CALIFORNIA HIGH-SPEED RAIL A TRANSFORMATIVE INVESTMENT IN CALIFORNIA’S FUTURE PRESENTED BY DON GREBE DIRECTOR OF REAL PROPERTY INTERNATIONAL RIGHT OF WAY ASSOCIATION JUNE 23, 2014 HARTFORD, CONNECTICUT 1 Who are you working with? Courtesy: CareerBuilder.com 2 Ice breaker Ideal Right-of-Way Organization for Delivery of HighSpeed Rail Project • Workforce Public Employees Consultants Hybrid of Both • Review & Approval Process Additional Agencies Autonomous Hybrid of Both • Method of Project Delivery • Funding Design-Build Bonds & Grants Design-Bid-Build Taxes, Tolls or User Fees Other (P3) Public-Private Partnership 3 CALIFORNIA HIGH-SPEED RAIL A TRANSFORMATIVE INVESTMENT IN CALIFORNIA’S FUTURE 4 HIGH-SPEED RAIL: more than a transportation program • California is 8th Largest Economy in the World • Comparable to Northeast Corridor in Terms of Distance, Population and Complexity • It is a Transformative Investment • Connecting all California Population Centers Challenges of transformative projects • Transformative Projects Have Never Been Easy • Golden Gate Bridge: • “Upside-Down Rat Trap that will Mar the Beauty of the Bay” • 2,000+ Lawsuits • BART – Once Called the Train to Nowhere • Calif. State Water System, University of Calif. System • Single-Vote Margins 6 Why high-speed rail in California? • Curbs Congestion –LAX to SFO is the Busiest Short-Haul Market in US –1 in 6 Flights out of LA Heads to San Francisco Bay Area –Six of Top 30 Congested Urban Areas in US Located in California • Population Growth Estimated to Reach 50 Million by 2050 • Air Quality/Sustainability –Meets Goals of AB 32/SB 375 –Worst Air Communities in the U.S. • Alternatives are Costly –2-3 Times More Expensive Results for California • Reduction in Vehicle Miles Traveled (VMT) – By 2040, the system will reduce vehicle miles by almost 10 million miles every day – By 2030, the reduction in VMT would be like removing one 500mile lane of cars • Daily Number of Flights Diverted – Starting in 2030, the state will see a daily reduction of 93 to 171 flights – By 2040, the state will see a daily reduction of 97 to 180 flights • Statewide Air Quality Improvement – Tons of volatile organic compounds reduced – Tons of particulate matter reduced – Tons of ozone precursors 8 Environmental Benefits: high-speed rail’s best kept secrets • Preserving Agricultural Land • Improving Air Quality • Preserving and Enhancing Critical Habitat • Reducing Greenhouse Gases • Enabling Smart Land Use • Urban Greening: Planting Trees • Modernizing Transit Statewide • Using Renewable Energy 9 A STATEWIDE RAIL MODERNIZATION PLAN Connecting California •Caltrain Electrification & Early Investments in the Peninsula Corridor •Central Valley “Backbone” of High-Speed Rail •Regional Enhancements in Southern California •Statewide Connectivity Projects & Investments 10 CONNECTING CALIFORNIA: Small Businesses Aggressive 30% Goal for Small Business Participation Which includes: • 10% for Disadvantaged Business Enterprises (DBE) • 3% for Disabled Veteran Business Enterprises (DVBE) Meeting & Exceeding Goals Free Statewide Small Business Certification Workshops Partnerships with Federal, State and Local Organizations Robert Padilla, Small Business Advocate 11 Connecting California: Job CREATION • Work on Statewide Rail Modernization Program is Underway • Construction: Direct, Indirect Jobs in Hard-Hit Sectors • Permanent: Rail Modernization Creates Efficiencies Statewide 12 Nation’s first high-speed rail • Initial Operating Section • 300 Miles • Central Valley to San Fernando Valley • Operational by 2022 13 WHY START IN THE CENTRAL VALLEY? • Central Valley will Serve as the “Backbone” of a System that will Tie Major Regions of California Together • Fastest Growing Region in the State • Revitalize Central Valley Downtown Centers • Creates Jobs in a Region with High Unemployment • Best, Most Cost-Efficient Location for Testing 14 Central valley backbone •130 Miles •Madera to North of Bakersfield •Multiple Construction Packages •Completion 2018 15 WORK IS UNDERWAY • Construction Package 1 • 29 