETTER IDEA.
WHAT WILL REALLY HAPPEN IF THE
LINE IS OPERATED THE WAY IT IS
PROPOSED?
ALSO WE NEED TO ASSESS THE
IMPACT OF THE F. FOR A POSITION
OF SIMPLY WALKING AWAY FROM THE
ENVIRONMENTAL WORK AS A FORMER.
FRA EMPLOYEE I'VE NEVER SEEN
ANYTHING LIKE THIS I DON'T KNOW.
HOW THIS CAN CONTINUE BUT I
CERTAINLY DON'T KNOW WHAT THE
WORK AROUND PLAN IS?
IN CASE IT REMAINS THIS WAY AND
YET I THINK WE NEED TO KNOW THAT
OR THINK ABOUT THAT BECAUSE
THERE IS A POSSIBILITY THAT IT
COULD STOP EVERYTHING.
AND I DON'T KNOW HOW TO DEAL
WITH.
OVERALL THE PROJECT UPDATE
REPORT IS CERTAINLY A STEP BUT
IT'S ONLY A STEP AND CLARIFYING
WHAT THE AUTHORITY MAY BE ABLE
TO ACCOMPLISH.
A LOT MORE WORK NEEDS TO BE DONE
TO RESOLVE UNCERTAINTIES IN
MENTIONED INCLUDING THE
OPERATING PLAN BUT ALSO THE
UNCERTAINTIES AROUND A LOT OF
THE PROJECTED COSTS.
ALL LEGISLATIVE OVERSIGHT AND
GUIDANCE IS REALLY NEEDED TO
TAKE SOME OF THE FOG OUT OF
THEIR FUTURE.
IT IS REALLY HARD TO MANAGER
PROJECT WHEN YOUR FUTURE IS
UNCERTAIN AND ANYTHING THE
LEGISLATURE CAN DO.
HOWEVER IT MOVES TO CLARIFY THE
FUTURE IN MAY AND BRING SOME
DEFINITION I THINK WOULD BE VERY
IMPORTANT.
THANK YOU FIFTH.
THANK YOU VERY MUCH LUKE -- STE
VOLUME THE QUESTIONS OF THE
SPELL.
THE NUMBER -- FOUR MR
[inaudible]
GREAT [inaudible]
UP.
I APOLOGIZE I I JUST THOUGHT OF
ONE WHEN I HAD WHO'S GONNA LET
THIS -- DILISIO ACTUALLY BUT I
THINK YOU GAVE IT DID MISTER
TIMES YOU GIVE AN INTERVIEW TO
THEM.
NEWS AWHILE BACK.
ABOUT THE FUTURE WHAT NEEDS TO
BE DONE AND THAT WE NEEDED TO
KIND OF GET A MORE CLEAR
UNDERSTANDING OF WHAT -- HAS TO
AUTHORITIES PLANS FOR THE FUTURE
DO YOU EVER THAT INTERVIEW I YES
IT WAS ABOUT A ONE HOUR
INTERVIEW FROM WHICH THEY
CAREFULLY SELECTED ABOUT A
MINUTE AND A HALF THE MEDIA
ALWAYS AS A RIGHT.
WELL MAYBE YOU CAN KIND OF
SUMMARIZE THAN WHAT YOU REALLY
MEANT TO SAY ARE MADE WAS IT
TAKEN OUT OF CONTEXT OR I THINK
YOU YOU YOU HAD THERE'S A
SPECIFIC QUOTE AND I DON'T HAVE
IN FRONT OF ME SO I APOLOGIZE.
ABOUT JUST TRYING TO KIND OF GET
A CLEAR COMMITMENT FROM NICE TO
AUTHORITY I JUST WHAT THEY'RE
TRYING TO DO IN THE FUTURE IF
THE IF THAT BY SUMMATION WAS IS.
IS INCORRECT PLEASE LET ME KNOW.
I WOULD BE AFRAID TO SAY IT BUT
I WILL ANYWAY I THINK THE MAIN
POINT I WANTED TO MAKE WAS THAT
THAT.
SOMETHING SOME ACTION NEEDS TO
BE TAKEN THE THAT SOME DIRECTION
FROM THE LEGISLATURE THAT SAYS
DO THIS OR DO THIS OR FORM OF
FORMER AND AGREED PLAN.
IS REALLY CRUCIAL NOW -- AND
THEN THE THROWAWAY REMARK THAT
THEY CHOSE TO QUOTE BUT I
BECAUSE IT MAKES PEOPLE NERVOUS
IS.
IT'S NOT THAT HARD TO FIND
WHATEVER IT IS YOU WANT TO DO
THE QUESTION IS POLITICAL WILL
IT IS NOT A QUESTION OF SOURCES
OF FINANCING.
AND SO I THINK THE BOTTOM LINE
IT'S REALLY CRUCIAL THAT THE
LEGISLATURE NOW HELP THE
AUTHORITY AND THE GOVERNOR
[inaudible]
DO SOMETHING.
CLARIFIED AND DECIDE ON IT AND
THEN STAND BEHIND IT I I I I
THINK THE CRUCIAL PROBLEM THAT
THIS PROJECT IS HAD FROM THE
BEGINNING IS THAT IT WAS.
NOT CREATED BY THE LEGISLATURE
AND IT WAS NOT CLEARED BY THE
LEGISLATURE IT WAS CREATED IN A
SORT OF WISHFUL THINKING --
PROPOSITION AND WHICH SHOULD BE
THE VISION WAS HERE IN THE
BUDGET WAS HERE.
AND THEY WERE NOT BROUGHT
TOGETHER IN A MEANINGFUL WAY.
NOW THEY NEED TO BE.
M. I APPRECIATE THAT AND AND MY
LAST QUESTION AND IT WAS FOR
BOTH IS THE IT WAS SINCE SINCE
YOU TESTIFIED LAST WEEK.
A NUMBER OF THINGS THAT HAPPENED
ON THE ON THE FEDERAL LEVEL THEN
I APOLOGIZE FOR NOT BEING A FOR
YOUR ENTIRE PRESENTATION.
BUT MAYBE BOTH YOU CAN CAN KIND
OF SHARE -- AND NOW BEING
FORWARD WITH EVERYTHING AND THAT
HAS COME FROM -- THAT HAS
OCCURRED WITH NOW THAT THE
CALIFORNIA SUING RESEARCH LIKE
CARRIER SUING OR THE THE FEDERAL
GOVERNMENT -- DOES IT PUT.
THE UPDATE IN A NEW LIGHT I MEAN
IT IS THERE NOW JUST MORE
UNCERTAINTY.
IS THERE IS IS IS THE UPDATE NOW
A CREDIBLE DOCUMENT NOW KNOWING
MORE INFORMATION FOR WHAT
HAPPENED FROM THE LAST WEEK.
SO IT SEEMS THAT IT DOES --
ADDED AN EXTRA LAYER OF
CHALLENGE CERTAINLY TO THE
AUTHORITY ANYTIME THERE'S LESS
MONEY AVAILABLE THAT'S THAT'S
NOT A GOOD THING FOR THE PROJECT --
FUNDAMENTALLY A BILLION DOLLARS
PROBABLY IN THE CONTEXT OF THE
WHOLE PROJECT IS YOU KNOW THAT'S
NOT -- THAT'S NOT I STAYED
PARTICULARLY HIGH PERCENTAGE OF
EIGHT TO COST OF THE ENTIRE
PROJECT BECAUSE WE'RE TALKING
ABOUT A PROJECT THAT'S PROBABLY
AT LEAST SEVENTY NINE BILLION
DOLLARS IF YOU LOOK AT ALL OF
THESE ONE NOW -- BUT CERTAINLY
EVERY BILLION DOLLARS I MEAN
THAT'S THAT'S SIGNIFICANT AMOUNT
OF MONEY AND THAT'S MONEY THAT
COULD GO TO OTHER KINDS OF
PRIORITIES IS LEGISLATURE'S VERY
INTERESTED AND SO.
I THINK IT'S IT'S YOU KNOW NOT
GOOD FOR THE STATE OF CALIFORNIA
IT'S NOT GOOD FOR THE PROJECT --
AND I THINK IT IS ME YOU KNOW
MAYBE ONE WHEN YOU KNOW EXTRA
REASON WHY IT'S IT'S WORTH A
SORT OF HAVING THIS CONVERSATION
ABOUT -- WE WHAT IS THE
LEGISLATURE'S VISION FOR THE
PROJECT HOW MUCH MONEY ON DOES
THE STATE WANT TO COMMIT -- TO
THIS PROJECT GIVEN GIVEN
UNCERTAINTIES AT THE FEDERAL
LEVEL -- I HAVE TO QUOTE.
SENATOR EVERETT MCKINLEY DIRKSEN
WHO SAID ONCE A BILLION DOLLARS
HERE BILLION DOLLARS THERE
PRETTY SOON YOU'VE GOT REAL
MONEY -- IT DOES ADD TO THE
UNCERTAINTIES THAT'S FOR SURE --
BUT IT MAY NOT BE THE GREATEST
UNCERTAINTY ALL OF THESE STATE
COSTS IN THE THE POTENTIAL
SCHEDULES AND THE RETENTION OF
FEDERAL MONEY -- THERE ALSO
OBJECT.
TO AS WE SAID A WIDE RANGE OF
UNCERTAINTY -- AND I THINK THAT
THAT IT CERTAINLY.
COULD WORK OUT.
FAVORABLY -- BUT IT MIGHT NOT
AND I THINK THE LEGISLATURE
SHOULD BE PREPARED AND THINK
ABOUT NINE ONLY.
