RECEIVE the detailed proposal from the Museum of Handcar Technology for an interim use of the Monterey Branch Line right-of-way for a recreational enterprise and PROVIDE DIRECTION to staff on whether or not to begin activities required to negotiate a lease agreement.

On October 23, 2019, the Board of Directors directed staff to request the handcar proposers to present a detailed proposal per the adopted Policy for Unsolicited Proposals. That proposal is attached for the Executive Committee to review and provide direction to staff.

Staff has conservatively estimated planner time and legal costs at $4,000 for only the review of the detailed proposal; under the terms of the agreement entered into with the proposers, TAMC staff costs up to $5,000 will be reimbursed by the Museum of Handcar Technology.  If the Executive Committee directs staff to proceed with activities related to negotiating a lease agreement, staff estimates that planner and legal costs would would be approximately $10,000.  Costs would be higher if the categorical exemption were challenged, but such costs could be shifted to the proposer.  Proceeding with the handcar trial would involve an additional set of costs, including potential liability and insurance costs, although every effort would be made to transfer such costs to the operator. 

In July 2019, TAMC staff received an unsolicited proposal from Mason and Todd Clark of the Museum of Handcar Technology to use three miles of the Monterey Branch Line rail corridor (Marina to Seaside) for a one-month demo of tourist handcar operations in the summer of 2020. Upon direction by the TAMC Board of Directors at its October 23, 2019 meeting, Todd Clark submitted a detailed proposal and signed an advanced funding agreement to reimburse TAMC for staff time expended in the review of the detailed proposal.

The proposal narrative is attached and the full detailed proposal is online as a web attachment.

The handcar operations would run approximately three miles between the Highway 1 overcrossing in Marina (to the north) to the balloon spur tracks in the Fort Ord Dunes State Park. The project proponents are requesting to fence off a 50 foot by 10 foot area of the tracks within the Monterey Branch Line right-of-way near to the 5th Street underpass in Marina to store their vehicles and to have employees and customers park on TAMC property at 5th Street. Some sort of path between the current undercrossing and the tracks would need to be provided for.  Brush and weed clearance as well as upgrading of seven railroad switches would take place prior to beginning the demonstration operations.

Before the Board of Directors can approve a lease, several activities would need to take place.  As the property owner, the Agency would be required to serve as the lead agencies for the purposes of the California Environmental Quality Act (CEQA).  Staff and legal counsel agree that the project should be eligible for a categorical exemption since it is operating on an existing right-of-way and is only for a 30-day trial period.  If this level of environmental review is contested, TAMC would need to conduct more extensive work, possibly a negative declaration or mitigated negative declaration.  In such a circumstance, staff workload would increase substantially; costs could be billed to the project proponent.

The project proponent would be responsible for obtaining all reviews and permits, including:  County and City use permits (branch line is in the County, parking is in the City), State Parks review, and Coastal Commission review and permits. If the trial were a success and both TAMC and the operator were agree to  pursue future operations, additional environmental review and permits and a new agreement would be necessary. 

At this time, staff seeks Committee direction on whether or not to continue to pursue a lease agreement with the Museum of Handcar Technologies for a 30-day trial run of a recreational handcar service.  The CEQA documentation and the lease would be brought to the full TAMC Board for approval at a future date. 

On December 12, 2019, Monterey Salinas Transit sent TAMC a letter (attached) regarding the proposed recreational use of the Monterey Branch Line for handcars in light of the plans for a busway in the corridor.

• Museum of Handcar Technology detailed proposal