THE TRANSPORTATION COMMITTEE IS
CALLED TO ORDER GOOD AFTERNOON.
WELCOME TO TODAY'S INFORMATIONAL
HEARING ON HIGH SPEED RAIL 2024
DRAFT BUSINESS PLAN. THE HEARING
ROOM IS OPEN FOR ATTENDANCE OF
THIS, UM, HEARING AND IT CAN BE
WATCHED FROM LIVE STREAM ON THE
ASSEMBLY'S WEBSITE. WE ENCOURAGE
THE PUBLIC TO PROVIDE WRITTEN
TESTIMONY BY VISITING THE
COMMITTEE'S WEBSITE, PLEASE NOTE
THAT ANY WRITTEN TESTIMONY
SUBMITTED TO THE COMMITTEE IS
CONSIDERED PUBLIC COMMENT AND
MAYBE READ INTO THE RECORD OR
REPRINTED. AT THE END OF TODAY'S
HEARING. WE WILL ALLOW TWO
MINUTES EACH FOR, UM WE HOLD ON
ONE SECOND. OKAY? THANK YOU FOR
YOUR PATIENCE. AT THE END OF
TODAY'S HEARINGS, WE WILL ALLOW
TWO MINUTES UM EACH FOR TWO
PRIMARY WITNESSES IN SUPPORT AND
OPPOSITION. THESE WITNESSES MUST
TESTIFY IN PERSON IN THE HEARING
ROOM. ADDITIONAL WITNESS
COMMENTS MUST ALSO BE IN PERSON
AND WILL BE LIMITED TO NAME
ORGANIZATION AND POSITION AS
NOTED, THIS WILL BE AT THE END
OF THE HEARING, NOT AFTER EACH
PANEL. TODAY WE HAVE AN
OPPORTUNITY TO HEAR FROM THE
HIGH SPEED RAIL AUTHORITY èC E
Ó BRIAN KELLY ABOUT THE
EXCITING PROGRESS THAT HAS BEEN
MADE ON THE PROJECT IN THE
CENTRAL VALLEY. BRIAN I
UNDERSTAND YOU SUBMITTED YOUR
LETTER OF RESIGNATION IN JANUARY
. AND I'D LIKE TO THANK YOU FOR
YEARS OF SERVICE WORKING ON THIS
PROJECT AND THE GREAT WORK, UM,
THAT YOU'VE DONE TO STABILIZE
THE PROJECT AND ADVANCE
CONSTRUCTION. UM LET'S TAKE A
MOMENT EVEN THOUGH IT'S PROBABLY
NOT APPROPRIATE. BUT AT THE
PLEASURE OF THE CHAIR TO GIVE
BRIAN KELLY A ROUND OF APPLAUSE
FOR HIS SERVICE. SO EVERYONE
KNOWS, AS I'VE SAID, REPEATEDLY,
UM, SINCE BECOMING
TRANSPORTATION CHAIR THAT I'M
ORIGINALLY FROM FRESNO AND
RECENTLY HAD THE OPPORTUNITY TO
TOUR THE PROJECT AND SEE THE
AMAZING WORK THAT IS BEING DONE
IN NEARBY CITIES, THE PROJECT
HAS HAD A TREMENDOUS POSITIVE
IMPACT IN THE CENTRAL VALLEY AND
HAS CREATED THOUSANDS OF JOBS.
I'VE ALSO HAD THE OPPORTUNITY TO
RECENTLY MEET WITH THE MET BOS,
UH, ADMINISTRATOR OF THE FEDERAL
RAILROAD ADMINISTRATION AND
CELEBRATE THE FEDERAL AWARD OF
THREE 0.3 BILLION TO THE PROJECT
. WE DISCUSSED THE NEED FOR THE
STATE TO CONTINUE TO SHOW ITS
FINANCIAL SUPPORT. I'M LOOKING
FORWARD TO HEARING FROM ANY OF
TODAY'S PANELISTS ABOUT HOW WE
COULD SECURE THE FUNDING NEEDED
TO COMPLETE THE PROJECT. I'D
LIKE TO WELCOME ASSEMBLY MEMBER
BENNETT. UM UH. AND UH, INVITE
HIM IF HE'D LIKE AS CHAIR OF THE
SUB COMMITTEE, DEALING WITH THIS
PARTICULAR TOPIC TO MAKE ANY
REMARKS, IF YOU'D LIKE. THANK
YOU THERE. THERE WE GO. THANK
YOU VERY MUCH. CHAIR CHAIR.
WILSON UH, I REALLY APPRECIATE
THE INVITATION TO JOIN YOU IN
DOING THIS, AS, UH, THROUGH THE
TRANSPORTATION COMMITTEE. AND
UH, AS YOU MENTIONED, I THINK
THE ISSUE IS THE CREATIVITY THAT
WE NEED IN TERMS OF FINANCING.
UM GIVEN WHERE THE STATE'S
BUDGET IS AT THIS PARTICULAR
TIME. UH, SO WE'RE REALLY, UH
FROM A BUDGET STANDPOINT, REALLY
LOOKING FORWARD TO ANY IDEAS.
PEOPLE HAVE LONG TERM ET CETERA.
UH, IN TERMS OF FINANCING.
CERTAINLY THERE WAS A GREAT SHOT
IN THE ARM FOR US TO SEE, UH,
THE COACHES, UH, THAT THE DESIGN
OF THE COACHES AND, UH, TO BE
ABLE TO IMAGINE AND DREAM ABOUT
THE FUTURE. BUT THE QUESTION
RIGHT NOW IS WHERE DO WE GO
BETWEEN HERE AND THERE? THANK
YOU VERY MUCH. THANK YOU SO
THANK YOU. ASSEMBLY MEMBER
BENNETT. I'D I'D LIKE TO BRING
IT OVER TO OTHER MEMBERS OF THE
TRANSPORTATION COMMITTEE TO SEE
IF THEY HAD ANY REMARKS FOR
TODAY. ALL RIGHT, SEEING NAN AS
MENTIONED, UM, TODAY THE HIGH
SPEED RAIL AUTHORITY WILL
PRESENT ITS 2024 DRAFT BUSINESS
PLAN. WE WILL ALSO HEAR FROM THE
LEGISLATIVE ANALYST'S OFFICE,
THE HIGH SPEED RAIL PEER REVIEW
GROUP, AND WE WILL GET TO HEAR
FOR THE FIRST TIME FROM OUR
NEWLY CREATED HIGH SPEED RAIL
INSPECTOR GENERAL. I LOOK
FORWARD TO HEARING THEIR
FEEDBACK ON WHAT WE NEED TO DO
TO KEEP THIS PROJECT MOVING
FORWARD. FINALLY WE WILL HAVE A
PONY ON PANEL ON THE FUTURE
OPERATIONS OF HIGH SPEED RAIL
FROM MERCED TO BAKERSFIELD. THIS
PANEL INCLUDES CHAD EDISON,
CHIEF DEPUTY SECRETARY FROM THE
STATE TRANSPORTATION AGENCY,
BRUCE ARMISTEAD, CHIEF OF REAL
RAIL AND OPERATIONS DELIVERY
WITH HIGH SPEED RAIL, AND
FINALLY DÂN LEVITT, THE MANAGER
OF REGIONAL INITIATIVES FROM THE
SAN JOAQUIN REGIONAL RAIL
COMMISSION. SAN JOAQUIN JOINT
POWERS AUTHORITY, WHICH WILL
ULTIMATELY OPERATE THE TRAIN. WE
WILL ALSO TAKE QUESTIONS FROM
MEMBERS, UM AFTER EACH PANEL.
LASTLY AFTER THE THIRD PANEL, I
WILL OPEN IT UP FOR PUBLIC
COMMENT. AS I NOTED, BEFORE WITH
THAT WE WILL BEGIN OUR HEARING.
IF I HAVE TO STEP AWAY AND VICE
CHAIR FONG IS NOT AVAILABLE.
ASSEMBLY MEMBER CARRILLO WAS
STEP IN AS OUR, UM, CHAIR FOR
THE MEETING. UM WITH THAT, I'D
LIKE TO INVITE, UH BRIAN KELLY,
CHIEF EXECUTIVE OFFICER,
CALIFORNIA HIGH SPEED RAIL
AUTHORITY. UH, BRIAN ANNIS,
CHIEF FINANCIAL OFFICER OF THE
CALIFORNIA HIGH SPEED RAIL
AUTHORITY. YOU MAY BEGIN WHEN
IT'S CONVENIENT FOR YOU TO DO
SO.
NÓ. UH, THANK YOU. I'M BRIAN
KELLY, THE CHIEF EXECUTIVE
OFFICER. FOR THE CALIFORNIA HIGH
SPEED RAIL AUTHORITY. I'M
HONORED TO BE HERE BEFORE THIS
COMMITTEE TODAY. UH, TO PRESENT
OUR 2024 BUSINESS PLAN. UM OUR
BUSINESS PLAN COMES ON THE HEELS
OF A PLAN WE RELEASED JUST 10 OR
11 MONTHS AGO, WHICH WAS OUR
PROJECT UPDATE REPORT, WHICH WAS
A MAJOR RESET FOR THE PROJECT.
AND BECAUSE THAT WAS, UH, JUST
10 MONTHS AGO. THIS PLAN, UH, IS
STILL PRETTY MUCH LIVING WITHIN
THE, UH, THE GUIDELINES OF THAT
THAT PLAN FROM THE PROJECT
UPDATE REPORT. AND SO, UH, THIS
PLAN IS REALLY ABOUT UPDATING
WHAT'S OCCURRED OVER THE COURSE
OF THE LAST 10 OR 11 MONTHS.
WHAT'S IN FRONT OF US, AND, UH,
SOME OF THE CHALLENGES THAT WE
HAVE TOGETHER TO MOVE THE
PROJECT FORWARD. UM SO WITH THAT
I'M HAPPY TO JUST START ROLLING
THROUGH A REPAIRED POWERPOINT TO
SUMMARIZE THE, UH, THE 2024
BUSINESS PLAN. LITTLE BIT TOUGH
TO SEE. BUT, UM THIS, UH, 2024
BUSINESS PLAN IS REQUIRED UNDER
THE UH, PUBLIC UTILITIES CODE,
AND WE PRESENT IT EVERY TWO
YEARS. THERE'S A 60 DAY PROCESS
THAT REALLY BEGAN WHEN WE ISSUED
THE DRAFT ON FEBRUARY. 9TH UM WE
HAD A, UH, THAT KICKS OFF THE 60
DAY PERIOD WHERE WE TAKE PUBLIC
COMMENT, ULTIMATELY REVISED THE
DRAFT. BRING IT BACK TO OUR
BOARD FOR APPROVAL ON APRIL 11TH
. AND THEN WE MAKE, UH, ANY AND
ALL CHANGES TO THAT, UH, DRAFT
BEFORE IT GOES FINAL AND WE
SUBMITTED TO THE LEGISLATURE BY
THE STATUTORILY REQUIRED MAY 1ST
DEADLINE. IN 2022. OUR BUSINESS
PLAN INCLUDED LIMITED UPDATES TO
FORECASTS AT THE TIME AND COVID
IMPACTED THE RELEASE DATE OF THE
FINAL 2020 BUSINESS PLAN TO 2021
. SO WE HAD THIS SORT OF
SQUEEZING TOGETHER OF PLANS THAT
USED TO BE SPREAD OUT BY A YEAR
OR TWO SUDDENLY COMING TOGETHER
IN A MATTER OF MONTHS, AND WE'RE
JUST COMING OUT OF THAT, AS WE
GET PAST THE COVID, UH, PERIOD,
BUT ONE OF THE EFFECTS OF THAT
IS WE HAD A MUCH MORE
SIGNIFICANT OR COMPREHENSIVE
PROJECT UPDATE REPORT. UH, LAST
TIME AROUND IN 20. 23 THEN WE DO
A BUSINESS PLAN. SO THE NEXT PRO
PROJECT UPDATE REPORT. UH, WILL
ALSO BE A MORE EXPANSIVE, UH,
DOCUMENT. UM, IN 2023. WE
PROVIDED, UM UH, WE PROVIDED, UH
UH, A REPORT THAT HAD MORE
COMPREHENSIVE LOOKS AT THE
FORECAST AND ESTIMATES TO
COMPLETE THE PROJECT AND THE
SCHEDULE. IT WAS A KEYSTONE
DOCUMENT THAT RELAYED THE
FOUNDATION FOR THE WORK THAT WE
HAD IN FRONT OF US. UPDATED COST
AND SCHEDULE ESTIMATES FOR THE
MERCED AND BAKERSFIELD SEGMENT,
AND IT'S SPECIFIED, UH, THE
MERCED AND BE, UH, TWO
BAKERSFIELD SEGMENT, UH, WOULD
BE BUILT AS A DUAL TRACK
ELECTRIFIED RAILROAD WITH A
SHARED STATION IN MERCED SHARED
WITH THE SAN JOAQUIN JOIN POWERS
AUTHORITY AND THE ALTAMONT
COMMUTER EXPRESS, WHICH PROVIDES
SERVICES CONNECTING SERVICES TO
SACRAMENTO, UH, SAN JOSE AND
OAKLAND. IN JANUARY OF 2024, THE
, UH AFOREMENTIONED AND NEWLY
INSTALLED INSPECTOR GENERAL
REVIEWED OUR 2020 THREE PROJECT
UPDATE REPORT AND, AMONG OTHER
THINGS, FOUND THE REPORT
CREDIBLE AND RESPONSIVE TO THE
STATUTORY REQUIREMENTS THAT ARE
ON THE AUTHORITY. UM, THE
RECOMMEND. HIS RECOMMENDATIONS
DID ALSO INCLUDE IMPROVEMENTS TO
MAKE TO, UH UPCOMING PLANS,
INCLUDING THIS 2024 BUSINESS
PLAN. INCLUDING PROVIDING
SPECIFIC DATES WHEN FUNDING IS
NEEDED FOR PROJECT ELEMENTS TO
KEEP THE OVERALL PROJECT ON
SCHEDULE. UH, TO BREAK OUT COST
PER CERTAIN MERCED TO ALONG THE,
UH, MERCE TO BAKERSFIELD SEGMENT
FOR CERTAIN, UH, CATEGORIES OF
COST, FOR EXAMPLE, RIGHT AWAY
FOR THOSE EXTENSIONS, UM UH,
ALSO TO ADOPT A BOARD POLICY ON
THE TIMING OF WHEN WE DO OUR
COST UPDATES. WE UH, GENERALLY
UPDATE THE SEGMENT COST AFTER WE
FINISH THE ENVIRONMENTAL WORK
FOR EACH SEGMENT, UH, AND THEY
RECOMMENDED MORE SPECIFICITY ON
OUR MANAGEMENT OF THE KEY RISK
FACTORS THAT WE IDENTIFIED IN
THE 2023 PER AND THAT WE
IDENTIFY IN THIS 2024 PROJECT.
UPDATE REPORT. OH, SORRY. THIS
24 BUSINESS PLAN. SO A
SIGNIFICANT PROGRESS HAS BEEN
MADE. UH SINCE THE ISSUANCE OF
THE 2023 PROJECT UPDATE REPORT.
OUR BUDGET AND SCHEDULE AND
VISION IS STILL ALIGNED WITH THE
CONTENT OF THE 2020. THREE, UH
PER UH AND WHERE WE PLAN TO GO,
NOTABLY WITH 3.1 BILLION IN
FEDERAL STATE FUNDING GRANTED IN
DECEMBER, UH, REALLY KEEPS US ON
TASK TOWARD MEETING THE
OBJECTIVES THAT WE OUTLINED IN
THE 2020 THREE PROJECT UPDATE
REPORT. THIS PLAN ALSO INCLUDES,
UH, EXTENSIVE DISCUSSION ABOUT
RISK IDENTIFICATION MANAGEMENT
AND MITIGATION IN CHAPTER FOUR
OF THE DOCUMENT. AGAIN THE
PROJECT UPDATE REPORT FROM 2020
THREE. IT SET A TARGET FOR THE
EARLY OPERATING SEGMENT OF
BETWEEN 2030 2030 THREE TO BE
OPERATIONAL. IT UPDATED OUR COST
ESTIMATES BASED ON ESCALATION
AND INFLATION, WHICH HAD REACHED
AN ALL TIME HIGH DURING THE
HEIGHT OF THE COVID EXPERIENCE,
IT SAID. A FUNDING STRATEGY
INFORMED BY THE CALIFORNIA
LEGISLATIVE BUDGET DECISIONS AND
THE AVAILABILITY OF FUNDING
THROUGH THE FEDERAL BIPARTISAN
INFRASTRUCTURE LAW. THE 23 PER
ALSO ESTABLISHED NEW RIDERSHIP
AND REVENUE FORECAST BASED ON
NEW MODEL DEVELOPMENT BY THE
AUTHORITY, EARLY TRAIN OPERATOR
IN COORDINATING WITH THE
CALIFORNIA STATE TRANSPORTATION
AGENCY. AND IT UPDATED OUR
SCHEDULES, UH, FOR THE
COMPLETION OF OUR CONSTRUCTION
WORK IN THE CENTRAL VALLEY. WE
HAVE THREE CONSTRUCTION PACKAGES
. UH, THERE. TWO OF THEM WERE
SET TO BE COMPLETE IN 2026 AND
ONE IN 2023. AND AS I SIT HERE
TODAY WE STAY. WE ARE STICKING
WITH THOSE SCHEDULES. WE'VE
REACHED SUBSTANTIAL COMPLETION
ON CONSTRUCTION PACKAGE FOUR AND
THE OTHER TWO ARE SAID TO BE
COMPLETE IN 2026. STILL IT ALSO
SAID TARGETED GOALS FOR CRITICAL
PROCUREMENTS. SUCH AS OUR
TRACKING SYSTEMS, OUR TRAIN SETS
AND OUR STATION AND, UH,
EXTENSION ALIGNMENT EXTENSION
DESIGNS. I SAY ALL THAT ABOUT
THE 20 THREE PER BECAUSE AGAIN,
IT WAS THE DOCUMENT THAT, UH,
REALLY SET US ON THE COURSE THAT
WE'RE ON. UH NOW AND THIS REPORT
, UH, HAS US OPERATING WITHIN
THE CONFINES OF THAT. 2020 THREE
PROJECT UPDATE REPORT. UH, STILL
IN THIS REPORT WITH RESPECT TO
MERCED TO BAKERSFIELD. THE COST
ESTIMATES ARE UNCHANGED, WHILE
THE COST ESTIMATES HAVE NOT BEEN
MOVED, THE BUSINESS PLAN WILL
UPDATE ON COST RISK FOR EACH
CONSTRUCTION PACKAGE WITH THE
èC P 23, CARRYING THE HIGHEST
RISK DUE TO IMPACTS FROM THE
2020 2220 THREE FLOODING IN
EARLY SPRING. UH, A MAJOR CHANGE
ORDER THAT'S IN ARBITRATION. NOW
THAT WE'RE WAITING FOR A
DECISION ON A MAJOR THIRD PARTY
ISSUES THAT ARE YET TO BE
RESOLVED, AND A FINAL REVISED
BASELINE SCHEDULE THAT IS STILL
IN NEGOTIATION. THAT SAID. OUR
EXPECTATION IS TO CONTINUE TO
DEVELOP DELIVER THE èC P 23
PROJECT ON THE 2026 TIMELINE.
WITH RESPECT TO THE PHASE ONE
COST UPDATES. THIS IS THE THIS
IS THE STRETCH FROM SAN
FRANCISCO ALL THE WAY TO LOS
ANGELES. UH, WE HAVE NOW
ENVIRONMENTALLY CLEARED
VIRTUALLY ALL OF DOWNTOWN SAN
FRANCISCO TO DOWNTOWN L A AND WE
WILL BE BACK TO OUR BOARD IN
JUNE OF THIS YEAR, UH, TO CLEAR
THE SEGMENT FROM PALMDALE TO
BURBANK. UH IN AS I SAID IN JUNE
, WE'LL BRING THAT TO OUR BOARD.
UH, FOR CLEARANCE. THE ANALYSIS
TO DATE SUGGESTS THAT THE COST
FOR THAT AND THE EXTENSION FROM
L A TO ANAHEIM IN IN THAT
ENVIRONMENTAL DOCUMENT, WHICH IS
CHANGED DRAMATICALLY FROM WHERE
IT WAS A COUPLE OF YEARS AGO.
UH, THOSE WILL COME IN AT A
HIGHER COST RANGE THAN WE
REPORTED IN THE 23. PER HOWEVER,
IT WILL STAY WITHIN. IT'LL BE
HIGHER THAN THE IDENTIFIED
BASELINE COST, BUT IT WILL STAY
WITHIN THE RANGE OF COST THAT WE
PUT IN THE 2020 THREE PROJECT
UPDATE REPORT. UH, WE DISCUSSED
THAT IN DETAIL ON PAGE 89 IN
THIS BUSINESS PLAN. UH, MAJOR
ACCOMPLISHMENTS FOR THE
AUTHORITIES SINCE THE 2020 THREE
PROJECT UPDATE REPORT, AS MANY
OF YOU KNOW, AND BY NOW WE WERE
AWARDED SIGNIFICANT FEDERAL
FUNDS DURING THE COURSE OF 2020
THREE. THE BIGGEST AWARD WAS THE
STATE FEDERAL PARTNERSHIP
PROGRAM IN DECEMBER. UH BUT IN
THE 11 MONTH PERIOD, WE WERE
AWARDED A TOTAL OF THREE $0.3
BILLION IN FEDERAL FUNDS TO
ADVANCE THE PROJECT. WE ADVANCE
PROCUREMENTS TO MOVE THE PROJECT
FORWARD IN OPERATIONS, INCLUDING
QUALIFYING, THE TWO BIDDERS TO
MANUFACTURE OUR TRAINS. AND WE
ARE NOW OUT ON THE STREETS. UH,
RIGHT NOW ON THE DESIGN OF THE
TRACKING SYSTEMS FOR THE MERCED
TO BAKERSFIELD STRETCH, STARTING
WITH 100 19 MILES CURRENTLY
UNDER CONSTRUCTION. OUR FIRST
CONSTRUCTION PACKAGE èC P FOUR,
WHICH COVERS 22.5. MILES HAS
REACHED SUBSTANTIAL COMPLETION.
WE'RE WORKING THROUGH A LAND USE
ISSUE ON 400 FT OF THAT 2 22.5
MILES, BUT, UH, WE ARE LOOKING
FORWARD TO RESOLVING THAT VERY
SOON. OUR CONSTRUCTION JOBS
TOTAL JOBS EXCEEDED 12,200. 20
THREE, A RECORD HIGH FOR THE
PROJECT, AND WE ALSO ACHIEVED
RECORD HIGHS FOR THE DAILY
WORKERS, UM, ON THE JOB SITES
ROUGHLY AROUND 1500 EVERY DAY
AND THE RECORD NUMBER OF
STRUCTURES COMPLETED IN THE
CALENDAR YEAR. 17 WE ALSO
EXCEEDED OUR GOALS, INTERNAL
GOALS FOR THE PERCENTAGE OF OUR
RIGHT AWAY PARCELS THAT WOULD BE
ACQUIRED IN CALENDAR YEAR. UH,
EXCEEDING NOW 98% AND THE NUMBER
OF UTILITIES THAT WE MOVED IN A
SINGLE YEAR, WE SET A RECORD FOR
254. IN 2020 THREE. WE ALSO A RE
MEETING OUR CONTRACT MILESTONES
ON KEEPING THE DESIGNS, UH, FOR
THE EXTENSIONS, TIMBER SAID, AND
BAKERSFIELD ON SCHEDULE. WE ARE
NOW AT 30% DRAFT DESIGN, AND
THAT WILL GO FINAL IN 2024. AND
BECAUSE WE RECEIVED FEDERAL
MONEY, WE'VE ASKED OUR BOARD TO
ALLOW US TO MOVE FORWARD ON
EXTENDING THAT DESIGN TO 100,
WHICH WE WILL TAKE UP. UH, LATER
THIS YEAR. ADDITIONAL UH, WORK
IN THE CENTRAL VALLEY. AS I
MENTIONED, WE COMPLETED 17
STRUCTURES IN 2023 THE 98% ON
THE, UH, RIGHT AWAY PARCELS. UH,
WE ALSO INCREASED OUR EXECUTIVE
ENGAGEMENT ON THIRD PARTY ISSUES
, UH, WHERE WE'RE OFTEN
INVOLVING MOVING UTILITIES OR
WORKING WITH THE FREIGHT
RAILROADS ON ISSUES. WE
IDENTIFIED 68 3RD PARTY ISSUES
THAT NEEDED ATTENTION, AND WE'VE
RESOLVED 66 OF THOSE, UH, THAT'S
A DYNAMIC NUMBER. WE'LL RE UP
THAT NUMBER AS WE GO FORWARD,
BUT IT SHOWS HOW WE HAVE
ELEVATED THE ISSUES AND THEN
FOUND RESOLUTION TO THE VAST
MAJORITY OF THEM. UH, WE
FINALIZED OUR REVISED BASELINE
SCHEDULES FOR TWO OF THE
CONSTRUCTION PACKAGES AND WILL
BE RESOLVING THE THIRD ONE IN
AUGUST OF 2024. AND AGAIN
FUNDING TO SUPPORT THE FINAL
DESIGN AND RIGHT AWAY FOR THE
MERCED AND BAKERSFIELD.
EXTENSIONS UH, WAS AWARDED, UH,
IN DECEMBER OF 2023. THIS JUST
REPRESENTS A SCORECARD FOR WHERE
EACH OF THE CONSTRUCTION
PACKAGES ARE. èC, P 123 AND
FOUR AND JUST TO PROVIDE YOU A
LITTLE BIT OF CONTEXT, ALL THREE
OF THOSE PACKAGES MAKE UP THE
119 MILES THAT ARE CURRENTLY
UNDER CONSTRUCTION IN THE
CENTRAL VALLEY. èC P ONE IS THE
31 MILES THAT GOES RIGHT THROUGH
DOWNTOWN FRESNO. èC P, TWO
THREE, IS 65 MILES SOUTH OF
FRESNO INTO THE NORTHERN KERN
COUNTY AND èC P. FOUR IS THE
FINAL 22.5 MILES IN IN, UH,
ALMOST ENTIRELY UH, COUNTY. AND
THAT SCORECARD JUST SHOWS YOU
THAT WE'VE ADVANCED AGAIN. THE
FULL DESIGN COMPLETED, UH, RIGHT
AWAY AT 98 OR 100% DEPENDING ON
WHERE WE ARE. YOU SEE THE
PERCENTAGE OF UTILITIES THAT ARE
EITHER COMPLETED OR IN PROGRESS,
UM AND AS WELL AS THE PERCENTAGE
OF STRUCTURES COMPLETED IN THE
MILES OF GUIDEWAY THAT IS A OPEN
OR IN PROGRESS OF GETTING OPEN
AND THEN OUR OVERALL CONTRACT
VALUE. IT SHOWS HOW FAR WE ARE
THROUGH EACH OF THE THREE
CONSTRUCTION PACKAGES IN THE
CENTRAL VALLEY. I MEAN, THE ONE
THING I WANTED TO JUST SAY ABOUT
THIS CHART BECAUSE THIS JUST GET
TO DO AN AREA OF LESSONS
LEARNED. UM IT TYPICALLY YOU
DON'T WANNA BE IN A CONSTRUCTION
PROJECT AND FINISHING YOUR RIGHT
AWAY. AND YOUR UTILITY
RELOCATIONS. UH, AFTER YOU'VE
GOT INTO CONSTRUCTION, BUT ONE
OF THE LESSONS LEARNED THAT
WE'VE TALKED ABOUT LAST YEAR AND
IN PRIOR YEARS IN THIS COMMITTEE
IS THE WAY THIS PARTICULAR
PROJECT STARTED WITH A DEADLINE
ON SPENDING FEDERAL FUNDS
AGAINST A REALLY TIGHT CLOCK.