HOPING FOR THE BEST FOR PLANNING
FOR THE WORST WHAT DO WE DO IF
THERE ARE PROBLEMS WITH FURTHER
PROBLEMS WITH THE COST -- BUT TO
SCHEDULE OR OR WITH THROUGH THE
SCOPE OF THE PROJECT AND HOW DO
WE HANDLE THIS PROBLEM MISTER
FRAZIER STARTED OFF BY SAYING
THIS COULD BE A ROUGH RIDE WE
SHOULD BE AWARE OF IT.
I I APPRECIATE THE THE
CHAIRMAN'S PATIENTS AND I I
AGREE WITH THIS CHAMBERS ELSE'S
AND YOURS IT'S IT'S THAT.
HOLISTICALLY STAKING A STEP BACK.
THE BILLION DOLLARS IS ONE THING
BUT THEN YOU ADD AND EVERYTHING
ELSE WITH THE THE ER'S IN THE
POTENTIAL FUTURE COSTS OF A RUNS
AND THE NEED FOR MORE
PROFESSIONAL APPROVALS AND
RIDERSHIP -- RIDERSHIP --
CHALLENGES AND ALL THOSE THINGS
IS A WE CAN'T LOOK AT EVERYTHING
THROUGH A SILO -- TO A STRAW WE
NEED TO LOOK AT IT FOR WITH WITH
KIND OF A THREE THOUSAND FOOT
LEVEL SO I APPRECIATE YOUR
ANALYSIS AND AND CANDOR THINK
INSTRUMENT.
THANK YOU MISTER FONG HELEN --
AS THE FUNDING PLAN RELIES
HEAVILY ON THE FUTURE CAP AND
TRADE REVENUES.
HOW CONFIDENT ARE YOU IN THE
ESTIMATES CLOTHING IN THIS PLAN
BASED ON -- THERE'S A PUSH TO
ACTUALLY INCREASE THE COST OF
THE AUCTION.
A PER METRIC TON.
AND THE WILLINGNESS OF INDUSTRY
TO ACTUALLY ACCEPT THAT.
SO CERTAINLY THE ESTIMATES THAT
THEY PUT FORWARD SEEM REASONABLE
AT THIS POINT HOWEVER I THINK
OUR OFFICES NOTED.
THERE IS JUST UNCERTAINTY WITH
REGARD TO CAP AND TRADE REVENUES
AND I THINK YOU HIGHLIGHTED ONE
ASPECT OF UNCERTAINTY BUT
THEY'RE PROBABLY A VARIETY OF OF
THINGS THAT ARE MAKING THOSE
REVENUES ON CERTAIN AND SO.
I THINK THAT'S ONE CHALLENGED
THE AUTHORITY FACES IS THAT IT'S
CURRENTLY RELYING ON A SOURCE OF
REVENUE -- BADTHAT IS SUBJECT
TO THAT UNCERTAINTY AND AND IS
ALSO ONLY APPROVE THREE TWENTY
THIRTY SO -- THAT'S CERTAINLY A
CHALLENGE AND I THINK NO ONE CAN
BE COMPLETELY CONFIDENT IN THOSE
NUMBERS JUST BECAUSE OF THAT IN
HERE AND UNCERTAINTY.
THANK YOU I HAVE ONE MORE
QUESTION FOR YOU.
HI IT IS THE ONLY -- HAVE ANY
RECOMMENDATIONS FOR ADDITIONAL
OVERSIGHT MEASURES THAT COULD BE
TAKEN -- BY THE LEGISLATURE OR
THE ADMINISTRATION THE AUTHORITY.
SO WE HAVEN'T COME UP WITH
SPECIFIC RECOMMENDATIONS IN THAT
AREA BUT I WOULD SAY JUST A
COUPLE OF THINGS MAYBE FOR THE
LEGISLATURE TO CONSIDER I THINK
HEARING SUCH AS THIS ONE ARE
REALLY IMPORTANT FOR OVERSIGHT
AND SO.
REALLY APPRECIATE THE COMMITTEE
PUTTING THIS HEARING ON I THINK
THIS IS BEEN VERY VERY VALUABLE
AND I THINK THIS TYPE OF
ACTIVITY IS IS A REALLY
IMPORTANT PART -- ALSO I
TARGETED REPORTING CAN BE REALLY
HELPFUL THERE THAT ALREADY
PROVIDES A NUMBER OF REPORTS ON
SOMETIMES I THINK THE CHALLENGES
TRYING TO MAKE SURE THAT.
ARE THERE IN A WAY THAT THE
LEGISLATURE CAN REALLY DIGEST I
KNOW THEY'VE MADE SOME EFFORTS
AND NOT IN THAT REGARD AND I
THINK THAT'S PROBABLY STILL
SOMETHING THAT WE CAN CONTINUE
TO WORK TOWARDS I KNOW MISTER
THOMPSON'S ALSO BEEN VERY VERY
INVOLVED IN THAT -- I THINK
THAT'S ANOTHER CRITICAL PIECE
THAT HELPS THE LEGISLATURE
CONDUCT ITS OVERSIGHT ROLE -- I
JUST A COUPLE OTHER THINGS
POTENTIALLY TO THINK ABOUT
THOUGH I THINK AS WE MOVE
FORWARD ONE IS SORT OF THE
FUNDING STRUCTURE FOR THE
PROJECT SO A LOT OF THE FUNDING
AS WE MENTIONED -- PREVIOUSLY IS
CONTINUOUSLY APPROPRIATED CAP
AND TRADE FUNDS -- OUR OFFICE IS
NOTED IN THE PAST THAT CONTINUES
APPROPRIATIONS DON'T GIVE THE
LEGISLATURE QUITE AS MUCH
OVERSIGHT IS A TRADITIONAL KIND
OF APPROPRIATIONS SO THERE'S A
TRADE OFF THEIR YOU KNOW IF IT
WERE.
DONE IN ANOTHER MANNER THAT WE
GIVE PERHAPS A LITTLE BIT MORE
OVERSIGHT TO THE BUDGET PROCESS
WHICH CAN BE A VALUABLE TOOL FOR
THE LEGISLATURE -- AND THEN
ANOTHER THING JUST TO TO THINK
ABOUT IS SORT OF THE GOVERNANCE
STRUCTURE I KNOW THIS IS
SOMETHING THAT DAY -- YOU OF
ALSO THOUGHT ABOUT ASSEMBLY
MEMBER BUT THE GOVERNMENT
STRUCTURE AND WHETHER THAT'S
PROVIDING SUFFICIENT --
OVERSIGHT FROM THE LEGISLATURE'S
PERSPECTIVE WE HAVEN'T DONE AYE
AYE AND IN DEPTH ANALYSIS OF
THAT BUT I THINK THAT'S YOU KNOW
THERE'S A CERTAIN AMOUNT THE
LEGISLATURE CAN DO BUT SOMETIMES
IT'S HELPFUL TO HAVE THESE OTHER
ENTITIES LIKE THAT LIKE THE
BOARD.
LIKE THE PEER REVIEW GROUP --
PROVIDING ANOTHER LAYER OF
OVERSIGHT AND SO I THINK REALLY
THINKING THROUGH ARE WE GETTING
THE LEVEL OF OVERSIGHT WE NEED
FROM THOSE ENTITIES AND IF NOT
WHAT SPECIFIC ACTIVITIES AND
WHAT WE WANT THEM TO DO IN A
DIFFERENT WAY OR OR HOW IT HAS
TO BE THING ABOUT THE STRUCTURE.
SO WE HAVEN'T THOUGHT ABOUT THE
DETAILS OF THAT BUT CERTAINLY
THINK THOSE ARE THE KINDS OF BY
THE KINDS OF THINGS THAT SHOULD
BE EXPLORED MORE IN CONSIDERED
MORE AS A LEGISLATURE MOVES
FORWARD AND TRIES TO GRAPPLE
WITH HOW TO GET OVERSIGHT OVER.
A VERY COMPLEX VERY COSTLY A
DYNAMIC PROJECTS SUCH AS THIS.
ONE MISTER CHAIRMAN A AS YOU
KNOW WE'VE WE'VE DISCUSSED THIS
ISSUE OF OVERSIGHT AND A NUMBER
OF REPORTS THAT WE'VE HAD BUT
BECAUSE OF WHAT.
WE THINK IT IS SO IMPORTANT
THERE THERE REALLY ARE THREE
ISSUES ONE IS THE LOCATION OF
THE OVERSIGHT AGENCY SO YOU CAN
BE SURE.
THAT THEY'RE INDEPENDENT.
THE OTHER THE SECOND IS ADVOCACY
IF YOU DON'T HAVE ADEQUATE
RESOURCES YOU HAVE NO HOPE OF
DEALING WITH THE PROGRAM THIS
LARGE.
THE THIRD ONE AND I STRESS THIS
IS CONTINUITY -- IT IS THERE IS
A REAL DANGER TO HAVE OF HAVING
OVERSIGHT OF HAVING STAFF
CHANGES EVERY YEAR AND IF YOU
HAVEN'T BEEN THERE LONG ENOUGH
TO REMEMBER WHAT YOU WERE TOLD
TWO YEARS AGO AND THERE'S NO WAY
YOU CAN KEEP UP WITH THE CHANGES.
SO OF THERE WOULD BE A ANY ONE
OF A NUMBER OF WAYS YOU COULD DO
THIS ONE WE HAVE OFTEN SUGGESTED
IS SPECIAL UNIT IN LA -- WITH
THE RIGHT RESOURCES IN
CONTINUITY DO IT.
BUT ONE WAY OR THE OTHER YOU IF
YOU YOU NEED TO PROVIDE ALL
THREE OF THOSE ELEMENTS IF IF
YOU'RE GOING TO HAVE REALLY GOOD
PROFESSIONAL OVERSIGHT AND
ADVICE TO YOU AND WHAT YOU'RE
DOING.
I APPRECIATE THAT SO THAT SAID
WAS INTO YOUR QUESTIONS WITH --
I KNOW YOU'RE GOING TO SCHOOL
HERE.
