TRANSPORTATION COMMITTEE AGENDA

Transcription

1 Members Jim Desmond, Chair Mayor, City of San Marcos (Representing North County Inland) Bill Sandke, Vice Chair Councilmember, City of Coronado (Representing South County) Georgette Gomez Councilmember, City of San Diego Ron Roberts Supervisor, County of San Diego Bill Baber Councilmember, City of La Mesa (Representing East County) Catherine Blakespear Mayor, City of Encinitas (Representing North County Coastal) Harry Mathis Chair, Metropolitan Transit System John Aguilera Vice Chair, North County Transit District Jim Janney San Diego County Regional Airport Authority Alternates Judy Ritter Mayor, City of Vista (Representing North County Inland) Mary Salas Mayor, City of Chula Vista (Representing South County) Mark Kersey Councilmember, City of San Diego Bill Horn Supervisor, County of San Diego Greg Cox Supervisor, County of San Diego Jennifer Mendoza Mayor Pro Tem, City of Lemon Grove (Representing East County) Ellie Haviland Councilmember, City of Del Mar (Representing North County Coastal) Lorie Bragg Metropolitan Transit System Bill Horn / Mark Packard North County Transit District April Boling San Diego County Regional Airport Authority Advisory Members Rafael Castellanos / Michael Zucchet San Diego Unified Port District Cory Binns / Ann Fox Caltrans District 11 Erica Pinto, Jamul Allen Lawson, San Pasqual Southern California Tribal Chairmen s Association Kim Kawada Chief Deputy Executive Director, SANDAG TRANSPORTATION COMMITTEE AGENDA Please Note Meeting Time Friday, November 3, a.m. to 1 p.m. SANDAG Board Room 401 B Street, 7th Floor San Diego AGENDA HIGHLIGHTS SENATE BILL 1 FUNDING OPPORTUNITIES 2018 STATE CAP-AND-TRADE TRANSIT AND INTERCITY RAIL CAPITAL PROGRAM: PROPOSED PROJECT SUBMITTALS PLEASE SILENCE ALL ELECTRONIC DEVICES DURING THE MEETING YOU CAN LISTEN TO THE TRANSPORTATION COMMITTEE MEETING BY VISITING OUR WEBSITE AT SANDAG.ORG MISSION STATEMENT The 18 cities and county government are SANDAG serving as the forum for regional decision-making. SANDAG builds consensus; makes strategic plans; obtains and allocates resources; plans, engineers, and builds public transit; and provides information on a broad range of topics pertinent to the region s quality of life. San Diego Association of Governments 401 B Street, Suite 800, San Diego, CA (619) Fax (619) sandag.org

2 Welcome to SANDAG. Members of the public may speak to the Transportation Committee (Committee) on any item at the time the Committee is considering the item. Please complete a Request to Comment form, which is located in the rear of the room, and then present the form to the Committee Clerk seated at the front table. Members of the public may address the Committee on any issue under the agenda item entitled Public Comments/Communications/Member Comments. Public speakers are limited to three minutes or less per person. The Committee may take action on any item appearing on the agenda. Both agenda and non-agenda comments should be sent to SANDAG via comment@sandag.org. Please include the committee name and meeting date, agenda item, your name, and your organization. Any comments, handouts, presentations, or other materials from the public intended for distribution at the Committee meeting should be received by the Clerk of the Board no later than 12 noon, two working days prior to the meeting. All public comments and materials received by the deadline become part of the official project record, will be provided to the members for their review at the meeting, and will be posted to the agenda file as a part of the handouts following each meeting. In order to keep the public informed in an efficient manner and facilitate public participation, SANDAG also provides access to all agenda and meeting materials online at Additionally, interested persons can sign up for e-notifications via our e-distribution list either at the SANDAG website or by sending an request to webmaster@sandag.org. SANDAG operates its programs without regard to race, color, and national origin in compliance with Title VI of the Civil Rights Act. SANDAG has developed procedures for investigating and tracking Title VI complaints, and the procedures for filing a complaint are available to the public upon request. Questions concerning SANDAG nondiscrimination obligations or complaint procedures should be directed to the SANDAG General Counsel, John Kirk, at (619) or john.kirk@sandag.org. Any person who believes himself or herself or any specific class of persons to be subjected to discrimination prohibited by Title VI also may file a written complaint with the Federal Transit Administration. In compliance with the Americans with Disabilities Act (ADA), SANDAG will accommodate persons who require assistance in order to participate in SANDAG meetings. If such assistance is required, please contact SANDAG at (619) at least 72 hours in advance of the meeting. To request this document or related reports in an alternative format, please call (619) or (619) (TTY), or fax (619) SANDAG agenda materials can be made available in alternative languages. To make a request, call (619) at least 72 hours in advance of the meeting. Los materiales de la agenda de SANDAG están disponibles en otros idiomas. Para hacer una solicitud, llame al (619) al menos 72 horas antes de la reunión. 如有需要, 我们可以把 SANDAG 议程材料翻译成其他語言. 请在会议前至少 72 小时打电话 (619) 提出请求. SANDAG offices are accessible by public transit. Phone 511 or visit 511sd.com for route information. Bicycle parking is available in the parking garage of the SANDAG offices

3 ITEM NO. TRANSPORTATION COMMITTEE Friday, November 3, 2017 RECOMMENDATION +1. APPROVAL OF MEETING MINUTES APPROVE The Transportation Committee is asked to review and approve the minutes from its October 20, 2017, meeting. 2. PUBLIC COMMENTS/COMMUNICATIONS/MEMBER COMMENTS Members of the public shall have the opportunity to address the Transportation Committee on any issue within the jurisdiction of the Committee that is not on this agenda. Anyone desiring to speak shall reserve time by completing a Request to Speak form and giving it to the Clerk prior to speaking. Public speakers should notify the Clerk if they have a handout for distribution to Committee members. Public speakers are limited to three minutes or less per person. Committee members also may provide information and announcements under this agenda item. REPORTS +3. SENATE BILL 1 FUNDING OPPORTUNITIES (Robyn Wapner) DISCUSSION Staff will provide an overview of potential funding opportunities for the San Diego region under Senate Bill 1 (SB 1) (Beall). The Transportation Committee is asked to provide feedback on the proposed process to identify potential SANDAG project submissions to the various SB 1 programs STATE CAP-AND-TRADE TRANSIT AND INTERCITY RAIL CAPITAL PROGRAM: PROPOSED PROJECT SUBMITTALS (Linda Culp) RECOMMEND The Transportation Committee is asked to recommend that the Board of Directors approve the submittal of the proposed applications for the State Transit and Intercity Rail Capital Program. 5. CONTINUED PUBLIC COMMENTS If the five speaker limit for public comments was exceeded at the beginning of this agenda, other public comments will be taken at this time. Subjects of previous agenda items may not again be addressed under public comment. 6. UPCOMING MEETINGS INFORMATION The next meeting of the Transportation Committee is scheduled for Friday, December 8, Please note, this meeting is scheduled for the second Friday due to the holiday schedule. 7. ADJOURNMENT + next to an agenda item indicates an attachment 3