miles between Madera and Fresno • Design-Build Contract with Joint Venture Tutor-Perini/Zachry/Parsons • Property Acquisition, Design Work, Utility Relocation • Over 240 Employees and 45 Small or Disadvantaged Businesses Currently Working on the Project 16 17 18 Right-of-way process Facts About the Process: • Protecting Property Rights • Property Valuations • Initiation of Negotiation After Record of Decision (ROD) 19 Eminent domain Notices of Intent to seek a Resolution of Necessity (RON) 30 Days from Public Works Board meeting 15 days to Reply Condemnation Panel Review (CPR) Request to Appear Design, R/W, Legal Deposit and Suit filed within 30 days of RON adoption Court Resources/Schedule Strategies Arbitration Alternatives Keep Negotiating 20 Relocation assistance Program Relocation Benefits are based on each specific situation: •Advisory assistance •Residential displacees may be eligible for: - Costs to move personal property - Replacement housing payments - Incidental expenses •Non-Residential displacees may be eligible for: - Moving and related expenses - Re-establishment and search costs State of California – Loss of Business Goodwill Compensation 21 Central valley Next steps Fresno to Bakersfield Project Section: 114 Mile Route Environmental Clearances Approved by Board May 2014 Federal Clearances Anticipated in Summer 2014 • Construction Package 2-3 • 60 Miles • Fresno South to North of Bakersfield • Three World Class Teams Competing for Design-Build Contract • Formal Proposals Expected in Fall of 2014 22 Right-Of-Way (ROW) - Where we are Madera to Fresno Section • April 2013 - First Written Offers Began • December 2012 - ROW Contracts Awarded to Four Contract Teams - Hamner Jewel & Associates (a.k.a Beacon) - Continental Field Services Corp - Universal Field Services, Inc - Golden State Right of Way Team (BRI, ARWS, OPC) • Contract Costs - $8.5 Million Each (Authority Has Discretion to Reallocate) 23 Right-Of-Way (ROW) - Where we are Property Acquisition • As of June 20, 2014 • 385 Parcels Approved for Acquisition • 301 Parcels Have Received First Written Offers • 50 Parcels Turned Over to Contractor • Authority Committed to Working with Impacted Property Owners • Coordinating ROW Outreach and Resources • City of Fresno • Fresno Economic Development Corporation 24 ROW engineering & surveying Services ROW Contractors Survey Approximately 1000 Central Valley Parcels, Draft Maps, Stake Parcels, Utility Potholing, Boundary Maps and Complete ROW Engineering •Feb 11: Five (5) Contracts Awarded for up to $3.2 Million Over Four Years; Total Contract not to Exceed $16 Million O’Dell Engineering Chaudhary & Associates, Inc. Quad Knopf, Inc. Mark Thomas and Company, Inc. Hernandez, Kroone & Associates Inc. 25 Right-Of-Way services RFP #HSR14-14 Madera to Bakersfield SectionEstimated 1100 Impacted Parcels •June 3, 2014 – Board Approved RFP Release • ROW Services for Multiple Contracts over 4 Years •Estimated Cost – Up to $35 Million •Extension of $34 Million Worth of ROW Services Currently Conducted by Four Contract Teams •All Contracts are Available on www.bidsync.com 26 Timeline #HSR 14-14: key rfP dates • June 17: Final RFP advertisement • July 1: Pre-Bid Conference at Mariposa Mall, Fresno, CA • July 3: Written question submittal deadline • July 8: Respond to written questions • July 14: Proposals due to the Authority by 4pm PST • July 17: Shortlist of Qualified Contractors Announced • July 21: Possible interviews held in Sacramento, CA • July 23: Notice of Intent to Award by 5pm PST • July 25: Negotiation with top-ranked firm(s) • July 25: Proposed Agreement Start Date 27 Next steps: connecting california • Continue Work on Statewide Rail Modernization • Close the Rail Gap Between Northern and Southern California Via the Central Valley • Deliver Benefits Now • Engage, Educate and Partner 28 California high-speed rail authority CONTACT INFORMATION: 770 L Street, Suite 800 Sacramento, CA 95814 Phone: 916-324-1541 www.hsr.ca.gov info@hsr.ca.gov Don Grebe Director of Real Property 916-431-2935 Don.Grebe@hsr.ca.gov 29