THE AUTHORITY WENT INTO
CONSTRUCTION AT RISK. THIS IS
BACK IN 2013 AND 14. UH, AND AS
A RESULT, SOME OF THE RIGHT OF
WAY AND UTILITY RELOCATION
PROBLEMS CAUSE DELAY AND THAT
DELAY CAUSED COST AND THE GOOD
NEWS IS WE'RE AT THE END OF TAIL
END OF THAT PROCESS IN THE
CENTRAL VALLEY AND FOR OUR
EXTENSION CONSTRUCTION CONTRACTS
FOR MERCED AND BAKERSFIELD. WE
WILL NOT START CONSTRUCTION
UNTIL THE RIGHT WAY AND THE
UTILITIES ARE ENTIRELY MOVED. SO
THAT LESSON HAS BEEN A PAINFULLY
LEARNED. WE ARE ALSO ADVANCING
THE DESIGN WORK ON FOUR STATIONS
IN THE CENTRAL VALLEY, UH,
COLLABORATING CLOSELY WITH
OFFICIALS AND STAKEHOLDERS ON
PRE RAIL ACTIVITIES, GATHERING
FEEDBACK FOR SUCCESSFUL STATION
SITE, UH, PLANNING. UH, OUR
SCHEDULE IN THIS REGARD FOR BOTH
THE B, UH, FOR ALL OF THE
BAKERSFIELD, UH, KINGS TULARE,
UH, MERCED AND FRESNO STATIONS
ALL UNDER DESIGN RIGHT NOW. WE
EXECUTED THAT CONTRACT AND MARCH
OF 2023. WE COMPLETED HIGH LEVEL
DESIGN CONCEPTS ON ALL FOUR. IN
NOVEMBER OF 2020 THREE. I THINK
SOME OF YOU WERE ABLE TO COME
OUT TO THE CAL EXPO EXHIBITION
CENTER AND SEE, UH WHAT WE'RE
DOING ON THE STATION DESIGN IN
EACH OF THE FOUR CITIES IN THE
CENTRAL VALLEY, BUT WE'RE
GETTING TO CONTINUE THAT DESIGN
WORK IN 24 TO GET TO A SCHEMATIC
DESIGN PHASE WHERE WE WERE FINE
WITH GREATER ARCHITECTURAL
DETAIL THE DRAWINGS THEY GET TO
ABOUT 30% DESIGN. UH AND THEN
WE'LL WE'LL GET READY FOR THE
NEXT NOTICE TO PROCEED, WHICH IS
TO ADVANCE THOSE DESIGNS FURTHER
AND WE ARE PURSUING FEDERAL
FUNDS FOR THE DESIGN OF ALL FOUR
OF THOSE STATIONS. UH, THAT'S
KIND OF THE CENTRAL VALLEY NOW
IN NORTHERN CALIFORNIA, WHICH IS
ROUGHLY 100 AND 59 MILE STRETCH
BETWEEN MERCED, UM AND, UH, SAN
JOSE AND SAN FRANCISCO. WE'VE
COMPLETED THE ENVIRONMENTAL
CLEARANCE. UH FOR ALL OF THAT,
UH, SEGMENT FROM MERCED INTO,
UH, DOWNTOWN SAN FRANCISCO. WE
ARE CO FOUNDERS OF THE
ELECTRIFICATION OF THE WHAT'S
CALLED THE CAL TRAIN CORRIDOR
ALONG THE PENINSULA FROM SAN
FRANCISCO TO SAN JOSE. WE'VE
INVESTED ABOUT $714 MILLION IN
THAT PROJECT ALONG THE CALEN
CORRIDOR. THAT PROJECT IS
SCHEDULED TO OPEN IN FALL OF
2024. WE ARE WORKING. MOSTLY ON
WITH LOCAL, UH OFFICIALS ON TWO
MAJOR STATION PROJECTS IN THE
BAY AREA, INCLUDING WHAT'S KNOWN
AS THE PORTAL OR THE DOWNTOWN
EXTENSION PROJECT LINKING THE
RAIL LINE TO THE SALES FORCE. UH
TRANSIT CENTER. WHAT IT USED TO
BE CALLED THE TRANS BAY JOINT
POWERS ARE THE TRANS BAY. UH,
JOINT, UH, TRANSIT CENTER. AND
IN SAN JOSE. WE'RE WORKING
CLOSELY WITH OUR PARTNERS ON THE
, UM, DEVELOPMENT OF THE DEREON
INTEGRATED CONCEPT PLAN FOR
TRANSFORMING THE DEON STATION
INTO AN INTERMODAL HUB. THAT
WILL, UH, RECEIVE SERVICES FROM
VÆ Tð, A IN SAN JOSE. AMTRAK UH,
BART, HIGH SPEED RAIL. UM AND
AMI MISSING ONE. THAT'S ALL OF
THEM. BUT UH, SEVERAL, UH AND CT
, OF COURSE, SEVERAL SERVICE
PROVIDERS COMING TO A SINGLE
STATION IN SAN JOSE, AND WE ARE
ACTIVELY SEEKING ADDITIONAL
FUNDING FOR DESIGN WORK AND
GEOTECHNICAL STUDIES IN THE
PACHECO PASS TO LINK THE CENTRAL
VALLEY. UH, WITH THE WITH THE
BAY AREA. AND SO THOSE ARE AGAIN
THE ADVANCED DESIGN DOLLARS OUR
FUNDS THAT WE ARE PURSUING
THROUGH FEDERAL GRANTS. UH, AS
WE SPEAK. IN SOUTHERN CALIFORNIA
. OUR FOCUS IS ON BOTH WORKING
WITH THE REGIONAL LOCAL ENTITIES
ON JOINT BENEFIT INFRASTRUCTURE
THAT WE ARE INVESTING IN. UH AND
COMPLETING THE ENVIRONMENTAL
CLEARANCE FOR ALL OF THAT
SEGMENT SOUTH OF BAKERSFIELD.
UM, TODAY ABOUT 92 MILES OF THE
164 R ENVIRONMENTALLY CLEARED AS
I MENTIONED, WE WILL BE GOING
BEFORE OUR BOARD TO CLEAR THE
PALMDALE TO BURBANK SEGMENT IN
JUNE, AND WHEN THAT IS CLEARED
AGAIN, ALL OF DOWNTOWN SAN
FRANCISCO TO DOWNTOWN LOS
ANGELES WILL BE ENVIRONMENTALLY
CLEARED. WE ARE FUNDING PARTNERS
WITH L, A METRO ON THE ROSECRANS
MARQUA GRADE SEPARATION, WHICH
AT ONE TIME WAS THE MOST
DANGEROUS. SEPARATION IN THE
STATE OF CALIFORNIA, AND WE THAT
IS WELL UNDER CONSTRUCTION NOW,
UH THAT CONSTRUCTION WILL BE
COMPLETED IN EARLY 25, AND IT
ESSENTIALLY LIKE ALL GRADE
SEPARATIONS WILL SEPARATE THE
CARS AND PEDESTRIANS FROM, UH,
FREIGHT AND PASSENGER RAIL
TRAFFIC. UM, SO THAT THAT
PROJECT IS MOVING FORWARD. UH,
AND AS I MENTIONED THE
ENVIRONMENTAL, UH, DRAFTS DOWN,
THERE ARE BOTH POM BELL TO
BURBANK AND IN 2025, WE'LL
COMPLETE LOS ANGELES, UH TO
ANAHEIM. ALSO I SHOULD MENTION
WITH THE FUNDING OF THE BRIGHT
LINE PROJECT WITH THE FEDERAL
GOVERNMENT ASSISTANCE THIS YEAR.
WE'RE ALSO WORKING LOOKING
FORWARD IN 2024 TO WORK CLOSELY
WITH BRIGHT LINE IN THE HIGH
DESERT CORRIDOR JOIN POWERS
AUTHORITY ON WORKING ON A
CONNECTION SITE FOR THE TWO
SERVICES, UH, LIKELY IN THE
PALMDALE OR VICTORVILLE AREA,
UM, FOR THE TWO SERVICES TO
CONNECT. I N TERMS OF FUNDING
THE PROGRA MME. UH THIS CHART IS
DESIGNED TO GIVE YOU A SENSE OF,
UH, WHERE OUR FUNDING IS AND HOW
WE GET TO THE FUNDING. WE NEED
TO COMPLETE THE PROJECT THE
AUTHORITY COMMITTED TO SECURING
FUNDING FOR THE MERCED TO
BAKERSFIELD EXTENSIONS. THOSE
FUNDING EFFORTS INCLUDE 4.2
BILLION FROM THE PROPOSITION
ONE. A, UH, AN ADDITIONAL FUNDS
FROM THE CAP AND TRADE
ALLOCATIONS. IN 2022 AND 2020
THREE, WE DEVELOPED A STRATEGY A
FIVE YEAR STRATEGY TO SECURE 8
BILLION IN FEDERAL FUNDS AGAIN
OVER A FIVE YEAR PERIOD. IN 2020
THREE, WE ACHIEVED THREE POINT
THREE BILLION OF THOSE FEDERAL
FUNDS, AND WE CONTINUE TO SEEK
ANOTHER 4.7 BILLION FROM THE
FEDERAL STATE PARTNERSHIP
PROGRAM AND FROM OTHER UH
BIPARTISAN INFRASTRUCTURE LAW
PROGRAMS, UH, THAT ARE AVAILABLE
, UM CURRENT AND PROJECTED
FUNDING FOR US AT THIS POINT
BETWEEN NOW AND 2030. IS BETWEEN
27 BILLION AND 30.5 BILLION,
ASSUMING DIFFERENT FUNDING
SCENARIOS FOR CAP AND TRADE,
WHICH LEADS A FUNDING GAP FOR
THE MERCE TO BAKERSFIELD, UM,
STRETCH OF BETWEEN FIVE AND
SEVEN A BILLION DOLLARS AND
AGAIN WE'RE PUSHING HARD FOR
ADDITIONAL FEDERAL FUNDS FOR
THAT, UM, TO GET THAT THAT WORK
COMPLETED. THIS IS KIND OF A
BUSY CHART. BUT LET ME JUST TELL
YOU WHAT'S GOOD ABOUT IT.
ANYTHING THAT'S GREEN IS GOOD.
AND SO THIS CHART, UH SHOWS BOTH
THE PHASES OF THE PROJECT ON THE
LEFT COLUMN. YOU SEE THE CITY'S
MERCED, MADERA, FRESNO KINGS
POPLAR AVENUE IN BAKERSFIELD. WE
ARE CURRENTLY, UH, UNDER
CONSTRUCTING THE 919 MILES ON
THE MIDDLE CITIES OF MADERA,
FRESNO, KINGS, TULA AND POPLAR
BECAUSE THAT'S THE STRETCH THAT
WE GOT INITIAL FEDERAL FUNDING
FOR THEN WE, UH BECAUSE WE
WANTED TO GET OUT OF GET INTO
THE CITIES OF THE CENTRAL VALLEY
. THE NEWSOM ADMINISTRATION
PUSHED FOR EXTENDED PROJECT IN
THE VALLEY CONNECTING MERCED,
FRESNO AND BAKERSFIELD. UM, WE
DEVELOPED A STRATEGY TO GET
FEDERAL FUNDING TO ADVANCE THAT
PROJECT. UM IN 2023 THAT SQUARE
ON THE LEFT. UH THE ALL THE
COLORS NON GREEN WERE UNFUNDED,
UH, WITH THE ADVANCED, UH, THE
WORK THAT WE HAD WITH THE
FEDERAL GOVERNMENT, UH, DURING
THE COURSE OF THE LAST 11
MONTHS, YOU MANY OF THE MUCH OF
THE WORK, UH, TO GET THE
ENTIRETY OF THE MERCE
BAKERSFIELD STRETCH COMPLETED,
UH, AS TURN GREEN, INCLUDING, UH
, BUYING TRAIN CARS, ADVANCING
DESIGN AND RIGHT AWAY FOR THE
EXTENSIONS, UH, TO MERCED IN
BAKERSFIELD AND FOR SOME
ADDITIONAL CAPITAL WORK IN
MERCED IN BAKERSFIELD AS WELL.
SO WE HAD A VERY GOOD YEAR IN
2023. AND OBVIOUSLY, THAT NEEDS
TO CONTINUE TO GET THAT ENTIRETY
OF THAT CHART. GREEN. THE
FEDERAL INVESTMENTS THAT WE DID
RECEIVE IN DECEMBER ARE FOR
DISTINCT PROJECT ELEMENTS. UM
THE 3.1 BILLION FEDERAL GRANT
WAS TO FUND SIX ELECTRIC TRAINS
PROTESTING IN USE. WE HAVE
QUALIFIED TWO BIDDERS FOR TO
MANUFACTURE THOSE TRAINS. UH,
WE'LL BE GOING TO OUR BOARD WITH
A REQUEST FOR PROPOSALS IN APRIL
, UM AND WE LOOK FORWARD TO
AWARDING THE CONTRACT LATER IN
2024 SOMETIME AROUND THE THIRD
QUARTER OF 2024. THEY FUNDED
DESIGN AND CONSTRUCT. OF TRAIN
SET FACILITIES. UH, THEY FIND IT
THE DESIGN AND CONSTRUCTION OF
THE FRESNO DOWNTOWN FRESNO
STATION, FINAL DESIGN AND RIGHT
AWAY ACQUISITION FOR THE MERCED
AND BAKERSFIELD EXTENSIONS AND
CIVIL WORKS. TRACTION POWER
TRACK OVERHEAD CATENARY SYSTEM
IN THE SYSTEMS FOR THE BAKER
FIELD. BAKERSFIELD INTERIM
EXTENSION, WHICH IS 13 MILES
INTO THE 18 MILE EXTENSION TO
DOWNTOWN BAKERSFIELD. AND SO
THAT WAS THE, UH, THAT'S THE
DESIGNATION FOR THE USE OF THE
3.1 BILLION WE RECEIVED IN, UH,
DECEMBER. IN TERMS OF THE
CAPITAL COSTS FOR THE PROJECT
FOR ALL OF PHASE ONE, WE
ARTICULATE FIRST THE TOP ROAM
ARE SAID TO BAKERSFIELD, A BASE
AND A HIGH ON THE COST.
ESTIMATES WERE SAID TO
BAKERSFIELD IS WHAT WE KNOW THE
MOST ABOUT BECAUSE IT'S ENTIRELY
ENVIRONMENTALLY CLEARED. IT'S IN
ADVANCED DESIGN, AND MUCH OF IT
IS ALREADY IN CONSTRUCTION. SO
WITH THAT ONE, IT'S A REALLY A
PROBABILITY HIGH PROBABILITY IN
TERMS OF THE COST RANGES FOR
NORTHERN AND SOUTHERN
CALIFORNIA. UH, WE'RE STILL IN
THE EARLY PHASES OF THAT PROJECT
. AS I MENTIONED THE
ENVIRONMENTAL WORK IS DONE IN
THE NORTHERN CALIFORNIA, UH,
SEGMENT, UH, BUT WE HAVE NOT YET
IT STARTED ADVANCED DESIGN WORK.
WE NEED FEDERAL FUNDING TO DO
THAT. AND IN SOUTHERN CALIFORNIA
, WE ARE FINISHING THE
ENVIRONMENTAL WORK WITH THE TWO
SEGMENTS I MENTIONED BEFORE THE
TOTALITY IN TERMS OF THE LOW
BASE AND HIGH COST RANGES. UM
100 AND SIX IS THE BASE 100 AND
27 IS YOUR HIGH AS WE FINISH
PALMDALE AND BURBANK, UH, IN
SUMMER 24 AND THE L A TO
ANAHEIM. COST UPDATE IN THIS OR
SORRY. THE ENVIRONMENTAL
DOCUMENT IN DECEMBER 25. WE WILL
ADJUST THOSE COST ESTIMATES FOR
THOSE TWO SEGMENTS AND BECAUSE
IT'S BEEN SO MUCH TIME IN THE
ENVIRONMENTAL DOCUMENT INCLUDES
DIFFERENT, UH, ALIGNMENT CHANGES
. UH, COMMITMENTS ON MITIGATION.
IT DOES PUSH THE COST HIGHER. SO
THIS CHART WILL MOVE A LITTLE
BIT TO THE RIGHT BUT WE EXPECT
TO BE WITHIN THE RANGE STILL ON
THE, UH, AFTER THE COMPLETION OF
ALL THE ENVIRONMENTAL WORK FROM
SAN FRANCISCO TO ANAHEIM. UH,
AND THEN THIS SLIDE IS JUST
INTENDED TO SHOW AGAIN, EVEN AT
A COST OF BETWEEN SOMEWHERE
AROUND 100 AND SIX AND 100 AND
$28 BILLION THAT HIGH SPEED RAIL
. THERE'S TWO THINGS ABOUT THAT
COST ESTIMATE THAT I THINK IT IS
IMPORTANT TO KNOW. ONE IS
GENERALLY IN LINE WITH THE COST
FOR HIGH SPEED RAIL AROUND THE
WORLD, UM AND COMPARED TO GET
THE SAME CAPACITY BENEFITS OUT
OF YOUR TRANSPORTATION SYSTEM.
UH THE NUMBER OF HIGHWAYS THAT
WOULD HAVE TO BE EXPANDED, OR
THE NUMBER OF, UH, AIRPORTS THAT
WOULD HAVE TO BE EXPANDED. COST
OF DOING THOSE OTHER THINGS
WOULD STILL, UH FAR EXCEED THE
COST OF THE HIGH SPEED RAIL. UH,
ALTERNATIVE THAT WE ARE, UH,
PURSUING HERE, AND THOSE OTHER
THINGS WOULD PROVIDE MUCH LESS
IN THE WAY OF THE ENVIRONMENTAL
AND MOBILITY. UH, BENEFITS. UH,
LASTLY, THIS CHART IS JUST
DESIGNED TO, UH, DESCRIBE SOME
OF THE, UH, REDUCTIONS THAT
WE'VE SEEN IN EMISSIONS BOTH
DURING CONSTRUCTION AS WE
ANTICIPATE, UH, IN OPERATIONS
AND WHAT WE'VE SEEN, UH,
ECONOMICALLY FROM THE, UH,
ADVANCEMENT OF JOBS IN THE
CENTRAL VALLEY, AND SO IN THAT
THAT TOP LINE IS JUST IN THE
WORK THAT WE'RE DOING IN THE
VALLEY. THE MIDDLE COLUMN UH,
CONSISTENT WITH THE REDUCTIONS
OF G HÌ GG HÌ G EMISSIONS UNDER
A B AND S¼ B 32. WE'VE AVOIDED
100 AND 23,000 METRIC TONS OF
èC Ó TWO EMISSIONS THROUGH
RECYCLING AND REUSE DURING
CONSTRUCTION. WE'VE OFFSET OTHER
G HÌ G EMISSIONS THROUGH
PLANTING MORE THAN 7000 TREES IN
THE CENTRAL VALLEY, AND WE
SEQUESTERED THE 272 METRIC TONS
OF CO. TWO THROUGH HABITAT AND
AGRICULTURAL LAND CONSERVATION.
ONCE AN OPERATIONS. THE PHASE
ONE SYSTEM IS EXPECTED TO REDUCE
CO TWO EMISSIONS BY 600,000 TONS
ANNUALLY. I N TERMS OF OTHER
BENEFITS AND OTHER EMISSIONS. UM
WE'VE ARE CLEAN CONSTRUCTION
REQUIREMENTS, INCLUDING THE
CLEANEST USING THE CLEANEST
AVAILABLE TECHNOLOGY ON
CONSTRUCTION, UH, EQUIPMENT. UM
AS REA HAS LED TO REDUCTIONS IN
REACTIVE ORGANIC GASSES,
PARTICULAR MATTER, BLACK, CARBON
AND NITROGEN, NITROGEN OXIDE OR
NOX, AND WE'VE AVOIDED £500,000
OF AIR POLLUTANT SINCE THE START
OF CONSTRUCTION. AGAIN THROUGH
THE REDUCTION OF VÆ, M, Tð AND
AIR TRIPP. REPLACEMENT UH 1400
TONS OF CRITERIA. AIR POLLUTANT
REDUCTIONS WILL ALSO OCCUR
ANNUALLY. AND THEN FINALLY, UH,
WE'VE TALKED A BIT ABOUT THE JOB
CREATION IN THE CENTRAL VALLEY
BUT CONSISTENT WITH OTHER
DIRECTIVES TO GET ECONOMIC
BENEFITS OUT OF GREENHOUSE GAS.
UH GAS PRODUCTION FUND DOLLARS.
WE'VE DELIVERED 220 MILLION IN
WAGES TO DISADVANTAGED WORKERS.
THOUSANDS OF THOUSANDS OF LIVING
WAGE JOBS FOR THE MORE THAN 65%
OF WORKERS WHO LIVE IN
DISADVANTAGED COMMUNITY AND WORK
ON THIS PROJECT. WE'VE INVESTED
A TOTAL OF 5.5 BILLION IN
DISADVANTAGED COMMUNITIES MORE
THAN 50% OF OUR TOTAL INVESTMENT
, AND WE'VE EMPLOYED SOME 215
SMALL BUSINESSES LOCATED IN
DISADVANTAGED COMMUNITIES ON
THIS PROJECT. MM. SO AGAIN. I N
TERMS OF MEETING THE SUITE OF
OBJECTIVES, UH, FROM THE GEEK
GREENHOUSE GAS REDUCTION FUND.
WE THINK THIS PROJECT HAS DONE
QUITE WELL. THE OTHER UPDATE
THAT WE PROVIDE IN THIS BUSINESS
PLAN IS TIED TO OUR RIDERSHIP
PROJECTIONS. UH UH UH UH, AS IN
HOW MANY OF YOU KNOW, UH,
TRANSIT RIDERSHIP THROUGHOUT THE
COUNTRY AND IN CALIFORNIA WAS
HURT SIGNIFICANTLY. UH UH, WHEN
COVID CAME ALONG, AND OBVIOUSLY
IT'S REALLY CHANGED. THE UH, THE
PATTERN OF, UH, COMMUTE, UH,
STILL FOR LESS WORKERS THAT
GENERALLY GOING INTO THE OFFICE
ON DAYS PER WEEK. UH AND SO ALL
TRANSIT RIDERSHIP HAS BEEN
REDUCED A BIT, AND WE REPORTED
THAT EXTENSIVELY IN THE PROJECT
UPDATE. WE DO SEE SOME COME BACK
IN RIDERSHIP, OBVIOUSLY, FOR AIR
TRAVEL, UH AND ALSO LESS ON THE
COMMUTER SYSTEMS, BUT A LITTLE
BIT MORE ON INTERCITY OR LONGER
TERM RAIL. UH, PASSENGER RUNS.
AND SO WE'VE UPDATED FROM THE
PER FOR OUR VALLEY TO VALLEY AND
PHASE ONE RIDERSHIP PROJECTIONS
YOU SEE ON VALUE TO VALLEY. WE
ARE STILL AROUND 12 MILLION
WRITERS, UH, PROJECTED A YEAR
AND ON, UH, PHASE ONE SAN
FRANCISCO TO L A JUST UNDER 30
MILLION RIDERS PER YEAR, UH, ON
THAT SYSTEM AND JUST TO GIVE YOU
SOME CONTEXT ON THAT, UM, THE
INNER CITY PASSENGER SYSTEM
AMTRAK THAT RUNS THROUGH THE
NORTHEAST CORRIDOR, WHICH IS
REALLY THE BUSIEST INNER CITY
CORRIDOR IN THE COUNTRY. UH,
THAT CARRIES ABOUT 12 MILLION
WRITE. PER YEAR. UH, TODAY, UH,
ON THE INNER CITY SYSTEM, THEY
CARRY OTHER PASSENGERS ON THE
LOCAL SERVICES BUT ON THE INNER
CITY SYSTEM THEY CARRY ABOUT 12
MILLION. SO THAT GIVES YOU SOME
SENSE OF HOW, UH, WE VALUE TO
VALLEY SERVICE WILL BE, UH,
MATCHING THAT SYSTEM AND THEN
PHASE ONE ABOUT 2.5 TIMES OF THE
SIZE OF THAT SYSTEM IN TERMS OF
RIDERSHIP. THERE ARE RISKS THAT
WE TALK ABOUT IN THIS PROJECT
UPDATE REPORT, INCLUDING SOME OF
OUR ACHIEVEMENTS. WE IMPROVED
AND ACCELERATED OUR PARCEL
ACQUISITION, WHICH AT ONE TIME
WAS A HUGE RISK IN THE CENTRAL
VALLEY. WE RESOLVED MOST OF THE
MAJOR COMMERCIAL ISSUES THAT
WERE CHALLENGES BETWEEN THE
AUTHORITY. UH AND THE
CONTRACTORS ON CONSTRUCTION IN
THE VALLEY. WE SET A LITIGATION
WITH THE BURBANK GLENDALE
PASADENA AIRPORT. UH, WE HAVE
STAY AGREEMENTS IN PLACE WITH
TWO BAY AREA CITIES THAT
CHALLENGED OUR ENVIRONMENTAL
DOCUMENT THAT WE ARE ACTIVE
SETTLEMENT NEGOTIATIONS ON THOSE
AND I N THE CENTRAL VALLEY WE
COMPLETED, UH, WORK WITH THE
SEMI TROPIC WATER STORAGE
DISTRICT ON A CANAL REALIGNMENT
IN KERN COUNTY THAT NOW OPENED
UP. UH, THAT PART OF OUR, UH,
ALIGNMENT THROUGH THROUGH THE
CENTRAL VALLEY. OUR TOP RISK
GOING FORWARD, WHICH ARE NÓ
SURPRISE TO ANY OF YOU, UH,
FUNDING UNCERTAINTY, WHICH
REMAINS, UH, SOMETHING IMPORTANT
TO US STABILIZING THE FUNDING
FOR THIS PROJECT, A THIRD PARTY
MANAGEMENT JUST WORKING WITH
UTILITIES, FREIGHT, RAIL ROADS,
CITIES AND COUNTIES AND OTHERS,
UH, TO REACH AGREEMENTS IN
ADVANCE THE PROJECT. A WORKFORCE
PLANNING IN TERMS OF, UH, MAKING
SURE THAT THE CAPACITY OF THE
AUTHORITY CAN MEET THE EXPANDING
AND DYNAMIC NEEDS OF THE PROJECT
AS WE GO FORWARD, AND AS THE
PROJECT MOVES FROM CONSTRUCTION
TO OPERATIONS, IT'S IMPORTANT
THAT WE, UH INTEGRATE, UH, THE
MANAGEMENT OF THOSE TWO ENTITIES
INTO, UH, A SINGLE MANAGEMENT
TEAM AT THE AUTHORITY, AND WE
WORK ON THAT, UH, EVERY DAY. I
N TERMS OF WHAT'S NEXT. UH THAT
WE IDENTIFY. I N THE BUSINESS
PLAN AGAIN. WE'RE WORKING TO
FINISH THE CONSTRUCTION PACKAGES
IN THE VALLEY. UM FOR THE BOTH
THE MERCED AND BAKERSFIELD
EXTENSIONS. WE'RE GONNA CONTINUE
TO ADVANCE THE ENVIRONMENTAL
REVIEW WORK AND GET THAT
COMPLETED FOR ALL OF THE PHASE
ONE SYSTEM, ADVANCING
COLLABORATIVE PROJECTS IN
NORTHERN AND SOUTHERN CALIFORNIA
REGIONS. UH, WE WANNA EXECUTE
THE PROCUREMENTS THAT ARE IN
FRONT OF US TO ADVANCE. THE
WHOLE SYSTEM, INCLUDING THE
TRAIN SETS, THE TRACKING SYSTEMS
AND WHAT'S CALLED THE OVERHEAD
CAT AND E OR CONTACT AND
CONTINUE TO WORK ON STATION
DESIGNS AND ADVOCATE FOR
ADDITIONAL FEDERAL FUNDING. OUR
GOAL REMAINS AS IT WAS IN THE
PROJECT UPDATE REPORT. YOU HAVE
AN ELECTRIFIED OPERATING SEGMENT
BETWEEN 2030 2030 THREE, AND
JUST LASTLY, ON THE PROCESS.
WE'RE OUT ON THIS PLAN. WE
RELEASED THE DRAFT ON FEBRUARY
9TH. WE HAD OUR BOARD HEARING
WHERE BEFORE YOU TODAY WILL BE
BEFORE THE SENATE TOMORROW, BACK
TO OUR BOARD MEETING TO REVISE
THE DRAFT AND ISSUE THE FINAL
BUSINESS PLAN. UH ON MAY 1ST AND
WITH THAT, UH, MADAM CHAIR AND
MEMBERS. I'M HAPPY TO ANSWER ANY
QUESTIONS. THANK YOU. THANK YOU,
MR KELLY. I'M MOVING OVER TO
MEMBERS TO SEE IF THERE ARE ANY
QUESTIONS. A SIMILARLY MEMBER
CRIO. THANK YOU, MR KELLY. FOR
THAT PRESENTATION, UM, ON PAGE
TWO OF THE PRESENTATION YOU
IDENTIFY SOME HE RISK FACTORS IN
THE 2024 BUSINESS PLAN. DO YOU
RECALL WHAT THE WHAT THOSE KEY
RISK FACTORS WERE OR ARE THOSE
THE ONE AT THE END OF YOUR
PRESENTATION? I CAN YOU? I'M
SORRY. CAN YOU JUST ASK THAT
AGAIN ON WHICH WHICH SLIDE WERE
YOU IN? PAGE TWO. SECOND SLIDE
2024 BUSINESS PLAN. YOU SAID
THAT THERE WAS, UH, BULLET POINT
NUMBER THREE. THERE WERE SOME
KEY RISK FACTORS IN THE IN THAT
PLAN IN 2023. BUT THEN A Tð THE
END OF THE PRESENTATION, YOU
MENTION SOME RISK FACTORS? I DID
. I JUST WONDERED. THEY HAVE THE
SAME FROM 2023. OR THESE ARE THE
ONES FROM YEAH. THEY ARE PRETTY
MUCH THE SAME. BUT LET ME TELL
YOU WHAT WE DO. WE HAVE AN
EXECUTIVE RISK COMMITTEE WITHIN
THE AUTHORITY AND ENTERPRISE
RISK COMMITTEE WITHIN THE
AUTHORITY. AND IN THAT PROCESS
EACH YEAR, UH, BETWEEN OUR
PROGRAM GROUP, OUR PROJECT
CONTROLS TEAM. UH, WE COME
TOGETHER AND WE IDENTIFY THE KEY
RISKS. UH BEFORE US, UH, AND
THIS IS DISCUSSED IN CHAPTER
FOUR OF THE BUSINESS PLAN, BUT
WE IDENTIFIED THE KEY RISK THAT
BEFORE US THAT I NEED OUR
ATTENTION AS WE GO THROUGH THE
CALENDAR YEAR, AND WE RE UP THAT
ON AN ANNUAL BASIS AND SO ON
PAGE 76 OF THE BUSINESS PLAN WE
LIST ALL 13 KEY RISK FACTORS
THAT WE ARE MANAGING. UH, WHAT I
MENTIONED IN MY TESTIMONY
EARLIER. WE'RE SORT OF THE TOP
THREE OR FOUR THAT WE ARE
DEALING WITH, AND FUNDING
UNCERTAINTY IS CLEARLY THE TOP
ONE. AND THEN IT'S A SCHEDULE
MONITORING AND MANAGING, UH,
THIRD PARTY MANAGEMENT.
STAKEHOLDER ENGAGEMENT WORKFORCE
. PLANNING UH UH, PROCUREMENT
PLANNING MICROECONOMIC IMPACTS.
THERE'S UH, SEVERAL THINGS THAT
WE MANAGE. AS WE GO THROUGH THIS
AND AGAIN WE DISCUSS THOSE IN
CHAPTER FOUR OF THE BUSINESS
PLAN, AND WE PUT IN PLACE A
MANAGEMENT AND INTERVENTION
STEPS TO MANAGE THOSE. RISKS AND
SO I THINK WHAT MY REFERENCE IN
THE PRESENTATION WAS JUST TO
THAT PROCESS AND IDENTIFYING THE
TOP THREE OR FOUR RISK THAT WE
HAVE. THANK YOU FOR THAT. AND
THEN ON A SLIDE NUMBER 18 THE
WORKFORCE PLANNING ON THE TRIP
THAT WE DID TO FRESNO, UH, WE
HAD AN OPPORTUNITY TO GO TO THE,
UH, TRAINING CENTER IN SELMA,
WHICH IS DOING A GREAT JOB. IN
MY OPINION. UH, THEY'RE TRAINING
. UM THOSE YOUNG KIDS, UH,
COMING OUT OF SCHOOL WHO DON'T
WANT TO GO TO COLLEGE èC Tð
PROGRAMS AND THE TRAINING FOR
THE SPECIFICALLY TO THE HIGH
SPEED RAIL. UH, ON THAT PAGE
NUMBER 18 SLIDE 18 YOU ARE
SAYING THAT THE TOPICS ALSO
INCLUDE THE WORKFORCE PLANNING.