4 AGENDA ITEM NO TRANSPORTATION COMMITTEE NOVEMBER 3, 2017 ACTION REQUESTED: APPROVE TRANSPORTATION COMMITTEE DISCUSSION AND ACTIONS OCTOBER 20, 2017 The meeting of the Transportation Committee was called to order by Chair Jim Desmond (North County Inland) at 9 a.m. 1. APPROVAL OF MEETING MINUTES (APPROVE) Action: Upon a motion by Vice Chair Bill Sandke (South County), and a second by Mr. Jim Janney (San Diego County Regional Airport Authority [SDCRAA]), the Transportation Committee approved the meeting minutes of October 6, Yes: Chair Desmond, Vice Chair Sandke, Councilmember Georgette Gomez (City of San Diego), Mayor Pro Tem Jennifer Mendoza (East County), Mayor Catherine Blakespear (North County Coastal), Chair Harry Mathis (Metropolitan Transit System [MTS]), Vice Chair John Aguilera (North County Transit District [NCTD]), and Mr. Janney. No: None. Abstain: None. Absent: County of San Diego. 2. PUBLIC COMMENTS/COMMUNICATIONS/MEMBER COMMENTS Nancy Cuskaden, a member of the public, submitted written comments and spoke about various legal issues. John Wotzka, a member of the public, submitted written comments and spoke about various transportation matters. CONSENT 3. SPECIALIZED TRANSPORTATION GRANT PROGRAMS STATUS UPDATE (INFORMATION) This report provided an overview of the progress made by the grant recipients in each program. Action: This item was presented for information.

5 REPORTS REGIONAL TRANSPORTATION IMPROVEMENT PROGRAM AMENDMENT NO. 8 (ADOPT) Sue Alpert, Associate Project Control Analyst, presented the item. Action: Upon a motion by MTS Chair Mathis, and a second by Vice Chair Sandke, the Transportation Committee adopted Resolution No , approving Amendment No. 8 to the 2016 Regional Transportation Improvement Program. Yes: Chair Desmond, Vice Chair Sandke, Councilmember Gomez, Supervisor Ron Roberts (County of San Diego), Mayor Pro Tem Mendoza, Mayor Blakespear, MTS Chair Mathis, NCTD Vice Chair Aguilera, and Mr. Janney. No: None. Abstain: None. Absent: None STATE TRANSPORTATION IMPROVEMENT PROGRAM (DISCUSSION/POSSIBLE ACTION) Dawn Vettese, Financial Programming Manager, presented the item. Action: Upon a motion by Vice Chair Sandke, and a second by Supervisor Roberts, the Transportation Committee recommended that the Board of Directors approve the submission of the proposed 2018 State Transportation Improvement Program to the California Transportation Commission. Yes: Chair Desmond, Vice Chair Sandke, Councilmember Gomez, Supervisor Roberts, Mayor Pro Tem Mendoza, Mayor Blakespear, MTS Chair Mathis, NCTD Vice Chair Aguilera, and Mr. Janney. No: None. Abstain: None. Absent: None SAN DIEGO FORWARD: THE REGIONAL PLAN PROPOSED REVENUE CONSTRAINED NETWORK SCENARIOS DEVELOPMENT PROCESS (RECOMMEND) Phil Trom, Senior Regional Planner, and Elisa Arias, Principal Regional Planner, presented the item. Action: Upon a motion by Mr. Janney, and a second by NCTD Vice Chair Aguilera, the Transportation Committee recommended that the Board of Directors accept the proposed process to develop the Revenue Constrained Network Scenarios for use in the development of 2019 San Diego Forward: The Regional Plan, including the existing project evaluation criteria; project rankings; and Unconstrained Transportation Network, with the addition of Skyways; from the 2015 Regional Plan. Yes: Chair Desmond, Vice Chair Sandke, Councilmember Gomez, Supervisor Roberts, Mayor Pro Tem Mendoza, Mayor Blakespear, MTS Chair Mathis, NCTD Vice Chair Aguilera, and Mr. Janney. No: None. Abstain: None. Absent: None. 7. CONTINUED PUBLIC COMMENTS Chairwoman Erica Pinto, Jamul (Southern California Tribal Chairmen s Association [SCTCA]) spoke about the SANDAG and SCTCA leadership meeting held on Monday, October 16, The SCTCA will provide an update to the Board of Directors with the projects they intend to submit to compete for Senate Bill 1 funding. 2

6 8. UPCOMING MEETINGS The next meeting of the Transportation Committee is scheduled for Friday, November 3, This meeting will be held at 11 a.m. due to the holiday schedule. 9. ADJOURNMENT Chair Desmond adjourned the meeting at 10:23 a.m. 3

7 Meeting Start Time: 9 a.m. Meeting Adjourned Time: 10:23 a.m. CONFIRMED ATTENDANCE SANDAG TRANSPORTATION COMMITTEE MEETING OCTOBER 20, 2017 JURISDICTION NAME MEMBER/ ALTERNATE ATTENDING North County Coastal North County Inland East County South County City of San Diego Catherine Blakespear Member Yes Ellie Haviland Alternate No Jim Desmond (Chair) Member Yes Judy Ritter Alternate Yes Bill Baber Member No Jennifer Mendoza Alternate Yes Bill Sandke (Vice chair) Member Yes Mary Salas Alternate No Georgette Gomez Member Yes Mark Kersey Alternate No Ron Roberts Member Yes County of San Diego Bill Horn Alternate No Greg Cox Alternate No Metropolitan Transit System Harry Mathis Member Yes Lorie Bragg Alternate Yes John Aguilera Member Yes North County Transit District Bill Horn Alternate No Mark Packard Alternate No San Diego County Regional Airport Authority Jim Janney Member Yes April Boling Alternate No ADVISORY MEMBERS San Diego Unified Port District Caltrans SCTCA Other Attendees Rafael Castellanos Member Yes Michael Zucchet Alternate No Cory Binns Member Yes Ann Fox Alternate No Erica Pinto Member Yes Allen Lawson Member No Matt Tucker NCTD Yes Sharon Cooney MTS Yes 4

8 AGENDA ITEM NO TRANSPORTATION COMMITTEE NOVEMBER 3, 2017 ACTION REQUESTED: DISCUSSION SENATE BILL 1 FUNDING OPPORTUNITIES File Number Discussion On April 28, 2017, Governor Jerry Brown signed Senate Bill 1 (SB 1) (Beall, 2017) into law. SB 1 is a transportation funding package with investments primarily targeted towards fix-it-first infrastructure projects. Among its provisions, SB 1 provides an increase in local streets and roads funding for each city and county; funding for multi-modal improvements and transit operations; and competitive grant programs to provide new transportation improvements. In general, SB 1 is estimated to provide about $5.2 billion statewide annually, split equally between state and local investments, including several new funding programs that could benefit the San Diego region. This report provides a summary of some of the larger programs under SB 1, including annual estimates provided by the administration, and seeks feedback on the process to identify potential SANDAG submissions. Table 1 includes a summary of annual estimates by funding category. Table 1: SB 1 Annual Estimates by Funding Category State Highway System $1.5 billion State Transportation Improvement Program $850 million Trade Corridor Enhancement Program $300 million Local Partnership Program $200 million Local Streets and Roads $1.5 billion Transit Operations and Capital $750 million Solutions for Congested Corridors Program $250 million Active Transportation Program $100 million Caltrans Local Planning Grants $25 million