WHO WAS A PEER REVIEW GROUP
CONSULTED ON THE NEW CENTRAL
VALLEY LINE PLAN ON RIDERSHIP
ESTIMATES?
COST ESTIMATES AND THEN FARE
COSTS.
ARE A MEMBER OF THE PEER REVIEW
GROUP STACEY MORTENSEN WAS
INVOLVED IN THOSE DISCUSSIONS I
I WILL DEFER TO HER.
BECAUSE SHE WILL BE APPEARING IN
A MINUTE ON THAT OKAY WAS
INVOLVED IN THIS DISCUSSION MY
PREVIOUS.
HELLO HOW CONFIDENT ARE YOU
ABOUT THE EACH HEROES OF FORTY
COST ESTIMATES FOR THE CENTRAL
VALLEY.
ALL RIGHTS I DO I THINK WE SORT
OF DEALT WITH THAT BY SAYING IT
NEEDS A LOT MORE WORK I I'M NOT
SAYING THEY'RE WRONG I JUST
THINK THAT THERE ARE A LOT OF
DETAILS THAT NEED TO BE WORKED
OUT A LOT OF MORE QUESTIONS THAT
HAVE TO BE.
ASKED IN THIS CONTEXT -- BEFORE
WE CAN BE CONFIDENT THAT THE
NUMBERS ARE TELLING US WHAT WE
NEED TO HEAR.
I APPRECIATE THAT I THINK WHEN
WE HAD THE HEARING WITH THE
STATE ORDER OF GO BACK A YEAR
NOW FOR TWO YEARS YOUR BILL
[inaudible]
A SMALL.
A ONE OF THE QUESTIONS I ASKED
OF THE AUDITOR IS THE MANAGEMENT
TEAM QUALIFIED FOR THIS PROJECT
DO WE HAVE CERTAINTY THAT WE
KNOW.
OF THAT -- EVERYBODY IN THERE
HAS ACTUALLY.
OF THE ABILITY.
TO MANAGE THESE CONSULTANTS AND
THE AND THE AND THIS THE
SUBCONTRACTORS GOING FORWARD.
HAVE YOU HAD ANY OPPORTUNITY
SAYS SENT TO LOOK AT THAT A
QUESTION.
ME THINK ABOUT HOW TO ANSWER
THAT QUESTION.
UP I THINK THERE IS NO QUESTION
BUT WHAT THEY HAVE [inaudible]
COMPETENT [inaudible]
FASHIONABLE PEOPLE.
WHO CAN MANAGE THIS JOB I THINK
THE QUESTION IS?
HOW SOON DO THEY LEARN EXACTLY
WHAT THE PROBLEMS ARE AND HOW TO
PUT THE PROCEDURES IN PLACE TO
MANAGE THE PROJECT?
I THINK THAT HAS THAT WAS A
PROBLEM AT THE BEGINNING BECAUSE
THEY STARTED WITH WITH TWO OR
THREE STATE EMPLOYEES IN TWO OR
THREE HUNDRED CONSULTANTS AND
THAT IS NO WAY TO RUN A PROJECT
LIKE THIS.
I THINK THE PROPOSAL'S NOW TO
SHIFT THAT BALANCE MORE TOWARDS
STATE EMPLOYEES WHO HAVE
AUTHORITY TO RIVER WORK FOR THE
STATE AND I THINK THE FACT THAT
THEY'VE GAINED EXPERIENCE OFTEN
PAINFULLY BUT THEY'VE GAINED
EXPERIENCE IN THE WE'RE GETTING
A LOT CLOSER TO HAVING.
AN ORGANIZATION IN PLACE THAT
CAN BEGIN TO HANDLE THESE FROM --
SO IT'S IT'S ALWAYS A QUESTION
OF YOU CAN ALWAYS FIND THE
PEOPLE THE QUESTION IS HOW DO
YOU PULL IT TOGETHER AND HOW DO
YOU GIVEN THE RIGHT.
RESOURCES IN INCENTIVES TO
MANAGE THE PROJECT PROPERLY
INSIDE SAY THEY'RE GETTING
CLOSER.
THANK YOU FOR THAT.
ANY OTHER QUESTIONS OF THE
COMMITTEE OF THE SPELL.
WELL LUIS HELP HELLO I GOT IT
THANK YOU VERY MUCH FOR BRINGING
TO LIGHT A YOUR PERSPECTIVE AND
AND ANOTHER VIEW POINT FOR THE
COMMITTEE AND ALSO THE
LEGISLATURE WE DO DEPEND ON YOU --
WITHOUT YOUR INSIDE AN
INVALUABLE EXPERTISE GOING FOR
WE WOULDN'T BE ABLE TO MAKE
INFORMED DECISIONS SO I
APPRECIATE YOUR HARD WORK.
AND A LOOK FORWARD TO THE FUTURE
WHILE WORKING TOGETHER ON THIS
PROJECT. TO THANK YOU FOR BEING
THANK YOU.
WE MOVE UNDER THE THIRD PANEL --
STAYS MORTENSEN EXEC DIRECTOR
SAN JOAQUIN REGIONAL REAL
COMMISSION.
AND MISTER FILL PORTION TO CHIEF
EXECUTIVE OFFICER OF LOS ANGELES
COUNTY.
METROPOLITAN TRANSPORTATION
AUTHORITY AND JIM PARTNER THE
EXECUTIVE DIRECTOR OF CALTRAIN.
ONE OF THE STATE SEE WHAT A CHIU
STORES OFF.
THANK YOU FOR BEING HERE THANK
YOU.
MR CHAIRMAN MEMBERS OF THE
COMMITTEE AND MY HONOR JUST LOUD
ENOUGH.
BUT IF ITS LINEUP GOT IT.
WELL I AND MY TEAM HAVE MANAGED
A SERVICE SINCE ITS INCEPTION
AND WE RECENTLY BEGAN MANAGING
THE SAN JOAQUIN'S IN TWENTY
SIXTEEN SO WE DO HAVE QUITE A
BIT OF EXPERIENCE WITH THE TWO
SERVICES THAT WERE MENTIONED.
THAT IS LIEU SAID I WAS
APPOINTED TO THE PEER REVIEW
GROUP IN TWO THOUSAND TWELVE IN
LIEU HAS TUTORED ME AND HOW TO
DO CONSTRUCTIVE CRITICISM.
AND SO I THINK WE'VE HAD A A
GOOD DOSE OF THAT.
OUR AGENCY HAS BEEN PLANNING ON
A PASSENGER RAIL HUB FERBER SAID
SINCE THE MID NINETEEN NINETIES
SO LONG BEFORE HIGH SPEED RAIL.
THIS REALLY ON THE SCENE AND ON
THE MAP IN TERMS OF THEIR
PROGRAM OR SAID WAS VERY
IMPORTANT TO THEM THE VALLEY
COUNTY IS THAT WE'RE WORKING ON
EXPANDING RAIL SERVICE.
WITH THE APPROVAL OF PROP ONE A
THOUGH AMBER SAID STATION IN
PHASE ONE OF THE HIGH SPEED RAIL
PROGRAM MADE THAT A MORE
CRITICAL HUB.
IN OUR MINDS AND IN OUR PLANNING.
AS HAS BEEN MENTIONED ABOUT SOME
AB BOUNCING BALLS OF THE
BUSINESS PLANTS THE MERCED
STATION AS BOUNCED IN AND OUT OF
IT AND WE HAVE RALLIED TO TRY TO
SUPPORT MERCED AND WE'VE AGREED
TO SUPPORT GOING TO SOUTHERN
CALIFORNIA WHEN THAT SEEM TO BE
IN THE BEST INTEREST OF THE
STATE.
BUT OUR CLOSE WORKING GROUP IN
THE VALLEY OF COUNTIES WOULD
NEVER FALTERED IN MAKING OUR
PROGRESS.
TOWARDS ENHANCING PASSENGER RAIL
TO MERCED.
WE ARE ALREADY IN THE PLANNING
PROCESS AND ENGINEERING PROCESS
OF PHASING NEW SERVICE DOWN TO
MERCED FROM THE EXISTING A
STRUGGLING.
HOWEVER THE POTENTIAL ARRIVAL OF
AN IN THE INITIAL SEGMENT OF
HIGH SPEED RAIL SERVICE.
CREATES A NEW INTEGRATION THAT
WILL INCREASE RIDERSHIP ON
NUMEROUS CONNECTING SERVICES AS
WELL AS THE HIGH SPEED RAIL
SEGMENT.
THE AUTHORITY DID DISCUSS WITH
US THE MERCED CONNECTION IN
ADVANCE OF RELEASING THAT
PROJECT UPDATE REPORT.
AND THEY SUGGESTED THERE'S
VARIOUS SCENARIOS -- THE SERVICE
AREAS WE CAN ANALYZE TOGETHER TO
MAXIMIZE THE ATTRACTIVENESS TO
THE TRAVELER ACROSS ALL OF THE
SYSTEMS AND SO I THINK THE
OPERATIVE PHRASE THERE WAS SOME
FUTURE ANALYSIS TO REALLY TRY TO
PUT THE PIECES TOGETHER.
IN MY DIFFERENT ROLES I SEE A
MODEL NEEDED NOT THE OLD ONE NOT
THE ONE THAT IS TEAMS NOT
CAPABLE OF OF LOOKING AT AT THE
NEW SERVICE SCENARIOS I THINK WE
NEED A NEW MODEL WE NEED TO
INVEST IN AND NEW MODEL.
AND I WOULD ARGUE WE NEED TO
SIMULTANEOUSLY.
WHAT TRAVEL TIME OPTIONS ARE
AVAILABLE WHAT DIFFERENT CLASSES
OF ON BOARD SERVICE IS AVAILABLE?