UH CAN MAYBE YOU'RE NOT THE
RIGHT PERSON TO TALK ABOUT THIS
PROGRAM, BUT IN EUROPEAN IS A
PROGRAM THAT HAS BEEN EFFECTIVE
AND YOU THINK THE CONTINUATION
OF THOSE PROGRAMS ARE GONNA BE
THE KEY TO CONTINUE THE
WORKFORCE PLANNING? YEAH I MEAN,
THE PROGRAM IN SELMA IS ACTUALLY
AN OFFSHOOT OF SOMETHING THAT
WAS STARTED WELL BEFORE I GOT
HERE, BUT IT WAS PART OF A
COMMUNITY BENEFITS AGREEMENT
THAT THE AUTHORITY INTO BACK IN
2013 FOR CONSTRUCTION AND THAT
INCLUDED, UH, TRAINING. UH,
LOCAL FOLKS, UH, TO GET INTO THE
LABORERS. UH UH UH UH,
APPRENTICESHIP PROGRAM AND
ULTIMATELY THROUGH THE BUILDING
TRADES AND INTO OTHER, UH,
PROGRAMS WHERE THEY CAN FIND
WORK NOT JUST ON THE HIGH SPEED
RAIL AUTHORITY BUT OTHER
CONSTRUCTION PROJECTS IN THE
CENTRAL VALLEY. SO WE STARTED
THAT IN THE VALLEY BECAME A NICE
FEEDER SYSTEM FOR THE
CONSTRUCTION WORK NEEDED IN THE
FRESNO AREA, AND THEN WE
EXTENDED THAT INTO MO. WE EXTEND
THIS PROJECT. UH FURTHER SOUTH.
AND UM, UH, WE HAVE, UH, SOUGHT
FROM TIME TO TIME FEDERAL MONEY
TO KEEP THAT GOING. BUT EVEN
WITHOUT THE FEDERAL MONEY WE ARE
WE HAVE EXTENDED THAT PROGRAM
AND WE WILL CONTINUE TO. WE
THINK IT'S THE RIGHT THING TO DO
. AND IT'S IMPORTANT THAT WE
HAVE A CONSTANT FEEDER OF, UH OF
WORK QUALIFIED WORKFORCE FOR THE
CONSTRUCTION WORK, I. I JUST SAY
THAT SO THOSE ARE IMPORTANT
PROGRAMS THAT WE SWEAR BY AND
THAT WE THINK ARE ARE NEEDED AND
EXCELLENT FOR THE WORK WE'RE
DOING IN THE FIELD. UM I WOULD
ALSO SAY THAT WORKFORCE PLANNING
EXTENDS A BROADER, UH, ALSO TO
THE CAPACITY OF THE ORGANIZATION
IN SACRAMENTO AND AROUND THE
STATE TO MAKE SURE THAT EVEN
WITHIN STATE SERVICES, WE HAVE
THE RIGHT CAPACITY AT THE
ORGANIZATIONAL LEVEL TO ADVANCE
ALL PARTS OF THE PRO PROGRAM AND
I THINK IT'S A GREAT PROGRAM.
TWO MORE QUICK THINGS ON THE
SLIDE PRESENTATION ON SLIDE
NUMBER NINE YOU TALKED ABOUT AND
SHOWED THE NORTHERN CALIFORNIA
PORTION OF THE PROJECT, AND THEN
THE SECOND SLIDE IS THE SOUTHERN
CALIFORNIA IS THAT THE NEXT
SEGMENT OF THE SYSTEM THAT IS TO
BE BUILT OR IS JUST A CONTINENT
THAT IT WAS JUST IN THAT ORDER.
UH, IT'S NOT NECESSARILY. I N
THE SEQUENCE THAT IT WILL BE
BUILT. I THINK WHAT WE'RE, UH,
LABORING TO DO IS, YOU KNOW, GET
OPERATIONAL IN THE CENTRAL
VALLEY AS WE FINISH ALL THE
ENVIRONMENTAL WORK IN SOUTHERN
CALIFORNIA AND TOWARD THE BAY
AREA. THE ENVIRONMENTAL WORK IS
ALREADY DONE, BUT WHAT WE'RE
TRYING TO DO IS GET TO ADVANCE
THE GEOTECHNICAL WORK AND THE
ADVANCED DESIGN WORK ON BOTH
ENDS. UH UH, WE HAVE, UH,
IDENTIFIED IN THE RAIL AUTHORITY
HAS IDENTIFIED FOR SOME YEARS.
THE EXTENSION INTO THE BAY AREA
IS THE LIKELY UM AND IT REALLY
COMES DOWN TO, UH, FUNDING COSTS
AND AVAILABLE REVENUE FOR WHERE
WE GO NEXT. BUT THE KEY THING
FOR US RIGHT NOW IS TO ADVANCE
THE DESIGN WORK ON BOTH OF THE
SEGMENTS WHERE THE ENVIRONMENTAL
WORK IS DONE, SO WE CAN REFINE
WHAT WE NEED TO DO THERE. GET
READY FOR, UH, CONSTRUCTION AND
FIND REVENUE TO FUND THOSE
ELEMENTS. AND I THINK WHICH WAY
WE GO FIRST IS LARGELY GOING TO
BE DETERMINED BY HOW EASY HOW
EASY IT IS TO GET THE FUNDING TO
GET IT DONE. BUT WE HAVE TO
ADVANCE THE WORK ON EVENTS. THE
OTHER THING THAT'S THAT'S
CHANGED A LITTLE BIT IS THE
EMERGENCE OF BRIGHT LINE, UH, IN
THE SOUTHERN CALIFORNIA REGION.
I THINK THERE'S AN EMPHASIS NOW
ON THE CONNECTING SERVICE DOWN
THERE AS SOON AS WE CAN POSSIBLY
DO IT, BUT THOSE ARE THINGS THAT
WE HAVE TO WORK THROUGH AS WE GO
FORWARD. IN YOUR PRESENTATION.
YOU ALSO MENTIONED A, UH, JOB
SET ON ROSS GRANTS. IS THAT IN L
? A YES, IT IS. CAN YOU
ELABORATE? A LITTLE BIT ABOUT
THAT? UH, PROJECT? YES SO THE
ROSECRANS MARQUA GRADE
SEPARATION AT ONE TIME WAS ON
THE STATE OF CALIFORNIA'S LIST
IS THE MOST DANGEROUS GRADE
SEPARATION IN CALIFORNIA WITH IN
TERMS OF ACCIDENTS, INJURIES AND
FATALITIES. UM SO YEARS AGO, UH,
THE AUTHORITY, UH, GOT INTO AN
AGREEMENT WITH BOTH THE NORTHERN
CALIFORNIA REGION IN THE
SOUTHERN THE ORIGINAL TO SPEND,
UH, WHAT WE CALL BOOK END
DOLLARS ON, UH, IMPROVEMENTS IN
THE REGIONS OUTSIDE OF THE
CENTRAL VALLEY AND IN SOUTHERN
CALIFORNIA BECAUSE THAT GREAT
SEPARATION WAS SO DANGEROUS. WE
DEDICATED ABOUT $80 MILLION TO
THAT. I THINK THE TOTALITY OF
THAT PROJECT IS ABOUT 100 AND 56
MILLION, SO WE FUNDED ROUGHLY
HALF OF IT. UH, THEY'RE WELL
INTO CONSTRUCTION. NOW. THE
PROJECT IS TO SEPARATE, UH, THE
ROAD TRAFFIC FROM THE FREIGHT
TRAFFIC. UM AND I BELIEVE THE
FIRST BRIDGE HAS OPENED ALREADY.
TO START THAT SEPARATION OF THE
TRAFFIC. THERE'S MORE WORK TO DO
TO COMPLETE ALL OF IT. AND THE
AND THE TOTALITY OF THAT PROJECT
WILL BE COMPLETED IN 2025. TWO
MORE THINGS. UH, AND I'M SORRY,
I SAID, TOO, BUT IT'S TWO MORE.
ON PAGE THREE ON PAGE THREE ON
THE TOP, UH, SLIDE NUMBER THREE.
YOU TALK ABOUT THE, UH, TARGET
SCHEDULE FOR EARLY OPERATION
SEGMENT. MERCE TO BAKERSFIELD
BETWEEN 2030 2033, BUT THE CAR
AND TRADE WILL EXPAND IN 2030, I
BELIEVE, AND, UH FURTHER ON YOUR
PRESENTATION. YOU TALK ABOUT HOW
CRITICAL THAT FUNDING WILL, UH,
IF WE GET IT EXTENDED, UH IS
THAT SOMETHING THAT IS GONNA BE
VERY CRITICAL FOR US TO EXTEND
THAT CAP AND TRADE AND ALSO, UH,
THE, UH, PROPOSITION ONE. A.
YES. SO UH, PROPOSITION ONE A,
UH, IN TERMS OF THE REVENUES
AVAILABLE TO THIS PROJECT. UM
THEY'RE KIND OF COMING TO THE
END. UH, THAT WAS A $9 BILLION
BOND BILL. I THINK BACK IN THE
BUDGET YEAR 2021. THE
LEGISLATURE, UH, APPROPRIATED
THE LAST 4.2 BILLION. WE'VE GONE
THROUGH ABOUT 2 BILLION OF THAT
4.2. THERE'S ROUGHLY 2.2 LEFT TO
GET AND I KNOW THAT THERE'S SOME
COMMUNICATION BACK AND FORTH
UNDER THAT, UH, THAT BUDGET BILL
AND THE LANGUAGE OF THAT BUDGET
BILL FOR HOW WE CAN ACCESS AND
ISSUE THOSE BONDS TO COMPLETE
THE WORK. BUT THE BOND DOLLARS
THE NATURE OF BOND FUNDS IS IT'S
REALLY ONE TIME MONEY AND THE
THING ABOUT CAP AND TRADE. IT'S
ONGOING AND IT IS THE ONLY
SOURCE OF ONGOING UH, DOLLARS
THAT THIS PROJECT HAS EVERYTHING
ELSE IS ONE TIME. AND SO AND WE
GET 25% OF THE ANNUAL AUCTION
REVENUES FROM CAP AND TRADE. IT
HAS BEEN VERY ROBUST THE LAST
TWO YEARS OVER THE LAST EIGHT
AUCTIONS. WE'VE WE'RE COMING IN
AT ABOUT A BILLION DOLLARS A
YEAR FOR THE PROJECT. THE LAST
THREE AUCTIONS WERE ABOUT A
BILLION 25. UH, IF YOU ANALYZE
THAT, AND SO IT'S BEEN ROBUST,
BUT IT'S ALSO HAD ROUGH TIMES
DURING COVID. THERE WAS ONE
AUCTION. WE GOT A MILLION
DOLLARS, SO IT'S. IT'S NOT. IT
IS SUBJECT TO SOME VOLATILITY.
UM, BUT, UH AS THAT IS THE ONLY
ONGOING SOURCE OF FUNDING. WE
HAVE THE EXTENSION OF THAT
SOURCE TO KEEP THIS PROJECT
GOING AND TO ALLOW US TO ACHIEVE
WHAT WE'RE TRYING TO ACHIEVE IN
TERMS OF GETTING THEM OR SAID TO
BAKERSFIELD EXTENSION A COMPLETE
IS ESSENTIAL. THINKING AND
LASTLY, I JUST WANNA LET YOU
KNOW THAT I CONTINUE TO BE
SUPPORTIVE OF THE PROJECT. THANK
YOU COUPLE OF WEEKS AGO, I HAD A
CHANCE TO GO TO Dð èC AND I MET
WITH SENATOR ALEX PADILLA FOR A
COUPLE OF OTHER, UH, CONGRESSMEN
THAT REPRESENT THE HIGH DESERT,
UH, TO THANK THEM FOR THEIR
EFFORTS IN GETTING THAT FEDERAL
FUNDING NOT ONLY FOR THE HIGH
SPEED RAIL PROJECT BUT ALSO FOR
BRIGHT LINE AND I'M UM, HAPPY TO
HEAR THAT YOU ARE WORKING WITH M
èC HOW THIS, UH, SYSTEMS CAN
INTEGRATE, UH, CONNECTING FUTURE
, UH, LINES. UH, ONCE WE GET
THIS GOING, UH, ANYWAY, SHE JUST
WANTED TO LET CONTINUE TO BE
SUPPORTIVE. I KNOW THAT WE ARE
TOUGH ON BUDGET THE WAY THAT IT
IS NOW, UH BUT IN MY OWN
PERSONAL BELIEF, I THINK THAT WE
SHOULD CONTINUE TO, UH SUPPORT
THIS PROJECT BECAUSE WE CANNOT
JUST LEAVE THAT INFRASTRUCTURE.
JUST BE THERE AND DO NOTHING
WITHOUT MÀ. I'M SURE THANK YOU.
THANK YOU FOR ALLOWING ME TO ASK
TOO MANY QUESTIONS. THANK YOU.
NOT TOO MANY. THANK YOU FOR, UH,
THE QUESTIONS THAT ALLOWED FOR
ROBUST UH UH BACK AND FORTH, UM,
TURNING IT OVER TO EDGAR CURRY.
GOOD AFTERNOON, AND I WANNA
THANK BOTH OF YOU FOR BEING HERE
TODAY. THANK YOU. UM, I REMEMBER
INITIALLY THIS WAS ON A ROCKY
ROAD. YOU'VE TURNED IT AROUND.
THERE'S LOTS OF WORK TO BE DONE.
AND I WANT TO JUST ACKNOWLEDGE
WHAT A GREAT JOB YOU'VE DONE.
UH, DESPITE THE UPS AND DOWNS
AND THE COVID AND EVERYTHING
ELSE. THANK YOU. I JUST WANNA
ACKNOWLEDGE A COUPLE OF THINGS,
UM, ON PAGE THREE OF YOUR
PRESENTATION SET TARGETED GOALS
FOR CRITICAL PROCUREMENT, SUCH
AS TRACK BLAH, BLAH, TRAIN SETS,
ET CETERA. AND THEN ALSO ON, UH
PAGE 13, A FUND ELECTRIC TRAINS
FOR TESTING AND USE. I JUST WANT
TO ASK ABOUT SOMETHING THAT'S AT
THE ELEPHANT IN THE ROOM ABOUT
WORKER PROTECTIONS BECAUSE OF
HER TROUBLING INFORMATION FROM
POTENTIAL. UH VENDORS. UH,
PARTICULARLY SEAMUS HAS REFUSED
A REQUEST TO MEET WITH THE STATE
BUILDING TRADES AND HAS A
HOSTILE HAS BEEN HOSTILE TO
OVERTURES TO COMMUNICATE WITH
THEIR EMPLOYEES. YOU KNOW, AS WE
BUILD SUCH MASSIVE PROJECTS,
RIGHT? I WANNA MAKE SURE THAT
THERE ARE PROTECTIONS TO MAKE
SURE OUR WORKERS HAVE A SAFE
WORKING CONDITIONS AND THE RIGHT
TO ORGANIZE. I'M ASKING THIS.
HOW WILL THE PROCUREMENT PROCESS
ENSURE THAT VENDORS ARE TREATING
THEIR EMPLOYEES FAIRLY? AND CAN
YOU HELP ENSURE THAT PRIOR TO
ANY AWARD THAT, UH, THAT ANY
CONTRACTORS ALLOWING TO WORKERS
TO EXERCISE THEIR RIGHTS TO
ORGANIZE AND THE WORKERS ARE
RECEIVING APPROPRIATE TREATMENT
AND COMPENSATION? UH, A COUPLE
OF THINGS ABOUT THAT. I THINK
YOU KNOW, WE SORT OF HAVE A
THREE PRONGED APPROACH. UH, FOR
HOW WE'VE WE'VE COME AT THIS
FROM FROM AN ORGANIZATIONAL
STANDPOINT FIRST AS I MENTIONED
IN THE CONSTRUCTION SPACE AND
BACK IN 2013, THE AUTHORITY
EXECUTED A COMMUNITY BENEFITS
AGREEMENT. UH, THAT COMMUNITY
BENEFITS AGREEMENT IS
ESSENTIALLY A PL A FOR THE
PROJECT, AND IT IT IT
ARTICULATES ESSENTIALLY A LABOR
WORKFORCE IN UH, THE
CONSTRUCTION OF THE PROJECT IN
NOVEMBER OF 2023 AS WE ARE
STARTING TO LOOK AT AND
TRANSITIONING INTO OPERATIONS
AND MAINTENANCE. UH I EXECUTED
AN AGREEMENT. UH, WITH OUR, UH,
WITH LABOR PARTNERS ON A
NATIONAL SCALE TO ENSURE THAT
PROTECTIONS THEY ARE AFFORDED
UNDER THE, UH UH UH, THE
RAILROAD RETIREMENT ACT AND THE
RAILROAD LABOR ACT BOTH FEDERAL
STATUTES, UH, THAT WE EXPECT THE
CONTRACTORS WE WORK WITH TO
ADHERE TO THE THOSE THOSE KINDS
OF, UH, THOSE STA. REQUIREMENTS
AND THOSE THINGS DO INCLUDE
LAYING OUT OF, FOR EXAMPLE, UM,
HOW YOU, UM HOW A FACILITY CAN
GAIN REPRESENTATION. THE PROCESS
FOR THAT THE HOW THEY THE, UH,
FACILITY OWNER MUST COMMUNICATE
WITH THE EMPLOYEES WHO ARE
INTERESTED IN REPRESENTATION,
AND THAT PROCESS IS SORT OF LAID
OUT AND THE IS LAID OUT IN THOSE
FEDERAL STATUTES. AND SO THOSE
ARE PART OF WHAT WE DO IN THE
OPERATION AND MAINTENANCE SIDE.
ON THE MANUFACTURING SIDE OF THE
TRAIN. SPECIFICALLY IT'S A IT'S
CANDIDLY A LITTLE TRICKIER, UH,
BECAUSE THERE'S NOT THOSE
SPECIFIC STATUTES DON'T
NECESSARILY APPLY TO THE
MANUFACTURING. UH PART UM, BUT
THAT SAID, AS WE ARE GETTING
INTO THIS RFP, WE ARE, UH,
TAKING PART IN WHAT'S CALLED
THE, UH, UNITED STATES
EMPLOYMENT PLAN, AND THE UNITED
STATES EMPLOYMENT PLAN IS A
VOLUNTARY PROGRAM. UH, WHERE WE
ASK QUESTIONS IN THE RFP PROCESS
ABOUT, UH, THE LABOR FORCE THAT
BE USED ON THE PROJECT WHERE THE
PROJECT WILL BE WHERE THE TRAINS
WILL BE MANUFACTURED. WHAT KIND
OF TRAINING IS AVAILABLE TO
THOSE EMPLOYEES WERE THOSE
EMPLOYEES COME FROM? AND THERE
CERTAINLY IS AN EXPECTATION FROM
THE AUTHORITY STANDPOINT. THAT
ANY CONTRACTOR WORKING WITH US
WHETHER IT'S IN CONSTRUCTION
MANAGEMENT OR OR OPERATIONS AND
MAINTENANCE OR THE MANUFACTURE
OF TRAINS, UH, THAT THEY HAVE TO
RESPECT THE FEDERAL RIGHTS THAT
EMPLOYEES HAVE TO GAIN
REPRESENTATION. AND SO THOSE
THINGS ARE ARE WILL BE NON
NEGOTIABLE THINGS WITH THE
AUTHORITY. UH AND AS I SAID,
WE'VE ENTERED CONTRACTS TO MAKE
THAT SO AND SO IN OUR RP PROCESS
, WE'RE RELYING ON THE U S¼
EMPLOYMENT PLAN. UM, WE WILL GET
INFORMATION FROM THE QUALIFIED
BIDDERS WHO ARE BIDDING TO
MANUFACTURE OUR TRAINS. UH AND
WE WILL SCORE. UM WE WILL SCORE
BASED ON THE INFORMATION WE
RECEIVE IN THE PROCUREMENT
PROCESS. EXCUSE ME, AS YOU CAN
IMAGINE. WE HAVE VISITORS IN OUR
OFFICES. AND THESE ARE THE
QUESTIONS THAT THEY ASK, AND I
WANTED TO MAKE SURE THAT WE
ADDRESS THEM. UM AND THEN BEFORE
A CONTRACTS ARE AWARDED TO ANY
VENDOR THAT WE HAVE BETTER THEM
WELL ENOUGH THAT WE HAVE OUR,
UH, LOCAL CALIFORNIAN, UH,
PEOPLE HAVING, UH, POTENTIAL
JOBS, SO LET ME LET ME JUST SAY
ONE OTHER THING. JUST SO YOU
KNOW, ON ON JUST THE PROCESS
POINT. UM WE HAVE TO, YOU KNOW,
THE AUTHORITY HAS A PUBLIC
PUBLIC BOARD APPOINTED BY BOTH
THE LEGISLATURE AND THE
GOVERNOR. AND WE WILL BRING THIS
RFP TO THAT PUBLIC BOARD FOR
APPROVAL. IT'LL BE AVAILABLE
PUBLICLY ABOUT A WEEK IN FRONT
OF THAT HEARING, SO PEOPLE CAN
GO THROUGH IT. SEE WHAT WE'RE
ASKING THE RFP, UH AND THEY CAN
CERTAINLY COME TO THE HEARINGS
AND PRESENT POSITIONS ON THE RP
LANGUAGE ITSELF. AND THEN, UH,
ONCE WE GET IN THE RFP PROCESS
BEFORE THAT RFP IS AWARDED WE GO
BACK TO A PUBLIC BOARD FOR THE
AWARD, AND SO THEY WILL
CERTAINLY BE PUBLIC
OPPORTUNITIES AT THE AUTHORITY,
UH, TO ENSURE THAT THE RP
PROCESS WORKS. THANK YOU VERY
MUCH. AND AGAIN. I APPRECIATE
ALL THE WORK THAT YOU'VE ALL
DONE. THANK YOU. YOU HAVE A LOT
MORE TO DO. BUT WHAT WE'RE GONNA
GET THERE. THANK YOU. THANK YOU,
JACKSON. THANK YOU VERY MUCH,
MADAM CHAIR. UM OBVIOUSLY I'M
VERY EXCITED TO HEAR ABOUT, UM
FEDERAL GOVERNMENT BEING
SUPPORTIVE OF THIS PROJECT. UH
WHAT WAS A RELIEF TO MANY OF US
WHO WERE HAVING SEIZURES UP HERE
LAST YEAR? UH, WHEN WE WERE
TOGETHER, BUT CERTAINLY YOU TOO.
UM, BLOOD PRESSURE IS UNDER
CONTROL NOW. UM OF COURSE, JUST
BUILDING IT IS ONE THING, BUT
MAINTAINING IT IS ANOTHER. AND
OF COURSE, ONE OF THE THINGS
THAT WE ALSO HAVE TO BE MINDFUL
OF IS MAKING SURE THAT WE GET
THOSE SEGMENTS OF THE LINE. THAT
WILL BRING IN THE MOST INCOME AS
WELL. TO BE ABLE TO CONTINUE TO
THE SUSTAINABILITY PART OF THIS
PROGRAM. OF THIS PROJECT. UH,
WHAT DO YOU SEE AS THOSE
CRITICAL SEGMENTS THAT ARE
ESSENTIAL TO ENSURING THAT WE
ARE ABLE TO ALSO MAINTAIN THE
HUGE INVESTMENTS THAT WE ARE
MAKING. UH UH, IN THIS PROCESS
AS WELL. UH, WELL, LET ME FIRST
SAY THAT, UM, YOU KNOW,
MAINTAINING THE SYSTEM IS GONNA
BE A KEY ELEMENT FOR EVERY EVERY
PART OF THE SEGMENTS THAT THAT
WE BUILD, UH, BOTH IN THE
CENTRAL VALLEY AND THEN
EXTENDING INTO THE BAY AREA AND
THE SOUTHERN CALIFORNIA REGION.
UH, I WOULD SAY THIS I. I
MENTIONED THE RIDERSHIP NUMBERS
AS WE ARE PROJECTING THEM NOW,
AND WHAT'S CLEAR IS FOR THIS TO
BE A SELF SUSTAINING SYSTEM. WE
GOTTA GET INTO THE POPULATION
CENTERS. THE INITIAL, UH,
BUILDING AND OPERATING SEGMENT
IN THE CENTRAL VALLEY WILL NOT
BE THE SELF SUSTAINING SYSTEM.
AMTRAK TODAY IS NOT. BUT THE
BENEFITS THAT WILL PRODUCE FROM
OUR, UH, PROJECT BEING THERE IN
INVOLVED THINGS LIKE, YOU KNOW,
HALF THE COST FROM A PER MILE
PASSENGER BASIS. UH, MUCH HIGHER
REVENUE. UH, A RIDERSHIP BUMP.
THAT'S ALMOST DOUBLE BECAUSE
WE'RE THERE IN THE VALLEY. SO
THOSE THINGS ARE GONNA BE
IMPORTANT. BUT WE DO HAVE TO GET
INTO THE POPULATION CENTERS,
ULTIMATELY AT THE BAY AREA IN
SOUTHERN CALIFORNIA. UM TO HAVE
A FULLY SELF SUSTAINING SYSTEM,
MEANING THAT THE NET REVENUES OF
THE SYSTEM EXCEED THE NET COST
OF THE SYSTEM. SO WE PROJECT
THAT BOTH THE EXTENSION OF THE
BAY AREA FROM THE VALLEY AND THE
EXTENSION INTO SOUTHERN
CALIFORNIA WILL ACHIEVE THAT
UNDER OUR RIDERSHIP PROJECTIONS.
UM THE OTHER THING THAT I THINK
IS A NEW DEVELOPMENT THAT UH,
WILL PROBABLY AFFECT OUR ONGOING
ANALYSIS OF WHERE WE GO. NEXT IS
THE EMERGENCE OF BRIGHT LINE I.
I DO THINK THE SYSTEM THAT GOES
EAST TO WEST. UM UH, IN SOUTHERN
CALIFORNIA. AND AS LONG AS THAT
IS, UH, COMING ON ONLINE AND
GETTING INTO SERVICE, THE
CONNECTING POINTS THEN AND HOW
WE BRING PEOPLE FROM NORTHERN
CALIFORNIA AND CENTRAL VALLEY
INTO A SYSTEM THAT GOES EAST TO
WEST OF LAS VEGAS WILL BE OF
INTEREST TO THEM AND US AND SO,
UH, AS A GENERAL MATTER, IT'S
REALLY GETTING INTO BOTH OF THE
POPULATION CENTERS. UH, WE GOT A
LOT OF WORK TO DO TO GET THERE.
WE'RE JUST FINISHING THAT
ENVIRONMENTAL WORK NOW, UM, BUT
BUT THOSE THOSE ARE THE KEY
PARTS OF THE SELF SUSTAINING
SYSTEM. AND SO A RE THOSE THE
PRIORITIES ONCE WE'VE HONORED
OUR COMMITMENT TO THE CENTRAL
VALLEY OR IS THAT OUR PRIORITIES
AFTER THAT IS TO MAKE SURE WE
GET THOSE UP AND GOING SO WE CAN
MAKE SURE WE'RE YEAH, SO THE WAY
MÀ IS MAKING SENSE. YEAH, SO THE
WAY THAT WE ARE APPROACHING,
THIS IS ONE WE WANNA GET
OPERATION ON THE VALLEY WHERE
WE'RE UNDER CONSTRUCTION TODAY,
SO WE, BY THE WAY, I HAVE NÓ DOG
IN THIS FIGHT BECAUSE I'M IN
ENGLAND EMPIRE AND AIN'T EVEN ON
THE MAP. SO SECOND PHASE SECOND
PHASE. THAT'S WHAT THEY ALL SAY
WE'LL GET TO YOU. UH, SO YEAH,
OUR OUR STRATEGY RIGHT NOW,
GIVEN OUR CONSTRAINED FUNDING IS
TO GET OPERATIONAL IN THE VALLEY
FIRST, UH, FINISH THE
ENVIRONMENTAL WORK EVERY YEAR
EVERYWHERE WHERE WE'RE WRAPPING
UP NOW AND THEN ADVANCE THE
DESIGN WORK AND DO ALL ALL THE
GEOTECHNICAL WORK YOU GOTTA DO.
TO NAIL DOWN THE FINAL
CONFIGURATION OF THE FULL
ALIGNMENT SAN FRANCISCO TO
ANAHEIM. UH AND THEN WE'RE GONNA
HAVE TO WORK, UH, ON HOW WE FUND
THOSE SEGMENTS BECAUSE THEY'RE
EXPENSIVE, AND IT'S GONNA TAKE
TIME AND ULTIMATELY WE'RE GONNA
WANT FUNDING CONTRIBUTIONS NOT
JUST FROM THE FEDERAL AND STATE
BUT PROBABLY LOCAL AND REGIONAL
PARTNERS AS WELL. AND SO PART OF
THAT EQUATION IS WHERE WILL THAT
WHERE DOES SOME OF THAT COME
FROM? AND SO THAT THAT'S GONNA
BE CONVERSATIONS WE HAVE WHEN
WE'RE FURTHER ALONG IN THE
PRECONSTRUCTION PROCESS IN
NORTHERN CALIFORNIA AND SOUTHERN
CALIFORNIA. THANK YOU, MADAM
CHAIR. ALL RIGHT, BENNETT. THANK
YOU, MADAM CHAIR. UH, MY FIRST
QUESTION IS ABOUT THE POPULATION
CENTERS THAT YOU'VE JUST BEEN
REFERRING TO, AND YOU TALK ABOUT
THE FACT THAT WE'RE FINISHING UP
THE ENVIRONMENTAL WORK. UH AND
I'M JUST CURIOUS, UM AS WE'VE
LOOKED AT, UH, YOU KNOW WHAT'S
HAPPENED IN JAPAN, AND WE HAD
SOME CONVERSATIONS WITH THEM AND
STUFF. UH, THEY'VE USED
TUNNELING TO ADDRESS LOTS OF
ISSUES. ARE WE? ARE WE FAR
ENOUGH ALONG BECAUSE OF THE
ENVIRONMENTAL WORK THAT WE KNOW.