9 Attachment 1 provides an overview of timelines for the discretionary programs that SANDAG is eligible to compete for. Due to the tight application deadlines, staff will be seeking recommendations from the Board of Directors later this month and in December The use and distribution of the funds will be managed by the California Transportation Commission (CTC), California State Transportation Agency (CalSTA), and California Department of Transportation (Caltrans), among others. State Highway System SB 1 is anticipated to generate approximately $1.5 billion annually for distribution by the state for maintenance and rehabilitation projects on the state highway system. Much of this funding will be directed through the State Highway Operations and Protection Program (SHOPP), which provides support for non-capacity increasing projects on state highways and bridges. SHOPP funding has previously been used for maintenance and operational projects like auxiliary lanes on State Route 78 (SR 78), State Route 52 (SR 52), as well as on the State Routes 905/125/11 connectors. Looking forward, similar projects on SR 78 and State Route 805 in the South Bay and SR 52 region (as well as other connector projects) could qualify. Caltrans has the primary responsibility for planning, developing, managing, and reporting the four-year SHOPP portfolio of projects. The proposed 2018 SHOPP list is scheduled to be posted for public review on November 30, 2017, with final adoption by the CTC no later than April 1, Local Streets and Roads The Local Streets and Roads Program is anticipated to distribute approximately $1.5 billion annually statewide to cities and counties on a formula basis. The objective of the program is to address deferred maintenance on the local streets and roads system through the prioritization and delivery of basic road maintenance and rehabilitation projects, as well as critical safety projects. Cities and counties are responsible for submitting their project lists to the CTC each fiscal year. Once the CTC confirms that the submitted projects meet statutory requirements, the list is submitted to the State Controller so that monthly funding apportionments may begin. Examples of projects that may use this funding include, but are not limited to, road maintenance and rehabilitation, safety projects, railroad grade separations, complete streets components (including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and storm water capture projects in conjunction with any other allowable project), and traffic control devices. Upon full implementation of SB 1 the League of California Cities (League) estimates that local jurisdictions will receive about double what they currently receive per year for local streets and roads purposes. In FY , the League estimates that the San Diego region (the County and the 18 cities) will receive a cumulative amount of nearly $35 million in additional revenues under the Local Streets and Roads Program. Project lists were due to the CTC on October 16, 2017, and apportionments are expected to begin in January Additional information on the Local Streets and Roads Program may be found here: 2

10 State Transportation Improvement Program The State Transportation Improvement Program (STIP) is an existing funding program for state highway improvements, intercity rail, and regional highway and transit improvement projects. As a result of SB 1, the 2018 Fund Estimate for the FY STIP adds about $2.2 billion of new capacity statewide. STIP funds are divided into two broad programs: (1) the regional component, which comprises 75 percent of the funds, and (2) the interregional component, known as the Interregional Transportation Improvement Program (ITIP), which includes an interregional rail element and comprises the remaining 25 percent. At its meeting on October 20, 2017, the Transportation Committee recommended that the Board of Directors approve the submission of the following projects to the CTC for San Diego s portion of the 2018 STIP, for a total of about $187 million in funding over the next five years: I-5 North Coast Corridor Regional Planning, Programming, and Monitoring Advanced Project Development Element Interstate 15/SR 78 HOV Direct Connector Advanced Project Development Element Interstate 805/State Route 52 Auxiliary Lanes Advanced Project Development Element State Route 94/State Route 125 Connector Caltrans also is proposing to program approximately $30 million in ITIP funding for construction of the San Onofre to Pulgas Phase 2 double-tracking project in the LOSSAN rail corridor. The Board of Directors is scheduled to consider the Transportation Committee s recommendation at its November 17, 2017, meeting. STIP proposals are due to the CTC in December 2017, with final adoption in March Additional information on the STIP may be found here: Transit Operations and Capital SB 1 is anticipated to provide more than $750 million annually statewide for public transit purposes. This funding includes, but is not limited to, increases to the existing State Transit Assistance (STA) (including the creation of a new State of Good Repair Program) and Transit and Intercity Rail Capital Programs, as well as the creation of a new State Rail Assistance Program. State Transit Assistance SB 1 is expected to provide about $250 million annually in additional funds to the existing STA Program. The STA Program provides funds on a formula basis statewide to transit operators for capital infrastructure and operational costs. With the passage of SB 1, FY STA estimates increased by 69 percent (for a total of $7.78 million) for North County Transit District (NCTD) and 41 percent (for a total of $20.3 million) for Metropolitan Transit System (MTS). 3

11 State of Good Repair SB 1 also is estimated to provide $105 million annually statewide for a new State of Good Repair Program that will be distributed through and in addition to the existing STA Program. The goal of this new program is to provide formula funding to transit agencies for capital assistance to rehabilitate and modernize California s existing local transit systems. NCTD is estimated to receive approximately $1.7 million, and MTS is expected to receive approximately $4.5 million under the State of Good Repair Program. Additional information on the State of Good Repair Program may be found here: Transit and Intercity Rail Capital Program The Transit and Intercity Rail Capital Program is expected to receive an annual increase of about $300 million under SB 1. This is an existing state cap-and-trade program that funds projects that modernize transit systems and intercity, commuter, and urban rail systems to reduce greenhouse gas emissions by reducing vehicle miles travelled throughout California. CalSTA issued a call for projects for this program on October 13, With the addition of SB 1 funding 1, the call provides approximately $2.4 billion statewide over the next five years. Eligible applicants include public agencies that operate or have planning responsibility for intercity or commuter passenger rail service, urban rail transit service, or bus or ferry transit service. SANDAG, MTS, and NCTD all have been successful in receiving awards under this program in the past. In 2015, SANDAG received about $4 million for the South Bay Rapid project, and last year, SANDAG partnered with the Los Angeles-San Diego-San Luis Obispo (LOSSAN) Rail Corridor Agency and received about $66 million for various LOSSAN projects in the San Diego region. The Transportation Committee and Board of Directors are scheduled to consider potential SANDAG project submissions for the 2018 call at their November meetings (See Item No. 4 of the November 3, 2017, Transportation Committee agenda). Applications are due in January 2018, and awards are expected to be announced by April 30, Additional information on the Transit and Intercity Rail Capital Program may be found here: State Rail Assistance The State Rail Assistance Program is anticipated to provide approximately $45 million annually on a formula basis to the state s commuter and intercity rail agencies. This funding will support both operations and capital improvements including, but not limited to, expanded service, outreach, increased customer amenities, discounted tickets, new and cleaner emissions rolling stock, as well as track and station investments. 1 This includes Public Transportation Account funding that previously was allocated for the State Transportation Improvement Program. 4

12 In the San Diego region, this program is expected to provide about $2.5 million to NCTD (COASTER) and $3.1 million to LOSSAN (Pacific Surfliner) in FY Additional information on the State Rail Assistance Program may be found here: pdf Trade Corridor Enhancement Program The Trade Corridor Enhancement Program is anticipated to receive approximately $300 million annually from SB 1. The objective of this new program is to fund infrastructure improvements on federally designated Trade Corridors of National and Regional Significance, on the Primary Freight Network, as identified in the California Freight Mobility Plan, and along other corridors that have a high volume of freight movement as determined by the Commission. Eligible applicants include local, regional, and public agencies such as cities, counties, metropolitan planning organizations (MPOs), regional transportation planning agencies, port authorities, public construction authorities, and Caltrans. Project proposals from private entities must be submitted by a public agency sponsor. There is a 30 percent match requirement for Trade Corridor Enhancement Program funding. The match may be private, local, federal, or state funds; however, except for STIP funding, the match may not include funds that are allocated by the CTC on a project specific basis. The CTC issued a call for projects for the Trade Corridor Enhancement Program on October 20, With the inclusion of federal National Highway Freight Program 2 and other funding, the call provides approximately $1.3 billion statewide over the next three years. Pursuant to statute, 40 percent of the program s funding is designated for projects nominated by Caltrans, and the remaining 60 percent is distributed on a competitive basis to the regions. CalSTA has stated that one of its priorities for the Caltrans portion is to utilize $150 million for border projects along the California-Mexico border. For the regional share, the CTC has developed corridor-based programming targets that are intended to support geographic balance; however, the programming targets are not guaranteed. The San Diego/Border target includes Imperial and San Diego counties and represents 11 percent of the total regional share ($89 million). In addition to being an eligible applicant, SANDAG (as the MPO) is responsible for compiling project nominations from the San Diego region for submission to the CTC. Per the adopted guidelines, SANDAG will submit a cover letter that includes a full list of all nominations received and confirm consistency with San Diego Forward: The Regional Plan and the adopted regional freight plan. Project nominations and supporting documentation must be submitted to the CTC by January 30, Projects receiving federal funds under this program are required to be located on the Primary Highway Freight System or a designated Critical Rural Freight Corridor or Critical Urban Freight Corridor. The Transportation Committee approved screening criteria for use in the SANDAG Critical Urban Freight Corridors Designation Process on September 15, 2017, as part of Item No. 6, entitled Critical Urban Freight Corridors Designation Process. 5

