Progress since the last update to the Committee about the project on November 7, 2016 includes meetings with the City of Salinas, new appraisals and offer letters to property owners near the Salinas train station, and meetings with the state regarding negotiations with Union Pacific.

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 proceeding with design and right-of-way acquisition under the adopted state environmental clearance. The funding plan does not include the acquisition of equipment to support the service, which is expected to be a Caltrans-funded effort to acquire two new trainsets and spare cars.

Project Design and Cost Estimates

The project has been separated into three packages for design, bid, and construction:

1. Salinas Lincoln Avenue extension, circulation and parking improvements, improvements to Market Street (Highway 183)
2. Salinas layover facility and track improvements
3. Santa Clara station improvements (Gilroy, Morgan Hill, Tamien)

Updated cost estimates with new information from the 75% designs and updated appraisals show the project is over budget by approximately $5 million, and possibly more, if utility relocations turn out to be a project cost. The team is working to reduce costs to keep it under the amount of funding secured for the project. Staff is also looking at applying for additional state funding to fill the gap, pending confirmation on the utility and property acquisition costs. Package 1 is progressing toward 90% design, pending resolution on utility relocation questions with the City of Salinas. Packages 2 and 3 are pending railroad (Union Pacific and Caltrain) reviews.

Salinas Intermodal Transportation Center

The TAMC Board approved the Salinas Intermodal Transportation Center Memorandum of Understanding (MOU) at its October 26, 2016 meeting, and the Monterey Salinas Transit District Board approved it at their November 14, 2016 meeting. The MOU is now pending approval by the City of Salinas. A meeting is scheduled with the City Manager, Ray Corpus, on January 23, 2017. Staff will provide a verbal update on that meeting.

Salinas ITC Steering Committee met on December 19, 2016, to review the design and discuss utility plans. The team discussed the information needed for the encroachment permit submittal to Caltrans for the improvements to Highway 183 (Market Street), including City approval of the revised traffic study, and the utility relocations for PG&E, AT&T, Comcast, CalWater, fire hydrants, and possibly stormwater and sewer pipes, new broadband conduit, and a new gas pipeline, pending an agreement with the City.

Property Acquisition

Staff will present a process update and update on the status of property acquisition at the Salinas train station. As staff reported at the December7, 2016 Board meeting, first offers were presented to all property owners in 2015, and staff and consultants have been continuing to negotiate in good faith with all property owners. The property acquisition process is structured by law to protect the rights of the property owners and ensure that they are receiving offers of just compensation for their properties at the fair market value. The appraisals were updated and review appraisals were completed in January 2017 and, based on those new appraisals, revised offer letters were sent, setting forth the new offer amounts with a summary statement explaining the basis for the offer. Staff and consultants are continuing negotiations with the owners.

2018 California State Rail Plan

On January 11, 2017, Agency staff met with Chad Edison, Deputy Secretary for Transportation, California State Transportation Agency (CalSTA), and Andy Cook, Chief, Rail Planning Branch, Caltrans Division of Rail and Mass Transportation. Both agencies strongly support increased passenger rail service to Salinas, and encourage this body to consider an alternative near-term scenario of Caltrain service on weekdays and Capitol Corridor service on weekends. In the long term, they see Capitol Corridor serving Salinas on weekdays and weekends, but in the near term, Capitol Corridor’s schedule is not conducive to a weekday commute schedule. In order to support this alternative near-term scenario, staff will coordinate with the State to develop an updated ridership estimate. CalSTA and staff will be meeting with the Santa Clara Valley Transportation Authority (VTA) on February 8, 2017 to further discuss this proposal.

CalSTA is also negotiating with Union Pacific, and held meetings on the topic of access payments for increased passenger service on the Coast line. Staff will provide a verbal update at the meeting.