WHAT ARE THE TRAIN SPEEDS DO WE
HAVE REGULAR STOP AND EXPRESS
SERVICE WHAT ARE THE FARE LEVELS
WHAT ARE THE -- OPERATIONS AND
MAINTENANCE COSTS ASSOCIATED
WITH DIFFERENT TRAIN SPEEDS.
THE ROUTE IS BEING BUILT TO PROP
ONE A STANDARDS AND CAPABLE OF
SUSTAINING TWO HUNDRED MILE AN
HOUR TRAINS.
BUT THERE'S LIKELY A DIFFERENT
SWEET SPOT.
THAT WE CAN FIND THAT WOULD DIAL
IN THE SERVICE CHARACTERISTICS
IN THE MOST SUSTAINABLE WAY FOR
A RAMP UP PERIOD AND MY
UNDERSTANDING.
THROUGH OTHER SYSTEMS AND EVEN
THROUGH THIS PROCESS WAS THAT
THERE WAS ALWAYS A RAMP UP
PERIOD TO TEST OUT WHAT'S THE
BEST SPEED TO RUN OUT.
WHAT'S THE BEST SERVICE
CHARACTERISTICS TO ACHIEVE THAT --
NON SUBSIDY.
RAIL SCENARIO.
THE SEAMLESS PROSPER CROSS
PLATFORM TRANSFER IN MERCED AND
THE ONE SI RIDE THAT LETS YOU
GET TO SACRAMENTO OAKLAND AND
SAN JOSE.
NEED TO BE BUILT INTO THE MODEL
TO REALLY CAPTURE THE FULL
RIDERSHIP POTENTIAL.
IN THE EXISTING MODEL DOESN'T
HAVE THE CAPABILITY TO ANALYZE
THOSE IMPORTANT MULTI
DIMENSIONAL FACTORS.
I AM VERY BRIEF TODAY BECAUSE
I'M REALLY HEAR MORE TO ANSWER
QUESTIONS THAT THERE MIGHT BE
ABOUT THE CONNECTION BETWEEN
HIGH SPEED RAIL IN THE TO
CONVENTIONAL SERVICES.
I THANK YOU FOR THE OPPORTUNITY
TO BE HERE I LOOK FORWARD TO ITMY PARTNERS AND COLLEAGUES ARE
ARE GOING TO SAY AND WOULD BE
HAPPY TO ANSWER QUESTIONS THANK
YOU VERY MUCH -- MISSED
WASHINGTON.
YES OF THANK YOU AND GOOD
AFTERNOON NOMS GERMAN AND
MEMBERS OF THE COMMITTEE --
THANK YOU FOR THE OPPORTUNITY TO
SPEAK BEFORE YOU TODAY -- LA
METRO HAS LONG SUPPORTED THE
CALIFORNIA HIGH SPEED RAIL
PROJECT -- WE'RE HERE TO
COMMUNICATE -- OUR PROGRESS AND
CONTINUE PARTNERSHIP WITH THE
STATE -- WE WOULD LIKE TO
EXPRESS OUR GRATITUDE. TO
GOVERNOR NEWSOME AND HIS
ADMINISTRATION FOR WORKING WITH
US WE WORK VERY CLOSELY -- WITH --
HIGH SPEED RAIL MISTER BRIAN
ANISSA MISTER BRIAN KELLY AS
WELL -- TODAY I'D LIKE TO FOCUS
ON HOW WE'RE USING THE HIGH
SPEED RAIL.
OF FUNDS TO PROVIDE REAL
BENEFITS TO COMMUTERS IN OUR
REGION AND HOW WE CAN USE --
THOSE FUTURE INVESTMENTS --
TAMPAX TRANSPORTATION BOTH AND
SOUTHERN CALIFORNIA LA COUNTY
AND STATE WIDE.
AS ALL OF YOU ARE WELL AWARE OF
THE HIGH SPEED RAIL TWENTY
EIGHTEEN BUSINESS PLAN INCLUDES.
FUNDING FOR THE BOOK IN
INVESTMENTS THAT HAS BEEN TALKED
ABOUT -- THIS COMMITTEE THIS
AFTERNOON -- IN SOUTHERN
CALIFORNIA -- AND THEY ARE THE
ROSECRANS MORE COURT A GRADE
SEPARATION AND LINK.
UNION STATION PROJECTS -- WITH
THE ROLES CRANS MORE CORD GREAT
SEPARATION PROJECT MATCH ROLE --
AND THE HIGH SPEED RAIL
AUTHORITY HAVE PARTNERED WITH --
BURLINGTON NORTHERN OR BNSF
RAILROAD AND THE CITY.
OF SANTA FE SPRINGS TO ELIMINATE --
THE MOST DANGEROUS GRADE
SEPARATION IN THE STATE OF
CALIFORNIA.
OF THE ROSECRANS MORE COURT
GRADE CROSSING HAS LONG BEEN
RATED -- AS THE MOST DANGEROUS
RAIL.
ROAD CROSSING IN CALIFORNIA --
LOCATED IN THE CITY OF SANTA FE
SPRINGS -- THIS AT GRADE
CROSSING OF ROSECRANS MORE
CORDON ROSECRANS AVENUE I SHOULD
SAY AMARCORD AVENUE.
HAS A HUNDRED AND TWELVE
METROLINK AMTRAK AND FREIGHT
TRAINS EVERY WEEK WE DAY.
OF THE CROSSING IS ALSO LOCATED
AT ONE OF THE KEY LOGISTICS HUBS
FOR GOODS MOVEMENT IN SOUTHERN
CALIFORNIA -- WITH APPROXIMATELY
FORTY THOUSAND VEHICLES ACROSS
THIS INTERSECTION EVERY DAY.
THROUGH OUR PARTNERSHIP WITH THE
HIGH SPEED RAIL AUTHORITY AND
THE CITY OF SANTA FE SPRINGS WE
ARE ABLE TO ELIMINATE -- THIS
CROSSING BY BUILDING A GRADE
SEPARATION EXPANDING TRACKS AND
INCREASE THE FREQUENCY OF
COMMUTER AND FREIGHT TRAFFIC IN
THE AREA.
WE NOW HAVE WILL FORCE THE
OPPORTUNITY. TO FURTHER PUT
THESE FUNDS TO USE BY INVESTING
AND THE LOS ANGELES UNION
STATION -- THE LOS ANGELES
SCENES STATION IS THE LARGEST
MULTI MODAL TRANSIT TERMINAL IN
SOUTHERN CALIFORNIA -- AS THE
OTHER A HIGH SPEED RAIL BOOK IN
PROJECT.
OF THE LOS ANGELENOS STATIONS
SERVERS OVER CURRENTLY SERVES
OVER ONE HUNDRED THOUSAND PEOPLE
PER WORK DAY -- FROM LA METROS
LIGHT RAIL SYSTEM AND SUBWAY
SYSTEM -- THE METRO BUSES --
OTHER MUNY BUSES AN AMTRAK --
INTER SERVICE BUSES AND
APPROXIMATELY A HUNDRED AND
SEVENTY TWO METROLINK AN AMTRAK
TRAINS PER DAY -- HOWEVER THE
COMMUTER RAIL TRAIN TRACKS A
UNION STATION OUR STUFF INDEED
WHICH MEANS ALL TRAINS ENTER AND
EXIT.
IN THE NORTH IN OF THE STATION --
THE LINK UNION STATION PROJECT
WILL TRANSFORM HOW REGIONAL RAIL
SYSTEM.
OPERATES IN SOUTHERN CALIFORNIA
WITH RUN THROUGH TRACK
CAPABILITY -- WHICH MEANS
METROLINK AND AMTRAK TRAINS CAN
PROVIDE ONE SEEK RIDES.
AT UNION STATION FROM VENTURA
COUNTY TO SAN DIEGO COUNTY TO
CONNECT WITH METRO BUSES -- AND
RAIL SYSTEM IN ADDITION IT WILL
ACCOMMODATE THE FUTURE HIGH
SPEED RAIL SYSTEM.
UP WITH TONS OF ACTIVITY IN
SOUTHERN CALIFORNIA IN THE NEXT
TEN YEARS -- STARTING WITH THE
SUPERBOWL ACTUALLY AND TWENTY
TWENTY TWO OF THE WORLD CUP IN
TWENTY TWENTY FOUR AND OF COURSE
THE OLYMPICS IN.
TWENTY TWENTY EIGHT WE
ANTICIPATE -- SERVING --
APPROXIMATELY. TWO HUNDRED
THOUSAND PASSENGERS AT LA UNION
STATION IN THE COMING YEARS SO
THESE IMPROVEMENTS THAT I JUST
DESCRIBED -- WOULD CREATE
SIGNIFICANT OPPORTUNITIES FOR
REGIONAL MOBILITY AND IS THE KEY
FIRST STEP -- IN OUR LARGER
PLANS TO CREATE A WORLD CLASS
TRANSIT TERMINAL STATION.
THESE PROJECTS ARE LEVERAGING A
STATE INVESTMENT OF FIVE HUNDRED
MILLION DOLLARS TO INCREASE
CAPACITY.
IMPROVE OPERATIONS REDUCE
GREENHOUSE GAS EMISSIONS AND
ACCOMMODATE A NEW HIGH SPEED
RAIL SYSTEM.
HOWEVER WITH A TOTAL POPULATION
OF APPROXIMATELY THIRTEEN
MILLION PEOPLE IN SOUTHERN
CALIFORNIA WE NEED MORE -- HIGH
SPEED RAIL INVESTMENTS -- THAT
WILL PROVIDE IMMEDIATE BENEFITS
TO REGIONAL RAIL MOBILITY AND
REDUCE TRAFFIC.