13 As such, SANDAG requests that hard copies of all project applications be submitted to SANDAG by January 16, The CTC is scheduled to adopt the final program of projects in May Additional information on the Trade Corridor Enhancement Program may be found here: Local Partnership Program The Local Partnership Program is expected to distribute about $200 million statewide annually on a formula and competitive basis. The objective of this new program is to reward counties, cities, districts, and regional transportation agencies in which voters have approved fees or taxes solely dedicated to transportation improvements or that have enacted fees solely dedicated to transportation. CalSTA issued a call for projects for the Local Partnership Program on October 20, SANDAG is eligible for both the formula and competitive portions of the program. Eligible projects may include, but are not limited to, improvements to the state highway system, transit facilities, local road system, and bicycle or pedestrian safety. There is a one-to-one match requirement for all Local Partnership Program funding 4. The match may be private, local, federal, or state funds; however, except for STIP funding, the match may not include funds that are allocated by the CTC on a project specific basis. Formula Portion Jurisdictions that have sought and secured voter-approved taxes, tolls, and fees will be eligible under the formula portion if the taxes, tolls, or fees are dedicated solely to transportation. Based on information available at the time of this report, it appears that SANDAG would be the only eligible applicant for formula funds from the San Diego region. To verify eligibility, agencies must submit specified documentation to the CTC by October 27, Based on these submissions, the CTC is scheduled to determine and then adopt the formulaic distribution of shares for this round of funding at its meeting on December 6-7, The CTC will include each project nominated by an eligible applicant for a formulaic funding share provided that the project meets statutory and guideline requirements. Project applications for the formula portion of the Local Partnership Program are due on December 15, The CTC is scheduled to adopt the program of formula projects on January 31, Please send completed applications to the attention of Tina Casgar, Principal Regional Planner, SANDAG, 401 B Street, Suite 800, San Diego, CA, 92101, (619) , christina.casgar@sandag.org. 4 Except jurisdictions with a voter-approved tax or fee which generates less than $100,000 annually only need to provide a match equal to 50 percent of the requested Local Partnership Program funds. 6

14 Competitive Portion Jurisdictions that have sought and secured voter-approved taxes, tolls, and fees, or jurisdictions with imposed fees will be eligible for the competitive grant portion if the taxes, tolls, or fees are dedicated solely to transportation. To verify eligibility, agencies must submit specified documentation with their applications to the CTC. Priority will be given to projects based on cost-effectiveness, construction date, funding leverage, air quality improvements, community support, and advancement of the region s Sustainable Communities Strategy. Project applications for the competitive portion of the Local Partnership Program are due on January 30, 2018, and awards are expected to be adopted in May Incentive for New and Renewed Sales Tax Measures, Tolls, or Fees To recognize new or renewed voter-approved self-help efforts and to incentivize jurisdictions to pursue future sales tax measures, tolls, or fees, a one-time incentive grant will be provided to jurisdictions that seek and receive voter approval of new or renewed sales tax measures, tolls, or fees, if those tax measures, tolls, or fees have a minimum period of ten-years, are solely dedicated to transportation, and for sales taxes that are equal to or greater than one-quarter cent. The total amount of incentive grants awarded will not exceed $20 million annually. Additional information on the Local Partnership Program may be found here: Solutions for Congested Corridors Program The Solutions for Congested Corridors Program is anticipated to distribute approximately $250 million annually statewide on a competitive basis. The objective of this new program is to fund projects that make specific improvements and are part of a comprehensive corridor plan designed to reduce congestion in highly traveled corridors by providing more transportation choices while preserving the character of the local community and creating opportunities for neighborhood enhancement projects. SANDAG and Caltrans are the only eligible applicants to this program in the San Diego region. Examples of projects that may use this funding include, but are not limited to, new or existing transit infrastructure improvements, high-occupancy-vehicle lanes and managed lanes, new or existing rail infrastructure, operational and safety improvements, environmental mitigation and technology projects, active transportation, and transportation demand management efforts. Funds may only be used for the construction component of a project. A match is not required; however, it will be considered in the evaluation of projects. Under a statewide program similar to the Solutions for Congested Corridors Program (the Proposition 1B Corridor Mobility Improvement Account), the San Diego region received about 10 percent of overall funding for TransNet projects. The Final Guidelines for the Solutions for the Congested Corridors Program are scheduled to be adopted by the CTC in December. The current version of the Draft Guidelines may be found here: 7

15 Active Transportation Program The Active Transportation Program is expected to receive an annual increase of approximately $100 million under SB 1. This is an existing competitive funding program for projects that encourage increased use of active modes of transportation such as bicycling and walking. Funding for the program is awarded in three components: (1) the statewide competition, led by the CTC; (2) the small urban and rural competition, also led by the CTC; and (3) the regional competitions, facilitated by the MPOs. Utilizing the new SB 1 funds, the CTC issued a call for projects for the SB 1 ATP Augmentation on June 30, 2017, and at its meeting in October approved funding (out of the statewide/rural component) for the following San Diego projects: Imperial Beach: Imperial Beach Boulevard Improvement and Safe Routes to Schools Chula Vista: Class 2 Bike Lanes on Broadway in Chula Vista El Cajon: Cajon Valley Union School District Safe Routes to School Plan (Phase 2) Encinitas: Santa Fe Drive Corridor Bike and Pedestrian Improvements National City: National City Safe Routes to School Pedestrian Enhancements At its meeting on September 22, 2017, the Board of Directors approved the list of projects to be submitted to the CTC for funding approval under the regional portion of the ATP Program (Attachment 2). The CTC is scheduled to adopt the region s funding recommendations at its meeting on December 6-7, The next call for the Active Transportation Program is expected to be released in March 2018, with applications due in May Additional information on the Active Transportation Program may be found here: Caltrans Local Transportation Planning Grants SB 1 is expected to provide $25 million annually for Sustainable Communities Grants to encourage local and regional planning that further state goals, including, but not limited to, the goals and best practices cited in the regional transportation plan guidelines adopted by the CTC. Funding under this program will be distributed both on a formula and competitive basis. The formula portion will be distributed to MPOs; eligible primary applicants for the competitive portion include MPOs with sub-applicants, Regional Transportation Planning Agencies, transit agencies, cities and counties, and Native American Tribal Governments. Funding will be made over a rolling series of calls for projects over the next year and a half. SB 1 also includes a one-time appropriation of $20 million over three years for Adaptation Planning Grants to local and regional agencies for climate change adaptation planning. Eligible primary applicants include MPOs, Regional Transportation Planning Agencies, transit agencies, cities and counties, Native American Tribal Governments, local and regional agencies, and special districts. 8

