APPROVE a Memorandum of Understanding among the Transportation Agency for Monterey County, the City of Salinas, and Monterey-Salinas Transit, regarding the Salinas Intermodal Transportation Center expansion.

The Salinas Intermodal Transportation Center Steering Committee has developed the attached comprehensive Memorandum of Understanding (MOU) to govern the next steps on the development of the train station. On October 3, 2016, the Rail Policy Committee recommended Board approval of the MOU.

The capital cost of the Salinas Rail Extension Kick-Start project (a phased implementation of the Salinas station and improvements in Gilroy, Morgan Hill and San Jose - Tamien) is estimated at a total of $70 million, including funds already expended on planning, environmental, and right-of-way to date. The Kick-Start project is now fully funded and proceeding with design and right-of-way acquisition under the adopted state environmental clearance.

During the environmental review and planning of improvements around the Salinas Intermodal Transportation Center, TAMC staff held regular meetings with the Steering Committee, comprised of Agency staff and staff from the City of Salinas, Monterey-Salinas Transit, and Caltrans District 5. Now that the project is at 75% design, the draft Memorandum of Understanding is ready for approval by the three responsible agencies (TAMC, Salinas and MST). TAMC is also coordinating with Caltrans on the encroachment permit for changes to the State Route 183 (Market Street) and the extension of Lincoln Avenue.

This MOU contemplates the project elements and responsibilities for each element:

• TAMC is the project sponsor and the rail agency for the County. As such, TAMC is responsible for:

• Environmental review: state environmental review is complete for the full buildout of the project, and the Kick-Start project is proceeding under that approval; federal environmental review has been initiated for future phases of the project;

• Project design, now at 75% for the Kick-Start project;
• Right-of-way acquisition, now in progress;
• Construction of the improvements; and

• Maintenance of the train layover facility.

• City of Salinas is the current owner of the station and will be the owner after construction of the station area, including the station and freight buildings, Lincoln Avenue and other associated roads, and the parking areas. The City is also responsible for enforcing their agreements with utilities throughout the project area and assisting TAMC with stormwater permit requirements.

• Monterey-Salinas Transit will not own any of the land in the end, but is committed to providing bus service to the station to connect with future rail service. The station has been designed to accommodate bus service, based on input from MST.

On October 3, 2016, the Rail Policy Committee recommended Board approval of the draft MOU. If the TAMC Board approves this MOU at its October 26 meeting, the MOU will go to the MST Board on November 14 and to the Salinas City Council on November 15.