CONGESTION -- WHILE PROVIDING AN
OPPORTUNITY TO ACCOMMODATE A
HIGH SPEED RAIL SYSTEM IN THE
FUTURE -- MISTER CHAIRMAN I DO
HAVE A VIDEO THAT SHOWS THESE
TWO INVESTMENTS THERE ABOUT ONE
MINUTE EACH.
A WILL YOU INDULGE ME OR I WILL
OKAY -- I'M GONNA ASK.
SOMEONE TO COME UP.
AND HIT THE RIGHT BUTTON FOR ME.
ON THE DESKTOP OKAY.
DO YOU KNOW WHICH ONE IS CALLED.
ROSECRANS MARK COURT.
STATION.
MUCH OF COMPUTER -- SOME OF
THESE YEAH.
SOME OF THOSE [inaudible] TWENTY
ROSECRANS WITH THAT ONE YEAH
THAT'S THE FIRST ONE AND THEN --
ROSECRANS AND MCCARTY RATED
TRANSACTION HAS BEEN IDENTIFIED
AS ONE OF THE MOST HAZARDOUS
CROSSINGS CALIFORNIA.
OVER ONE HUNDRED AND TWELVE
FORTY FIVE THOUSAND VEHICLES
BECAUSE THIS INTERSECTION DALY.
EACH WEEK THE CROSSING ARMS ARE
DOWN FOR A COMBINED.
TWENTY ONE SPRINT'S BUT CARD.
FOR ASIAN PROJECT WILL
SIGNIFICANTLY IMPROVE SAFETY.
BY SEPARATING PEDESTRIANS
BICYCLISTS AND VEHICLES FROM
FOUR TYPES OF TRAINS PASSED OVER
[inaudible]
ONE HUNDRED THIS [inaudible]
FEATURED.
THIS WILL GREATLY REDUCE TRAFFIC
CONGESTION ELIMINATE DELAYS.
ABILITY REGION'S GREENHOUSE GAS
[inaudible]
MAYBE I'LL.
AND WAS CHAIR ONE MORE I THINK
IS A MINUTE AND A HALF.
ROSECRANS AND MCCARTY
[inaudible]
THIS STATION.
LOS ANGELES REGION [inaudible]
TODAY [inaudible]
STATION CENTRAL
[inaudible]
THIS [inaudible]
JEEZ
[inaudible]
THIS IS
[inaudible]
STATION [inaudible]
STATION -- SO THANK YOU MISTER
CHAIR OF THESE TWO PROJECTS AS I
MENTIONED EARLIER -- HIGH SPEED
RAIL -- INVESTMENTS -- ARE
COMMITTED TO IT AND WE LOOK
FORWARD TO RECEIVING THOSE FUNDS --
AND WHICH IS VERY VERY CENTRAL
TO OF COURSE HIGH SPEED RAIL BUT
ALSO -- TO THE METRO LINK SYSTEM --
THE METRO SYSTEM AS WELL -- AND
THE PLAN THAT WE HAVE FOR THAT
SENSUAL UP SO THANK YOU SO MUCH
I LOOK FORWARD. TO THE QUESTION
THANK YOU VERY MUCH I CAN'T SEE
YOUR LAST NAME FOR OUR NEXT
PRESENTER.
UNDERSTAND YOURSELF JIM HART NET
THANK YOU MISTER CHAIR IS A
PLEASURE TO BE HERE I CAN'T TOP
THE VIDEO OR THE INSIGHTS OF OF
MISS MORRISON -- AND I'D I'D
LIKE TO BE LESS ON DETAIL AND
MORE ON A CHARACTERIZATION FIRST
I'D REALLY LIKE TO TALK ABOUT.
PROBLEMS ON FALL -- GIANT TO
PINCH HITTER FIRST BASEMAN THIRD
BASEMAN WHO HAS A A CONTRACT
WITH THE GIANTS THAT DOESN'T
COST THE GIANTS VERY MUCH.
BUT HE'S HITTING HOME RUNS WHEN
YOU REALLY NEED IT.
AND I THINK -- HIGH SPEED RAILS
INVESTMENT IS A FUNDING PARTNER
IN THE ELECTRIFICATION FOR
CALTRAIN.
TOGETHER WITH THE OTHER FUNDS
WITH ACCUMULATED INCLUDING SIX
HUNDRED FORTY SEVEN MILLION
DOLLARS FROM THE FEDERAL
GOVERNMENT.
IS A HOME RUN SO HOME RUN FOR
HIGH SPEED RAIL.
IS A HOME RUN FOR CALTRAIN
BECAUSE OF THE LACK FOR CATION
PROJECT CALTRAIN IS THE HAS
GROWN TO BE THE SEVENTH LARGEST
COMMUTER RAIL SYSTEM.
IN THE COUNTRY -- WE ON THE
RIGHT AWAY FROM SAN FRANCISCO TO
SAN JOSE AND WE USE A UNION
PACIFIC RIGHT AWAY FROM SAN JOSE
TO GILROY UNDER AT LIMITED
TRACKAGE RIGHTS AGREEMENT.
SINCE THE EARLY TWO THOUSANDS
WHO WE'VE ALMOST TRIPLED IN
RIDERSHIP -- BUT THE
ELECTRIFICATION PROJECT HAS BEEN
A DREAM OF THE CALTRAIN SYSTEM
SINCE THE EARLY NINETEEN
NINETIES.
BUT IT'S NOT UNTIL THAT HOME RUN
WAS HIT THAT WE COULD ACTUALLY
DO IT THAT IS THE OF PUTTING
TOGETHER OF THE ACCUMULATION OF
FUNDING SOURCES INCLUDING THE IT
CRITICAL INVESTMENT FROM.
HIGH SPEED RAIL -- TO PUT
TOGETHER THE BUDGET TO ALLOW US
TO ELECTRIFY TO BECOME A CLEAN
SYSTEM.
A MORE EFFICIENT SYSTEM -- A
BETTER SYSTEM ON IN TERMS OF ITS
OPERATING CHARACTERISTICS IN A
SYSTEM THAT IS GOING -- TO ALLOW
US TO INCREASE OUR RIDERSHIP
IT'S THE BASE OF THE GROWTH OF
OUR SYSTEM WE EXPECT THAT BY
TWENTY FORTY WE MAY.
IN A POSITION TO CAPTURE ALMOST
TRIPLE THE RIDERSHIP -- WILL
HAVE TO INVEST MORE IN THE
SYSTEM -- ELECTRIFICATION START
BUT WITHOUT ELECTRIFICATION WE
NEVER GET THEIR SO I'M I'M HERE
TO SAY WITHOUT GIVING A WHOLE
BUNCH OF DETAILS BECAUSE WE'VE
REPORTED OUT TO THE COMMITTEE
PREVIOUSLY AND AND WE CAN
PROVIDE AS MANY DETAILS AS YOU'D
LIKE.
BUT I WOULD CHARACTERIZE AGAIN --
OUR PARTNERSHIP WITH HIGH SPEED
RAIL AS A HOME RUN FOR HIGH
SPEED RAIL ACCUSES GIVES IT
ACCESS. TO OUR RIGHT AWAY WHICH
IS YOU KNOW FIFTY MILES IN
LENGTH.
A HUNDRED MILES IN TRACKS IF YOU
GO BACK AND FORTH -- WHICH IS A
VERY SIGNIFICANT -- OF OF OF
VALUE I BELIEVE WAS A HOME RUN
FOR CALTRAIN AS WELL.
IN WHEN THE STARS ALIGN IN ONE
HIGH SPEED RAIL IS ABLE TO
OPERATE FROM A GILROY TO SAN
FRANCISCO AND FROM THE VALLEY TO
THE VALLEY.
WE'RE GONNA BE THERE WE'RE GONNA
BE READY WE'RE GONNA BE WORKING
TOGETHER IN A BLENDED SYSTEM AND
I I CAN'T WAIT FOR THAT TIME SO
I APPRECIATE THAT YOUR YOUR TIME
AND AND LISTENING TO US AND BE
HAPPY TO ANSWER ANY QUESTIONS.
PROVIDING FURTHER DETAILS.
THANK YOU VERY MUCH NOW AT THIS
POINT WILL ENTERTAIN ANY
QUESTIONS FROM COMMITTEE MEMBERS --
SOME OF WOMAN FRIEDMAN.
THANKS I'M NOT REALLY SURE THIS
IS A QUESTION BUT I JUST WANTED --
TO MAKE A LITTLE STATEMENT FOR
SOMEONE TO THANK ALL OF YOU FOR
BEING HERE AND IT'S GREAT TO SEE
MISTER WASHINGTON HERE DOES A
GREAT JOB -- WITH THIS HOME AND
LA METRO SO THANKS FOR BEING
HERE -- I KNOW THAT SOME OF MY
COLLEAGUES EARLIER AND ONE OF
THE EARLIER PANELS TALKED ABOUT
THE IMPORTANCE OF SOUTHERN
CALIFORNIA OF THE BURBANK TO
ANAHEIM ROUTE.
AND I JUST WANT TO MENTION --
SOMETHING TO WHOEVER AND I'M NOT
EVEN SURE WHO I'M SAYING THIS TO
BUT JUST TO GET ON THE RECORD
THAT BURBANK AIRPORT IS ABOUT TO
UNDERGO.
THE START THE CONSTRUCTION OF A
NEW TERMINAL -- WHICH IS A MAJOR
PIECE OF INFRASTRUCTURE FOR THE
AREA.
AND A GIVEN THAT THE PLAN IF THE
HIGH SPEED RAIL COMES THROUGH IS
THAT THE STATION FOR LOS ANGELES
WILL BE AT THE BURBANK AIRPORT.
I JUST THINK THAT IT WOULD BE A
SHAME FOR THE PLANNING AND
CONSTRUCTION OF THE AIRPORT TO
NOT INCLUDE.