WHERE WE'RE GONNA TUNNEL AND
WHERE WE'RE NOT GONNA TUNNEL AND
, UH, IS THERE ANY ABILITY TO
EXPAND THE AREAS THAT WE'RE
TUNNELING TO DECREASE SORT OF
SOME OF THE CONFLICTS WE HAVE,
OR HAVE WE PASSED IT? YEAH SO,
UM, THE BOND BILL THAT PASSED IN
2008 PROVIDED, UH, DIRECTION TO
THE AUTHORITY TO BUILD A SYSTEM.
THAT GUY FROM SAN FRANCISCO TO
LOS ANGELES IN A TIME
REQUIREMENT, AND SO SPEED DOES
MATTER. AND TO MAKE THAT SO
WHERE YOU'RE GOING FROM THE
COASTAL PART OF THE BAY AREA
INTO THE CENTRAL VALLEY, DOWN
THE SPINE OF THE CENTRAL VALLEY
AND THEN BACK TO THE COASTAL
PARTS OF SOUTHERN CALIFORNIA.
UH, DOES REQUIRE US TO GO
THROUGH MOUNTAINS NOT AROUND, UP
AND DOWN, BUT THROUGH MOUNTAINS,
AND SO IN NORTHERN CALIFORNIA,
WE HAVE ABOUT, UH, A TOTAL OF
ABOUT 14 MILES OF TUNNELING.
THERE'S A 13 MILE SEGMENT AND
THEN SMALLER SEGMENT AND THE
SOUTHERN CALIFORNIA PARTICULARLY
THE ENVIRONMENTAL SEGMENT THAT
WE HAVE LEFT. IN PALMDALE AND
BURBANK. UH I THINK OUR
TUNNELING TOTAL IS ON THE ORDER
OF 32 MILES THERE, NOT IN ALL IN
ONE STRETCH, BUT A TOTALITY OF
32 MILES OF TUNNELING THROUGH,
UH, THAT THE MOUNTAIN UH,
MOUNTAINOUS AREA THERE THAT
HATCH BE IN SAN GABRIEL. ARE WE
TUNNELING IN PLACES WHERE WE
JUST HAVE A LOT OF EXISTING
URBAN DEVELOPMENT JUST TO AVOID
THAT URBAN DEVELOPMENT AS WE
COME INTO BURBANK, THERE'S SOME
TUNNELING THERE, BUT PRIMARILY
IT'S GETTING THROUGH MOUNTAINS
AND PRIMARILY, IT'S GETTING
THROUGH. REGIONS WE DON'T WE
DON'T THINK THAT IT'S ECONOMICAL
OR TO TUNNEL AND AVOID SOME OF
THOSE CONFLICTS THAT WE'RE GOING
TO HAVE IT WITH THE EXISTING
URBAN AREA. IT IT JUST DEPENDS
ON ON WHERE YOU ARE. AND SO AS
WE, FOR EXAMPLE, IN THE URBAN
AREA THAT IS BURBANK, UH,
BURBANK IS BUILDING A NEW
AIRPORT TERMINAL RIGHT NOW, UH
AND WE WANT THE TRAIN STATION TO
BE VERY CLOSE TO THAT TERMINAL.
SO OUR PROPOSED TRAIN STATION
THERE WILL BE UNDERGROUND. AND
SO WE TUNNEL RIGHT NEXT TO THE
AIRPORT, WHERE THE NEW TERMINAL
WILL BE. BUT THEN AS WE LEAVE
THE BURBANK AIRPORT, WE'RE BACK
AT GRADE GOING INTO THE, UM L A
UNION STATION. UM, AND SO IT
JUST REALLY DEPENDS. BUT I WOULD
SAY THAT AS A GENERAL MATTER,
THE MOST COMPLEX STRETCHES THAT
INVOLVE TUNNELING ARE THROUGH
THE MOUNTAINOUS AREAS AND NOT
NECESSARILY URBAN. MY SECOND
QUESTION. DEALS WITH THE ISSUE
OF TRYING TO MAKE SURE THAT WE
THE REVENUE STARTS TO COVER THE
EXPENSES OF THE OPERATION
REVENUE. OPERATING REVENUE
COVERS THE EXPENSES AND, UM, THE
JAPANESE DID A REMARKABLE JOB OF
ALLOCATING THE REAL ESTATE
AROUND THE STATIONS. AND COULD
YOU GIVE US AN UPDATE IN TERMS
OF HOW MUCH ARE WE GOING TO BE
ABLE TO CAPITALIZE ON THE
IMPROVED COMMERCIAL
OPPORTUNITIES THAT WILL EXIST
BECAUSE OF THE STATIONS BEING
THERE? AND ARE WE GOING TO BE
ABLE TO REALIZE REVENUE ANYWHERE
NEAR LIKE THE JAPANESE WERE ABLE
TO? YEAH, SO VALUE CAPTURE IS
GENERALLY WHAT WHAT? CALLED, BUT
IT'S UH IT'S UH, USING UH, OF
LEASING AND REVENUE AND
CONCESSION OPPORTUNITIES AT
STATIONS, UH, TO GENERATE
ANCILLARY REVENUE FOR THE
SERVICE, AS WELL AS BEING A
PARTNER IN SOME OF THE
DEVELOPMENT IN AND AROUND THOSE
STATIONS. UM WE'RE AT THE
FOREFRONT OF THAT I DON'T HAVE.
I DON'T HAVE TODAY, UH, NUMBER
OF HOW MUCH WE'RE GONNA GENERATE
FOR THAT. BUT ON A STATION BY
STATION BASIS, WORKING WITH EACH
OF THE LOCALITIES WHERE WE ARE
STATION PARTNERS THAT THOSE
THINGS ARE ON ON ON THE TABLE AS
WE BUILD THE STATIONS, THEY'LL
BE BUILT IN A WAY, WHERE
INITIALLY AIMED AT UH OF DEALING
WITH THE CAPACITY OF THE
RIDERSHIP THAT STARTS BUT THEY
WILL BE CONSTRUCTED IN A WAY,
UH, TO EXPAND TO DO THINGS LIKE
INCREASE CONCESSION SERVICES. UH
AND OTHER, UH, REVENUE
GENERATING SERVICES IN THE IN
THE STATION ENVIRONMENT. UH AND
THEN AGAIN OUTSIDE OF THERE,
IT'S REALLY AAA SENSE OF WHO
OWNS WHAT'S WHAT PARCEL WHAT YOU
CAN DO WITH THOSE PARCELS. AND
THEY I WILL SAY THAT EACH
STATION DIFFERS A LITTLE BIT
BECAUSE IN THE CENTRAL VALLEY,
WE ARE BUILDING THE STATIONS
KIND OF UH, IN SOME OF THESE
PLACES WE OWN A LOT OF THE
PARCELS AROUND SOME OF THOSE
STATIONS AT THE L, A UNION
STATION OR THE SAN FRANCISCO UH,
PORTAL. IT'S CALLED. IT'S
DIFFERENT. THOSE ARE OWNED BY
OTHERS. UH AND SO YOU JUST HAVE
DIFFERENT OPPORTUNITIES
DEPENDING ON THE STATION. BUT I
WILL SAY THIS THAT FOR THIS FOR
THIS SYSTEM, WE DO WANT STATION
DEVELOPMENT AND STATION, UH,
CONCESSION REVENUE TO BE PART OF
THE ANCILLARY REVENUE THAT COMES
INTO THE PROGRAM AND FINAL
QUESTION. UM IF WE HAVE A
SIGNIFICANT CHANGE IN
ADMINISTRATION, UM AFTER THE
PRESIDENTIAL ELECTION TO WHAT
EXTENT ARE WE PROTECTED OR NOT
PROTECTED IN TERMS OF FUNDING
STREAMS, COOPER OPERATION
ETCETERA GOING FORWARD. WHAT DO
YOU SEE AS THE RISK THERE? CAN I
SEE A HIGH RISK? UM I MEAN, THE
EXPERIENCE THAT WE JUST LIVED
THROUGH, UH, PRIOR TO THE
CURRENT ADMINISTRATION WAS, UM
WELL, I MEAN, I'M GONNA BE
CANDID. IT WAS THE MOST
DYSFUNCTIONAL STATE FEDERAL
RELATIONSHIP I HAVE EVER SEEN IN
30 YEARS IN PUBLIC SERVICE. UH
AND SO I. I DON'T HAVE HIGH
HOPES THAT THERE'S A BIG CHANGE
IN TERMS OF HAVING A STABLE
FEDERAL PARTNER. UH, ON THIS
PROJECT, UM, BUT THAT SAID, UM,
FOR THE DOLLARS THAT HAVE BEEN
OBLIGATED TO US IN THE COURSE OF
THE LAST YEAR. WE'RE WORKING
HARD WITH THE FR, A UH, TO MAKE
SURE WE PUT THOSE DOLLARS TO USE
THAT WE GET THEM OBLIGATED, UH,
AND FOR THE AUTHORITY THAT WE
ARE HITTING THE MILESTONES THAT
WE LAY OUT. UH SO THAT THOSE
DOLLARS KEEP COMING. I WILL SAY
THAT NÓ MATTER. WHO IS THE NEXT
WHO THE NEXT ADMINISTRATION IS,
I THINK OUR JOB IS THE SAME.
IT'S TO LAY OUT, UH, MILESTONES
THAT ARE ACHIEVABLE AND MAKE
SURE WE'RE HITTING THEM. AND I
THINK AS LONG AS WE'RE DOING
THAT, AND WE'RE PUTTING THE
FEDERAL DOLLARS WE GET TO GOOD
USE, EXPANDING ECONOMIC
OPPORTUNITY AND JOB GROWTH. I
THINK IT GETS HARDER AND HARDER
TO TAKE THOSE DOLLARS AWAY.
THANK YOU. THANK YOU, MADAM
CHAIR. UM MR KELLY JUST AGAIN
JUST ECHO THE COMMITTEE'S
COMMENTS. JUST REALLY APPRECIATE
ALL YOUR YEARS OF THANK YOU HARD
WORK ON THIS. HIGH SPEED RAIL
AUTHORITY REALLY APPRECIATE IT.
I KNOW THAT, UH, IT'S BEEN VERY,
VERY CHALLENGING SINCE THE DAY
YOU TOOK OVER YOU, UM I DID. I
DID HAVE SOME QUESTIONS IN TERMS
OF MORE. THE TIMELINES AND
SCHEDULES. UM, I KNOW YOU HAD
SORT OF, UH, COLOR CODES IN
TERMS OF WHAT? UM WHAT'S
COMPLETED IS IT MORE DETAILED IN
THE BUSINESS PLAN WHERE YOU
ACTUALLY HAVE? UM DATES OF YOU
KNOW DATES THAT YOU HOPE TO HAVE
COMPLETION BY FOR VARIOUS PHASES
. I. I KNOW YOU MENTIONED IN
YOUR PRESENTATION. THAT
COMPLETION WAS BY 2030 TO 2033,
BUT JUST WANTED TO KNOW AS YOUR
AS YOU'RE LOOKING AT EACH OF
THESE DIFFERENT MILESTONES. IF
THERE'S A MORE DETAILED THERE IS
IN THE YEAH. IN THE IN THE
BUSINESS PLAN ITSELF, UH, IN
CHAPTER UM TWO OF THE BUSINESS
PLAN. YOU GO THROUGH EACH OF THE
CONSTRUCTION SEGMENTS. WE
ACTUALLY, UH, TELL YOU, FOR
EXAMPLE, IF YOU ARE LOOKING ON,
STARTING ON PAGES, 2021 AND 22
AND 24 WE SHOW YOU EACH OF THE
CONSTRUCTION SEGMENT. UM UH, FOR
THE 119 MILES UNDER CONSTRUCTION
, EXACTLY WHERE EACH UH,
STRUCTURE IS, UH, IN THAT
PROCESS, THERE'S ALSO A TIME
LINE AT THE BOTTOM OF, UH, PAGES
. 26 AND 27 THAT LAYS OUT THE
CRUCIAL TIMELINE FOR EACH PART
OF OUR PROCUREMENTS AND PROJECT
DEVELOPMENT GOING FORWARD IN THE
BUSINESS PLAN. GOT IT. OK, THANK
YOU. AND THEN, UM WHAT? WHAT'S
THE YOU JUST FROM? SLIDE 11 IS
THE IS THE GAP FOR UM, M SAID
THE BAKERSFIELD 8 BILLION. I
COULDN'T QUITE TELL WHAT YOUR
FUNDING GAP IS STILL UH, YEAH.
SO UH UH, UNFORTUNATELY WE HAVE
TO EXPRESS THESE GAPS AND KIND
OF RANGES BECAUSE, AS I SAID,
CAP AND TRADE IS A IS A LITTLE
BIT OF A SLIDING. UH UH. UH, POT
OF MONEY, DEPENDING ON HOW THAT
IS COMING IN. UH AND SO WE'VE I
WE'VE IDENTIFIED UM OUR COST
RANGE FOR COMPLETING THE MERC TO
BAKERSFIELD AND ALL OF THE BOOK
AND PROJECTS AND ALL OF THE
ENVIRONMENTAL WORK WE'RE DOING
STATEWIDE IS BETWEEN 32 AND 35
BILLION TO GET IT ALL DONE ALL
OF THAT WORK, UH, AND OUR
REVENUES. UH, RIGHT NOW ARE ARE
BETWEEN REALLY 28.7 AND 30.5.
AND SO THAT LEAVES A GAP OF
BETWEEN FIVE AND SEVEN TO GET
ALL THE WORK DONE. WE ARE
PURSUING AN ADDITIONAL UNDER OUR
ORIGINAL FEDERAL FUNDING
STRATEGY. 4.7 BILLION FEDERAL
FUNDS. UH AND THEN, UH, AGAIN,
WE'RE LOOKING, UH AND HOPING TO
GET AN EXTENSION OF CAP AND
TRADE THAT COULD HELP US FINISH
SOME OF THE WORK. UH THAT WE
HAVE TO DO HERE. GOT IT? BUT BUT
THE HOPE IS THAT WITH THIS ROUGH
GAP OF, SAY, 8 BILLION. IT'S
YOU'RE LOOKING AT FEDERAL FUNDS
AND FEDERAL PARTNERSHIPS TO TRY
TO CLOSE THAT GAP THAT YES, AND
THE EXTENSION OF CAP AND TRADE
HERE. WE NEED BOTH. FORCE. UM
AND THEN, AND THEN YOU MENTIONED
ALSO THE RIDERSHIP ESTIMATE FOR
THE, UM VALLEY TO VALLEY COULD
YOU SAY AGAIN? KIND OF WHAT THAT
WAS BASED ON? I THINK YOU HAD. I
THINK WHEN YOU WERE MENTIONING
YOU MENTIONED SORT OF YOU YOU
WOULD COMPARE IT TO SORT OF
ATRAK RIDERSHIP. I DON'T KNOW IF
I GOT THAT CORRECTLY. YEAH SO
OUR ESTIMATE UH, YOU KNOW,
RIDERSHIP CHANGED A BIT WITH
COVID AND THE OTHER THING. I
MEAN, JUST SO MEMBERS KNOW
GENERALLY BECAUSE THIS IS REALLY
AFFECTING TRANSIT UP AND DOWN
THE STATE, AND IT WILL, UH,
IRRESPECTIVE OF THIS PROJECT,
AND THAT IS CALIFORNIA'S
POPULATION, UH, HAS GOTTEN
STAGNANT AND SO NOT ONLY IS IT
FLAT, BUT THERE ARE IN THE
FUTURE YEARS WE ACTUALLY ARE
STARTING TO SEE A DOWNTURN IN
CALIFORNIA'S POPULATION, WHICH
IS THE FIRST TIME I'VE SEEN THAT
CERTAINLY IN MY LIFETIME, BUT,
UM THE EFFECT OF THAT MEANS, UH,
THAT YOU ALSO HAVE A FLATTENING
ECONOMIC GROWTH AND JOB GROWTH.
UH, POTENTIAL, AND SO THAT
AFFECTS, UH TRANSIT AND RAIL
RIDERSHIP. WE TALKED ABOUT THAT
INITIALLY IN THE 2020 THREE
PROJECT UPDATE REPORT WHERE WE
SET OUR THE VALLEY RIDERSHIP
BETWEEN 11.5 AND 12 MILLION
WRITERS A YEAR. WE'VE UPDATED
THAT SLIGHTLY WITH THIS BUSINESS
PLAN. IT'S STILL 12.2 TO 12.5
AND I THINK WHAT I WAS TRYING TO
SAY ABOUT THAT. THERE'S TWO
THINGS ABOUT THAT RIDERSHIP ONE.
THE PROBABILITY IS THAT THEY
WILL THAT WILL STILL BE A
REVENUE GENERATING SERVICE
BETWEEN THE CENTRAL VALLEY AND
SILICON VALLEY AT THAT RIDERSHIP
NUMBER AND SECONDLY, JUST GIVING
SOME CONTEXT FOR HOW MANY RIDERS
THAT IS THE AMTRAK SERVICE THAT
GOES IN NORTHEAST CORRIDOR. THE
AMTRAK SERVICE CARRIES ABOUT 12
MILLION WRITERS A YEAR. AND
THAT'S THE BUSIEST CORRIDOR IN
THE COUNTRY. AND SO THE VALLEY
TO VALLEY SYSTEM ON OUR SERVICE
IS ESTIMATED TO CARRY ROUGHLY
THAT SAME AMOUNT. I KNOW THAT
SOME OF UH UH, THE P. THE PEER
REVIEW GROUP, FOR EXAMPLE, IS
NOTED THAT THE THERE'S DIFFERENT
DYNAMICS AROUND THE NORTHEAST
CORRIDOR, INCLUDING GREATER
POPULATION. BUT THE TRAINS IN
THE NORTHEAST CORRIDOR CAN'T UH,
MOVE AT THE PACE THAT OUR TRAINS
WILL MOVE IN TERMS OF SPEED AND
TIME SAVINGS AND THINGS LIKE
THAT. AND SO WE THINK, UM, OUR
OUR BEST RIDERSHIP NUMBERS THAT
YOU KNOW IN THE PAST HAVE BEEN
PEER REVIEWED. WE'RE HAPPY TO
HAVE THEM PEER REVIEWED AGAIN.
UH, AGAIN, UM, HAS IT AT ABOUT
12 OR 12.5 MILLION WRITERS A
YEAR? BUT YOU YOU IS. IS IT A
CURRENT AMTRAK SERVICE THAT GOES
BETWEEN BAKERSFIELD AND MERCED
OR BAKERS? THERE IS THE SAN
JOAQUIN SERVICE. YEAH, THAT GOES
FROM SACRAMENTO TO BAKERSFIELD.
THE RIDERSHIP NUMBER THE LAST I
SAW. IT WAS ON THE ORDER OF A
MILLION ONE TO A MILLION THREE
PASSENGERS A YEAR. OKAY? AND YOU
AND YOU, YOU FEELING IS OR THE
PURE PEERS REVIEW FEELING IS
THAT BECAUSE IT WILL BECOME MORE
EFFICIENT. YEAH, I JUST THINK
THAT I THINK THERE'S DIFFERENT
REASONS FOR PEOPLE TO TAKE HIGH
SPEED TRAINS THAN CONVENTIONAL
TRAINS, AND I THINK TIME SAVINGS
IS KEY. AND IF YOU'RE, UH,
MOVING, UH, DRIVE THAT TAKES
FOUR HOURS TODAY THAT YOU CAN
TAKE AN HOUR AND 20 MINUTES ON A
TRAIN. YOU'LL DO IT, BUT YOU CAN
ONLY DO IT IF THAT TRAINS HIGH
SPEED. AND WHILE OUR POPULATION
IS STAGNANT IN, UM IN THE STATE.
MY YOU KNOW, I BELIEVE IT'S
GROWING IN THE VALLEY. IT IS IN
THIS AREA. IT IS. THIS IS VERY
SEGMENT THAT YOU'RE SERVING.
RIGHT SO IT'S NOT. IT'S NOT
STAGNANT IN THE AREA, SO
STAGNANT EVERYWHERE. THAT'S
RIGHT. THAT'S RIGHT. BUT IN
PARTICULAR SO STAGNANT IN THE
AREA THAT YOU'RE STARTING OK,
THANK YOU VERY MUCH. APPRECIATE
IT. THANK YOU, UM, GOING TO GO?
JUST SO MEMBERS ARE AWARE HEART
THEN POPPIN, THEN BACK TO GRIO.
THANK YOU, MADAM CHAIR, MR KELLY
. THANK YOU FOR THE PRESENTATION
. AND UM, THE WAY I UNDERSTAND
IT. THE ORDER WORK THAT YOU HAVE
PLANNED IS FOCUSING ON THE
CONSTRUCTION FROM BAKERSFIELD TO
MERCED. DOING THE ENVIRONMENTAL
WORK, UM, TO COMPLETE BOTH
SEGMENTS AT THE NORTH AND SOUTH
AND THEN WORKING ON THE NORTHERN
CALIFORNIA AND SOUTHERN
CALIFORNIA BOOKEND PRO PROJECT
OUR PROJECTS. UM HOW DOES THE
NEW OPPORTUNITY WITH BRIGHT LINE
INTEGRATE INTO YOUR PLANNING,
AND THAT CONTEXT IS THIS
SOMETHING THE FEDERAL GOVERNMENT
IS INTERESTED IN A CONNECTED TO
AND TO WHAT? IS BRIGHT LINE IS
INTERESTED. HAS THERE BEEN ANY
WRITER SHIP PROJECTIONS ABOUT
THE POTENTIAL THAT CAN ACCRUE TO
BOTH OF THOSE SYSTEMS? AS A
RESULT OF THAT, YOU KNOW, I HAVE
A SENSE THAT THIS IS SORT OF A
GAME CHANGER. POTENTIALLY IN THE
MIDTERM, YOU KNOW THAT YOU MIGHT
WANNA PIVOT TO INTEGRATE INTO
YOUR PLANS. AND I THINK FUTURE
YEAH, I DO THINK FUTURE BUSINESS
PLANS WILL, UH, TALK MORE AND
MORE AND MORE ABOUT THE
INTEGRATION OF THE TWO SYSTEMS.
UM I WOULD JUST SAY THAT THE
FEDERAL GOVERNMENT IS A KEEN
INTEREST IN THIS THAT THE TWO
PROJECTS THAT THAT REALLY GOT
THE BULK OF THE STATE FEDERAL
PARTNERSHIP. UH, MONEY WAS THIS
ONE AT THREE 0.1 BILLION IN
BRIGHT LINE AT 3 BILLION RIGHT
BEHIND US. SO CALIFORNIA IN THE
WESTERN REGION DID
EXTRAORDINARILY WELL, UM, A
BRIGHT LINE IS, UH, WE HAVE A
LOT OF AREAS WHERE WE'RE IN
CONVERSATIONS WITH THEM ABOUT
INTEROPERABILITY. UH CAN YOUR
TRAINS RIDE ON MY TRACKS? CAN MY
TRAINS RIDE ON YOUR TRACKS? UH,
CONNECTING POINTS ARE IMPORTANT.
INITIALLY BRIGHT LINE WAS
DEFINITELY GOING TO PALMDALE AS
A STOP. THEY PIVOTED ON THAT A
LITTLE BIT, AND NOW THEY ARE
GOING TO VICTORVILLE BUT THEN
TURNING SOUTH, THE RANCHO
CUCAMONGA. SO THE GAP BETWEEN
VICTORVILLE AND PALMDALE IS
ABOUT 50 MILES. WE WANNA WORK
WITH THEM AND WE ARE GOING TO
WORK WITH THEM WITH THE HIGH
DESERT CORRIDOR TO FIGURE OUT
HOW YOU FILL THAT 50 MILE
CONNECTING GAP. UM AND WE ARE
ALSO WORKING VERY CLOSELY WITH
THE CITY OF PALMDALE ON STATION
AND DEVELOPMENT THAT THEY HAVE
THERE BECAUSE THAT'S ONE OF OUR
STOPS AS WE HEAD SOUTH. SO WE
ARE WORKING WITH THEM ON THAT,
UH, THERE MAY BE OPPORTUNITIES
FOR ECONOMIES OF SCALE AND
EQUIPMENT PURCHASING AND THINGS
LIKE THAT THINGS THAT WE ARE
TALKING TO THEM ABOUT. WE'LL BE
HOSTING, UH, BRIGHT LINES
MANAGEMENT TEAM LATER THIS MONTH
, UH, IN SACRAMENTO TO TALK
ABOUT SOME OF THESE THINGS, AND
SO YEAH, IT'S DEFINITELY, UM
IT'S DEFINITELY SOMETHING THAT,
UH, THAT THERE WILL BE MORE AND
MORE CONVERSATION ABOUT AS THAT
PROJECT EVOLVES. UH AND SO THEY
HAVEN'T QUITE JUMPED INTO FULL
CONSTRUCTION YET, BUT THEY
EXPECT TO THIS YEAR I THINK, UH,
AND THEN AS THAT HAPPENS, AND,
UH THEY SHORE UP ALL OF THEIR
FUNDING TO COMPLETE THEIR WORK.
UH YEAH, WE WANNA CONTINUE TO BE
CLOSE PARTNERS WITH THEM, AND I
THINK IT'S IMPORTANT FOR THE
STATE THAT WE ARE. HOW HOW
IMPORTANT IS THAT RISK THAT THE
INTERCONNECTIVITY DOESN'T WORK
OUT? YOU GOT A PRIVATE SECTOR
OPERATOR. YOU'VE GOT DIFFERENT
TRAIN SET DECISIONS. HOW QUICKLY
IS THAT? IS THAT SOMETHING TO BE
CONCERNED ABOUT RIGHT NOW? WELL,
I MEAN, III. I WOULD SAY IT'S
SOMETHING WE SHOULD PLAN FOR.
WHICH MEANS WE SHOULD PLAN TO
MAKE SURE WE'RE INTEROPERABLE.
UH, WE'RE DOING. WE'VE DONE
THAT. NOW WITH LIKE PLATFORM
HEIGHTS. WE'VE AGREED TO THE
SAME PLATFORM HEIGHTS. UM AGAIN.
WE WANNA MAKE SURE THAT THAT
TRAINS CAN OPERATE ON EACH
OTHER'S LINES. WE'LL WORK ON
THAT. THERE. I SAID THERE MIGHT
BE AN OPPORTUNITY FOR JOINT
PROCUREMENT OPPORTUNITIES FOR
VARIOUS EQUIPMENT PIECES, SO
THERE'S A LOT OF THINGS AHEAD
THAT, UH THERE'S REASONS FOR
BOTH SIDES TO WORK CLOSELY
TOGETHER TO ADVANCE ELECTRIFIED
HIGH SPEED RAIL IN CALIFORNIA.
THANK YOU. HAPPEN. THANK YOU,
DIRECTOR KELLY FOR BEING HERE.
UH, SO I DO HAVE A DOG IN THE
FIGHT. NOT LIKE ASSEMBLY MEMBER
JACKSON. SO AS YOU AND I HAVE
SPOKEN BEFORE, UH, ABOUT THE TWO
LAWSUITS THAT ARE, UM, BEING
CONDUCTED IN MY DISTRICT ALONE,
AND I APPRECIATE THE TIME THAT
YOU'VE GIVEN ME TO DISCUSS THEM.
I GUESS MY QUESTION IS, WHAT IS
THE TIMELINE THAT WE'RE LOOKING
AT TO GET THOSE RESOLVED?
BECAUSE IN THIS CASE TALK IS NOT
CHEAP. IF YOU WILL, AND SO I'M
TRYING TO GET A REAL READ FROM
YOU IF I MAY ON ON GETTING THOSE
RESOLVED, AND PARTICULARLY IN
ME, BRABER HAS BEEN YOU KNOW
WHERE I'M TALKING, SO I JUST A
LITTLE BIT OF CONTEXT, MORE
BROAD CONTEXT ON THIS AND I'LL
GET RIGHT TO THE SPECIFIC BUT
YOU KNOW, WHEN I CAME TO THE
AUTHORITY, I THINK IT HAD SEVEN
OUTSTANDING SEQUEL RELATED
LAWSUITS AND WE ARE PHILOSOPHY
WHEN WE GOT HERE WAS TO SETTLE
THOSE AND WE AND WE DID, AND
MOST OF THOSE WERE UP AND DOWN
THE VALLEY. UM AS WE EXTEND AND
THAT AT THAT TIME WE HAD ONLY
CLEARED 119 MILES OF THE
ALIGNMENT. TODAY WE'VE CLEARED
422 MILES AND WE HAD THREE MAJOR
LAWSUITS. BURBANK AIRPORT CITY
MILLBRAE, UH, IN CITY OF
BRISBANE AND A DEVELOPER THAT'S
TIED TO THE BRISBANE. UH,
LITIGATION. UH OUR STRATEGY TO
SETTLE IS REMAINS THE SAME. WE
HAVE ENTERED A STAY AGREEMENT
WITH THE CITY OF MILLBRAE AND
WITH THE CITY OF BRISBANE AND
WITH THE DEVELOPER. UH AND WE
ARE AN ACTIVE NEGOTIATIONS TO
SETTLE THOSE. OUR OBJECTIVE AND
GOAL IS TO SETTLE THOSE IN 2024.
THIS THIS YEAR. TERRIFIC THAT'S
WHAT I WANTED TO HEAR. UM AND SO
THEN MY NEXT QUESTION RELATES TO
SOME FUNDING AND THAT IS WHAT IS
YOUR ANTICIPATED FUNDING
ESTIMATE, UH, TO FINISH THROUGH
SAN MATEO COUNTY INTO SAN
FRANCISCO. I THINK THE ESTIMATE
FOR THAT I'M GOING TO THE TOP OF
MY HEAD. BUT I IT'S THE YEAH. SO
SAN FRANCISCO TO SAN JOSE. SHE
LOOK MY CHIEF FINANCIAL OFFICER.
