Monterey Branch Line Recreational Use Unsolicited Proposal

1. RECEIVE information about unsolicited proposals from the Museum of Handcar Technology and the Mendocino Railway for interim uses of the Monterey Branch Line corridor between Marina and Sand City for a recreational enterprise in 2022; and
2. PROVIDE direction to staff.

For the 2019-20 work on the Museum of Handcar Technology 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 (CEQA) documentation. Of that amount, the Museum of Handcar Technology reimbursed TAMC a total of $6,130.56 in 2020, leaving TAMC to pay about $11,370 in Agency reserve funds to cover those costs.

The 2021 lease agreement included a $15,000 deposit for staff time. In fiscal year 2020-2021, $11,140.82 was expended to support the 2021 trial run, of which $7,350.89 was funded through the deposit and $3,789.93 from TAMC funds. During fiscal year 2021-2022, TAMC spent $4,824.86 of the deposit funds for the first two quarters until December 2021. The total expenditures from 2021 on then total $15,965.68, which is $965.68 over the deposit amount.

If the Executive Committee directs staff to proceed with activities related to publishing a request for proposals for a recreational use of the corridor, staff estimates that planner and legal costs are likely to exceed $15,000. CEQA documentation is expected to be more extensive for long-term use of the corridor. The California Public Utilities Commission (CPUC) indicated that long-term use would require TAMC to apply for a CPUC permit to make any changes to the rail line. Proceeding with any recreational proposal 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.

On February 24, 2021, the Board of Directors approved a lease agreement with the Museum of Handcar Technology for a trial use of the Monterey Branch Line corridor for recreational use. The agreement was executed, and the handcars had a successful trial in the summer of 2021. The lease agreement expired on September 30, 2021. The Museum of Handcar Technology’s proposed 2022 operations would run approximately three and a half (3.5) miles from the Palm Avenue/ Marina Drive intersection in Marina, under the Highway 1 overcrossing and over the bike path, to the balloon spur tracks in the Fort Ord Dunes State Park, with a request to include a lease for an additional two and a half (2.5) miles towards Sand City. 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 Palm Avenue in Marina. They propose to have employees and customers park on TAMC property off Marina Drive. They would make upgrades to the tracks needed to support their operations. Changes to their operations as compared to the trial run in 2021 include permanently modifying the bicycle path that connects across the rail tracks from Beach Range Road to the Caltrans coastal trail; having a year long, month to month lease; possibly extending operations to Sand City; and adding fencing around the area where they will base their operations.

In January 2022, Mendocino Railway submitted an unsolicited conceptual proposal for use of the Monterey Branch Line rail corridor for railbike operations. Their proposal is similar to the handcar operations, with a different kind of technology (the handcars are operated by hand, while the railbikes are operated by foot). The railbike proposal requests a long-term agreement for use of the corridor from Marina to Sand City, including a base at Marina with a container using electricity to charge batteries and store bikes. The proposal also includes permanent alterations to the bicycle path that connects across the rail tracks from Beach Range Road to the Caltrans coast trail, and bike turntables at either end that can be installed or removed within a day. The railbike proposal includes other concepts such as a train car station for administration operations at Palm Avenue.

Because TAMC has received two unsolicited proposals for what is essentially the same project concept, it is not possible to engage with one or the other without a full competitive process. Since recreational uses are not within the mission or goals of the Agency, it is reasonable for the Executive Committee to direct staff to reject both proposals. The other option is for the Committee to direct staff to proceed with a competitive procurement for recreational use of the rail line corridor.

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); costs could be billed to the project proponent. TAMC would also be responsible for coordinating on a permit from the CPUC, in cooperation with the winning vendor for the operations.

The project proponent would be responsible for obtaining all reviews and permits, including, as necessary: County and City of Marina use permits (branch line is in the County, parking is in the City), State Parks review, and Coastal Commission review and permits.

Currently, staff seeks Committee direction to reject both proposals and whether to initiate a Request for Proposals process for a recreational use of the corridor.

1. Museum of Handcar Technology Conceptual Proposal
2. Mendocino Railway Conceptual Proposal
3. Mendocino Railway Railbike Presentation