THAT EVENTUAL HIGH SPEED RAIL OR
IMPROVED RAIL INFRASTRUCTURE --
BECAUSE IF YOU BUILD A TERMINAL
IT DOESN'T HAVE CONNECTIVITY
THAT DOESN'T WORK IN CONCERT
WITH WHAT COULD BE A MAJOR TRAIN
TERMINAL YOU LOSE THE
OPPORTUNITY TO HAVE A WELL
THOUGHT OUT TRANSIT HUB FOR
SOUTHERN CALIFORNIA.
SO THAT PIECE OF INFRASTRUCTURE.
VERY CRUCIAL PART OF RAIL
TRANSPORTATION ALONG WITH UNION
STATION OF COURSE BUT
COORDINATING LIKE THAT WITH AN
AIRPORT -- BECOMES THIS IS HAS
SORT OF HAS A MULTIPLIER EFFECT.
OF CONNECTIVE ITTY AND TRANSIT
SO I DO HOPE THAT THAT'S STILL
PART OF THE PLANNING PROCESS AND
THAT WE CAN SORT OF FIGURE THIS
OUT BEFORE IT BURBANK GETS TOO
FAR DOWN THE ROAD WITH THEIR
PLANNING PROCESS.
AND THEY ARE DOING THEIR DESIGN
CHARETTE RIGHT NOW THERE ARE
EVER TO THEY'VE ALREADY DONE
SEVERAL IN BURBANK THEY'RE
MOVING NOW.
TO A GLENDALE IN PASADENA.
AND OTHER STAKEHOLDERS IN THE
AIRPORT AND RIGHT NOW IT IS FAR
AS I KNOW THEY'RE PROCEEDING
WITH THE DESIGN OF AN AIRPORT
THAT DOESN'T INCLUDE A HIGH
SPEED RAIL STATION AS PART OF IT
AND AND THAT WOULD REALLY BE.
A MISSED OPPORTUNITY THAT DOWN
THE ROAD WE'RE GOING TO WORK
RIGHT.
AND IT'S GONNA BE VERY EXPENSIVE
TO TRY TO RETROFIT THAT TERMINAL.
TO HAVE.
YOU KNOW TO BE THE KIND OF
TROUBLE YOU SEE IN YOUR REPORTS
BOTH AIRPORT AND BROWN.
SO I DON'T KNOW IF ANYONE HAS A
RESPONSE MAYBE MISTER WASHINGTON --
BUT THAT'S MY CONCERN AND AS I
REPRESENT THE AIRPORT --
SOMETHING THAT I YOU KNOW HAD
AND WAS ON THE AIRPORT
COMMISSION MYSELF FOR A NUMBER
OF YEARS -- YOU KNOW REALLY WANT
TO MAKE SURE THAT WE I TAKE CARE
OF THAT IMPORTANT AMENITY THE
DISTORTIONS YOU RECOGNIZE SURE
NO WE AGREE -- I AGREE I I FLEW
OUT OF BURBANK -- TODAY --
COMING UP HERE -- I AGREE WE WE
WANT TO BE PARTNERS WITH THE
HIGH SPEED RAIL TO MAKE THOSE
IMPROVEMENTS -- WENT WHEN WE
TALK ABOUT AIRPORTS HAVE SAID --
YOU KNOW IN PUBLIC THAT WE
SHOULD HAVE A REAL CONNECTION AT
EVERY AIRPORT TO EVERY AIRPORT --
IN THE STATE OF CALIFORNIA WE'RE
BUILDING ONE WITH MEASURE AROUND
DOLLARS -- TO LA ACTS RIGHT NOW --
IN THAT BUILDING IS GOING ON
RIGHT NOW SO WHAT WE COULDN'T
AGREE MORE -- WITH THE
IMPROVEMENTS THAT SHOULD BE DONE
NOW SO YOU DO NOT HAVE TO
RETROFIT OF GOING BACK SO WE
AGREE WITH THAT COMPLETELY AND
WE LOOK TO PARTNER WITH.
A HIGH SPEED RAIL THE AIRPORT IN
ANYONE YEAH AND MUCH WILLING --
TO MAKE SURE THAT HAPPENS -- AT
THE FRONT END AND NOT THE BACK
IN.
I ONE QUESTION FOR YOU -- JUST
STAY AT THE MICROPHONE TO
WASHINGTON CAN YOU ELABORATE ON
HOW THE FEDERAL -- DISENGAGEMENT
IS AFFECTING THE UNION THE LA
UNION STATIONS PROJECT AND HOW
CAN WE MITIGATE THIS PROBLEM.
WELL.
YOU KNOW LIKE -- ANYONE ELSE WE
WE HEARD THAT NEWS -- YOU KNOW
ON THESE LARGE PROJECTS -- AND I
HAVE -- QUITE A BIT OF
EXPERIENCE IN LARGE PROJECTS
WHERE YOU HAVE FUNDING THAT --
DOES NOT MATERIALIZE BUT YOU YOU
KEEP WORKING AT AND I THINK THAT --
OUR DEALINGS WITH THE HIGH SPEED
RAIL -- ON THIS IN TERMS OF
STICKING -- TO SOME OF THE
FUNDING THINGS AND AND
UNDERSTANDING THE RISK
ASSOCIATED -- WITH -- OF FUNDING
ASSUMPTIONS -- HAPPENS ON THESE
BIG PROJECTS ALL THE TIME SO I
THINK THAT -- GOING BACK IN
APPEALING TO THE FEDERAL
GOVERNMENT ON THESE FUNDS MAKES
A LOT OF SENSE TO ME -- AND I
THINK -- JUST PERSONALLY
SPEAKING I THINK EVENTUALLY --
THOSE FUNDS WILL BE -- RECOUPED
IF YOU WILL IN TIME.
THANK YOU VERY MUCH.
THANK YOU AND COME BACK -- I
APOLOGIZE FOR MY ABSENCE --
STACY WHAT KIND OF A WHAT TYPE
OF DISCUSSIONS HAVE YOU HAD WITH
THE AUTHORITY ABOUT OPERATING.
IN TERMS OF HIGH SPEED SERVICE
AND ARE YOU CONCERNED ABOUT
LITIGATION REGARDING.
PROPOSITION ONE DAY.
I THINK THAT NOTION IS BEEN
LOOSELY DISCUSSED I HOLD THE
NOTION THAT.
HIGH SPEED RAIL SHOULD BE GIVEN
TO HIGH SPEED RAIL SHOULD BE
DEMONSTRATED ON THE INITIAL
SEGMENT TEST THE HIGH SPEED
TRAINS.
ELECTRIFY IT REALLY LOOK AT
WHETHER IT'S VIABLE TO KEEP
MOVING -- SO I HAVEN'T REALLY
ENGAGED MUCH IN WHETHER OR NOT.
THE SAN JOAQUIN'S OUR ACE WHAT
OPERATE THAT I THINK WE CAN PLAY
A PART IN THE ULTIMATE SOLUTION.
BUT I DO THINK THERE IS A CHANCE
TO DEMONSTRATE AND I THINK UNDER
CERTAIN SCENARIOS IT COULD PAY
FOR ITSELF NOT FULL SERVICE BUT
MAYBE SPECIALIZED SERVICE MORE
EXPRESSED DIAL SERVICE.
AND THEN THE OTHER CONVENTIONAL
SERVICES FILL IN THE GAPS.
THAT THAT ARE SUBSIDIZED TODAY
SO I THINK IT'S TOO EARLY TO
PREDICT.
THAT ANOTHER OPERATOR IS NEEDED
ON THAT SEGMENT BUT IT'S
CERTAINLY AN OPTION DOWN THE
ROAD.
THANK YOU JUST ONE MORE QUESTION
FOR YOU -- DO YOU HAVE ALL THE
FUNDING AND EQUIPMENT YOU NEED
TO GET TO MERCED CONNECT WITH
HIGH SPEED RAIL.
NO -- OUR INITIAL FUNDING THAT
WE'VE BEEN WORKING ON TO MERCED
CAME AS PART OF THE SP ONE SP
ONE THIRTY TWO PACKAGE.
IN IT WE WERE SHORT FOR FULL
EXTENSION TO MERCED WE CAN MAKE
IT TO SERIES.
BUT NOT TO MERCED SO PART OF
THAT PACKAGE WAS SOME EFFORT BY
THE GOVERNOR'S OFFICE AND IN THE
STATE. TO HELP LEVERAGE ONE
TRAIN DOWN TO MERCEDAND I THINK
WITH THE REAL ROAD WE ARE CLOSE
TO DOING THAT WITH THE EXISTING
FUNDING PACKAGE.
BUT WE DO NOT HAVE THE FULL
FUNDING PACKAGE TO MEET UP WITH
SAY SIX OR EIGHT TRAINS BECAUSE
IF YOU HAVE SIX OR EIGHT WITH
ACE.
AND EIGHT OR NINE WAS SEMI
KEANE'S YOU PRETTY MUCH CAN TAKE
THE WHOLE SPIGOT THAT HIGH SPEED
RAIL IS PLANNING INITIALLY --
BUT WE ARE WE ARE LACKING
SOMEWHERE BETWEEN TWO HUNDRED TO
TWO HUNDRED AND FIFTY MILLION.
TO DOUBLE TRACK THE MERCED
PORTION U. P. MIGHT WORK WITH US
TO NOT THAT NUMBER DOWN A LITTLE
BIT AND I STOCKTON DIAMOND --
MUCH LIKE THE CLINTON CROSSING
IMPROVEMENT WE'RE LOOKING AT
THAT AND STOCKTON THAT FREES UP
NETWORK FLUIDITY FOR THE
RAILROADS AND SO THEY'RE MORE
INCLINED TO MAYBE LET US.
GO WITHOUT DOUBLE TRACKING THE
WHOLE WAY BUT I I WOULD SAY
SOMEWHERE AROUND TWO HUNDRED
BILLION DOLLARS TO LONG STRETCH
IT'S GOT A LOT OF RIVER
CROSSINGS [inaudible]
BUDGET.