ANSWER THIS QUESTION. BUT UH,
SAN FRANCISCO TO SAN JOSE. THAT
SEGMENT AFTER IT WAS ENVIRONMENT
AND CLEARED IS ROUGHLY A $5
BILLION SEGMENT FOR ALL OF IT.
AND NOT ONLY ARE WE BECAUSE
WE'RE NOT WE ARE PARTNERS NOW IN
FOR ABOUT 730 THREE MILLION 7 14
MILLION FOR THE ELECTRIFICATION
OF CAL TRAIN. BUT AS WE COME
THROUGH THERE, THERE'S OTHER
IMPROVEMENTS THAT NEED TO BE
MADE TO THAT COURT. OR THERE ARE
SOME CURVES THAT HAVE TO BE
STRAIGHT, AND THERE'S SOME
ADDITIONAL UH, CATENARY SYSTEMS
TO POWER THE ELECTRICITY THROUGH
THERE. AND SO THERE ARE THERE
ARE STILL SOME MAJOR INVESTMENTS
UP AND DOWN THAT CORRIDOR SO
THAT YOU CAN, UH UH, YOU KNOW,
REACH CORRIDOR SPEEDS OF 100 AND
10 MPH AND, UH, AND ADVANCE. UH,
BOTH èC TRAINS, EXPANSION PLANS
AND OUR SYSTEM IN THAT IN THAT
CORRIDOR, SO THAT IS STILL IN
FRONT OF US, UH IN THE SAN
FRANCISCO TO SAN JOSE, STRETCH.
OK SO AS IT RELATES TO, UH, I'M
GONNA BECAUSE IT'S A VERY TIGHT
QUARTERS COMING THROUGH SAN
MATEO COUNTY. AND ARE YOU
ANTICIPATING A PASSING TRACK? UH
THERE WAS A PASSING TRACK THAT
WAS PART OF ONE OF THE
ENVIRONMENTAL ALTERNATIVES AND
IT WAS EXCLUDED. HOWEVER I KNOW
AT THE MILL STATION, THERE WILL
BE ROOM FOR PARKING TRAINS AND
TRAINS GOING THROUGH, SO THERE
ARE ELEMENTS OF IT, BUT THERE
WAS A PASSING TRACK IN ONE OF
THE ALTERNATIVES THAT WE DID NOT
PURSUE. UH ENVIRONMENTALLY, AND
THAT'S JUST THAT'S NOT. THAT'S
JUST SO YOU KNOW, THAT'S NOT AN
ISSUE. THAT'S PART OF THE
LITIGATION EITHER ON THE PASSING
TRACK ISSUE, UH, BUT, UM, THERE
ARE UH, PARTS ALONG THE WAY
WHERE THERE IS OPPORTUNITY FOR
PASSING, UM, USUALLY AT STATION
LOCATIONS. YEAH. OKAY SO YOU KN
YOU KNOW MY ISSUE WITH MOWBRAY.
DO THEY HAVE A HUGE HOUSING
DEVELOPMENT THAT THEY WANT TO
PUT IN? THEY'RE READY TO GO. I
IT WAS MUSIC TO MY EARS TO HEAR
THAT YOU WOULD LIKE TO RESOLVE
IT IN 2024 BECAUSE THEY REALLY
NEED TO GET THAT HOUSING BUILT
RATHER THAN SOME SURFACE LOT
THAT HIGH SPEED RAIL IS
PROPOSING. ABSOLUTELY AND WE SUP
WE LOOK, WE SUPPORT NOT JUST IN
MILLBURY, BUT UP AND DOWN THE
ALIGNMENT TRANSIT ORIENT DEVE
DEVELOPMENT AT THE STATION SITE.
IT ENHANCES RIDERSHIP. SO WE
RECOGNIZE THAT AND OBVIOUSLY
WE'RE SUPPORTIVE OF CALIFORNIA'S
BROADER HOUSING GOALS. SO WE ARE
LOOKING FORWARD TO SETTLING THAT
LITIGATION AND IN BRISBANE, I'M
MAKING THAT PITCH AS WELL TOO.
THANK YOU FOR HEARING ME OUT.
ALL RIGHT, CREO THANK YOU, MADAM
CHAIR. I'LL BE BRIEF. UM MY
UNDERSTANDING IS THAT IN ORDER
FOR THESE PROJECTS TO BE
SUSTAINABLE, THEY HAVE TO BE
PROFITABLE LIKE THE TRAINS IN
ASIA AND EUROPE HIGH SPEED RAIL.
I THINK IT'S SELF SUSTAINED. UM
AND I AM GONNA MAKE A PITCH AS
TO WHY YOU SHOULD GO TO SOUTHERN
CALIFORNIA FIRST. UH, NOBODY
FIGHT. YOU UH SO YOU II I WANTED
TO JUMP IN WHEN YOU WERE MAKING
YOUR COMMENTS ON, UH, RIDERSHIP,
POTENTIAL RIDERSHIP. THE L A
BASIN MORE POPULATED. POTENTIAL
MORE RIDERS. THE BLAND UH, THANK
YOU FOR BRINGING THAT UP GOING
EAST AND WEST CONNECTING FROM
PALMDALE TO APPLE VALLEY TO MAKE
THAT, UH, CONNECTION AND ALSO
THE INVESTMENT THAT HAS BEEN
ALREADY DONE IN L. A WITH THE
ROSS. GREAT SEPARATION. UM, I
AGREE WITH THAT. SO I THINK THAT
THAT'S THE REASON WHY I SHOULD
GO TO FIRST UH AND THEN, UM YOU
TALKED ABOUT HOW THE LEARNING
PAINS ON THE FIRST LEG WITH THE
RUNNING INTO UTILITIES, UH, THE
COST OF RELOCATING THEM AND THE
TIME THAT IT TAKES TO DO THAT
THOSE ARE PAINFUL LESSONS THAT
WE LEARN ABOUT THAT. UM, YOUR
DECISION TO LEAVE. WHAT
RECOMMENDATIONS WOULD YOU MAKE
TO THE AUTHORITY? UH AND OF
THOSE LESSONS LEARNED AND WHERE
DO WE NEED TO GO FROM HERE? WELL
I. I THINK I THINK ONE IS TO
EXECUTE THE LESSONS THAT WE HAVE
LEARNED. AND SO AGAIN, I. I KNOW
I SAID THIS LAST YEAR BEFORE
THIS COMMITTEE, BUT YOU KNOW,
THE KEY THING ON THIS PROJECT
WAS WHEN IT GOT STARTED MANY
YEARS AGO. UM IT GOT FEDERAL
MONIES TO START IN A SPECIFIC
LOCATION. UH AND, UH, IT AND
THOSE DOLLARS HAD TO BE SPENT
UNDER AN UNREALISTIC TIMELINE.
UH, NEVERTHELESS, THE AUTHORITY
WANTED TO ADVANCE WORK TO KEEP
THE FEDERAL DOLLARS, WHICH IS
UNDERSTANDABLE. UH, BUT IN SO
DOING, IT GOT INTO CONSTRUCTION
BEFORE SOME OF THE
PRECONSTRUCTION ACTIVITIES WERE
DONE, WHICH IS, YOU KNOW, IN
INDUSTRY TERMS, IT'S GOING INTO
CONSTRUCTION AT RISK. UM AND SO,
UH, WHAT HAPPENED IS THE RIGHT
OF WAY. CHALLENGES IN THE
CENTRAL VALLEY WERE TOUGH FOR
MANY YEARS, IT TAKES TIME TO
OBTAIN PRIVATE RIGHT AWAY IS IT
SHOULD SINCE IT'S PERSONAL PROP
PROPERTY. UM BUT, UH, THAT
CAUSED DELAY AND THAT DELAY
COMES WITH COSTS. AND TO BE
HONEST WITH YOU. I IN MY 5.5
YEARS OR SIX YEARS HERE NOW, UH,
MUCH OF THAT WE'VE BEEN GETTING
OUT OF, UH, STILL AND SO, AS I
SAID EARLIER, WE'RE NOW 90
ALMOST 99% DONE WITH THE RIGHT
OF WAY WHEN I GOT HERE WAS ABOUT
50% SO THERE'S WE'VE COME A LONG
WAY, UH, ON THAT STUFF AND THE
SAME WITH THE UTILITIES. YOU
GOTTA YOU GOTTA DO THIS IN A
SEQUENCE. YOU GOTTA ENOUGH
DESIGN WORK. SO YOU KNOW THE
RIGHT WAY YOU NEED AND YOU KNOW
THE UTILITIES. YOU GOTTA MOVE
AND YOU GOTTA ENTER INTO LOCAL
AGREEMENTS ON HOW YOU'RE GONNA
DEAL WITH THIRD PARTIES GOING
FORWARD ON THE PROJECT. THAT
WASN'T ALL IN PLACE IN THE RIGHT
SEQUENCE INITIALLY AND THAT COST
US DEARLY. WE'VE LEARNED FROM
THAT. AND AS WE ARE NOW LOOKING
AT THE MERCED EXTENSIONS AND THE
BAKERSFIELD EXTENSION, WE ARE
DOING IT THE RIGHT WAY. WE HAVE
BROUGHT THOSE DESIGN PACKAGES TO
30. WE'VE IDENTIFIED THE GENERAL
PARCELS. WE NEED THE RIGHT OF
WAY WE NEED AND WE'RE STARTING
TO WORK ON THE 100% UTILITY
RELOCATION DESIGNS NOW, UH,
ULTIMATELY WE'LL EXPAND THAT
DESIGN FURTHER. WE'LL KNOW ALL
THE RIGHT OF WAY WE NEED FOR
BOTH OUR PURPOSES AND FOR
UTILITY RELOCATION PURPOSES, AND
WE WILL EXECUTE THAT WORK BEFORE
WE START CONSTRUCTION, AND THAT
IS GONNA CHANGE A LOT GOING
FORWARD. AND SO I THINK
EXECUTING THAT LESSON IS KEY. UM
AND I THINK THE OTHER LESSON
WHICH IS SOMETHING YOU KNOW TO
BE CANDID WITH YOU. I'VE LABORED
TO DO BECAUSE IT'S NOT EASY.
IT'S NOT FUN TO BRING PEOPLE BAD
NEWS, BUT ONE OF THE THINGS I
CAME TO THIS PROJECT WITH WHICH
WAS A PERSPECTIVE I LEARNED ON
THE SAN FRANCISCO OAKLAND BAY
BRIDGE WHEN I WAS SERVING IN A
DIFFERENT CAPACITY AS THE
SECRETARY UNDER UH, YOU KNOW,
GOVERNOR BROWN. IT'S THAT YOU
KNOW, THESE MEGA PROJECTS ARE
GOING TO HAVE CHALLENGES.
THEY'RE GONNA HAVE VERY
DIFFICULT CHALLENGES. EVERY MEGA
PROJECT DOES, AND I THINK THE
JOB OF THE ENTITY THAT'S IN
CHARGE OF THAT IS TO BE VERY
CLEAR ABOUT WHAT THOSE ARE AND
TO ARTICULATE WHAT YOU'RE GONNA
DO ABOUT THEM. UM AND THAT'S
THAT'S DIFFICULT BECAUSE I'M
ALWAYS TRYING TO BRING YOU KNOW
THE MOST TRANSPARENT TO SEE TO
WHAT'S IN FRONT OF US WHAT OUR
COSTS LOOK LIKE WHAT THE
CHALLENGES ARE, UH AND WHAT
WE'RE DOING ABOUT IT, BUT IT'S
NOT AN EASY CONVERSATION. BUT
YOU GOTTA DO IT. AND I THINK
WHAT I LEARNED WHEN I WAS
SECRETARY IS THAT I THINK THE
PUB THE PUBLIC TOTALLY
UNDERSTANDS THAT THE PUBLIC
KNOWS THAT THESE HUGE MEGA
PROJECTS ARE GOING TO HAVE
CHALLENGES AND I THINK IT COMES
DOWN TO ANYBODY WHO'S REMODELED
A BATHROOM OR A BEDROOM, YOU
KNOW, OR ANY PART OF THEIR HOUSE
. THERE THERE'S CHALLENGES.
THERE'S THINGS YOU GET INTO. YOU
DIDN'T KNOW. AND HERE WE TIMES
EVERYTHING. BY A MILLION, YOU
KNOW, BECAUSE IT'S SO BIG SCALE
IS SO HUGE. YEAH AND SO AND SO I
THINK THAT'S THE THING. UH,
TRANSPARENCY, CLEAR
COMMUNICATION. AND THEN IN MY
VIEW, UH, GETTING THE SEQUENCE
OF WORK, CORRECT. I THINK THOSE
ARE THE THINGS FOR A BETTER
FUTURE. THANK YOU. THANK YOU.
UM, THANK YOU FOR LETTING ME
WELL. THANK YOU SO MUCH. UM, MR
KELLY AND MR ANNA FOR BEING HERE
, UM, FOR THIS. UH UH, GOOD
DISCUSSION. UM, WE APPRECIATE
THE DROP BUSINESS PLAN. WE KNOW
IT'S GOT A LONG WAYS TO GO
BEFORE IT COMES BACK TO THE
LEGISLATURE. BUT UM, WE
APPRECIATE, UH, THE WORK AND
BEING AVAILABLE TO ANSWER ALL
THE QUESTIONS. I HAD A FEW OF MY
OWN, BUT MOST OF THEM HAVE
ANSWERED AND I'M NOT GONNA
BELIEVE HER AND I KNOW HOW TO I
KNOW HOW TO FIND YOU. THANK YOU
SO MUCH. THANK YOU, MADAM CHAIR
AND MEMBERS. THANK YOU. ALL
RIGHT. MOVING ON TO, UM, THE
COMMENTARY ON THE PLAN. UM I'D
LIKE TO INVITE UP HELEN KURSTIN
PRINCIPAL FISCAL AND POLICY
ANALYSTS FROM THE LEGISLATIVE
ANALYST'S OFFICE. LUIS S¼
THOMPSON, CHAIR OF CALIFORNIA
HIGH SPEED RAIL, UM, PEER REVIEW
GROUP AND BEN BELKNAP, INSPECTOR
GENERAL OF THE CALIFORNIA HIGH
SPEED RAIL AUTHORITY. AT YOUR
CONVENIENCE, YOU MAY BEGIN.
GOOD AFTERNOON. SHARON MEMBERS.
I'M HELEN KIRSTINE WITH THE
LEGISLATIVE ANALYST'S OFFICE.
THANK YOU SO MUCH FOR INVITING
ME TO BE HERE AT THIS HEARING
AND PARTICIPATE, UH, TO GUIDE MY
COMMENTS. I PREPARED A HANDOUT,
WHICH, UH, YOU PROBABLY HAVE IN
YOUR CAR IN YOUR POCKETS. BUT
THE SURGEONS ARE PASSING OUT
EXTRA COPIES JUST IN CASE. IT'S
ALSO AVAILABLE ON OUR OFFICE'S
WEBSITE AND ON YOUR COMMITTEE'S
WEBSITE. I'M GONNA TRY TO BE
BRIEF. I KNOW. UM WE YOU HAVE A
TON ON YOUR AGENDA. UM, YOU'VE
ALREADY HAD A VERY ROBUST
DISCUSSION WITH THE AUTHORITY.
UM, SO EVEN THOUGH THIS IS A
VERY LENGTHY HANDOUT I'M GONNA
TRY TO GO THROUGH. UM JUST THE
KEY POINTS. UM AND TRY TO DO
THAT PRETTY QUICKLY. UM, SO IF
YOU'LL TURN TO PAGE 16, I'M JUST
GONNA THAT'S THAT'S WHERE I'LL
START AND AGAIN. I'LL TRY TO
COVER THESE POINTS QUICKLY. UM
I'LL START WITH HIGHLIGHTING
SOME KEY ISSUES FOR LEGISLATIVE
CONSIDERATION. AND THEN I'LL GO
INTO SOME RECOMMENDATIONS FOR
NEAR TERM ACTIONS THAT REALLY
FLOW FROM THOSE SO THE FIRST KEY
ISSUE THAT WE IDENTIFY IS
DESPITE THE SIGNIFICANT FEDERAL
GRANT AWARD THAT YOU HEARD ABOUT
THREE POINT THREE BILLION
DOLLARS WITH A COUPLE OF
DIFFERENT GRANTS THAT THE
AUTHORITY GOT THIS LAST YEAR TO,
UM THERE'S STILL A SIGNIFICANT
FUNDING GAP. AND YOU HEARD ABOUT
THAT. PROBABLY YOU KNOW,
DEPENDING ON, UM, WHICH NUMBERS
YOU USE, DEPENDING ON THE RANGE.
PROBABLY ABOUT A $7 BILLION
FUNDING GAP. UM, SO THAT'S QUITE
SIGNIFICANT. AS YOU HEARD THE
AUTHORITY HAS A TARGET OF
ANOTHER $4.7 BILLION IN
ADDITIONAL FEDERAL AND, UM, SO
THAT WOULD BE GREAT. IF THEY'RE
SUCCESSFUL. WE THINK THERE'S A
LOT OF UNCERTAINTY, UM, WITH
REGARD TO WHETHER THEY'LL BE
ABLE TO BRING IN THAT ADDITIONAL
FUNDING IN PARTICULAR, WE NOTE
THAT THERE'S NÓ CLEAR, DETAILED
PLAN FOR WHICH SPECIFIC FEDERAL
GRANTS THEY'RE GOING TO SECURE
AND WIN AND FOR WHICH PROJECT
COMPONENTS AND THAT MAKES IT
REALLY DIFFICULT TO ASSESS THE
CREDIBILITY OF THAT NUMBER, UM,
AND DETERMINE WHETHER THAT'S A
REALISTIC TARGET OR NOT. WE'D
ALSO NOTE THAT EVEN IF THE
AUTHORITIES SUCCESSFUL AT
SECURING THAT FUNDING, THERE'S
STILL A REMAINING FUNDING GAP.
AND YOU HEARD ABOUT THAT FROM MR
KELLY AS WELL. UM SO WE THINK
THAT'S A THAT'S A CHALLENGE FOR
THE PROJECT. UM AND WE THINK IN
PARTICULAR NOT HAVING THIS THIS
REAL, UM FULLY REALLY FLESHED
OUT FUNDING PLAN. UM IT MAKES IT
HARD FOR THE PROJECT. IT MAKES
IT HARD FOR STAKEHOLDERS, AND IT
LEAVES SOME RISK THAT THE
AUTHORITY COULD START
UNDERTAKING SOME WORK THAT MAYBE
ULTIMATELY CAN'T BE FINISHED. SO
THAT'S UM WE THINK CERTAINLY A
CHALLENGE. IF YOU TURN TO PAGE
17. WE ALSO HIGHLIGHT THAT WE
THINK THAT THERE IS RISK THAT
THIS FUNDING GAP COULD GROW. AS
YOU HEARD THIS PROJECT HAS HAD A
HISTORY OF COST INCREASES. IT'S
A MEGA PROJECT. IT COULD
CERTAINLY EXPERIENCE ADDITIONAL
COST INCREASES, AND THERE'S ALSO
RISK ON THE REVENUE SIDE BECAUSE
AS YOU ALSO HEARD THIS PROJECT
GETS MONEY FROM THE GREENHOUSE
GAS REDUCTION FUND, AND THOSE
REVENUES ARE VOLATILE AND THE
PRIDE AND THAT PROGRAM IS SET TO
EXPIRE IN 2030 CURRENTLY, AND SO
IT'S PROBABLY GONNA BE EVEN MORE
VOLATILITY. AS WE GET CLOSE TO
THAT EXPLORATION, OR AT LEAST
THERE'S A GOOD CHANCE THERE MAY
BE I ALSO JUST WANTED TO
HIGHLIGHT THAT YOU THAT THE
DRAFT PLAN DOESN'T INCLUDE ANY
DETAILS ON THE TIMING OF WHEN
THE PROJECT WOULD NEED
ADDITIONAL FUNDS. WE THINK
THAT'S AN IMPORTANT DETAIL. UM,
AND I THINK THAT'S ALSO ONE THAT
THAT MY, UM COLLEAGUES MAY
MENTION AS WELL. IF YOU TURN TO
PAGE 18, WE ALSO HIGHLIGHT. UM
WE'VE BEEN FOCUSED. SO FAR. MY
COMMENTS HAVE BEEN FOCUSED ON
MESA, BAKERSFIELD. AND I KNOW A
LOT OF THE DISCUSSION TODAY HAS
BEEN FOCUSED ON THAT BECAUSE
THAT'S THE INITIAL INTERIM
OPERATING SEGMENT, BUT THERE'S A
VERY, VERY LARGE FUNDING GAP FOR
THE REST OF PHASE ONE, DEPENDING
AGAIN, DEPENDING ON WHETHER YOU
LOOK AT THE TOP OF THE RANGE OR
THE BOTTOM OF THE RANGE. THE
EXACT NUMBER VARIES, BUT WE'RE
PROBABLY LOOKING AT AT LEAST $80
BILLION, AND THERE'S NÓ PLAN TO
FUND THAT EVEN IF THERE'S AN
EXTENSION OF AND TRADE AND THAT
SECURITIZED CURRENTLY THE
AUTHORITY ASSUMES THAT IF THEY
SECURE IF THEY IF CAP AND TRADE
IS EXTENDED TO 2050, THEY
SECURITIZE IT. THEY MIGHT BE
ABLE TO GET BETWEEN AROUND 6.8
TO $8 BILLION. THAT'S PROBABLY
ABOUT WHAT YOU'D NEED TO FIND
MARCIA TO BAKERSFIELD. MAYBE I
N THAT RANGE, BUT IT'S NOT
GONNA GET US PHASE ONE. SO
THAT'S SOMETHING THAT IS A KEY
ISSUE FOR THE LEGISLATOR.
LEGISLATURE TO CONSIDER. WHAT IS
THAT? YOU KNOW HOW HOW ARE WE
GONNA FIND ANYTHING BEYOND PHASE
ONE BEYOND WE'RE SAID TO
BAKERSFIELD. THAT'S PART OF
PHASE ONE. UH, IF YOU TURN TO
PAGE 19, WE ALSO HIGHLIGHT THAT
WE THINK PROJECT OVERSIGHT
CONTINUES TO BE SO IMPORTANT FOR
THIS TYPE OF VERY LARGE,
IMPACTFUL, UM, CHALLENGING UH,
MEGA PROJECT. WE THINK THE
LEGISLATURE MADE HUGE STEPS FOR
THE LAST COUPLE OF YEARS. UM
ESTABLISHING THE OFFICE OF THE
INSPECTOR GENERAL. I KNOW YOU'LL
HEAR FROM THAT OFFICE SHORTLY.
WE THINK THAT'S A BIG STEP IN
TERMS OF IMPROVING OVERSIGHT OF
THIS PROJECT, BUT WE THINK
THAT'S AN AREA. THE LEGISLATURE
CAN. REALLY UM, PROVIDE A LOT OF
VALUE GOING FORWARD, AND THERE
ARE A COUPLE OF AREAS THAT WE
THINK ARE PARTICULARLY
IMPORTANT. ONE IS THESE GRANT
AGREEMENTS. SO THREE POINT THREE
BILLION DOLLARS. WE'RE GONNA BE
SIGNING A LOT OF GRANT
AGREEMENTS. HOPEFULLY UM AND YOU
HEARD FROM MR KELLY THAT IN THE
PAST, SOMETIMES THESE GRANT
AGREEMENTS HAVE CONSTRAINED THE
STATE. IT'S MEANT WE HAVE HAD TO
MOVE FASTER THAN WE WANTED TO.
SOMETIMES IT'S MEANT WE HAD TO
START IN DIFFERENT PLACES. UM IN
OTHER CASES, IT'S UH, COMMITTED
THE STATE TO ELECTRIFICATION
WHEN MAYBE THAT WASN'T A
COMMITMENT THAT WAS PREVIOUSLY
MADE. SO THOSE ARE SOME WAYS
THAT IN THE PAST THOSE FEDERAL
GRANT AGREEMENTS HAVE REALLY
BEEN IMPACTFUL AND SOMETIMES
DETRIMENTAL TO THE PROJECT. UM
IN THE CASE OF KIND OF MAKING
THE PROJECT MOVE MORE QUICKLY
THAN THAN, UM, WAS THE MADE
SENSE IN TERMS OF ITS TIMELINE.
AND SO WE THINK IT'S REALLY
IMPORTANT FOR THE LEGISLATURE,
UH, TO HAVE OVERSIGHT IN THIS
AREA TO MAKE SURE THAT THOSE
GRANT AGREEMENTS ARE STRUCTURED
IN WAYS THAT ARE CONSISTENT WITH
LEGISLATIVE PRIORITIES AND AGAIN
DON'T EXPOSE THE STATE TO
UNNECESSARY RISK. UM AND,
ADDITIONALLY, BIG CONTRACTS. YOU
ALSO HEARD ABOUT THAT, UM, VERY
BIG CONTRACTS WITH RELATED TO
TRAIN SET PROCUREMENTS. I KNOW
THAT'S AN ISSUE, UM, FOR SOME
MEMBERS, BUT ALSO FOR TRACKING
SYSTEMS. VERY LARGE CONTRACTS.
SO WE'RE GONNA, UH, WE THINK
IT'S VERY IMPORTANT FOR THE
LEGISLATURE TO BE FOCUSED ON,
YOU KNOW. LEGISLATIVE PRIORITIES
BEING REFLECTED IN THOSE IN
THOSE CONTRACTS. IS THERE IS THE
STATE BEING PROTECTED FROM
UNNECESSARY RISK. UM, SO WE
THINK THOSE ARE SOME KEY ISSUES.
YOU'LL WANNA HAVE KIND OF ON
YOUR, UM, ON YOUR, UH BASICALLY
THAT YOU'LL WANT TO BE LOOKING
AT FOR THIS NEXT YEAR. IF YOU
TURN TO PAGE 20, WE HIGHLIGHT
SOME RECOMMENDATIONS THAT REALLY
FLOW FROM THOSE KEY
CONSIDERATIONS AGAIN. I'LL GO
THROUGH THEM QUICKLY BECAUSE
THEY'RE THEY KIND OF NATURALLY
COME FROM THOSE KEY
CONSIDERATIONS. ONE IS THAT WE
RECOMMEND THAT THE LEGISLATURE
START DEVELOPING ITS FUNDING
PLAN FROM WE SAID TO BAKERSFIELD
. UM, BECAUSE WE DO THINK THAT
THERE'S LIKELY TO BE A FUNDING
GAP, AND WE THINK IT COULD TAKE
SOME TIME. THERE'S SOME
DIFFICULT CHOICES YOU'RE GONNA
HAVE TO WRESTLE WITH REGARDING
HOW TO ADDRESS THAT FUNDING GAP,
AND SO STARTING SOONER RATHER
THAN LATER, IS PROBABLY WISE. IF
YOU TURN TO PAGE 21, WE
HIGHLIGHT THAT WE SUGGEST THAT
YOU REQUIRE ADDITIONAL
INFORMATION FROM THE AUTHORITY
TO HELP INFORM THAT PLAN, SO WE
THINK IT'S GONNA BE IMPORTANT TO
ASSESS WHAT'S THAT SIZE OF THE
FUNDING GAP THAT YOU HAVE, UM
WHAT ARE YOU GONNA NEED TO
PROVIDE THAT ADDITIONAL FUNDING
AND TO DO THAT, HAVING A GOOD
SENSE OF HOW CREDIBLE THAT
FEDERAL FUNDS TARGET IS GONNA BE
REALLY CRITICAL AND ALSO HAVING
INFORMATION FROM THE AUTHORITY
ON EXACTLY WHEN THEY EXPECT TO
NEED THE FUNDS. WE THINK WE'LL
ALSO BE IMPORTANT. SO WE THINK
REC. WE RECOMMEND THAT YOU, UM,
SEEK THAT INFORMATION FROM THE
AUTHORITY THAT COULD BE THROUGH
SUPPLEMENTAL REPORT LANGUAGE. IT
COULD BE THROUGH PROVISIONAL
BUDGET LANGUAGE OR ANOTHER
METHOD. UM, FINALLY, IF YOU TURN
TO PAGE 22, WE PROVIDE SOME
RECOMMENDATIONS ON THE OVERSIGHT
PIECE. WE THINK ONE THING THAT'S
REALLY IMPORTANT IS TO SUPPORT A
STRONG AND INDEPENDENT Ó IG. UM
THE Ó IG HAS A BUDGET PROPOSAL
THIS YEAR. UM WE HAVE SOME
SEPARATE RECOMMENDATIONS ON THAT
. UM, BUT WE REALLY THINK MAKING
SURE THAT THE OFFICE IS
ADEQUATELY RESOURCED AND HAS, UM
HAS ALL OF THE, UH, THE VARIOUS,
UM, AUTHORITIES THAT ARE
NECESSARY. UM, TO BE ABLE TO BE
REALLY STRONG AND INDEPENDENT IS
CRITICAL, AND THEN WE THINK,
FOCUSING AGAIN ON THOSE AREAS
THAT I HIGHLIGHTED, UM THIS YEAR
IN TERMS OF THE GRANT AGREEMENTS
, AND THE CONTRACTS WILL BE
REALLY IMPORTANT. AND WE THINK
THAT THE Ó IG MIGHT BE WELL
POSITIONED TO DO WORK IN THAT
AREA. SO IF THAT'S SOMETHING THE
LEGISLATURE IS INTERESTED IN,
THEY COULD. CERTAINLY THE
LEGISLATURE COULD CERTAINLY TASK
THE OIG, SUCH AS THROUGH SOME
TYPE OF FORMAL REQUEST, UM, WITH
DOING THAT KIND OF OVERSIGHT, WE
THINK THAT THEY COULD BE REALLY,
REALLY VALUABLE IN THAT ROLE. SO
THOSE A RE MY COMMENTS HAPPY TO
TAKE ANY QUESTIONS? UM, AND I'LL
TURN IT OVER TO, UH UH, THE
FOLLOWING SPEAKERS, IF THAT'S
APPROPRIATE. YES WE'LL TAKE
QUESTIONS AT THE END OF THIS
PARTICULAR PANEL. SO, MISTER
THOMPSON. CHAIR THOMPSON. MY
APOLOGIES. OK I GUESS I'VE BEEN
NOMINATED NEXT. I WILL ALSO TRY
TO BE BRIEF. UNFORTUNATELY I
CANNOT SPEAK AS FAST AS HELEN
KIRSTINE. SO MAY TAKE ME A
LITTLE BIT MORE TIME TO COVER
THE AREA. UH, WILSON, UH,
MEMBERS OF THE COMMITTEE. I
APPRECIATE THE OPPORTUNITY TO
SPEAK TO YOU TODAY. AS YOU KNOW,
THE PEER REVIEW GROUP WAS
CREATED BY PROPOSITION ONE A IN
CHARGE TO REPORT TO YOU ON
MATTERS OF INTEREST, SO YOU CAN
THINK OF ME AS YOUR EMPLOYEE. UM
HELEN KURT'S ANALYSIS IS AS
ALWAYS COMPREHENSIVE AND
ACCURATE. WE IN THE L Ó ARE IN
CLOSE AGREEMENT. I CAN SAY THE
SAME ABOUT THE BRIEFING PAPER
YOUR STAFF PREPARED FOR THIS
HEARING. AND WE FULLY SHARE THE
FOUR CONCERNS STATED BY BEN
BELKNAP IN HIS STATEMENT. THESE
PAPERS PARALLEL. MANY OF THE
COMMENTS IN OUR LETTER OF MARCH
8TH, UH, WHICH YOU HAVE THE
AUTHORITY TO CONTINUES TO LEARN
FROM ITS EXPERIENCE. BUT PROJECT
CROSS CONTINUED TO RISE AND ARE
SUBJECT TO CONSIDERABLE RISK ON
THE UPSIDE BECAUSE MOST OF THE
PROJECT REMAINS AT AN EARLY
DESIGN STAGE OR LESS. AND THERE
IS NÓ EXPERIENCE TO DATE WITH
MAJOR ELEMENTS OF THE PROJECT.
