CEO Report

October 20, 2022

Overview | Program Update Report | Construction Package 1 Update | Industry Forum Outreach | Railroad Crossing Elimination Grant Application |  Innotrans 2022 | Relevant Materials

OVERVIEW

• Project Update Report followed by four other items.

2023 PROJECT UPDATE REPORT

EXISTING REQUIREMENTS

• The requirements for the Project Update Report (PUR) were established in 2015 by Assembly Bill 95 that added Section 185033.5 of the Public Utilities Code (PUC). The PUR is due on or before March 1 of each year ending in an odd number. PUR requirements established by AB 95 include the following:
  • A summary of the overall progress of the project
  • The current and projected budget by segment
  • A comparison of the current schedule and budget to the 2012 Business Plan
  • A summary of milestones and issues during the prior two-year period and milestones expected in the next two-year period
  • A thorough discussion of risks to the project and steps taken to mitigate those risks

NEW REQUIREMENTS:

• In June 2022, Senate Bill 198 added Section 185033.7 of the PUC, added further reporting in the PUR with a focus on the Merced-to-Bakersfield segment. Schedule Updates now to include:
  • Completion of the 119-mile dual track segment
  • Completion of right-of-way, planning, and advance engineering and stakeholder agreements for the Merced and Bakersfield extensions
  • Completion of a funding plan that includes federal funding awards for the Merced to Bakersfield segment
  • Additional milestones required for the completion of the Merced to Bakersfield segment and the full Phase 1 System
  • Cost and Funding Updates now to include:
    • Costs of civil works and contract cost for the Merced to Bakersfield segment
    • Merced-to-Bakersfield costs of right-of-way, acquisitions, utilities, third-party agreements, rolling stock, and stations
    • Funding commitments beyond the Merced to Bakersfield segment
    • Advance design including preliminary station design information

THEME: GETTING TO OPERATIONS:

• Steps for delivering Merced-to-Bakersfield is central theme to the 2023 Report:
  • Governor Newsom proposed initial service in this corridor
  • Legislature has prioritized it with passage of Senate Bill 198
  • Building out from the initial 119 miles of infrastructure – nation’s first high-speed rail test track
• Objective: show Authority’s plan to deliver by end of decade
  • “Here are our goals”
  • “Here are the milestones we are driving toward to deliver – it’s a multi-pronged effort”
  • “Here are the risks”
• Southern California and Northern California regional updates
  • Milestones over last two years and projections for next two years
  • Emphasis on partnerships, e.g., Caltrain, Link US, LA Union Station
  • Potential to advance design – pending federal grant applications
• New ridership model with new forecasts
  • Ridership in a post-COVID world
• Continued emphasis on project benefits
  • Economic/jobs
  • Mobility/connectivity
  • Climate/sustainability

OUTLINE:

• Letter from the CEO
• Ch. 1 Steps to Getting Trains Running in California (Merced-to-Bakersfield)
• Ch. 2 Funding and Affordability
• Ch. 3 Advancing Statewide – Northern and Southern California
• Ch. 4 Management of our Key Issues
• Ch. 5 Building Confidence Through Risk Management
• Appendices
  • Statutory Requirements
    • Existing – AB 95
    • SB 198 – Schedule Updates
    • SB 198 – Cost and Funding Updates
• CP 4 is scheduled to be done by March
• PUR will be reviewed by the Inspector General, CEO expects a “clean bill of health”

CONSTRUCTION PACKAGE 1 UPDATE

• Provisional Sum Change Order: 00048
• Justification:
  • The Authority previously approved adding the relocation of AT&T and PG&E facilities to the CP 1 contract. This change in scope mitigated the conflicts with the High-Speed Rail alignment and PG&E/AT&T overhead and underground facilities. The total cost of executed PG&E/AT&T Provisional Sum Task Orders has exceeded the budget. This change order allows for additional funds to be allocated to continue processing facility relocation work.
  • No new change to the overall scope.
• Cost: $38,000,000
• Sweeper Package Change Order: 00455
• Justification:
  • The original contract excluded stairways, cable trough, invert and walkway concrete, and precast covers (walkway) within the Trench and Aerial Structure as work elements within the CP 1 Scope of Work. The Authority revised the contract’s original Directive Drawings by transferring these excluded work elements into TPZP’s original contract, increasing the contract’s original scope of work.
  • Advances the work more quickly and efficiently rather than keeping them in the upcoming Track and Systems contract
  • Added new work elements.
• Cost: $63,675,300

INDUSTRY FORUM OUTREACH:

• Authority is conducting a virtual industry forum to answer questions ahead of two upcoming procurements:
  • Rail Systems Engineering Services
  • Construction Management Services for Rail Design-Build-Maintain contracts
• Procurements will allow Authority to enter into agreements for professional services to support and add expertise to:
  • Rail Systems Engineering
  • Design oversight and construction management for Track and Systems as well as manufacturing and construction management for future trainsets and facilities
• Virtual event on: Monday, October 24, 11 am
  • Includes live Q and A

RAILROAD CROSSING ELIMINATION GRANT APPLICATION

• Federal grant application submitted to FRA on October 11 for $67 million. Funding would contribute to the elimination of six at-grade crossings in Shafter as part of the Bakersfield extension:
  • Constructs two grade separations (Poplar Ave. and Riverside St.)
  • Completes design and right of way of four grade separations (Fresno Ave., Shafter Ave., Central Ave. and E. Lerdo Hwy)
• Funding would also continue supporting the Central Valley Training Center in Selma
• Grant intended to improve the health and safety of underserved communities in the Central Valley
• Also waiting on MEGA grant award decision from Department of Transportation

INNOTRANS 2022

• California High-Speed Rail, CalSTA and Regional Rail / Transit Partners participated in delegation visit to the 2022 international conference. Visit included:
  • Participation on an international panel with global rail leaders
  • Maintenance facilities site visits
  • Construction tours
  • Station tours and learning opportunities
  • Operations Control Center visit and discussion
  • Meeting with the US Embassy in Berlin
  • Meeting with the Transport Minister

RELATED MATERIALS

• Board Memo for October 2022 CEO Report.
• October 2022 CEO Report PowerPoint Presentation.
• Find the video of the October 2022 Board Meeting and CEO Report here.