THIS NEW PLANET OF THE NEW PLAN
HINGES ON A CLOSE PARTNERSHIP
BETWEEN THE AUTHORITY.
AND A SAN JOAQUIN'S.
HAS THE AUTHORITY BUT A GOOD
PARTNER ON THE THIS CALTRAIN
PROJECT.
WELL I THINK -- YOU KNOW THE THE
AUTHORITY IS A ONE OF OUR
FUNDING PARTNERS -- WE HAVE
SEVERAL FUNDING PARTNERS.
AND WITHOUT THE HIGH SPEED ROLES
OF FUNDING PARTNER WE WOULD NOT.
BE ABLE TO DO OUR
ELECTRIFICATION PROJECT AT ALL.
AND SO THEY ARE A CRITICAL
PARTNER FOR US.
AND YOU KNOW WE WORK CLOSELY
TOGETHER ON BLENDED PLANNING
WHICH IS -- WHAT'S REQUIRED WHEN
HIGH SPEED ROLE -- COMES ON TO
THE RIGHT AWAY -- I THINK WE'VE
DONE -- WELL AND WORK TOGETHER
ON THE BLENDING PLANNING SIDE OF
THINGS -- AND WE WILL NEVER WILL
BE HAVE ISSUES BETWEEN US --
OVER TIME IN TERMS OF HOW BEST
TO PROCEED ON ONE THING OR
ANOTHER -- I EXPECT THAT THERE I
WILL CALL THAT CONSTRUCTIVE
TENSION IT'S JUST INEVITABLE AND
IN ANY KIND OF PARTNERSHIP
RELATIONSHIP -- AND I THINK --
WITH GOOD WILL WE JUST WORK
THROUGH THOSE.
IS THERE ANY INTENTION -- WITH
CALTRAIN.
AS DIRECTOR CURTAIN HAD
MENTIONED EARLIER. FOR THE
CALTRAIN TO MAKE AN INVESTMENT
TOWARDS -- MERCED [inaudible]
NO. ZERO WE'RE WAIT WE'VE NEVER
BEEN APPROACHED ON IT SO I CAN'T
SAY THERE'S ANY INTENTION WAS
NOT BEEN SOMETHING THAT'S EVER
BEEN DISCUSSED WITH THIS.
WE'RE ALWAYS TRYING TO THINK OF
OUT OF THE BOX SOLUTIONS YES --
WERE WERE -- WE'RE STRUGGLING TO
WHERE I CAPTURE THE FUTURE ON
THE CALTRAIN LINE.
AND WE'RE LOOKING TO MAKE
ADDITIONAL INVESTMENTS THERE.
LOOK FOR TO YOU POSSIBLY LOOKING
OUT OF THE OUT OF THE BOX.
BECAUSE LIKE I SAID WE INVEST IN
YOU YEAH THANK YOU THANK ON FILM --
WHAT OTHER TYPE OF REAL
IMPROVEMENTS OR -- TOP
PRIORITIES FOR THE ONLY REGION --
AND NOT JUST THE PROMISES THAT
HAVE MADE BY THE SWORD.
WELL I THINK IS IS COMMITTEE
KNOWS WE WANT TO THE BALLOT IN
NOVEMBER TWENTY SIXTEEN FOR
MEASURE AROUND FOR NEW HAVE
SINCE SALES TAX -- TO BUILD --
FORTY MAJOR -- INFRASTRUCTURE
PROJECTS -- IN THE NEXT FORTY
YEARS -- AND WE ARE IN FOR BILL
MOLD RIGHT NOW WE ARE MANAGING
ABOUT TWENTY BILLION DOLLARS
CURRENTLY AND RAIL PROJECTS --
WE HAVE OUR TWENTY EIGHT BY --
TWENTY TWENTY EIGHT TO BILL
TWENTY A PROJECTS BY -- TWENTY
TWENTY EIGHT SO THERE ARE A
NUMBER OF ACTIVITIES IN A NUMBER
OF PROJECTS ARE VERY VERY
IMPORTANT TO US -- I MENTION
UNION STATION IN MY TESTIMONY --
THE FOUR HUNDRED TWENTY THREE
MILLION DOLLARS THAT IS THAT HAS
BEEN COMMITTED -- BY HIGH SPEED
RAIL -- TO UNION STATION IS VERY%
VERY IMPORTANT IN OUR OVERALL --
UNION STATION OR LINK U. S. PLAN --
WHICH IS IN THE NEIGHBORHOOD OF
NINE HUNDRED AND FIFTY MILLION
DOLLARS AND SO WHEN WE TALK
ABOUT -- SHARING AND
PARTNERSHIPS AND ALL OF THAT WE
ARE DOING THAT RIGHT NOW WITH.
A NINE HUNDRED FIFTY MILLION
DOLLAR PLAN THAT INCLUDES SOME
MEASURE IN MONEY AND INCLUDES --
AND THAT INCLUDES THE PHONE IN
TWENTY THREE MILLION DOLLARS AS
COMMITTED BY HIGH SPEED RAIL SO
WE ARE PUTTING OUR MONEY WHERE
OUR MOUTH IS -- WITH REGARD --
TO INFRASTRUCTURE IMPROVEMENTS
IN SOUTHERN CALIFORNIA AND THE
HIGH SPEED RAIL MONEY -- OR
COMMITMENT OBVIOUSLY -- IS A BIG
PART OF THAT.
WHEN IS THE ANTICIPATED NEED?
UGH GOING FORWARD FOR WHAT YOU
FEEL. TO BE PRODUCTIVE IN IN
WHAT WITH THE CAMILLUS WHEN
WOULD YOU NEED THE MONEY
[inaudible]
YESTERDAY -- BUT YOU KNOW WE
HAVE A COMMITMENT -- OF THIS
FALL -- FOR THAT FOUR HUNDRED
TWENTY THREE MILLION DOLLARS AND
WE'RE WORKING WITH THE HIGH
SPEED RAIL AUTHORITY -- TO MAKE
THAT HAPPEN -- I'M TOLD THAT
THAT IS ON TRACK FOR THIS FALL --
AND WE CAN REPORT BACK TO YOU
MISTER CHAIRMAN -- WHETHER IT
HAPPENS OR NOT BUT I'M PRETTY
CONFIDENT -- THAT IT WILL HAPPEN --
I'M TOLD THAT IT WILL GO TO THE
HIGH SPEED -- REAL BOARD IN
OCTOBER OF THIS YEAR.
PERFECT.
ANY OTHER QUESTIONS OF THE
COMMITTEE OF OUR PANEL.
EACH AND EVERYONE OF YOU --
THANK YOU VERY MUCH FOR BEING
HERE TODAY AND I APPRECIATE YOUR
WILLINGNESS TO COME.
TO US SACRAMENTO TO TESTIFY
BEFORE THE COMMITTEE.
THANK YOU FOR THE OPPORTUNITY
THANK YOU.
NOW WE'RE GONNA GO ON THE PUBLIC
COMMENT.
ANY MEMBER OF THE PUBLIC THAT
WOULD LIKE -- TO THE COMMON.
PLEASE STATE YOUR NAME YOU'RE
REPRESENTING.
AND I'LL GIVE YOU BUT IT'S OKAY.
THANK YOU CHAIR FRAZIER AND
COMMITTEE MEMBERS -- MAYOR MIKE
MURPHY FROM THE CITY RECESS --
MERCED HERE TODAY TO DEMONSTRATE
ITS SUPPORT FOR THE GOVERNOR'S
RURAL RURAL RESILIENCY STRATEGY
WHICH INCLUDES IMPORTANT.
INFRASTRUCTURE INVESTMENTS IN
TRANSPORTATION IN THE HEART OF
CALIFORNIA.
CENTRAL VALLEY.
HIGH SPEED RAIL IS A KEY ELEMENT
TO THAT STRATEGY PROVIDING.
A COMMITMENT TO CLEAN LOW AND NO
CARBON TRANSPORTATION STRATEGIES.
THAT HELP REDUCE POLLUTION.
IN THE CENTRAL VALLEY HOME TO
SOME OF THE NATION'S WORST AIR
QUALITY.
AND HIGHEST ASTHMA RATES.
SAID FRESNO AND BAKERSFIELD ARE
HOME TO NEARLY ONE MILLION
CALIFORNIANS.
AND THE RESPECTIVE COUNTIES
MERCED FRESNO KERN HAVE A
POPULATION IN EXCESS OF TWO
MILLION PEOPLE.
THE CITIES IN THE CENTRAL VALLEY
ARE AMONG CALIFORNIA'S FASTEST
GROWING COMMUNITIES RIGHT WITH
OPPORTUNITY TO CARRY CALIFORNIA.
INTO A SUSTAINABLE FUTURE.
GOVERNOR NEWSOME'S COMMITMENT
ENVISIONED FOR HIGH SPEED RAIL
IS MEMORIALIZED IN THE MAY.
TWO THOUSAND NINETEEN PROJECT
UPDATE REPORT WITH THE INCLUSION
OF A CENTRAL VALLEY SEGMENT.
THAT CUTS TRAVEL TIME IN HALF
BETWEEN THE CITIES IN THE VALLEY.
COMPARED TO TODAY'S RAIL SERVICE
OR TRAVELING BY CAR.
REPORTER FRIENDS A HIGH SPEED
RAIL LINE THAT PROVIDES
CONNECTIONS AND MERCED. TO THE
ALTAMONT CORRIDOR EXPRESS OR A
STRAIN.
IN THE SAN JOAQUIN SERVICE TO
OAKLAND AND TO SACRAMENTO.