SCHEDULES ARE STRETCHING OUT.
DEMAND ESTIMATES HAVE FALLEN AND
FINANCING IS INADEQUATE AND
UNSTABLE. I WOULD LIKE TO FOCUS
INSTEAD AS I DID LAST YEAR. ON
THE DILEMMA THAT EMERGES FROM
THESE FACTS. THE DILEMMA IS
SIMPLE. THE PROPOSAL TO BUILD A
HIGH SPEED, FULLY ELECTRIFIED
SEGMENT FROM MERCED TO
BAKERSFIELD MAKES NÓ SENSE
WITHOUT A COMMITMENT TO BUILD
THE ENTIRE PHASE ONE SYSTEM
THERE WOULD BE A MUCH MORE
REASONABLE APPROACH AVAILABLE
FOR THIS SEGMENT IF IT WERE TO
STAND BY ITSELF. BUT BUILDING
THE PHASE ONE SYSTEM WOULD HAVE
TO BE BASED ON A COMMITMENT,
SECURE FUNDING FOR BEYOND THE
FUNDING AVAILABLE FROM EXISTING
OR REASONABLY PREDICTABLE
SOURCES. THIS IS NOT CRITICAL OF
THE HÌ S¼ R STAFF. AS BRIAN SAID
THE PROJECT HAS ALWAYS BEEN OVER
PROMISED AND OVERFED. IT GOT OFF
TO A ROUGH START, PARTLY DUE TO
INEXPERIENCE AND PARTLY BECAUSE
THE FREE FEDERAL MONEY
ENCOURAGED THE AUTHORITY TO
AWARD CONTRACTS BEFORE THEY WERE
PROPERLY PREPARED. MANAGERS HAVE
LEARNED SOME HARD LESSONS AND
THE PROCUREMENT STRATEGIES HAVE
CHANGED ACCORDINGLY. FROM THE
2024 DRAFT BUSINESS PLAN. WE NOW
KNOW THAT PHASE ONE WILL COST
ABOUT THREE TIMES WHAT WAS
PROMISED WHEN PROPOSITION ONE A
WAS PASSED. ADD AN UNCERTAINTY
ARISES BECAUSE COST ESTIMATED
FOR MAJOR ELEMENTS OF THE
PROJECT. 50 MILES OF TUNNELS,
TRACK WORK, ELECTRIFICATION,
SIGNALING AND ROLLING STOCK ARE
NOT YET BASED ON ACTUAL BIDS,
BUT ONLY ON ENGINEERING
ESTIMATES. PHASE ONE WILL ALSO
TAKE 15 TO 20 YEARS LONGER WILL
NOT REALISTICALLY MEET THE TRIP
TIMES SPECIFIED IN PROPOSITION
ONE A AND IS NOW PREDICTED TO
CARRY ONLY ABOUT 70% OF THE
PASSENGERS. THESE RESULTS RAISE
QUESTIONS ABOUT THE VIABILITY
AND PRIORITY OF THE PROJECT,
GIVEN THE OTHER FINANCING, NEEDS
THE STATE FACES AND WILL FACE IN
LIGHT OF THESE CHALLENGES THE
PROJECT FACES WE MADE A SERIES
OF SUGGESTIONS AND
RECOMMENDATIONS. THE MOST
IMPORTANT ONES ARE FIRST THE
LEGISLATURE COULD COMMISSION AN
INDEPENDENT REVIEW OF THE
ECONOMIC AND FINANCIAL
JUSTIFICATION FOR THE PROJECT.
INCLUDING THE ABILITY TO OPERATE
WITHOUT SUBSIDY, AS REQUIRED BY
PROPOSITION ONE A BEFORE
RECOMMITTING TO THE FULL PHASE
ONE SYSTEM. WE CONTINUE TO ARGUE
THAT THIS BE DONE BECAUSE THERE
ARE AND WILL BE MANY OTHER
CLAIMS ON THE STATE'S SCARCE
RESOURCES. NEXT REQUEST THE
AUTHORITY TO ISSUE DASHBOARD
TYPE INFORMATION IN THE FORMAT
USED FOR THE AERO DASHBOARD SO
THAT THE COST AND SCHEDULE
EXPERIENCE OF AWARDED CONTRACTS
CAN BE EVALUATED AND UPDATED. WE
BELIEVE THAT THEY ARE NOW DOING
THIS, AND WE COMMEND THEM FOR
DOING THIS, BUT WE FEEL THAT IT
IS TOO FAR DOWN ON THEIR WEBSITE
FOR PEOPLE TO FIND IT UNLESS YOU
KNOW EXACTLY WHERE TO GO. IT
SHOULD BE MORE PROMINENTLY
DISPLAYED. UH, THEY SHOULD
NOTIFY THE LEGISLATURE AND THE
IG OF THE RESULTS OF THE
UPCOMING TRACK SYSTEMS AND
ROLLING STOCK STATIONS AND
MERCED AND BAKERSFIELD
EXTENSIONS CONTRACTS. SHOWING
THE CONTRACT VALUE AND EXPECTED
COMPLETION TIME AS COMPARED WITH
THE 2024 DRAFT BUSINESS PLAN
VALUES WE EMPHASIZE THIS
SUGGESTION BECAUSE THE
PERFORMANCE ON THE NEW CONTRACTS
WILL BE AN IMPORTANT PRECURSOR
OF THE FUTURE EXPERIENCE WHEN
MOST OF THE MONEY WILL BE SPENT.
I NOTE IN PASSING BECAUSE OF THE
DISCUSSION EARLIER ABOUT LOS
ANGELES AREA IN THE SOUTHERN
PART THAT ONE OF THE KEY ASPECTS
OF THIS PROJECT THE THROUGH
TRACKS AT L, A UNION STATION ARE
NOW BEING HELD UP BECAUSE OF A
LACK OF FUNDING, AND I WOULD
CERTAINLY STRONGLY URGE THE
LEGISLATURE TO SEE WHAT IT CAN
DO TO RESOLVE THIS PROBLEM. I
THINK OUR MOST IMPORTANT
RECOMMENDATION IS THAT YOU
REQUEST A DEVELOPMENT BY THE L,
A Ó OR ANOTHER APPROPRIATE
AGENCY. OF AN ANALYSIS WITH
OPTIONS AND TRADE OFFS AVAILABLE
TO THE LEGISLATURE FOR HOW TO
FUND THE POTENTIAL $7 BILLION
GAP FOR COMPLETION OF MERCED TO
BAKERSFIELD SECTION AND THE 90
THREE TO $99 BILLION GAP BETWEEN
THIS SECTION AND THE REMAINDER
OF THE PHASE ONE SYSTEM. IT IS
CRITICAL THAT ANY FUNDING
APPROACH BE FULLY FUNDED AND
STABLE AND PREDICTABLE FROM YEAR
TO YEAR. THIS HAS NOT BEEN DONE
AND IT IS EVER MORE IMPORTANT.
WE CANNOT EMPHASIZE TOO STRONGLY
THAT INACTION BY THE LEGISLATURE
AND GOVERNOR TO IDENTIFY AN
ADEQUATE AND STABLE SOURCE OF
FUNDING FOR THE PROJECT IS
INCREASING ITS COSTS AND
HINDERING MANAGEMENT'S CONTROL
OF THE PROJECT. THE AUTHORITY
STATEMENT IN THE 2024 PLAN THAT
QUOTE NÓ MEGA PROJECT THAT WILL
TAKE YEARS TO CONSTRUCT AND HIS
MIL TO OPERATE FOR DECADES CAN
BE FULLY REALIZED, WITH ITS ONLY
ONGOING FUNDING SOURCE ENDING IN
2030 IS PARTICULARLY RELEVANT.
WE FULLY AGREE NEXT COMMISSION
INDEPENDENCE STUDY OF THE
EXPERIENCE OF THE PROJECT AND
THE LESSONS THE STATE SHOULD
LEARN THAT MUST BE APPLIED TO
FUTURE MEGA PROJECTS, IF NOT
JUST THIS ONE. THAT THE STATE
UNDERTAKES OR SUPPORTS. THIS HAS
NOT BEEN DONE, AND IT SHOULD BE.
THIS WILL NOT BE THE LAST MEGA
PROJECT THE STATE UNDERTAKES AND
IT WOULD BE A GOOD IDEA NOT TO
REPEAT THE MISTAKES MADE ON THIS
PROJECT. WE HAVE AN ADDITIONAL
REQUEST. OVER THE PAST FIVE
BUSINESS PLANS THE ROLES OF THE
L A Ó AND THE PEER REVIEW GROUP
HAVE CONVERGED. THE L A S¼ S¼
WORK HAS BEEN EXCELLENT AND
THEIR CONCLUSIONS CLOSELY
PARALLEL OURS. THE SENATE AND
ASSEMBLY TRANSPORTATION STAFF
ARE UNUSUALLY EXPERIENCED AND
COMPETENT. THE CREATION OF THE
OIG ADDS ANOTHER CONCURRENT
VOICE TO THE DISCUSSIONS. THE
PEER REVIEW GROUP HAS ATTEMPTED
TO CO-OPERATE CLOSELY WITH ALL
OF THESE, AND WE BELIEVE THEIR
WORK IS OF GREAT VALUE. THE
QUESTION IS WHAT HAVE ANY VALUE
THE PEER REVIEW CAN NOW ADD TO
THE WORK OF THESE WELL STAFFED
AND PROFESSIONAL AGENCIES. WE
WOULD APPRECIATE ANY GUIDANCE OF
LEGISLATURE MAY HAVE I REALIZE
THIS IS NOT A WELCOME MESSAGE.
BUT AS YOUR EMPLOYEE, IT'S MY
DUTY TO BRING YOU BAD NEWS AS
WELL AS GOOD NEWS. YOU NEED A
BALANCED PICTURE OF THE
SITUATION. THE RESULTS OF THE
2020 TOUR DRAFT BUSINESS PLAN
AND THE FINANCIAL IMPLICATIONS.
IT HAS MAKE IT EVER MORE URGENT
THAT THE STATE REVIEW ITS
COMMITMENTS TO THE FULL PHASE
ONE IF IT CAN FIND A WAY TO PAY
FOR IT, OR START THE PROCESS OF
DEFINING AND CONSIDERING WHAT
YOUR ALTERNATIVES ARE. THANK
YOU. AND IF I CAN ANSWER ANY
QUESTIONS, I'LL BE HAPPY TO TRY.
THANK YOU. CHAIR. MOVING ON. MR
BENNET. GOOD AFTERNOON, MADAM.
CHAIR MEMBERS. UH, MY NAME IS
BEN BELKNAP. I'M THE INSPECTOR
GENERAL FOR THE NEWLY FORMED
OFFICE OF INSPECTOR GENERAL. THE
HIGH SPEED RAIL AND MY
BACKGROUND IS AUDITING. I
AUDITED FOR 22 YEARS AT THE
CALIFORNIA STATE AUDITOR'S
OFFICE UNTIL I WAS RECENTLY
APPOINTED TO THIS POSITION. MY
TEAM AND I HAVE REVIEWED THE
DRAFT BUSINESS PLAN. AND
ALTHOUGH OUR REVIEW IS ONGOING,
WE DO HAVE SOME INITIAL
OBSERVATIONS THAT WE'D LIKE TO
SHARE. YOU WILL FIND THESE
OBSERVATIONS IN GREATER DETAIL
IN THE TESTIMONY BRIEF. I
BELIEVE YOU WERE JUST HANDED IN
ITS 2020 THREE PROJECT TO REPORT
THE AUTHORITY PROVIDED AN
UPDATED SCHEDULE AND COST
ESTIMATE FOR THE MERCED TO
BAKERSFIELD SEGMENT. IN ITS
DRAFT BUSINESS PLAN. THE
AUTHORITY CONTINUES TO REFLECT
THIS SAME SCHEDULE AND COST
ESTIMATE. WITH THESE TWO KEY
ELEMENTS OF THE PLAN HOLDING IN
PLACE, THE AUTHORITY HAS AN
OPPORTUNITY TO FOCUS ITS EFFORTS
ON REFINING, REFINING OTHER
PORTIONS OF THE PLAN. TO DATE,
WE HAVE IDENTIFIED FOUR KEY
IMPROVEMENTS THE AUTHORITY NEEDS
TO IMPLEMENT. FIRST IT NEEDS TO
PUBLISH A MORE DETAILED FUNDING
PLAN FOR THEM ARE SAID TO
BAKERSFIELD SE SEGMENT. SECOND
IT NEEDS TO FORMALLY ESTABLISH A
POLICY. ON WHEN IT WILL UPDATE
PROJECT COSTS. AND A THIRD NEEDS
TO BE MORE CLEARLY ADDRESS EACH
STATUTORILY REQUIRED REPORTING
ELEMENT. AND THEN FINALLY NEEDS
TO INCREASE TRANSPARENCY IN
CERTAIN PARTS OF THE PLAN. THOSE
FIRST TWO IMPROVEMENTS. I LISTED
A MORE DETAILED FUNDING PLAN AND
ADOPTION OF A COST UPDATE
POLICY. STEM FROM
RECOMMENDATIONS MY OFFICE MADE
AS A RESULT OF OUR REVIEW OF THE
2020 THREE PROJECT UPDATE
REPORT. AS INDICATED IN THE
AUTHORITIES' RESPONSE TO THAT
REVIEW, THE AUTHORITY INTENDS ON
IMPLEMENTING THOSE
RECOMMENDATIONS. UM BOTH OF
THOSE RECOMMENDATIONS
CONCURRENTLY WITH THE BOARD'S
ADOPTION OF THE FINAL BUSINESS
PLAN. IF FULLY IMPLEMENTED, THE
BENEFIT OF THESE RECOMMENDATIONS
WILL BE AS FOLLOWS FIRST.
PROJECT STAKEHOLDERS, INCLUDING
THE LEGISLATURE WILL KNOW WHEN
THE CURRENT GAP IN SECURED
FUNDING FOR THE MERCE TO
BAKERSFIELD SEGMENT WILL BEGIN
TO NEGATIVELY IMPACT THE
AUTHORITY'S ABILITY TO STAY ON
THE CURRENT SCHEDULE. SECOND
PROJECT. STAKEHOLDERS WILL ALSO
HAVE A BETTER UNDERSTANDING OF
HOW REALISTIC THAT $4.7 BILLION
TARGET FOR FUTURE FEDERAL GRANTS
IS AND WILL THEREFORE HAVE A
BETTER UNDERSTANDING OF THE
EXTENT TO WHICH THE STATE MAY
NEED TO PROVIDE ADDITIONAL
FUNDING TO KEEP THAT, UH,
SEGMENT ON SCHEDULE. AND THEN
FINALLY, DECISIONS RELATED TO
UPDATES OF PROJECT COSTS AND THE
AUTHORITIES. ANNUAL REPORTS WILL
BE SUBJECT TO A FORMALLY BOARD
ADOPTED PUBLICLY VETTED POLICY,
THE DEVELOPMENT OF WHICH WILL
INCLUDE AN OPPORTUNITY FOR
PROJECT STAKEHOLDERS, INCLUDING
OURSELVES TO PROVIDE INPUT AND
FEEDBACK. AS I MENTIONED WE'VE
LOOKED AT THE STATUTORY
REQUIREMENTS. UM WE DID THIS
INITIAL COMPARISON AND WE SEE A
SOME INADEQUACIES IN SOME OF THE
DISCLOSURES IN THE DOCUMENT IN
PARTICULAR, UM WHERE THERE ARE
10 REPORTING REQUIREMENTS THAT
PREDATING S¼ B 198. THE PLAN
DOES NOT APPEAR TO FULLY ADDRESS
ROUGHLY HALF UM, I'LL GIVE YOU
TWO EXAMPLES. ONE IS THE DRAFT
FUNDING PLAN DOES NOT DESCRIBE
THE AUTHORITIES LEVEL OF
CONFIDENCE. WE'RE OBTAINING THE
TYPES OF FUNDING THE AUTHORITY
IDENTIFIED IN THE PLAN, ALTHOUGH
THIS ITEM SHOULD BE RESOLVED
WITH THE IMPLEMENTATION OF THE
RECOMMENDATION I DESCRIBED
EARLIER ANOTHER EXAMPLE. THE
DISCUSSION OF ALL REASONABLY
FORESEEABLE RISKS. NARROWLY
FOCUSES ON A SELECTION OF FIVE
RISKS. UH, WHICH DO NOT
REPRESENT THE TOP FIVE RISKS
IDENTIFIED BY THE AUTHORITY. AS
A RESULT, THE PLAN DOES NOT
DESCRIBE, FOR EXAMPLE, THE
STRATEGIES THE AUTHORITY INTENDS
TO UTILIZE TO MANAGE THE THREATS
TO ITS SCHEDULED MONITORING AND
MANAGEMENT, WHICH THE AUTHORITY
IDENTIFIED AS ITS SECOND HIGHEST
RISK. THE PLAN ALSO DOES NOT
ADEQUATELY ADDRESS SOME OF THE
NEW REPORTING REQUIREMENTS
IMPOSED BY S¼ B 198, FOR EXAMPLE
, IT DOES NOT PROVIDE
INFORMATION REQUIRED BY S¼ Y S¼
B 198 RELATED TO RIGHT AWAY
ACQUISITIONS. AND THEN THE PLAN
DOES NOT CLEARLY LIST ALL
FUNDING COMMITMENTS BEYOND, UH,
THE MERCED TO BAKERSFIELD
SEGMENT. IN ADDITION TO
COMPLYING WITH STATUTORY
REPORTING REQUIREMENTS, THE PLAN
COULD BE IMPROVED TO PROVIDE
ADDITIONAL TRANSPARENCY IN SOME
IMPORTANT AREAS, FOR EXAMPLE.
THE BUSINESS PLAN NEEDS TO
EXPLAIN WHY NÓ DEMONSTRATABLE
PROGRESS ON THE INITIAL
OPERATING AGREEMENTS. UM THAT
THEY'RE DEFINED IN THE PLAN. UH,
OCCURRED IN 2020 THREE. AND WHY
STAKEHOLDERS SHOULD NOT BE
CONCERNED WITH THIS APPARENT
LACK OF PROGRESS. ADDITIONALLY
THE PLAN'S DISCUSSION OF PROJECT
RISKS USES SIMILAR IF NOT THE
SAME LANGUAGE TO DESCRIBE BOTH
CONTROLS THAT IS ALREADY
IMPLEMENTED AND CONTROLS IT
PLANS TO IMPLEMENT IN THE
FUTURE. THIS AMBIGUITY DECREASES
NOT ONLY CLARITY BUT
ACCOUNTABILITY. WE HAVE SHARED
AND WE'LL CONTINUE TO SHARE
THESE CONCERNS WITH AUTHORITY
AND THEY'VE INDICATED THAT THEY
WILL WORK WITH US, UH, UP TO AND
UNTIL THEY THEY PUBLISH THE
DRAFT. UM AND WE WILL CONTINUE
TO PROVIDE THAT FEEDBACK TO
THEM. SO WITH THAT I WILL
CONCLUDE MY TESTIMONY AND
WELCOME ANY QUESTIONS. THANK YOU
AND NOW BRING IT BACK TO MEMBERS
TO SEE IF THERE ARE ANY
QUESTIONS. DID YOU HAVE ACTUALLY
DON'T HAVE A QUESTION. I JUST
THINK I WANNA THANK UM, ALL
THREE OF THE PRESENTERS FOR
BEING SUPER CLEAR AND ALIGNED.
AND I KNOW THAT MR KELLY AND MR
ANNIS ARE HERE LISTENING
CAREFULLY, AND WE HAVE AN
OPPORTUNITY TO CORRECT THE, UM
THE MISALIGNMENT ON THIS DRAFT
VERSION OF THE PLAN BEFORE THE
FINAL PLAN IS DONE, AND I THINK
THAT'S GONNA BE REALLY
IMPORTANT. WHAT I'LL BE LOOKING
CAREFULLY AT THAT. SO THANK YOU.
I ALSO JUST WANNA UM A LOT OF MY
COMMENTS WITH, UH, MY COLLEAGUE
FROM SANTA BARBARA REALLY
APPRECIATE THAT. UM THE THREE OF
YOU ALL SPEND A LOT OF TIME
FOCUSING ON THE FISCAL GAP. THE
$8 BILLION GAP $80 BILLION GAP.
UM, IS THAT THE PRIMARY HURDLE
TO GETTING THIS PROJECT? DONE
MEANING IF WE COULD SOMEHOW FIND
THAT $8 BILLION IN YOUR MIND
WITH THIS. PROJECT. BE ABLE TO
BE COMPLETED. I GUESS I GUESS
THE QUESTION IS IT JUST BECAUSE
THE PREVIOUS PRESENTATION. WE
DIDN'T SEE VERY DETAILED
SCHEDULE. WE SAW SOME FAIRLY
BROAD UM DEADLINES. TRYING TO
FIGURE OUT WHAT WHAT IT WILL
TAKE TO GET THIS. AT LEAST THIS
INITIAL STRETCH DONE. AND THEN
OBVIOUSLY THE NEXT PHASE DONE
TOO. I THINK THERE ARE TWO
ASPECTS TO THAT QUESTION THAT I
WOULD LIKE TO DEAL WITH. UH,
FIRST IS IF YOU DON'T HAVE THE
MONEY, YOU CAN'T DO IT. THAT
SHOULD BE CLEAR. SO UH, IT'S
VERY DIFFICULT TO PLAN AND
IMPOSSIBLE TO MANAGE A PROJECT
WHEN A YOU DON'T HAVE THE MONEY
AND BE YOU DON'T KNOW WHEN YOU
WILL GET IT. AND IT DOESN'T COME
TO YOU IN A FORM THAT PERMITS
YOU TO PLAN AND MANAGE STABLY.
SO WHEN I SAID THAT THE LACK OF
A, UH A KNOWN STABLE FUNDING
PLAN IS HINDERING THE PROJECT. I
DIDN'T JUST MEAN THEY DON'T HAVE
THE MONEY TO DO IT. I MEANT THAT
THEY DON'T HAVE THE MONEY AND TO
PLAN IT AND MANAGEMENT MANAGE IT
THE WAY YOU SHOULD. THE
COMPARISON I WOULD GIVE YOU
WOULD BE THE INTERSTATE HIGHWAY
PROJECT WHERE THERE WAS A KNOWN
STABLE SOURCE OF FUNDING. WHERE
THEY COULD PLAN FOR THE YEARS
THAT THEY NEEDED THE PLAN, AND
THEY COULD MANAGE IT IN AN
EFFECTIVE WAY WITHIN THE BUDGET
THAT THEY HAD AVAILABLE THAT
DOES NOT EXIST HERE, AND IT IS
MAKING IT VERY, VERY DIFFICULT
FOR THEM TO MANAGE THE PROJECT.
AND IF THE LEGISLATURE REALLY
WANT ESPECIALLY PHASE ONE, IF
YOU REALLY ARE THINKING ABOUT
PHASE ONE, I REALLY STRESS AS
HARD AS POSSIBLE. GET SOME
THOUGHT DONE ON ON LONG RANGE
FUNDING FOR THIS PROJECT, BE IT
A GAS TAX. BE IT A SUGAR TAX. BE
IT A WHATEVER KIND OF SOURCE OF
FUNDING YOU WANT. BUT PLEASE
DON'T PUT THAT OFF ANY LONGER.
YOU NEED THAT NOW. SO UM, I. I
ECHO MANY OF THOSE COMMENTS. I
THINK THAT'S IT'S ABSOLUTELY, UH
, A SUPER IMPORTANT
CONSIDERATION IS PROVIDING
STABLE, ADEQUATE FUNDING. HAVING
THAT FUNDING PLAN, I WOULD SAY,
I DON'T THINK THAT'S THE ONLY
RISK. UM CERTAINLY THERE ARE
OTHER RISKS THAT THE PROJECT
FACES. UM THE PROJECT HAS A
HISTORY OF VARIOUS CHALLENGES.
IT'S HAD NUMBER OF DISAGREEMENTS
WITH CONTRACTORS. UM WE DO THINK
YOU KNOW IT DOES LOOK LIKE THE
AUTHORITY IS LEARNING FROM SOME
OF THOSE LESSONS AND WE VERY
MUCH HOPE THAT WE'RE PAST THE
WORST OF THAT, AND THEN WE WON'T
HAVE QUITE THE LEVEL OF
CHALLENGES GOING FORWARD, BUT
THEY'RE ALWAYS A RISKS WITH THIS
KIND OF LARGE MEGA PROJECT AND
YOU KNOW, THE AUTHORITY HAS
IDENTIFIED A NUMBER OF THOSE, AS
AS, UM, THE INSPECTOR GENERAL
MENTIONED THERE. UM, SOME OF
THEM ARE HIGHLIGHTED IN THE
BUSINESS PLAN. UM BUT THERE'S A
WHOLE HOST OF THEM. SO WE THINK
THAT YOU KNOW, SORT OF A FIRST
STEP CERTAINLY, OR AN IMPORTANT
STEP IS HAVING, YOU KNOW, A
CLEAR SENSE OF HOW YOU'RE GONNA
PAY FOR WHATEVER WHATEVER
PROJECTS COMPO, YOU KNOW,
SEGMENT YOU THE LEGISLATURE
WANTS TO DO IF THAT'S MERCED TO
BAKERSFIELD. THAT'S W. WE'RE
GONNA NEED TO FIGURE OUT HOW TO
FUND WE'RE SET TO BAKERSFIELD.
IF THAT'S SOMETHING SMALLER,
THEN IT'S A SMALLER AMOUNT. IF
THAT'S SOMETHING BIGGER, THEN
THAT'S A BIGGER AMOUNT. BUT HOW
ARE WE GONNA PAY FOR WHATEVER
WHATEVER THE LEGISLATURE'S
VISION IS, UM, WHAT'S THE
FUNDING PLAN FOR THAT? THAT STEP
ONE, BUT BUT RECOGNIZING THERE
ARE OTHER PROJECT, UM,
CHALLENGES THAT ARE THAT ARE AND
OTHER PROJECT RISKS THAT ARE
REAL. WE DON'T KNOW HOW YOU KNOW
WHICH ONES WILL, UM, WILL END UP
BEING PROBLEMATIC, BUT CERTAINLY
THERE'S LITIGATION. CERTAINLY
THERE'S ISSUES WITH THIRD
PARTIES. UM, THERE'S A WHOLE
HOST. THERE'S ISSUES AS UM, WAS
BRIEFLY REFERENCED. THERE'S
POTENTIAL RISK WITH, YOU KNOW,
HAVING A THIRD PARTY OPERATOR.
THERE'S PROB WE COULD PROBABLY
SPEND YOU KNOW ALL AFTERNOON
TALKING ABOUT VARIOUS PROJECT
RISKS. UM SO HAPPY TO ANSWER ANY
MORE SPECIFIC QUESTIONS YOU HAVE
ON THAT, BUT I THINK IT'S
PROBABLY A BOTH I'D LIKE TO ADD.
UH YES. FUNDING RISK IS NUMBER
ONE. UM WHAT'S MISSING IN THE
PLAN RIGHT NOW ARE ELEMENTS OF
THE ANALYSIS THAT PUSH THOSE
STRATEGIC DECISIONS FORWARD.