16 Utilizing these funds, Caltrans issued a call for projects in September 2017 for both programs. The first round of applications was due in October. Awards are expected to be announced in January 2018, and the next call for projects is scheduled to be released on January 2, SANDAG submitted the following projects for consideration under the Sustainable Communities Grants Program: Implement the Regional Complete Streets Policy (Formula) San Diego Regional Electric Vehicle Infrastructure Charging Program (Formula) Planning for Future Coastal Rail Trail Segments in an Integrated Transportation Network (Competitive) The Future of Mobility: Ride-Hailing Data Collection and Analysis project (Competitive; joint application with Metropolitan Transportation Commission, Southern California Association of Governments, and San Francisco County Transportation Authority) Each of these planning efforts supports an identified objective in San Diego Forward: The Regional Plan and would help to advance Board-identified priorities. SANDAG also submitted the Regional Sea-Level Rise Adaptation Guidance for Transportation Infrastructure project for consideration under the Adaptation Planning Grants program which would help to fulfill requirements of the Regional Plan, including advancement of the Sustainable Communities Strategy. Additional information on these programs may be found here: Proposed Process for Identification of SANDAG Projects SANDAG staff currently is reviewing in more depth the guidelines and calls for projects for the SB 1 programs outlined above to determine project eligibility and competitiveness. It is proposed that San Diego Forward: The Regional Plan and the TransNet Early Action Program be used to guide the initial selection of potential SANDAG projects to submit to these programs, with a focus on projects currently scheduled for near-term completion. Current funding availability and need, project phase (i.e., design versus construction), environmental clearance, and community benefits then could be considered to help identify and prioritize potential submissions based on the specific criteria for each program. Staff also will be working with local jurisdictions and stakeholders to coordinate region-wide submissions to help advance regional competitiveness at the statewide level. Next Steps Based on feedback from the Transportation Committee, staff would utilize the proposed process to identify recommended projects for the Board of Directors to consider for submission to the Trade Corridor Enhancement, Local Partnership, and Solutions for Congested Corridors Programs at its December 1, 2017, meeting. 9

17 In recognition of potential SB 1 repeal efforts, the Board of Directors could mitigate risk by refraining from programming any new SB 1 funds in the Regional Transportation Improvement Program or the SANDAG Program Budget. Similarly, the Board could choose not to award contracts funded with SB 1 funds prior to resolution of the potential repeal efforts. VICTORIA STACKWICK Principal Government Relations Analyst Attachments: 1. Senate Bill 1 Funding Program Overview and SANDAG Project Approval Timelines Active Transportation Program Augmentation San Diego Regional Component Funding Recommendations Key Staff Contact: Robyn Wapner, (619) , robyn.wapner@sandag.org 10

18 Senate Bill 1 Funding Program Overview and SANDAG Project Approval Timelines Attachment 1 PROGRAM CALL FOR PROJECTS APPLICATIONS DUE PROGRAM ADOPTION SANDAG PROJECT APPROVAL State Transportation Improvement Program Over $850 million Transit Capital and Operations Over $750 million Trade Corridor Enhancement Program $300 million August 2018 December 2018 March 2018 October 2017 January 2018 May 2018 October 2017 January 2018 May /20/17: Transportation Committee recommendation 11/17/2017: Board of Directors 11/03/17: Transportation Committee recommendation 11/17/2017: Board of Directors 12/01/17: Board of Directors 12/01/17: Board of Directors Solutions for Congested Corridors Program $250 million December 2017* February 2018* May 2018* 12/01/17: Board of Directors Local Partnership Program $200 million October 2017 Formula: December 2017 Competitive: January 2018 Formula: January 2018 Competitive: May /01/17: Board of Directors Active Transportation Program June 2017 August 2017 Statewide/Rural: October /15/17: Transportation Committee recommendation $100 million Regional: December /22/17: Board of Directors Caltrans Local Planning Grants $25 million September 2017 October 2017 January /01/17: Board of Directors *Pending final adoption of guidelines. 11

19 2017 ATP Augmentation - San Diego Regional Component Funding Recommendations Attachment 2 SANDAG ID No. Applicant Name Project Name Total Project Cost Total Funding Request ATP Funding Recommendation Fiscal Year Allocation Fiscal Year Allocation Fiscal Year Allocation Fiscal Year Allocation 2017 ATP Funded Projects - Retain Funding Without Advancement A13 National City El Toyon - Las Palmas Regional Bicycle Boulevard $1,919,000 $1,544,000 $1,544,000 $0 $0 $1,544,000 $0 A3 Carlsbad Avenida Encinas Coastal Rail Trail and Pedestrian Improvements $9,095,000 $3,693,000 $1,776,000 $0 $0 $1,776,000 $0 $11,014,000 $5,237,000 $3,320,000 $0 $0 $3,320,000 $ ATP Funded Projects - Recommended for Advancement A14 National City Euclid Avenue Bicycle and Pedestrian Enhancements $3,960,000 $3,335,000 $3,335,000 $3,335,000 $0 $0 $0 A9 Escondido Juniper Elementary Bike/Pedestrian Improvements and SRTS Outreach $1,386,000 $1,336,000 $1,336,000 $86,000 $93,000 $1,157,000 $0 A10 Escondido Escondido Creek Trail Bike Path Improvements Project $1,632,000 $1,632,000 $1,632,000 $90,000 $200,000 $1,342,000 $0 $6,978,000 $6,303,000 $6,303,000 $3,511,000 $293,000 $2,499,000 $0 New Projects Recommended for Funding A15 San Diego Association of Governments Inland Rail Trail-City of Vista Segment $11,083,000 $5,603,000 $5,603,000 $0 $500,000 $5,103,000 $0 A1 Chula Vista Elementary School District Chula Vista Rides to School! $202,000 $202,000 $202,000 $2,000 $200,000 $0 $0 A21 San Diego County Rock Springs Road SRTS Sidewalks and Bike Lanes $1,717,000 $1,717,000 $1,160,000 $280,000 $880,000 $0 $0 $13,002,000 $7,522,000 $6,965,000 $282,000 $1,580,000 $5,103,000 $0 Projects Recommended as Contingency Projects A5 El Cajon Chase Avenue Elementary School Safe Routes to School Improvements $489,000 $0 $0 $0 $0 $0 A18 San Diego County Allen School Road SRTS Pedestrian and Bicycle Improvement Project $2,055,000 $0 $0 $0 $0 $0 A19 San Diego County Buena Creek Road-Pedestrian Improvements to Sprinter-Transit Station $1,249,000 $0 $0 $0 $0 $0 A20 San Diego County Camino San Bernardo at Deer Ridge Road Traffic Signal Calming $499,000 $0 $0 $0 $0 $0 Projects recommended for full funding Projects recommended for partial funding Projects that did not apply for advancement 12

20 AGENDA ITEM NO TRANSPORTATION COMMITTEE NOVEMBER 3, 2017 ACTION REQUESTED: RECOMMEND 2018 STATE CAP-AND-TRADE TRANSIT AND File Number INTERCITY RAIL CAPITAL PROGRAM: PROPOSED PROJECT SUBMITTALS Introduction Recommendation The state cap-and-trade investment plan includes several transit and transportation-related programs, including the Transit and Intercity Rail Capital Program (TIRCP). This year, this program is supplemented with funding from Senate Bill 1 (Beall, 2017), bringing the total funding available to $2.4 billion over the next five years. SANDAG is an eligible applicant. The California State Transportation Agency (CalSTA) issued a call for projects on October 13, 2017, with applications due on January 12, CalSTA is expected to announce awards by April 30, Projects eligible for this program include projects that will modernize transit systems and intercity, commuter, and urban rail systems to reduce greenhouse gas (GHG) emissions by reducing vehicle miles travelled throughout California. Discussion TIRCP Objectives The objectives of the TIRCP are to: Reduce GHG emissions Improve transit ridership Integrate with other rail and transit operations, including the High-Speed Rail system Improve safety Available Funding The Transportation Committee is asked to recommend that the Board of Directors approve the submittal of the proposed applications for the State Transit and Intercity Rail Capital Program as described in this report. There is an estimated $2.4 billion of funding available statewide under the TIRCP over the next five years. There is no minimum match requirement; however, additional funding from other sources is desirable. It is statutorily required that at least 25 percent of TIRCP funds support projects that provide a direct, meaningful, and assured benefit to disadvantaged communities.