THE PROJECT IS TRANSFORMATIVE
FOR THE CENTRAL VALLEY HIT
MAINTAINS IMPORTANT TARGETED
INVESTMENTS ADOPTED BY THE HIGH
SPEED RAIL AUTHORITY IN THE BAY
AREA -- FOR THE BAY AREA AND LOS
ANGELES.
THIS KEY TO OPENING UP VALLEY
THE VALLEY ACCESS TO PROVIDE
OPPORTUNITIES FOR COMPANIES TO
EXPAND. TO THE CENTRAL VALLEY.
AND OFFERING AFFORDABLE HOUSING
PROSPECTS THAT ALIGN WITH THE
GOVERNOR'S OVERALL GOALS TO
ENSURE STATEWIDE.
CORDED INVESTMENTS.
HIGH SPEED RAIL CONNECTS WERE
SAID IN THE CENTRAL VALLEY TO
THE MAKE A REGION'S EFFORTS FROM
THE BAY AREA.
WRITING A REGIONAL PERSPECTIVE
TO HOW.
WE ADDRESS HOUSING.
WORK FORCE AND EDUCATIONAL
ISSUES THIS INCLUDES LEVERAGING
STATE INVESTMENTS AND DYNAMIC
INSTITUTIONS SUCH AS YOU SEE
MERCED.
CITY MERCED HAS BEEN AND REMAINS
SUPPORTIVE OF HIGH SPEED RAIL.
AND LOOKS FORWARD TO OUR
CONTINUED PARTNERSHIP IN DOING
ITS PART TO PROVIDE SOLUTIONS.
TO CALIFORNIA'S LONG TERM
CHALLENGES THANK YOU THANK YOU
NEXT SPEAKER PLEASE STATE YOUR
NAME.
THE REPRESENTED.
THANK YOU MISTER CHAIR OF THE
COMMITTEE JEREMY SMITH HERE
BEHALF OF THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL --
WE REMAIN STEADFAST IN SUPPORT
OF THIS PROJECT WOULD LIKE TO
PUBLICLY THANK THE ATTORNEY
GENERAL AND GOVERNOR NEW SOME.
FOR THEIR STEADFAST SUPPORT
MOVING FORWARD -- PUSHING BACK
AGAINST THE FEDERAL GOVERNMENT
AND OUTLINING A NEW VISION TRIMS
THE GOVERNOR -- FOR THIS PROJECT
MOVING FORWARD THAT WE ALSO
SUPPORT -- AS THE LA REPORT IN
TODAY'S HEARING MENTIONED THREE
POINT NINE BILLION IS ALREADY
BEEN SPENT ON THIS PROJECT -- IN
THE SENATE'S OVERSIGHT HEARING
FROM MARCH THEY LAID OUT -- WHAT
THAT MEANS -- TWENTY SIX HUNDRED
PLUS JOBS OVER FOUR HUNDRED
EIGHTY SMALL BUSINESSES.
HAVE BENEFITTED HUNDRED FIFTY
NINE DISADVANTAGED BUSINESSES OF
BENEFITS.
OVER TWO HUNDRED FIFTY FOUR
MILLION DOLLARS AND PAY TO SMALL
BUSINESSES.
I DOING WORK ON THIS PROJECT
RESULTING IN BETWEEN SIX POINT
EIGHT AND SEVEN POINT SIX
BILLION DOLLARS.
IN ECONOMIC OUTPUT IN THE
CENTRAL VALLEY.
BUT THIS PROJECT ISN'T JUST
ABOUT THE ECONOMIC BENEFITS --
TO CALIFORNIA IT'S ALSO ABOUT
RGH EAGLES -- WE HAVE ROBUST.
STEEP GOALS TO MEET TO FIX THE
PROBLEMS RELATED TO CLIMATE
CHANGE WHAT DOESN'T HELP WITH
THOSE G. B. CHINOS GHG GOALS IS
SOME INFORMATION.
THAT I PULLED OUT OF A TWO
THOUSAND AND ELEVEN LA -- REPORT
ABOUT THE INFRASTRUCTURE NEEDS
OF THIS STATE -- OUTSIDE OF HIGH
SPEED RAIL -- THEY REPORTED THAT
OVER THREE THOUSAND NEW MAIN
MILES OF FREEWAY FIVE AIRPORT
RUNWAYS NINETY NEW DEPARTURE
GATES.
AT A COST OF A HUNDRED BILLION
DOLLARS WOULD BE NEEDED TO
ACCOMMODATE THE PRESUMED
INFRASTRUCTURE NEEDS IN OUR
SYSTEM AND THE PRESUMED.
OF POPULATION GROWTH --
OBVIOUSLY THAT'S MUCH MORE THAN
WHAT THIS PROJECT IS GOING TO
COST WE THINK ALL THAT HAD
SHOULD HAPPEN AS WELL AS THIS.
TO TO MAKE A TRULY TWENTY FIRST
CENTURY -- OF INFRASTRUCTURE
SYSTEM -- AFFORDABLE HOUSING IS
ALSO -- SO THEY CAN BE FIXED BY
THIS PROJECT MOVING PEOPLE FROM
AREAS OF LOW UNEMPLOYMENT.
AND LE -- LOW HOUSING COSTS TO
PLACES WHERE THERE IS MORE ARE
MORE JOBS BUT HOUSING COSTS ARE
MORE EXPENSIVE.
I THINK IT'S A WE THINK IT'S A
CRITICAL PART OF THAT SOLUTION
AS WELL.
IN OTHERS FINISH WITH -- THESE
ARE THE TYPE OF PROJECTS THAT WE
USED TO DO AND WE HAVEN'T DONE
IN DECADES.
THESE BIG EXPENSIVE EXPENSIVE.
LARGE PROJECTS -- THEY ARE
NEEDED WE HAVEN'T DONE IN A LONG
TIME THAT'S WHY TODAY'S PROJECTS
ARE SO EXPENSIVE BECAUSE WE'VE --
KICKED THE CAN DOWN THE ROAD SO
I APPRECIATE WE APPRECIATE THE
OVERSIGHT OF THIS COMMITTEE THE
SENATE YOU'RE KIND OF WHAT'S THE
SENATE AS WELL AS A BUDGET SUB
COMMITTEES.
WE BELIEVE THAT OVERSIGHT IS
CRITICAL TO MAKE SURE THIS
PROJECT WAS FOR THE RIGHT WAY --
AND WE URGE -- THIS BODY IN THE
LEGISLATURE TO CAN TO SUPPORTING
AS IN THIS WILL WORK THANK YOU.
NEXT BIGGER PLEASE STATE YOUR
NAME AND WE REPRESENT PLEASE
GOOD AFTERNOON MISTER CHAIR
MEMBERS OF THE COMMITTEE JOHN
MOFFITT ON BEHALF OF THE CDC
CALIFORNIA.
PRIVATE INJURE ENGINEERING FIRMS
FROM THROUGHOUT THE STATE WE
JUST WANT TO COME TODAY AND
EXPRESSED HER SUPPORT FOR THE
GOVERNOR HIS PROPOSAL.
THE ONGOING CONTINUANCE OF THIS
PROGRAM -- AND AND THIS PROJECT --
JUST A QUICK NOTE WITH RESPECT
TO THERE WAS MENTION MADE TODAY
ABOUT THE USE OF CONSULTANTS ON
THIS PROJECT AND AND WE WANT TO
URGE CAUTION AND THOUGHTFULNESS
IN APPROACHING THAT ISSUE --
WHEN A PROJECT SEIZE COST OVER
RUNS AND THINGS LIKE THAT
SOMETIMES IT'S EASY TO TO THROW --
THE BABY OUT WITH THE BATH WATER --
BUT CONSULTANTS BRING
FLEXIBILITY THEY BRING EXPERTISE
THE GENTLEMAN ON THE SECOND
PANEL TODAY I THINK DID A NICE
JOB OF TALKING ABOUT HOW.
YOU GOT TO HAVE THE RIGHT PEOPLE
IN THE ROOM TO MAKE DECISIONS
WITH EXPERIENCE ON THESE
PROJECTS.
AS THE TRADES JUST -- JUST NOTED
THIS IS A GENERATIONAL PROJECT
IT MAKES SENSE THAT THE STATE
WOULD NOT NECESSARILY HAVE THE
EXPERTISE WITHIN ITS RANKS.
ON A PROJECT LIKE THIS THAT
HASN'T BEEN BUILT IN A LONG TIME
THAT'S WHEN YOU NEED CONSULTANTS
THAT PLAY A VALUABLE ROLE MOVING
FORWARD.
AND WE LOOK FORWARD TO CONTINUE
WORKING WITH THE LEGISLATURE AND
OTHERS TO MAKE SURE THIS PROJECT
IS SUCCESSFUL THANK YOU.
THANK YOU FOR THAT ANY OTHER
MEMBERS OF THE PUBLIC THAT WOULD
LIKE TO SPEAK [inaudible]
IN.
WE SHIP TO THIS PROJECT.
OKAY.
SO WITH THAT.
I WOULD LIKE TO THANK THE
MEMBERS OF THE COMMITTEE -- THE
PANELS OF THE PUBLIC FOR
PARTICIPATING STAYS HEARING.
IT'S CLEAR THAT WE'RE ABOUT TO
HAVE SOME TOUGH DECISIONS GOING
FORWARD.
ABOUT THIS HIGH SPEED RAIL
PROJECT I AM COMMITTED TO
CONSIDERING ALL THE OPTIONS SO
THAT WE CAN MAKE THE BEST
DECISION [inaudible]
CALIFORNIA.
BUT AS I MENTIONED BEFORE.
THE LEGISLATURE MUST BECOME A
PARTNER -- THE ASSEMBLY
TRANSPORTATION COMMITTEE IS NOW
ADJOURNED AND AGAIN I APPRECIATE
EVERYBODY'S INPUT TODAY THANK
YOU