RECEIVE the revised detailed proposal from the Museum of Handcar Technology for an interim use of the Monterey Branch Line right-of-way for a recreational enterprise in 2021; and PROVIDE DIRECTION to staff on whether or not to begin activities required to negotiate a lease agreement.

On February 26, 2020, the Board of Directors approved a lease agreement with the Museum of Handcar Technology for a trial use of the Monterey Branch Line for a recreational use. The agreement was executed but never implemented due to the COVID-19 pandemic. The lease agreement expired on August 31, 2020. The Museum of Handcar Technology has submitted a new proposal (attached) to try again, in a slightly different location, in 2021. Staff seeks Committee input and direction.

For the prior work on this proposal, developing and executing the reimbursement agreement and lease agreement, TAMC expended approximately $17,500 on planner time and legal costs, including the filing of California Environmental Quality Act documentation. Of that amount, the Museum of Handcar Technology reimbursed TAMC a total of $6,130.56. The remainder of costs were paid using Monterey Branch Line lease revenues.

If the Executive Committee directs staff to proceed with activities related to negotiating a second lease agreement, staff estimates that planner and legal costs would would be approximately $15,000.  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 the original 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. In February 2020, the TAMC Board of Directors approved a lease agreement that was subsequently executed. TAMC filed the relevant California Environmental Quality Act paperwork with the County. The Museum of Handcar Technology never paid the $10,000 deposit on that agreement, as it was increasingly evident that the pandemic would make the demonstration project inadvisable, and the lease agreement was allowed to expire on August 31, 2020.

In December 2020, Todd Clark reached out again with an alternative proposal for 2021, assuming the waning of the pandemic and the availability of a vaccine, that will enable this tourist venture to occur. His proposal envisions a new starting location, off Palm Avenue and Marina Drive in downtown Marina, for improved visibility and accessibility, because it is outside of the Coastal Zone, and due to the flatter grade of the tracks at that location. 

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

The handcar operations would run approximately two and a half (2.5) miles from the Palm Avenue/ Marina Drive intersection, under the Highway 1 overcrossing in Marina and over the bike path, to the balloon spur tracks in the Fort Ord Dunes State Park. The project proponents are requesting to place a 45-foot long cargo container to store handcars and a 20-foot long container for support item storage on the tracks within the Monterey Branch Line right-of-way near to Palm Avenue in Marina. They propose to have employees and customers park on TAMC property off Marina Drive. 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 agency 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 it would only operate over a 30-day trial period. TAMC filed such a document for the initial proposal and it was not challenged. If the resubmittal 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, as necessary: 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 to 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 pursue a lease agreement with the Museum of Handcar Technologies for a 30-day trial run of a recreational handcar service for a date to be determined between July and October 2021. The lease would be brought to the full TAMC Board for approval at a future date. 

• Museum of Handcar Technology revised detailed proposal, December 7, 2020