21 In the first year of the program in 2015, SANDAG received $4 million for the South Bay Rapid Project and the Metropolitan Transit System (MTS) received $32 million for trolley improvements. In the second year of the program in 2016, SANDAG received $66 million for three rail improvement projects along the San Diego subdivision of the Los Angeles-San Diego-San Luis Obispo (LOSSAN) corridor. Scoring and Selection Criteria CalSTA intends to fund transformational rail and transit projects that improve the statewide transportation network and will give priority to projects that fund construction or implementation. Projects will be evaluated based on how well a project meets the objectives of the program (as outlined above) and the extent to which the project supports Sustainable Communities Strategy implementation, benefits disadvantaged communities, and is ready to go and includes a reasonable schedule. Program guidelines indicate that highly rated proposals have environmental clearance. Additional information regarding this program can be found in the adopted guidelines at Proposed SANDAG Project Submittals Project submittals are proposed to be concentrated in the following two categories. More detailed descriptions on individual submittals are included below. (1) Rail improvement projects along the San Diego Subdivision of the LOSSAN Rail Corridor. The LOSSAN corridor, which is the nation s second busiest rail corridor, is shared by commuter and intercity passenger rail and freight services to Los Angeles and locations further to the north and east. Currently, two-thirds of the LOSSAN corridor in San Diego County is double tracked, providing the capacity for trains to pass one another. SANDAG continues to complete additional capacity projects that will facilitate additional train service in the future, as specified in San Diego Forward: The Regional Plan. (2) Bus improvement projects that upgrade existing bus stops along Clairemont Mesa Boulevard and University Avenue. The Rapid 235 stop upgrades on Clairemont Mesa Boulevard include a protected bike lane within each transit station, a bigger platform area to accommodate a large modern shelter, a digital display announcing next vehicle arrival times, and secure bike parking. The Route 7 University Avenue improvements include a protected bikeway, stop upgrades, and pedestrian improvements and will be designed as part of the North Park Mid-City University Bikeways project. 2

22 Rail improvement projects in the LOSSAN Corridor: The following LOSSAN Corridor proposals are being coordinated with the LOSSAN Rail Corridor Agency, which manages the Pacific Surfliner intercity passenger service along the corridor, to submit the rail improvement projects in one corridorwide application. San Onofre to Pulgas Stage 1, Phase 2 Double Track: Construct remaining 1.6 miles of double track and bridges on Camp Pendleton. Design for this project is 100 percent. Batiquitos Lagoon Double Track: Construction of 0.7 miles of double track and replacement of the Batiquitos Lagoon bridge in the City of Carlsbad. Design is 90 percent complete and construction is scheduled for Fall Eastbrook to Shell Double Track: Construction of 0.6 miles of double track and replacement of the San Luis Rey bridge in the City of Oceanside. Design is 90 percent complete. San Onofre Bridge Replacements and Turnout: Design and replacement of three aging timber bridges built in the early 1900s on Camp Pendleton. San Dieguito Double Track and Special Events Platform: Construction of 2.1 miles of track improvements, replacement of San Dieguito bridge and special events platform at Del Mar Fairgrounds. Design of the project is 60 percent complete and all environmental permits have been obtained. Sorrento to Miramar Phase 2 Double Track: Construction of 1.8 miles of double track and curve straightening in the City of San Diego. Design of the project is 60 percent complete and environmental clearance is pending. Bus improvement projects in Kearny Mesa and along University Avenue: The following proposals would be developed and submitted by SANDAG. Kearny Mesa Transit Improvements: Construction of the remaining five Rapid stations along Clairemont Mesa Boulevard between Interstate 15 and State Route 163 in the City of San Diego. Upgrades include a protected bike lane within each transit station, a bigger platform area to accommodate a large modern shelter, a digital display announcing next vehicle arrival times, and secure bike parking. The first station along this corridor currently is under construction at Ruffin Road in partnership with the new Kaiser Hospital construction. University Avenue Transit Improvements: This project is complimented by the North Park Mid City: University Bikeway project, and upgrades 18 bus stops along the eastern area of University Avenue in the City of San Diego to provide safe and connected transportation options for people walking, biking, and using transit along the corridor. MTS Route 7, the region s busiest route, would benefit from these upgrades. Other projects: Proposed Railroad Trench in the City of Carlsbad: In addition, it is proposed that funds be requested to complete final design for a proposed railroad trench in the City of Carlsbad pending completion of preliminary engineering and environmental clearance for the project. 3

23 Other Regional Submissions The North County Transit District intends to submit an application to replace COASTER equipment. MTS is reviewing a potential program of trolley and bus improvement projects. Next Steps Pending action by the Transportation Committee and Board of Directors, SANDAG would submit applications for the projects listed above. CHARLES MUGGS STOLL Director of Land Use and Transportation Planning Key Staff Contact: Linda Culp, (619) , linda.culp@sandag.org 4

24 Senate Bill 1 Funding Opportunities Transportation Committee Item 3 November 3, 2017 Senate Bill 1 Landmark transportation investment fix neighborhood streets, freeways, and bridges in communities across California target funds toward transit and congested trade and commuter corridors 2 Transportation Committee Item 3 November 3,

25 Overview of SB 1 Investments Transportation investment split equally $1.5 billion for Local Streets and Roads $1.5 billion for State Highway System 3 Program Overview 4 PROGRAM State Transportation Improvement Program Transit Capital and Operations Trade Corridor Enhancement Program Solutions for Congested Corridors Program Local Partnership Program Active Transportation Program Caltrans Local Planning Grants CALL FOR PROJECTS APPLICATIONS DUE PROGRAM ADOPTION August 2018 December 2018 March 2018 October 2017 October 2017 December 2017* October 2017 January 2018 May 2018 January 2018 May 2018 February 2018* May 2018* Formula: Dec Competitive: Jan June 2017 August 2017 September 2017 Formula: Jan Competitive: May 2018 Statewide: Oct Regional: Dec October 2017 January 2018 * Tentative dates Transportation Committee Item 3 November 3,

26 Transit Capital and Operations Intercity and Commuter Rail Funding New funding source, approximately $45 million annually 50 percent to intercity rail services 50 percent to commuter rail services Funds allocated by California State Transportation Agency Transit and Intercity Rail Capital Program Existing program will receive additional $300 million annually Eligible applicants: SANDAG, MTS, and NCTD Funds awarded by California State Transportation Agency 5 Trade Corridor Enhancement Program $300 million annually Supports projects vital to California s trade and freight economy on specified freight networks Improvements to highways, freight rail systems, ports, truck facilities, border access points, and local roads Funds allocated by California Transportation Commission 40 percent allocated for state 60 percent allocated to regions, with programming targets 30 percent match required unless a Caltrans project SANDAG MPO role 6 Transportation Committee Item 3 November 3,