WE'VE GOT TO PROGRESS IN THE
STRATEGIC DECISIONS AROUND
FUNDING. UM AND THOSE ARE THE
FOCUS OF OUR OUR RECOMMENDATIONS
AND FOCUS OF MANY OF OUR
CRITICISMS IS THE LACK OF
PROGRESS ON THAT CRITICAL
PORTION OF THE ME MEANING THAT
IF THE AUTHORITY WANTED TO CLOSE
THE $8 BILLION GAP. THEY WOULD
PRESENT A BOND TAX SOME SORT OF
REVENUE PROPOSAL TO US. IS THAT
WHAT YOU'RE AND I THINK STEP ONE
IN THAT IS TO IDENTIFY EXACTLY
WHEN THE PROJECT NEEDS FUNDING
TO STAY ON SCHEDULE. YOU CAN GET
THERE. LOOKING AT SOME OF THE
EXHIBITS, BUT IT'S NOT SUPER
CLEAR. THE FIRST STEP IS TO KNOW
EXACTLY WHEN, AND THE NEXT STEP
IS TO LOOK AT WHAT FEDERAL
FUNDING MATCHES WITH THAT TIMING
AND HOW MUCH OF THAT FEDERAL
FUNDING IS LEFT. THERE'S AN
EXHIBIT IN THERE THAT SHOWS THE
TOTAL APPROPRIATION FOR FEDERAL
FUNDING, BUT WE NEED TO KNOW HOW
MUCH IS LEFT OF AND HOW MUCH OF
THAT IS REALISTICALLY COMING TO
CALIFORNIA'S WAY. UM, THOSE ARE
INITIAL STEPS THAT THAT NEED TO
OCCUR. GREAT. THANK YOU. WELL, I
SAY THANK YOU, UM, EACH AS AS
WAS NOTED FROM MY COLLEAGUES,
AND I THINK YOU NOTED IT IN THE
PAIR TALKING FROM THE PAIR
REVIEW GROUP POINT OF VIEW OF
WHAT IS THE ULTIMATE ROLE GIVEN
THE, UM ALL THE VOICES THAT WE
HAVE, AND EACH ONE OF YOU PLAY A
CRITICAL ROLE IN THIS PROJECT.
UM AND PROVIDING YOU KNOW, YOU
TALK ABOUT THE OPAQUENESS OF
SOME OF THE DOCUMENTS OF
PROVIDING CLARITY AND SHOWING US
WHERE THE TRULY THE PITFALLS
ARE, UM, WHERE YOU DON'T HAVE
THE LEVEL OF, UH PASSION AND
DETAIL. AS YOU KNOW, THE
AUTHORITY DOES AS IT RELATES TO
THE PROJECT. YOU CARE ABOUT THE
PROJECT, OF COURSE, BUT I JUST
MEANT, YOU KNOW, WHEN YOU'RE IN
THE PROJECT, IT'S MUCH HARDER TO
HAVE A CRITICAL EYE, UM THAN
WHEN YOU'RE OUTSIDE LOOKING IN,
AND THAT'S THE ROLE THAT YOU
BRING AND IT'S VITAL AND SO I
WANTED IT TO FOR THE INSPECTOR
GENERAL TO ASK YOU. SO THIS IS A
NEW ROLE THAT YOU HAVE RELATED
TO THIS AND YOU TALK. YOU TALKED
EARLY ON IN YOUR TESTIMONY ABOUT
THE VARIETY OF OPERATIONAL
REVIEWS THAT YOU PLAN IN THE
COMING YEAR. AND SO COULD YOU
GIVE A LITTLE BIT MORE DETAIL AT
THAT, FOR YOU KNOW THE MEMBERS
AND THE MEMBERS OF THE PUBLIC
ABOUT, UM, YOUR OFFICE AND THAT
WORK PLAN AND WHAT YOU PLAN IN
THE NEXT YEAR? YEAH. I'D LOVE
TO. THANK YOU FOR THAT QUESTION.
UH, SO AFTER WE GET DONE
REVIEWING THE DRAFT BUSINESS
PLAN, WE WILL DO A FORMAL RISK
ASSESSMENT WHERE WE IDENTIFY THE
GREATEST AREAS OF RISK THAT WE
WANT TO REVIEW. UM WE DID ENOUGH
OF THAT FROM JUST MY OWN
EXPERIENCE WHERE WE COULD PUT
TOGETHER A B èC P THAT LINES
OUT HOW RESOURCES WITH THIS
OFFICE NEED AND WE DID IDENTIFY
IN THAT B èC P. SIX OPERATIONAL
REVIEWS. UH, AGAIN, THAT'S
SUBJECT TO THAT FORMAL RISK
ASSESSMENT SO, THEREFORE SUBJECT
TO CHANGE. BUT NEVERTHELESS, UM,
I'LL GIVE YOU AN EXAMPLE OF TWO
OF THOSE OPERATIONAL REVIEWS.
ONE IS A DEEP DIVE, UH, INTO THE
FUNDING STRATEGY. UH, SO WHAT'S
GOING ON BEHIND THE SCENES? NOT
NECESSARILY WHAT'S JUST IN THIS
DOCUMENT, BUT WHAT'S GOING ON
BEHIND THE SCENES TO MAKE SURE
WE SECURE AS MUCH FEDERAL
FUNDING? WE CAN, UM ANOTHER ONE
OF THOSE REVIEWS IS A DEEP DIVE.
THE PROCUREMENT PRACTICES. UH,
SO THAT'S A LOOK AT HOW ARE
THEY? BRING ON BIDS. HOW THEY
EVALUATING THOSE BIDS. UM IS IT
IN THE BEST INTEREST OF THE
STATE THE WAY THOSE CONTRACTS
ARE ARE BEING PUT TOGETHER? UH,
THAT'S ANOTHER ONE OF THOSE
OPERATIONAL REVIEWS AND THERE'S
AND THERE'S OTHERS, ALL WHICH
WE'RE VERY EXCITED TO START ONCE
WE'RE FULLY STAFFED IN THE NEXT
FISCAL YEAR. AND THOSE YOU
EXPECT TO BE RELEASED AROUND IS
THAT AT THE END OF THE YEAR OR
WON'T BE IN THIS FISCAL YEAR.
IT'LL BE NEXT FISCAL YEAR ABOUT
EVERY QUARTER OF YEAH, WE'RE
KIND OF ROLLING THEM OUT. UM,
AND THE REASON IT ADDS UP TO SIX
INSTEAD OF EIGHT. THERE'S FOUR
QUARTERS IS THERE'S A PAUSE IN
THAT YEAR TO WORK ON THE WHAT
WOULD BE 2024 PROJECT UPDATE
REPORT. UM, SO THAT THAT'S A
QUARTER WHERE WE'LL JUST FOCUS
ON THAT? SOUNDS GOOD. THANK YOU.
AND THEN LAST, BUT NOT LEAST. UM
AND THIS IS FOR CHAIR THOMPSON
OR L. A Ó IS THAT YOU KNOW
THERE'S A SIGNIFICANT RISK. AS
ITS BEEN STATED THAT THERE WON'T
BE ENOUGH FUNDING TO FINISH THE
HIGH SPEED DOUBLE TRACK RAIL
LINE BETWEEN MERCED AND
BAKERSFIELD. AND SO WHAT WOULD
YOU RECOMMEND THE LEGISLATURE DO
TO BEST ENSURE THAT THE FUNDS WE
DO HAVE AVAILABLE ARE MAXIMIZED
TO THEIR GREATEST POTENTIAL. UM
SO I THINK ONE OF THE KEY STEPS
IS THINKING ABOUT KIND OF WHAT'S
THE LEGISLATURE'S COMMITMENT,
RIGHT? IF YOU IF TO THE EXTENT
THE LEGISLATURE WANTS TO
PRESERVE SOME FLEXIBILITY, SAY
THERE ISN'T ENOUGH MONEY AND
WE'RE IN THIS. WE'RE CURRENTLY
IN A VERY DIFFICULT BUDGET
SITUATION. UM, WE'RE LOOKING AT
DEFICITS. IT'S POSSIBLE THAT
EVEN THOUGH THIS IS A VERY YOU
KNOW, VERY HIGH LEGISLATIVE
PRIORITY THAT IT MAY BE JUST
VERY, VERY DIFFICULT TO COME UP
WITH ADDITIONAL FUNDS SAY IF
THAT'S THE CASE, IT SEEMS LIKE
ONE IMPORTANT CRITICAL STEP IS
THINKING ABOUT WHAT ARE THEY OFF
RAMPS? HOW CAN WE MAKE THIS
PROJECT? UM AS USEFUL AS
POSSIBLE. AND THAT COULD BE FOR
EXAMPLE, THINKING ABOUT, UM ARE
THERE WAYS THAT WE CAN BETTER
INTEGRATE? UM MAKE SURE THAT
WHATEVER WE WHAT? WHATEVER
SYSTEM WE HAVE INTEGRATES REALLY
WELL WITH THE EXISTING SAN
JOAQUIN'S, SO IF YOU DON'T MAKE
IT UP TO MERCED, HOW DO YOU MAKE
SURE THAT IN MADEIRA? THERE'S A
GREAT INTEGRATION. UM, HOW DO
YOU MAKE SURE THAT OR, YOU KNOW,
DO YOU GO ALL THE WAY TO
BAKERSFIELD? OR DO YOU GO A
LITTLE BIT LESS FAR? UM DO YOU
THINK ABOUT YEAH. SINGLE
TRACKING VERSUS DOUBLE TRACKING.
THOSE ARE ALL THE KINDS OF
DISCUSSIONS THE LEGISLATURE
COULD CERTAINLY HAVE. TO MAKE
SURE AND REALLY MAKING. SURE UM,
THAT AS PART OF THAT
CONVERSATION, THERE'S A
DISCUSSION OF WELL ARE THERE
WAYS THAT WE CAN MAKE SURE THAT
WHATEVER WE START BUILDING, UM,
IS STILL USEFUL, EVEN IF WE
MAYBE DON'T HAVE ENOUGH MONEY TO
COMPLETE ALL OF IT, SO I DON'T
THINK I HAVE. THE ANSWER OF THIS
IS EXACTLY WHAT YOU WOULD DO.
BUT HAVING THE ESPECIALLY IF THE
LEGISLATURE WANTS TO PRESERVE
SOME FLEXIBILITY, THAT WILL BE
IMPORTANT, I GUESS ANOTHER THING
I WOULD HIGHLIGHT IS THAT THESE
BIG CONTRACTS THAT ARE COMING UP
ARE GOING TO BE SO IMPORTANT AND
GRANT AGREEMENTS SO IMPORTANT
FOR THIS DISCUSSION, BECAUSE
ONCE WE SIGN AS THE STATE ON THE
DOTTED LINE, SAYING, CONTRACTOR
THIS IS THE SCOPE WE WANT YOU TO
DO. IT'S GONNA BE HARDER AND
HARDER, NOT TO GO FORWARD WITH
THAT FULL SCOPE. ONCE WE SAY TO
THE FEDERAL GOVERNMENT, THIS IS
THE SCOPE THAT WE'RE COMMITTED
TO DO TO GET THESE FEDERAL FUNDS
. IT'S GONNA BE HARDER AND
HARDER NOT TO DO THAT SO I GUESS
I WOULD SAY THAT'S ANOTHER
CONSIDERATION TO THINK ABOUT, UM
, TO THE EXTENT THE LEGISLATURE
WANTS TO PRESERVE SORT OF MORE
OFF RAMPS, OR, UM, YOU KNOW, THE
RECOGNIZES THAT THERE'S SOME
CHANCE THAT PER PERHAPS FUNDING
WON'T WON'T BE AVAILABLE TO GO
BEYOND WHAT WHAT WE ALREADY HAVE
, UM, YOU KNOW, MAKING SURE THAT
THE THAT WE'RE THINKING ABOUT
THAT AS WE'RE AS WE'RE KIND OF
COMMITTING TO THOSE AGREEMENTS,
I THINK WOULD BE IMPORTANT.
THANK YOU. IF I MIGHT ADD THE
AUTHORITY HAS SAID THAT IT HAS
ADOPTED A STRATEGY OF NOT OF
CONTRACTING IN SUCH A WAY THAT
THEY CAN AWARD PIECES IN ACCORD
WITH THE FUNDING THAT THEY HAVE
AVAILABLE. AND THAT WILL HELP.
BUT IT WILL ONLY SOLVE PART OF
THE PROBLEM BECAUSE THE ELECTRIC
ROLLING STOCK IS EITHER USEFUL
OR IT ISN'T YOU DON'T BUY PIECES
OF IT, AND THERE ARE OTHER
ASPECTS OF THIS THAT ARE NOT
GOING TO BE AMENABLE TO THAT.
BUT ONE POINT I WOULD LIKE TO
MAKE IN LINE WITH WHAT HELEN
JUST SAID IT IT WILL SURPRISE
YOU TO LEARN HOW EARLY WE ARE IN
THIS PROJECT, DESPITE THE FACT
THAT IT'S BEEN GOING FOR 15
YEARS, WE STILL DON'T HAVE ANY
BIDS ON MUCH OF THE WORK THAT'S
ASSOCIATED WITH MERCED. FEEL
LIKE THE ELECTRIFICATION OR THE
ROLLING STOCK OR THE SIGNALING
OR THE TRACK OR THE STATIONS,
AND WE DON'T HAVE ANY EXPERIENCE
WITH ANYTHING OUTSIDE MADEIRA TO
BAKER TO POPLAR AVENUE. REALLY
SO AN IMMENSE AMOUNT OF PROJECT
IS STILL HANGING THERE WITHOUT
ACTUAL BIDS OR OR MANAGEMENT
EXPERIENCE. SO WE HAVE TO KEEP
IN MIND THAT THE RISK IN TERMS
OF WHAT THE VARIATION IN THEIR
BUDGETS COULD BE. REALLY VERY
HIGH. AS OF NOW. SO THE APPROACH
TO FUNDING IT SHOULD BE. WHAT DO
WE DO IF WE DON'T GET ALL OF THE
MONEY THAT WE'D LIKE TO GET? HOW
DO WE PLAN FOR A FALLBACK
POSITION IN THAT EVENT, AND I
THINK, AS HELEN SAID, THAT WOULD
BE A VERY GOOD THING FOR THE
LEGISLATURE TO LOOK AT. WHAT ARE
OUR FALLBACK POSITIONS. RIGHT NÓ
. THANK YOU. AND I THINK THAT
PROVES THE POINT THAT WE REALLY
NEED TO BE FOCUSED AND HAVE
THESE DISCUSSIONS NOW AND HOW
IMPORTANT THIS HEARING IS TODAY.
THANK YOU SO MUCH. I DON'T SEE
ANY OTHER QUESTIONS FROM MEMBERS
. UM THANK YOU FOR BEING ABLE TO
BE HERE TODAY AND PROVIDE A MUCH
NEEDED VOICE TO THIS DISCUSSION.
UM WITH THAT WE'RE GONNA MOVE ON
TO OUR THIRD AND FINAL PANEL,
WHICH IS THE OPERATION OF THE
MERCED DEBATE FIELD SEGMENT. OUR
PARTICIPANTS INCLUDE CHAD EDISON
, CHIEF DEPUTY SECRETARY FOR R
AND TRANSIT FROM CAL STUFF.
BRUCE ARMISTEAD, CHIEF OF RAIL
AND OPERATIONAL DELIVERY FROM,
UH, CALIFORNIA HIGH SPEED RAIL
AUTHORITY, AND THEN FINALLY, DÂN
LEVITT, THE MANAGER OF REGIONAL
INITIATIVES FROM SAN JOAQUIN,
REGIONAL RAIL COMMISSION, SAN
JOAQUIN JOINT POWERS AUTHORITY.
ONCE WE ARE COMPLETED WITH THIS
SEGMENT, WE WILL THEN MOVE ON TO
PUBLIC COMMENTS AND CLOSING
REMARKS. BUT THAT AT YOUR
CONVENIENCE YOU MAY GET. THANK
YOU VERY MUCH CHAIR WILSON AND
MEMBERS OF THE COMMITTEE. UM
THANK YOU FOR GIVING ME A FEW
MOMENTS TO ADDRESS ADDRESS YOU.
I AM CHAD EDISON, UH, CHIEF
DEPUTY SECRETARY FOR RAIL AND
TRANSIT AT THE CALIFORNIA STATE
TRANSPORTATION AGENCY. OUR
AGENCY IS INVOLVED WITH MANY OF
THE POLICY AND FUNDING TOPICS
RELATED TO THE OPERATION OF
EARLY SERVICE THAT WILL UTILIZE
THE FIRST COMPLETED SECTIONS OF
HIGH SPEED RAIL CONSTRUCTION.
INCLUDING THE NETWORK OF INNER
CITY AND REGIONAL SERVICES THAT
WILL CONNECT TO THE HIGH SPEED
RAIL LINE. SINCE 2015 CALTA HAS
AWARDED OVER $10 BILLION OF
FUNDING. THE TRANSIT AND INNER
CITY RAIL PROJECTS THROUGHOUT
THE STATE. WITH A SIGNIFICANT
AMOUNT OF THAT FUNDING GOING
TOWARDS THE VALLEY RAIL SERVICE.
MY FELLOW PANELIST, DÂN. LEVITT
WILL DESCRIBE IN A FEW MOMENTS.
WE HAVE ALSO WORKED CLOSELY WITH
CALTRANS ON DEVELOPING THE
CAPITAL FUNDING RECOMMENDATIONS
FOR THE RAIL PROJECTS IN THE
INTERREGIONAL PORTION OF THE
STRAIGHT STATE TRANSPORTATION
IMPROVEMENT PROGRAM. THE STEP
AND FOR S¼ B ONE FUNDING
APPLICATIONS, MAKING SURE THAT
KEY PROJECTS THAT BENEFIT
SERVICES THAT CONNECT TO THE
HIGH SPEED RAIL LINE IN MERCED.
PRIORITIZED OR OUR OUR
PRIORITIZED FOR FUNDING. FUTURE
TO SAN JOAQUIN AND ACE SERVICES
WILL PROVIDE CRITICAL
CONNECTIONS TO HIGH SPEED RAIL.
AND WE WILL CONTINUE TO SUPPORT
THEIR DEVELOPMENT. THE
INTEGRATED RAIL NETWORK THAT IS
BEING DEVELOPED, WILL EXTEND THE
BENEFITS OF HIGH SPEED RAIL. TO
COMMUNITIES THROUGHOUT THE STATE
, AND WE HAVE THE RESPONSIBILITY
TO SUPPORT THE DEVELOPING OF
THAT NETWORK. WELL, THE
SECRETARY OF TRANSPORTATION AT
KELSA, IS ALSO INVOLVED IN
APPROVING THE BUSINESS PLANS
THAT ARE PROPOSED BY OUR INNER
CITY RAIL JOINT POWERS.
AUTHORITIES. PARTNERS THROUGHOUT
THE STATE, AND THIS SLIDE HERE
IN INDICATES THE IMPORTANT
EVOLUTION OF THE RELATIONSHIP.
THAT IS OCCURRING WITH THE
LAUNCH OF EARLY SERVICE IN THE
CENTRAL VALLEY. EVERY YEAR, THE
SAN JOAQUIN JP SUBMITS ITS PLAN
FOR MANAGING AND OPERATING THE
INNER CITY RAIL SERVICES. AND AS
HIGH SPEED RAIL DEVELOPS, THEY
WILL INCLUDE THE EXPANDED
SERVICE IN THEIR BUSINESS PLAN.
THE HIGH SPEED RAIL AUTHORITY
WILL ENTER INTO LEASE AND ACCESS
AGREEMENTS WITH S¼ J JP, A
ENSURE FULL COMPENSATION FOR THE
TRAIN SETS AND INFRASTRUCTURE
USED IN OPERATED IN THE SERVICE.
THE JP A, IN TURN WILL PRESENT
THE FULL FINANCIAL REQUIREMENTS
AND SERVICE TO CALTA FOR
APPROVAL AND FUNDING. AS PART OF
ITS BUSINESS PLAN. FOR OUR PART,
WE WILL ENSURE A STATE BUDGET
RESOURCES ARE SUFFICIENT TO
OPERATE SAN JOAQUIN IN OTHER
INNER CITY RAIL SERVICES
THROUGHOUT THE STATE. THE
DEVELOPMENT OF THE CALTRANS
BUDGET THAT FUNDS THEM. AND
CALTRANS WILL CONTINUE TO
PROVIDE A MODERNIZED AND NEW
REGIONAL RAIL AND INNER CITY
RAIL FLEET INCREASINGLY ZERO
EMISSION TO CONNECT IT TO THE
HIGH SPEED RAIL. UM, SERVICES
EXPECTED TO UTILIZE MANY OF THE
OF THE STATE OF THE ART AND
PASTURE COMFORT BENEFITS THAT
ARE ALSO BEING PROCURED IN THE
HIGH SPEED RAIL TRAIN SETS.
THERE ARE MANY MORE DETAILS WE
COULD GET INTO. SHOULD YOU HAVE
A SPECIFIC QUESTIONS, BUT I'D
LIKE TO CLOSE IN SAYING THAT WE
ARE FULLY ENGAGED IN SUPPORTING
THE POLICIES, AGREEMENTS AND
FUNDING NECESSARY HAVE A
SUCCESSFUL INTEGRATED RAIL
NETWORK. I'LL LET MY FELLOW
PANELISTS GET INTO MORE DETAIL.
WAS MENTIONED. AS WAS MENTIONED.
I'M BRUCE ARMSTEAD, CHIEF OF
RAIL AND OPERATIONS DELIVERY
WITH THE HIGH SPEED RAIL
AUTHORITY. I'M GONNA TALK A
LITTLE BIT ABOUT OPERATIONS
ALONG THE MERCED TO BAKERSFIELD
SEGMENT. THE CENTRAL VALLEY
SERVICE WILL CONNECT MILLIONS OF
CALIFORNIANS TO HIGH SPEED RAIL.
WE'RE GONNA MEET CONVENTIONAL
RAIL SERVICES IN MERCEDES CAN BE
SEEN ON THE MAP TO THE LEFT, AND
WE'LL MEET BUSES TO LOS ANGELES
UNION STATION WESTWOOD IN
PASADENA, UH, ON THE BOTTOM TO
THE RIGHT. THE CENTRAL VALLEY
SERVICE WILL INCREASE SYSTEM
WIDE ANNUAL RIDERSHIP TO ABOUT
$6.6 MILLION. THE CENTRAL VALLEY
6.6 MILLION WRITERS, THE CENTRAL
VALLEY SERVICE, ALMOST DOUBLES
THE EXISTING RIDERSHIP AND HIGH
SPEED RAIL SERVICE FARE
STRUCTURE WILL BE FULLY
INTEGRATED WITH THE SAN
JOAQUIN'S AND A SERVICES. THE
HIGH SPEED RAIL SYSTEMS, TAKES
DRIVERS OFF HIGHWAYS AND
PROVIDES FAST, SUSTAINABLE MODES
OF TRANSPORTATION. THE SERVICE
IS PLANNED TO CONSIST OF SIX
HIGH SPEED RAIL TRAIN SETS FOR
THE CENTRAL VALLEY SERVICE FOR
SERVICE. ONE PROTECT TRAIN SET
AND ONE IN MAINTENANCE. THE
HOURLY HIGH SPEED RAIL SERVICES.
BOTH DIRECTIONS BETWEEN MERCED
AND BAKERSFIELD. UP TO 18 DAILY
ROUND TRIPS AND SEAMLESS RAIL TO
RAIL RAIL TO RAIL AND RAIL TO
BUS TRANSFERS AT MERCED AND
BAKERSFIELD. THE JOURNEY TIME.
IS 82 MINUTES ON HIGH SPEED RAIL
COMPARED TO 100 AND 92 MINUTES
AT APPROXIMATELY 100 AND 80
MILES AN HOUR FOR THE 82 MINUTE
SERVICE FROM THE SAID TO
BAKERSFIELD. THE SERVICE SAVES
499,000 ANNUAL HOURS AND
PASSENGER TRAVEL COMPARED TO
OTHER RAIL TRANSPORTATION
OPTIONS. 97 MILLION FEWER MILES
TRAVELED BY PRIVATE VEHICLES
ANNUALLY. AND WE WILL REMOVE
92,000 METRIC TONS OF CO. TWO
EMISSIONS. THE EARLY OPERATING
SEGMENT WILL CREATE AN
EMPLOYMENT BOOM AND BROAD
ECONOMIC OUTPUT GROWTH IN THE
LONG TERM. INVESTMENT IN HIGH
SPEED RAIL SPARKS LABOR INCOME
AND GENERATES VALUE FROM THESE
ACTIVITIES, DRIVING OVERALL
ECONOMIC OUTPUT THROUGHOUT THE
CENTRAL VALLEY REGION REGION.
THE LABOR INCOME. THIS ECONOMIC
OUTPUT IS FUELED BY 28 BILLION
AND ROUGHLY 330,000 JOB HOURS.
ECONOMIC OUTPUT THROUGHOUT THE
PROJECT. HIGH SPEED RAIL WILL
CREATE JOBS THROUGHOUT
CALIFORNIA AND RAISE OVERALL
ECONOMIC ACTIVITY VIA INDIRECT
AND INDUCED SPENDING. IN
OPERATION HIGH SPEED RAIL WILL
CREATE JOBS AND CONTINUE TO
DRIVE ECONOMIC GROWTH IN
CALIFORNIA. DIRECT INDIRECT AND
ADDUCED EFFECTS WILL BE
REALIZED. HIGH SPEED RAIL
IMPACTS ON THE ECONOMY, THREE
CHANNELS A PROGRAM FUNDING. FEES
DIRECT EFFECTS. BY CONTRACTORS,
CONSTRUCTION WORKERS. SALARIES
MANUFACTURING PRODUCTION
EMPLOYEE SALARIES, AND THAT
TRANSLATES TO INDIRECT EFFECTS
OF CONCRETE AND STEEL SUPPLIES.
TRANSPORT COMPUTERS, PARTS,
OFFICE SUPPLIES, ETC. THE
INDUCED EFFECTS ARE HOUSING AND
GROCERIES AND RETAIL. HIGH SPEED
RAIL INCREASES JOB AND INCOME
OUTPUTS. THE ESTIMATED ANNUAL
ECONOMIC IMPACT FROM STAFFING,
HIGH SPEED RAIL FACILITIES
ROUGHLY THREE 190 FULL TIME
EMPLOYEES. 58.5 MILLION IN LABOR
INCOME. AND FOR EVERY DOLLAR
INVESTED IN HIGH SPEED RAIL. IT
CREATES $4 IN ECONOMIC BENEFIT.
HIGH SPEED RAIL STATE OF THE
ART. AMERICAN MADE TRAINS WILL
HAVE WORLD CLASS INTERIORS. THEN
INSPIRE CUSTOMERS ON THE ON
BOARDING SPIRITS AND INTERIOR
DESIGN IS ONE OF THE MAIN
DRIVERS OF CUSTOMER
SATISFACTION. A WORLD CLASS
INTERIOR THAT IS ACCESSIBLE. BY
ALL CALIFORNIANS IS IMPORTANT TO
MAXIMIZE TRAVEL TIME, COMFORT
AND ENJOYMENT. WORKED IN
CALIFORNIANS INSPECT A STATE OF
THE ART RESILIENT AND PASSENGER
CENTRIC. INTERIOR. NOW TURN IT
OVER TO DÂN. THANK YOU, UH, GOOD
AFTERNOON CHAIR WILSON. MEMBERS
OF TRANSPORTATION COMMITTEE.
THANK YOU FOR THIS OPPORTUNITY
TO SPEAK. I AM THE MANAGER OF
REGIONAL INITIATIVES FOR THE SAN
JOAQUIN REGION RAIL COMMISSION
AND SAN JOAQUIN JOINT POWERS
AUTHORITY, THEY SAY IN REGIONAL
COMMISSION IS THE OWNER OPERATOR
OF THE ACE COMMUTER RAIL SERVICE
, WHICH GOES BETWEEN STOCKTON
AND SAN JOSE. WE'VE BEEN
OPERATING FOR OVER 25 YEARS. IN
2015, THE S¼ Kò JOINT POWERS
AUTHORITY BECAME THE MANAGING
AGENCY FOR THE SAN JOAQUIN'S
INNER CITY PASSENGER RAIL
SERVICE, WHICH RUNS BETWEEN
OAKLAND AND BAKERSFIELD IN
SACRAMENTO AND BAKERSFIELD. WE
ALSO HAVE AN EXTENSIVE THRUWAY
BUS NETWORK, WHICH TAKES
PASSENGERS REALLY THROUGHOUT
MUCH OF THE REST OF CALIFORNIA.
MY TWO AGENCIES HAVE A VERY
EXTENSIVE JOINT EXPANSION
PROGRAM, WHICH WE CALL VALLEY
RAIL. THIS PROGRAM IS TO EXTEND
A èC TO SACRAMENTO AND TO
MERCED AND TO ADD FREQUENCIES OF
SERVICE AND TO EXPAND THE SAN
JOAQUIN'S, UH TO BOTH SACRAMENTO
AND THE BAY AREA. AND THEN LATER
ADD ADDITIONAL SERVICE TO GET TO
UNION CITY IN THE BAY AREA TO
CONNECT WITH BART AND FROM
SACRAMENTO TO CHICO AS WELL. OUR
OUR PROGRAM INCLUDES 21 NEW
STATIONS, UH, TO BE BUILT AS
WELL AS NEW TRACK AND OTHER
IMPROVEMENTS ALONG THE LARGELY
SINGLE TRACK FREIGHT RAILROADS
THAT BOTH OF OUR SERVICES RUN ON
GIVE YOU A LITTLE SCALE FOR THE
PROJECT. THE DISTANCE BETWEEN
MERCED AND CHICO IS OVER 200
MILES. SINCE 2018 WE'VE SECURED
OVER $1.6 BILLION FOR THE
PROGRAM. WITH MOST OF THE
FUNDING COMING FROM THE STATE.