27 Solutions for Congested Corridors Program $250 million annually Supports projects that will improve traffic flow and mobility along the state s most congested routes while also seeking to improve air quality and health Funds allocated by California Transportation Commission No match required 7 Local Partnership Program $200 million annually Supports local communities that have voter approved transportation tax measures or imposed fees Road maintenance and rehabilitation, and other transportation infrastructure improvements Funds allocated by California Transportation Commission 50 percent by formula 50 percent on a competitive basis One to one match required 8 Transportation Committee Item 3 November 3,

28 Active Transportation Program $100 million annually to cities, counties, and regional transportation agencies to build more bike paths, crosswalks, and sidewalks Funds allocated by California Transportation Commission 9 Caltrans Local Planning Grants $25 million annually for Sustainable Communities Grants to encourage local and regional planning that further state goals 50 percent by formula 50 percent on a competitive basis $20 million over three years for Adaptation Planning Grants to local and regional agencies for climate change adaptation planning Funds allocated by Caltrans 10 Transportation Committee Item 3 November 3,

29 Program Timeline PROGRAM State Transportation Improvement Program Transit Capital and Operations Trade Corridor Enhancement Program Solutions for Congested Corridors Program Local Partnership Program Active Transportation Program Caltrans Local Planning Grants CALL FOR PROJECTS August 2018 APPLICATIONS DUE December 2018 PROGRAM ADOPTION March 2018 October 2017 January 2018 May 2018 SANDAG PROJECT APPROVAL 10/20/17: TC 11/17/2017: BOD 11/03/17: TC 11/17/2017: BOD October 2017 January 2018 May /01/17: BOD December 2017* February 2018* May 2018* 12/01/17: BOD October 2017 Formula: Dec Competitive: Jan June 2017 August 2017 Formula: Jan Competitive: May 2018 Statewide: Oct Regional: Dec /01/17: BOD 9/15/17: TC 9/22/17: BOD September 2017 October 2017 January /01/17: BOD 11 * Tentative dates SANDAG Project Submissions 12 Transportation Committee Item 3 November 3,

30 SANDAG Project Submissions Current Phase/ Next Phase Construction Start Date TransNet Program Total Project Cost Existing Funds (Match) Total Need Disadvantaged Community Environmental Clearance Other Program Specific Criteria 13 Next Steps November 2017: Continue outreach to local jurisdictions and stakeholders December 1, 2017: Present potential SANDAG project submissions to Board of Directors December 2017/January 2018: Submit applications Spring 2018: Propose budget amendments to accept any awarded funds 14 Transportation Committee Item 3 November 3,

31 2018 STATE CAP AND TRADE TRANSIT AND INTERCITY RAIL CAPITAL PROGRAM: PROPOSED PROJECT SUBMITTALS Transportation Committee Item 4 November 3, 2017 Transit and Intercity Rail Capital Program (TIRCP) Transformative capital improvements that modernize California s rail and transit system Objectives Reduce GHG emissions Expand/improve rail service Integrate rail services Improve safety $2.4 billion available statewide 2 Transportation Committee Item 4 November 3,

32 Proposed Project Submittals LOSSAN Rail Corridor San Onofre Bridge Replacements and Turnout San Onofre to Pulgas Phase 2 Double Track Eastbrook to Shell Double Track Carlsbad Village Railroad Trench (Final Design) Batiquitos Lagoon Double Track San Dieguito Double Track and Special Events Platform Sorrento to Miramar Double Track Phase 2 3 Proposed Project Submittals Bus Improvements Kearny Mesa Transit Improvements University Avenue Transit Improvements 4 Transportation Committee Item 4 November 3,

33 Schedule Transportation Committee November 3, 2017 recommendation CalSTApre application consultation November 9, 2017 (not binding) Board of Directors approval November 17, 2017 LOSSAN Board of Directors December 6, 2017 (joint application, rail projects) Applications due January 12, Recommendation The Transportation Committee is asked to recommend that the Board of Directors approve the submittal of the proposed applications for the State Transit and Intercity Rail Capital Program as described in this report. 6 Transportation Committee Item 4 November 3,

34 Ll-3-t7 Transportation Committee Meeting L.0 Roads, Rail, High-Speed Rail, Bridges, Buses, and Bicycle lssues L.1. Roads lnterstate Article on the l-i5/',2l5 Devore lnterchange Project I in CA, to transform one of the worst graderelated bottlenecks in the country. The SZOA O project was completed and ahead of schedule. Ref: ENR, October 9,2OL7 pp. CA28. Article on the LBJ Express's SZ.6 9, 13-mi highway reconstruction project, that makes improvements to l-635 and l-35e in Dallas County, TX. lt has rebuilt lanes, 2-major interchanges, l2-arterial crossings, 6- collecttor street crossings, a continuous frontage road system, and 13.3-miof TEXpress Managed Lanes. Ref: ENR, October 9,2Ot7 pp.p5 L.1.3 State, County, and City Paving contractors in 5an Diego will soon be required to formally evaluate the quality of their work and they will not get paid until submitting proof they completed an analysis. Ref: The San Diego U-T LO-22-t7 pp. 81 & Rail lnterstate Freight System As operational changes came, it created service problems on CSX Transportation that worsened in July and August 20L7. Shippers complained about erratic and delayed service that resulted in slow downs and diversions to trucks and Norfolk Southern. lntermodal J.B. warned of delays of 72-hours in FL, GA, NC, and TN, yet CSX's carload reports showed traffic holding steady, and data showed intermodal traffic grew. Federal regulators increased scrutiny of CSX to determ ne the extent and severity of the disruptions. The STB told CSX to avoid tinkering with operations in the key Chicago Gateway and scheduled a September t2, 20t7 hearing on CSX's problems, while rejecting coal shippers calls for a full-blown investigation and emerging orders. The epicenter of the problems appeared to be in half-dozen terminals on the western side of the CSX system from Evansville, ln to Montgomery, AL and acted like squeezing a water balloon with the problems just moving from place to place. CSX's Hunter Harrison said improvements would began after Labor Day. Ref:Trains, November 2OL7 pp.7. The Chicago bypass is back to the drawing board, after STB rejected an application by Great Lakes Basin Transportation lnc. for a proposed ln-ll-wl route on August 3L, 2017 because of lack of financial information. Ref:Trains, November 2OL7 pp.7 1