THE IMPLEMENTATION OF THE
PROGRAM WILL BE DONE
INCREMENTALLY AND IN PHASES, AND
WE ARE EXPECTING TO START
CONSTRUCTION ON INITIAL
IMPROVEMENTS AND ON KEY KEY
INITIAL STATIONS BY EARLY NEXT
YEAR, AND WE'LL BEGIN OPERATING
OUR FIRST NEW ROUND TRIPS BY THE
END OF 2026. THIS FIGURE REALLY
SHOWS YOU HOW OUR VALLEY RAIL
PROGRAM INTEGRATES WITH THE HIGH
SPEED RAIL EARLY OPERATING
SEGMENT, WHICH IS SHOWN IN SORT
OF THE YELLOW COLOR ON THIS
FIGURE. OUR ACE, UH, SERVICE
WILL EXTEND THE MERCED TO
CONNECT WITH HIGH SPEED RAIL AND
MERCED, WHEREAS THE SAM JOAQUIN
SERVICE WILL ACTUALLY TRUNCATE
ITS SERVICE. WE RUN THE
BAKERSFIELD TODAY, BUT WE WILL
TRUNCATE SERVICE IN MERCED AND
MEET DIRECTLY PLATFORM TO
PLATFORM WITH HIGH SPEED RAIL AT
ELEVATED STATION IN MERCED. IN
ADDITION TO OUR TWO RAIL LINES,
PROVIDING SERVICE TO THE MOST OF
NORTHERN CALIFORNIA THAT YOU SEE
ON THIS FIGURE THAT THE GREEN
LINES UM THOSE REPRESENT THE
THROUGH A BUS CONNECTIONS, WHICH
ARE THROUGHOUT CALIFORNIA THAT
WILL PROVIDE SERVICE TO LINK THE
HIGH SPEED RAIL RAIL OPERATING
SEGMENT TO THE REST OF THE
STATE, INCLUDING THE REAL KEY
CONNECTION BETWEEN BAKERSFIELD
AND SOUTHERN CALIFORNIA. THIS
NETWORK WILL BE FULLY INTEGRATED
, AND PASSENGERS WILL BE ABLE TO
PURCHASE A SINGLE TICKET TO
TRAVEL THROUGHOUT CALIFORNIA. AS
CHAD MENTIONED AND BRIAN KELLY
SAID EARLIER, UM MY AGENCY, THE
SAN JOAQUIN JOINT POWERS
AUTHORITY, SIGNED AN MOU WITH
HIGH SPEED RAIL AND CALISTA AT
THE END OF 2020, WHICH
IDENTIFIED THE JR JP A AS THE
OPERATING AGENCY, UH, FOR
INITIAL HIGH SPEED RAIL
OPERATIONS. WE ARE CURRENTLY
WORKING WITH BOTH THE HIGH
STREET AUTHORITY AND KELSA ON,
UM MANY ADDITIONAL DETAILED
AGREEMENTS THAT WILL BE BINDING
AGREEMENTS WHICH ARE NEEDED IN
ORDER FOR US TO TAKE ON THIS
ROLE. THE ARRANGEMENT WITH THE
HIGH STREET AUTHORITY. WE
BELIEVE IS ACTUALLY PRETTY
SIMILAR TO THE CURRENT MODEL,
WHICH WE OPERATE WITH THE SAN
JOAQUIN'S AND THAT CURRENTLY, UH
WE DON'T OWN THE TRACK. WE LEASE
SLOTS FROM THE FREIGHT RAILROADS
. IN THIS CASE, B N S¼ F FROM
MERCED TO BAKERSFIELD, AND WE
LEASE, UH, SLOTS TO BE ABLE TO
RUN TRAINS FOR THOSE THAT
SERVICE NOW, INSTEAD, WE'LL BE
LEASING SLOTS FROM THE HIGH
SCHOOL AUTHORITY. AS WELL AS
LEASING EQUIPMENT FROM THE HIGH
STREET AUTHORITY TO RUN THOSE
TRAINS ON THAT NEW
INFRASTRUCTURE. AND THEN THIS IS
MY FINAL SLIDE. UM THIS. THIS
SLIDE REALLY SHOWS. THAT THE
TRAIN SERVICES WHICH WE ARE
WORKING TO HAVE IMPLEMENTED BY
THE TIME HIGH SPEED RAIL STARTS
OPERATING BETWEEN MERCED AND
BAKERSFIELD. EACH LINE ON THIS
FIGURE REPRESENTS A SINGLE ROUND
TRIP. THE BLUE LINES REPRESENT
INNER CITY SERVICE AND THE
PURPLE LINES REPRESENT COMMUTERS
. THE DARKER BLUE ARE EXISTING
SLOTS THAT WE ALREADY HAVE
AVAILABLE. THE LIGHTER SLOT. UH
UH, LINES ARE THOSE ARE NEW
SLOTS, WHICH WILL BE PART OF THE
VALLEY ROAD PROGRAM TO COME. THE
GOAL FOR US IS TO MEET EACH ONE
OF THE 18 ROUND TRIPS. HE èC
ROS PLANNING. IN MERCED WITH
EITHER A SAMUEL KEN'S TRAIN OR
AN ACE TRAIN. IN ORDER TO REACH
THIS GOAL. WE DO NEED
SUBSTANTIAL ADDITIONAL FUNDING
TO IMPLEMENT THIS EXPANSION, FOR
EXAMPLE, THE CRITICAL
CONNECTIONS AT MERCED WITH BOTH
ACE, UH FROM TURLOCK TO MERCED,
AND WITH THE SAN JOAQUIN'S TO
MAKE THE DIRECT CONNECTION TO
HIGH SHELL'S PLATFORM. UH, WE DO
NEED FUNDING FOR THOSE PARTS OF
THE PROGRAM. IN ADDITION, FUTURE
EXTENSIONS TO UNION CITY AND
CHICO. THOSE ARE ONLY IN THE
PLANNING STAGE AND WE WILL NEED
FUNDING FOR THOSE PORTIONS AS
WELL. WE WILL CONTINUE TO WORK
TO OBTAIN THE FUNDING NEEDED TO
IMPLEMENT THE ENTIRE OVERALL
PROGRAM THAT WE PRESENT HERE AND
I DID WANNA CLOSE BY REALLY
EMPHASIZING THAT THIS PROGRAM
WILL BE IMPLEMENTED
INCREMENTALLY AS FUNDING IS
AVAILABLE AND THE OPERATIONS
WILL BE DONE INCREMENTALLY AS
WELL AS OPERATIONS ARE
AVAILABLE. AND WE'D OPEN UP. ANY
QUESTIONS? THANK YOU. I'LL SEE
YOU. MY COLLEAGUE HAS ANY
QUESTIONS? WELL IT'S REASSURING
TO HEAR THAT YOU HAVE AN
INTEGRATED PLAN TO EXTEND, UM,
THE SERVICE BEYOND THE MERCED TO
BAKERSFIELD. UM HIGH SPEED RAIL
ROUTE. AND UM, BUT IT IS, AS YOU
SAID, UM, GONNA REQUIRE
ADDITIONAL STATE INVESTMENT. I
REPRESENT A DISTRICT THAT IS NOT
CONNECTED TO ANY OF THESE
SYSTEMS AND IS IN NEED OF
ADDITIONAL INVESTMENT TO
MAINTAIN THE VIABILITY OF THE
LOW SAND CORRIDOR, WHICH IS THE
SECOND IS ISRAEL CORRIDOR IN THE
COUNTRY, AND MAYBE I NEED SOME
REASSURANCE OR SOME
UNDERSTANDING THAT MR EDISON,
YOU HAVE A PLAN FOR BEING ABLE
TO FUND INVESTMENTS IN LOS SAN
CORRIDOR AND ALSO BE ABLE TO
RAMP UP, UM, THE STRATEGIC
INVESTMENTS THAT THE SAN JOAQUIN
CORRIDOR ALSO TO WORK WITH HIGH
SPEED RAIL. YES. UH, THANK YOU
VERY MUCH. SENATOR HART. UM,
THE, UM HEALTH STATE IS INVOLVED
IN INVESTING IN EVERY CORRIDOR
OF THE STATE WHERE WE HAVE INNER
CITY AND REGIONAL RAIL SERVICE.
UM AND, UM WE CERTAINLY ARE
CONTINUING TO INVEST IN OTHER
CORRIDORS. CURRENTLY WE HAVE
THREE $0.7 BILLION OF STATE
FUNDING INVESTED IN THE LOWAN
CORRIDOR IN PROJECTS, MOST OF
WHICH ARE STILL ENTERING INTO
CONSTRUCTION. THESE ARE
PARTNERSHIPS WITH LOTION RAIL
AGENCY PARTNERSHIPS WITH
METROLINK PARTNERSHIPS WITH SAN
DAG AND N. èC Tð Dð, UM AND,
UH, THROUGHOUT THROUGHOUT THE
REGION. I'M REALLY MAKING
INVESTMENTS THAT WILL IMPROVE
THE RAIL SERVICES, UM IN THE
LOTHIAN CORRIDOR AS ONE EXAMPLE.
WE ALSO ARE MAKING FLEET
INVESTMENTS STATEWIDE THAT WILL
REFURBISH OUR FLEET AND THAT
WILL BUY ZERO EMISSION TRAIN
SETS IN AND, UM, START MAKING
THE TRANSITION TO ZERO EMISSION
SERVICE, UM THROUGHOUT THE STATE
, AND THOSE ARE ONGOING
INVESTMENTS THAT ARE BEING
PURSUED AND FUNDED, UM THROUGH
THROUGH EXISTING FUNDS AND
THROUGH THE FUNDS THAT ARE YOU
CURRENTLY AVAILABLE THROUGH
STATE BUDGET RESOURCES. UM, WE
CONTINUE TO PURSUE FEDERAL
FUNDING, UM TO AUG OUR FUNDS.
MANY OF THESE PROJECTS AS THEY
BECAME INITIALLY FUNDED IN 2018,
OR EARLIER ARE ARE NOW AS
THEY'RE WORKING ON. YOU KNOW
THEIR THEIR FINAL. UH,
CONSTRUCTION BUDGETS HAVE
ADDITIONAL FUNDING NEEDED TO GET
COMPLETED. AND SO WE CONTINUE,
YOU KNOW, AS IN MANY PROJECTS
CONTINUE TO WORK WITH THE
PROJECT SPONSORS TO IDENTIFY
THOSE FUNDS TO PURSUE THEM,
OFTEN FROM FEDERAL SOURCES OR
OTHER SOURCES TO MAKE SURE THAT
EVERYTHING GETS DELIVERED WITH
BOTH THE SCOPE AND THE SCALE
THAT, UM, THAT IS DESIRED OUT OF
THOSE PROJECTS. UM, IT DOES
OCCUR TO ME THAT THE COMMENTARY
FOR THE PREVIOUS PANEL ABOUT THE
DEGREE OF SPECIFICITY AND
TRANSPARENCY ABOUT THE PLANNING
THAT IS REQUIRED TO OPERATE AND
MAINTAIN THE HIGH SPEED RAIL
SYSTEM IS EQUALLY IMPORTANT FOR
THE INTEGRATION OF THE, UH,
INTER REGIONAL SYSTEMS THAT
YOU'RE SUPPORTING AND PLANNING
ON AND THAT WE WOULD ALL BENEFIT
FROM A COMPREHENSIVE LOOK AT HOW
THESE SYSTEMS ARE GONNA BE
MAINTAINABLE AND AFFORDABLE AND
INVEST, MAKING SURE WE'RE
INVESTING DOLLARS. YOU KNOW
WHERE WE GET THE MOST BANG FOR
THE BUCK AND IT'S A DAUNTING
TASK. IT'S SOMETHING THAT'S
REALLY IMPORTANT. AND UM, I
THINK IT IS VITAL FOR THE FUTURE
OF CALIFORNIA, BUT IT IS NOT
APPARENT SITTING HERE, YOU KNOW.
SEEING THE PATH FOR THE HIGH
SPEED RAIL PLAN AND ALSO SEEING
THE INVESTMENTS THAT ARE
REQUIRED TO SUPPORT AND MAINTAIN
THE REGIONAL SYSTEMS AND THEY'RE
IN COMPETITION FOR VERY LIMITED
PUBLIC RESOURCES. SO THE MORE
CLARITY THE MORE SPECIFICITY
THAT YOU CAN ADD TO THIS
CONVERSATION OVER TIME IS GONNA
BE CRITICAL. THANK YOU, MR
LEVITT. YOU NOTED THE ADDITIONAL
FUNDING AND MY COLLEAGUE UM UM,
HIGHLIGHTED THAT AND THE NEED
FOR FUNDING IN OTHER PLACES. HAS
THAT BEEN FULLY QUALIFIED? HOW
MUCH FUNDING YOU NEED TO BE ABLE
TO IMPLEMENT THIS PORTION OF THE
PROGRAM FOR WHAT YOU SEE HERE?
UM OUR OUR CURRENT COST
ESTIMATES ARE SHOWING THAT THIS
THIS TOTAL NETWORK FOR THE CORE
PART OF THE NETWORK WE NEED OVER
$2 BILLION AND THEN IN ADDITION,
THE EXTENSION TO CHICO AND TO
YIN CITY IS SOMEWHERE BETWEEN
FIVE THAT THAT'S IN THE PLANNING
STAGES THAT MORE BETWEEN 508
$100 MILLION FOR THAT ADDITIONAL
EXTENSION. AND I'M GIVEN THE
PREVIOUS PANEL HOW COMMENTS
ABOUT TIMING AS IT RELATES TO
THE HIGH SPEED RAIL AUTHORITY.
HAVE YOU LOOKED AT, UM, THE
TIMING OF WHEN YOU NEEDED THOSE
RESOURCES? YES AND I MEAN, WE AT
THIS POINT, WE WE'RE WORKING TO
GET THE RESOURCES AS QUICKLY AS
WE CAN. UM, BUT FOR THIS FIGURE
THAT YOU SEE HERE. OUR GOAL IS
TO HAVE ALL THIS IMPLEMENTED
BETWEEN THE TIME OF 2030 THREE
AND 2020 30 2030 THREE, BUT IT
CAN BE DONE IN IN IN IF WE'RE IF
WE'RE NOT ABLE TO DO ALL OF THIS
BY THEN WE WILL RUN WHATEVER WE
CAN. AT THAT POINT, UM, AT THIS
STAGE, WE THINK WE'RE IN LINE IF
WE ARE ABLE TO GET THE FUNDING
IN THE NEXT SEVERAL YEARS TO BE
ABLE TO ACCOMPLISH THIS NETWORK
AS WHOLE AS YOU SEE, BUT THAT
WILL BE DEPENDENT UPON US
GETTING THE FUNDING. UH,
SECURING LARGE PORTIONS OF
FUNDING IN THE NEXT SEVERAL
YEARS. AND YOU NOTED IN YOUR
PRESENTATION THAT IT'S ONE
TICKET SO SOMEONE WOULD PURCHASE
A TICKET ON HIGH SPEED RAIL AND
MAKE THEIR WAY THERE ALL THE WAY
THROUGH THE WHOLE SYSTEM. LIKE
IF THEY WERE GOING TO GO. YOU
CAN GO FROM EUREKA ALL THE WAY
DOWN TO SAN DIEGO WITH ONE
TICKET. SOUNDS GOOD. AND THEN
LAST, BUT NOT LEAST, UM, FOR YOU
AND YOU AS THE OPERATOR.
AFFORDABILITY IS A BIG ISSUE,
ESPECIALLY AT ALL INCOME LEVELS.
AND SO COULD YOU GIVE LIGHT TO
THAT AT ALL? ABSOLUTELY, UM
ESPECIALLY WITH THE SARAH CAIRNS
DIFFERENT FROM OTHER QUARTERS. I
MEAN, THE SURF LINERS AND THE
CAPITOL QUARTER. WE'RE ALL SORT
OF SISTER AGENCIES THAT WORK
UNDER. JOAQUIN'S ARE A BIT
UNIQUE IS THAT WE HAVE A LOT
MUCH LARGER SHARE OF OUR WRITERS
ARE ACTUALLY DISADVANTAGE FROM
DISADVANTAGED COMMUNITIES AND
ARE LOW INCOME PASSENGERS. UH,
ABOUT 60% OF OUR PASSENGERS HAVE
HOUSEHOLD INCOMES OF 50,000 OR
LESS ABOUT 30% HAVE HOUSEHOLD
INCOMES OF $25,000 OR OR LESS
AND SO CERTAINLY BEING ABLE TO
MAINTAIN THOSE PASSENGERS WILL
CONTINUE TO RIDE IS VERY
IMPORTANT. SO WE'VE BEEN WORKING
WITH THE HIGH SPEED RAIL
AUTHORITY AND THE ASSUMPTIONS
FOR THE EARLY OPERATING SEGMENT
WOULD BE, UM, YOU'D HAVE A AAA
FAIR STRUCTURE THAT FOR THE
COACH PASSENGERS, WHICH ARE MOST
OF THE PASSENGERS, YOU'D BE ABLE
TO, UH, BUY SIMILAR SIMILAR
PRICE TICKETS. UM BUT WE'RE HIGH
SCHOOL WILL BE DIFFERENT IS THAT
YOU'D HAVE OTHER CLASSES OF
SERVICE AS WELL AND THAT AS WE
HAVE HIGHER FREQUENCIES, UM IT
WOULD ENABLE US TO GROW SORT OF
OUR BUSINESS MARKET. AND SO THE
IDEA OF HAVING A BUSINESS TRAVEL
AS WELL. AND THEN WE WOULD ADOPT
THAT INTO OUR PROGRAMS AS WELL.
SO YOU COULD TAKE A BUSINESS
CLASS TRIP FROM LOS ANGELES
AGAIN UP TO THE BAY AREA OR
SACRAMENTO IN THE FUTURE,
WHEREAS RIGHT NOW WE DO NOT HAVE
THAT CLASS OF SERVICE SO I CAN
UNDERSTAND IT CORRECTLY. YOU'RE
GONNA BE LEVERAGING THE BUSINESS
CLASS OR THE OTHER CLASS TICKETS
TO BE ABLE TO OPERATE THE
SUBSIDY FOR THE OTHERS, AND THAT
WOULD ENSURE THE SUSTAINABILITY
BECAUSE THAT WAS A LOT OF
CONVERSATION ON THE FIRST ONE,
THE SUSTAINABILITY OF
OPERATIONS. THAT'S HOW YOU CAN
RAISE REVENUE WITHOUT INCREASING
THE COST FOR OTHER PASSENGERS,
AND THAT IT ALSO HELPS BUILD NEW
MARKETS THAT WE CURRENTLY ARE
NOT SERVING. OKAY? SOUNDS GOOD.
ALRIGHTY I DON'T THINK THERE'S
ANY OTHER QUESTIONS. WAS THERE
SOMETHING WE DIDN'T ASK YOU THAT
YOU YOU FELT YOU REALLY WANTED
TO SAY, SINCE THERE WASN'T
ENOUGH MEMBERS LEFT TO DO ROBUST
DISCUSSION. YOU'RE GOOD. OK,
HAPPY HAPPY ABOUT THAT. THANK
YOU SO MUCH, UM, WOULD REALLY
LIKE TO THANK. YOU KNOW, ALL OF
OUR PANELISTS, UM, FOR THEIR
PARTICIPATION TODAY AS WE LOOKED
AT THE DROP BUSINESS PLAN AND
PROVIDED FEEDBACK AND, UM SO
THAT WHEN IT COMES BACK TO THE
LEGISLATURE, IT INCLUDES, UH,
THE CONVERSATION THAT'S HAD
TODAY AND I KNOW THERE'S GOING
TO BE MANY MORE CONVERSATIONS. I
WOULD UM LIKE TO TAKE THIS TIME.
UH, AS WE MOVE INTO PUBLIC
COMMENTS, UM, TO SEE IF THERE'S
ANY MEMBERS OF THE PUBLIC IN THE
ROOM WHO WOULD LIKE TO PROVIDE
TESTIMONY AND SUPPORT, UM OF OUR
DISCUSSION TODAY. THING, MA'AM
CHAIR MEMBER. UH, I APPRECIATE
THE OPPORTUNITY. IT'S A LOT OF
INFORMATION PRESENTED TODAY. I'D
LIKE TO JUST FOCUS ON MR
THOMPSON'S COMMENTS. HE ALWAYS
DOES SUCH A GREAT JOB OF GETTING
RIGHT TO THE POINT. AND THAT IS
WE HAVE PRIORITIES THAT NEED
FUNDING IS THIS BODY AND THE
ADMINISTRATION GO INTO THIS
SESSION AND START TALKING ABOUT
CLIMATE BONDS, POTENTIALLY
EXTENSIONS OF GREENHOUSE GAS
FUNDS. I'D LIKE TO REMIND US ALL
THAT WHEN WE TALK ABOUT CLIMATE
CHANGE AS IT AS A AS A ESOTERIC
THREAT TO OUR THAT THAT'S
SOMETHING WE NEED TO RUMOR TO
CONSIDER, AND THAT THE LARGEST
CONTRIBUTOR THAT COULD HELP WITH
THAT IMPACT IS THE HIGH SPEED
RAIL SYSTEM HERE IN CALIFORNIA,
SO IT'S BIG NUMBERS. THERE'S A
LOT OF INFORMATION TO GO OVER.
HAPPY TO DISCUSS ALL THAT WITH
YOU FROM AND I'M HERE, BY THE
WAY ON BEHALF OF THE DISTRICT
COUNCIL OF IRONWORKERS, AS WELL
AS THE ASSOCIATION OF CALIFORNIA
HIGH SPEED TRAINS, KEITH DUNN. I
APOLOGIZE. I JUMPED RIGHT INTO
IT, BUT, UH, AS WE START HAVING
THOSE DISCUSSIONS, FUNDING IS
GONNA BE CRITICAL. WE CAN'T
CONTINUE TO RELY ON THE FEDERAL
GOVERNMENT AFTER THE LARGE GRANT
THAT WE RECEIVED. WE NEED TO DO
OUR PART AS WE HAVE THE STATE
HAS INVESTED IN THIS PROJECT. UH
UH, OVER THE YEARS. WE NEED TO
CONTINUE TO DO THAT. AS WE HAVE
THESE FUNDING DISCUSSIONS. I
HOPE THAT THE LEGISLATURE AND
THOSE OF US THAT ARE SUPPORTING
THIS PROGRAM FROM THE THIRD
HOUSE CAN CONTINUE TO HAVE THOSE
DISCUSSIONS. SO THANK YOU VERY
MUCH. THANK YOU. SO MUCH WAS
THERE A SECOND AS A PRIMARY
WITNESS. IF THERE ARE NONE, THEN
THAT WILL MOVE TO ADDITIONAL
WITNESS AND SUPPORT LIMITED TO
NAME ORGANIZATION AND POSITION.
THANK YOU, MADAM CHAIR MATT
CREMINS ON BEHALF OF THE
CALIFORNIA NEVADA CONFERENCE OF
OPERATING ENGINEERS HERE TODAY
IN STRONG SUPPORT OF THE DRAFT
BUSINESS PLAN. GOOD AFTERNOON.
MADAM CHAIR MEMBERS JAMES, THE
ACTOR WITH THE CALIFORNIA STATE
COUNCIL OF LABORERS. WE'RE ALSO
IN STRONG SUPPORT. THANK YOU.
THANK YOU, MADAM CHAIR, UM
JEREMY SMITH HERE ON BEHALF OF
THE STATE BUILDING AND
CONSTRUCTION TRADES COUNCIL. I
DIDN'T REALIZE YOU WERE DOING
PRIMARIES. COULD I DO BE THE
PRIMARY WITNESS JUST FOR THE
SECOND ONE? YEAH FOR THE SECOND
ONE. IS THAT OK? ALL RIGHT. I
DIDN'T. I DIDN'T REALIZE YOU
WERE DOING THAT. SO I JUST
WANTED TO ASK BEFORE I LAUNCHED
INTO IT. I JUST WANTED TO RAISE
A COUPLE POINTS FIRST. UH, YOU
GUYS HEARD A LOT OF NUMBERS
TODAY, UM, FROM THE AUTHORITY. A
LOT OF GOOD NUMBERS. A LOT OF
MAYBE SCARY NUMBERS. HOW ARE WE
GONNA GET THERE? BUT I WANTED
TO, UH, DRILL DOWN ON A ON JUST
A HANDFUL OF NUMBERS ONE MORE
TIME 12,980. THREE TOTAL JOBS
HAVE BEEN CREATED FROM THIS
PROGRAM ALREADY FROM THIS
PROJECT TO THAT PROGRAM. EXCUSE
ME. 8493 JOURNAL JOURNEY LEVEL
WORKERS. IN OVER 1600
APPRENTICES SO FAR. THIS IS
WORKING. FOR WHAT WE WANT TO DO,
WHICH IS CREATE ECONOMIC
ACTIVITY IN THE CENTRAL VALLEY.
WE NEED TO MAKE SURE THAT IT
WORKS FOR THE ENTIRE STATE. WE
NEED TO BUILD IT OUT AND MAKE
SURE WE HAVE THE MONEY. WE
UNDERSTAND THAT. UM BUT WE
WANTED JUST TO HIGHLIGHT THAT
FACT THAT THIS IS REALLY HELPING
AN AREA OF THE STATE THAT NEEDS
SOME INVESTMENT. AND LASTLY, I
WANTED TO GO BACK TO SOMETHING
THAT WAS SAID IN THE VERY
BEGINNING. UM WE ARE
DISHEARTENED A BIT BY SIEMENS.
UH, ONE OF THE BIDDERS FOR THE
TRAIN SETS AND THEIR HOSTILITY
TOWARDS ORGANIZING THEIR
WORKERS. UM JUST WONDER TO
REFLECT AND REMIND THAT THIS
STANCE THAT THEY'RE SHOWING OUR
ORGANIZERS THE AT THE BOILER
MAKERS UNION, AT LEAST, UM IS
NOT CONSISTENT WITH THE HIGH
ROAD POLICIES THIS LEGISLATURE
HAS CHAMPIONED OVER THE LAST
SEVERAL YEARS. UH ON TOP OF THE
FACT THE STATE WORKFORCE
DEVELOPMENT BOARD ALSO HAS THIS
HIGH ROAD CONSTRUCTION CAREER
HIGH ROAD TRAINING PARTNERSHIP
STANCE WHERE THESE JOBS NEED TO
BE REAL CAREERS, NOT JUST JOBS,
AND THAT'S WHAT THE ORGANIZING
EFFORT IS ABOUT AT SIEMENS. SO
WE LOOK FORWARD TO, UM, THE HELP
THAT THE AUTHORITY WILL GIVE US
IN THAT SPACE, AND I THEN END
WITH UH, THANKING èC E Ó BRIAN
KELLY. NOT ONLY FOR ALL THE ALL
OF HIS YEARS AT THE AUTHORITY,
BUT REALLY FOR ALMOST A 30 YEAR
CAREER AS A PUBLIC SERVANT. UM,
HE HAS DEDICATED HIS LIFE TO
SERVING THE PEOPLE OF CALIFORNIA
, AND WE'RE VERY GRATEFUL THAT
HE'S BEEN HERE AT THE END OF HIS
CAREER HELPING GET THIS PROJECT
MOVING THE RIGHT DIRECTION. SO
THANK YOU FOR YOUR TIME. THANK
YOU. ALL RIGHT, THE REMAINING
FOUR NAME ORGANIZATION AND
POSITION. L WITH THE AMERICAN
COUNCIL. CAN YOU THANK YOU? LIKE
WITH THE AMERICAN COUNCIL OF
ENGINEERING COMPANIES AND
SUPPORT OF THE AUTHORITY'S
BUSINESS DRAFT PLAN. THANK YOU.
GOOD AFTERNOON CHAIR. WILSON
MEMBERS, ADAM VAN DE WATER
EXECUTIVE DIRECTOR OF THE TRANS
BAY JOINT POWERS AUTHORITY IN
DOWNTOWN SAN FRANCISCO. WE'RE
HERE IN SUPPORT OF THE BUSINESS
PLAN AND ENCOURAGED BY THE
FORWARD PROGRESS THE AGENCY HAS
BEEN ABLE TO MAKE IN STARTING TO
BRING THINGS TO THE URBAN
CENTERS IN ALL RIGHT. MOVING ON
TO, UM TO, UH, PRIMARY WITNESSES
AND OPPOSITION. ARE THERE ANY
SEEING NONE. JUST TO BE SURE.
ARE THERE ANY WITNESSES IN
OPPOSITION WHO WOULD LIKE TO?
UM, UH, JUST NOTE THEIR NAME,
ORGANIZATION AND POSITION? ALL
RIGHT, SEEING NONE. UH, CLOSING
THE PUBLIC COMMENT. PORTION UM,
THANK YOU ALL FOR TAKING THE
TIME TODAY TO BE HERE DURING THE
, UH, HEARING. UM, AS IT RELATES
TO THE DRAFT, UH, BUSINESS PLAN
FROM THE HIGH SPEED RAIL
AUTHORITY. UM THIS REALLY IS, AS
WAS STATED A MEGA PROJECT. UM,
IT IS EXCITING. THE INVESTMENT
THAT HAS BEEN MADE NOT ONLY IN
THE CENTRAL VALLEY, BUT THE
INVESTMENT THAT HAS BEEN MADE
FOR FUTURE GENERATIONS. UM, IT'S
EXTREMELY IMPORTANT WHEN WE
THINK ABOUT OUR GOALS. AS A
STATE AND HOW MUCH THIS ALIGNS
WITH IT, AND, UM, IT IS EARLY IN
THE PROJECT, AS WAS STATED, UM,
FROM OUR, UM FROM CHAIR,
THOMPSON. UM BUT WE IT'S EARLY
IN THE PROJECT, BUT THE PROJECT
IS UNDERWAY. WHEN YOU GO INTO
THE CENTRAL VALLEY, YOU SEE THE
ECONOMIC ACTIVITY. YOU SEE THE
BUILDING. YOU SEE THE INCREASE,
AS WAS NOTED OVER 12,000 JOBS
RELATED TO THAT I THINK THERE'S
ALMOST 900 SMALL BUSINESSES OR
BUSINESSES THAT ARE RECEIVING
ECONOMIC BENEFIT. IT IS AN
INVESTMENT AND SO IT'S EXTREMELY
IMPORTANT THAT WE AS, UM THE
LEGISLATURE. UH FOCUS UM AND
COOPER OPERATION WITH GOVERNOR,
UM AND OUR FEDERAL PARTNERS AND
FIGURE OUT HOW TO GET THIS HOW
TO BRING THIS TO THE FINISH
LINE? UM, NOT ONLY FOR, UM, THIS
GENERATION, BUT LIKE I SAID,
THIS IS ABOUT THE NEXT
GENERATION AND ENSURING THAT WE
HAVE A PROJECT LIKE THIS IN OUR
STATE. AND SO I'M GLAD TO BE A
PART OF THIS DISCUSSION AND LOOK
FORWARD TO, UM, GETTING US TO
THE FINAL BUSINESS PLAN, UH,
BEING GIVEN TO THE LEGISLATURE
AND ALL OF US WORKING TOGETHER
TO ENSURE HIGH SPEED RAIL, UM,
COMES TO FRUITION IN THE STATE.
WITH THAT THE HEARING IS
ADJOURNED.