35 . Railroads operating in South TX and East TX had no idea when they would be back to restored service after Hurricane Harvey left some 50-in of rain on the area, on August 25, 2077, and most trackage reopened shortly after Labor Day. UP suspended service between Brownsville, TX and Lake Charles, LA-some 500-mi. They were beginning to clean up in Englewood and the Settegast Yard ín Houston, but other areas were inaccessible, and trains were being re-routed through San Antonio and Hearne, TX. Most of Houston 's service unit was up on September 6,2OL7. KCS halted service between Laredo and Kendleton, TX on August 25. KCS's CEO Patrick Ottensmeyer told investors they worked with BNSF and UP to set up detours. Mexican-bound grain trains originating in Kansas City area, moved via UP, through San Antonio to Laredo. The storm was as bad as those in L900, 1935, and Ref: Trains, November 2077 pp.8 L.2.t.1" Locomotives The 4-things to know about locomotive fuel are: the 5,000-gal tank is generally below the frame between the front and rear trucks; fueling is done at the locomotive shop terminal, or mainline fuel pad; fuel expense, including local fueltaxes is a factor in how much fuel is purchased at locations; and the fuel passes from the tank to a line connected to a fuel pump, through strainers and filters, then heated to a preset temperature before entering the engine. Ref: Trains, November 2Ot7 pp.18-l9. Siemens opened a new locomotive service facility in New Castle, DL to operate its digital service, supply chain, and technical field training hub in the region. They will monitor Siemens locomotives across the U.S., including Amtrak, Brightline, and ll's DOT. Ref: Trains, November 2017 pp.2l o Ev ry locomotive on the lowa lnterstate RR has been equipped with Wi-Tronix's cloud-based Violet, PTC-technology system. lt is an on-board streaming event recorder and video resource to manage their locomotive fleets in realtime. Ref: Trains, November 20L7 pp.2l Construction Materials Railroads are increasing use of ultrasonic rail inspections that detect cracks inside rails with the potentialto cause derailments, nonstop for 80 to 100-mi without stopping to verify defects. A crew follows to make repairs. The FRA approved 6-wavers for non-stop testing by the end of August A more traditional method-"stop-and-start" is done at mph and requires stopping, backing up, and retest the potential flaw by hand. Railroads are required to make the track safe until the defective section can be replaced-often with a short "plug rail". A non-stop inspection crew can cover 4-times the distance of a stop-and-start test crew. Ref: Trains, November 2OI7 pp.2o Urban Light RailSystems The Denver Regional Transportation District received another 90-day waver from the FRA regarding grade-crossing issues on its A and B Lines. lt allows commuter rail trains to operate through 2

36 troublesome grade crossings while a permeant solution is found to the issues. lt's first 90-day waver was issued in November 2O76 for software and hardware timing issues. Ref: Trains, November 20t7 pp.2t. Southeast Pennsylvania Transportation Authority is adding new high-tech Wi-Fi, information kiosks, and device chargers. Ref: Trains, November 2017 pp.2i. The Green Line will add the name Sycuan Casino, under a S25.5E6 deal for 3O-years. a deal for UC San Diego on the Blue Line Trolley is in the 3'd year of a 5675E3 funding for the Trolley and will increase to S9a5E3/yr when built out to University City, in 2021, costing 52.1E9. Ref: The San Diego U-T pp. 82. Los Angeles Metro's passengers going through Union Station in August 20L7, passed through a body scanning device at its Metro Red Line's stop at Union Station. The walk-through devices can scan 600- people/hr and cost S0Ofg/each. Ref: Trains, November 2017 pp.2l. Work will begin on the Orange Line Trolley from El Cajon to downtown San Diego and will be done between midnight and 4:00 a.m. on Sundays through Thursday replacing the 32-year-old overhead wires-catenary assembly, cantilever arms, brackets and pully's, and adjusting overhead electrical lines that power the Trolley. Ref: The San Diego U-T t}-22-t7 pp. 85. The Sacramento Valley Station, 2-year renovation, brings the historic depot into the modern era, as a world class transit hub. The 427-douglas fir pile-foundation driven, into 60+-ft of sandy soil were evaluated. Ref: ENR, October 9,2017 pp. CA36. San Diego's Cubic has won a nearly S540EO contract to bring tap-to-pay, smartphone, and credit card fare technology, to New York City's mass transit system. Ref: The San Diego U-T L pp. CL & C Amtrak Amtrak officials announced on August 31,2Ot7 they finished rebuilding various Amtrak, Long lsland Railroad, and Ni Transit platforms and tracks into and leading to Penn Station-an end to the 8: weeks of work-"summer of hell". Speeds were reduced to 10-mph during construction and schedules were restored on September 5, 2017-notably the Crescent returned to Penn Station after: originating and terminating at the Washington Union Station since july 10. This fall's 55-hour weekend windows will ensure parts of Penn Station track work and infrastructure are looked at by inspectors and repaired over weekends through spring 20L8 with other upgraders. Ref: Trains, November 2Ot7 pp.8 3

37 . Article describes the Amtrak ways to maximize the number of people on board their trains at any given time. Amtrak recommends premium couch seating for paying a little extra. Coast Starlight's business-class Superliner ll coaches, once offered kid's playroom and arcade on the Northeast Corridor overnighters. Ref: Trains, November 2Ot7 pp.22. Amtrak has improved its Wl Fl system, with a Digital Train Line System that's deployed on l44-bilevel and single-level cars in CA since 2015 and will be used nationally over the next 2-years. Ref: Trains, November 2OL7 pp High-Speed Rail-HSR- A 13.5-mi tunnel beneath the winding peaks and valleys of Pacheco Pass in southeastern Santa Clara County, could cost from $5.6 to S14.4E9 for the Bullet Train's 54-mi segment from Gilroy to Chowchilla that is projected to cost 55.5E9. The tunnel is in tricky geological and seismically active areas. lt also requires a 1.5-mi tunneljust east of Gilroy. The CHSRA has SZtfg to build the segment from San Jose to the Central Valley. The present funds are: S21E9 for the starter system, including S0.geg from a bond, S3.2E9 in federal grants, S5.3E9 from CA's GHG fees through 2024, and S5.2E9 from bonds against GHG fees after 2O24. Other tunnels under the San Gabriel and Tehachapi Mountains are also coming in too expensive. The current plan would take the 240-mile starter system in San Jose, end in an almond orchard south of Wasco, planned to begin operations in2025, and carry 3.0E6-passnegerlyr. The entire Los Angeles-to-San Francisco system through Palmdale, Bakersfield, and Fresno is scheduled to start in 2029, requiring a 1.3-mi tunnel under the heart of San Francisco, and a 36-mi tunnel under the South California Mountains. The final environmental plan with the exact route is scheduled to be adopted in 2018, take 2-years to contract the work and build a TBM, with 3-years to bore the tunnel, and 3-years to outfit it with high-voltage electrical systems, ventilation, signals, and track. The rocks that were left in the Diablo Range were left when the Pacific Tectonic Plate dove under the North American Plate, leaving a Franciscan Complex of hard sandstone, with weak shale, with boulders of metamorphosed basalt, and chert. lt will also cross the Ortigalata fault. The CHSRA is building bridges, viaducts, trenches, and a railbed along a 29-mi stretch from Modera to Fresno, and south of Wasco. A less costly route would be over the Altamont Pass to the Bay Area, west of Tracy. Ref:The San Diego U-T pp. A1 & A4 L.4 Bridges Bridge Construction Materials The Attorney for VT reached a SZZOeg settlement with J.A. McDonald over components for a 2014 bridge project in Bristol, VT. Two employees were accused of using shortened anchor bolts for a new 368-ft, 2-span bridge over the New Haven River, then deliberately concealed the alternatíons so the firm would get full payment from the state. Ref: ENR, October 9,2OL7 pp Port and Military lssues 2.1 Ports 4

38 An article on Marine Log's Annual Shipbuilding Survey, covering ferries, articulated tug barges, patrol cutters, repair of offshore vessels, near coastal patrol vessels, dive boats, and LNG-powered combination container/roll on-roll off ships. Ref: Marine Log, September 2OL7 pp Container Ships lndustry insights of the Global Marine Marketplace. U.S. dry cargo barges operating after Hurricane Harvey: Great lakes-255, Atlantic, Gulf, and Pacific-3,293, and on the Mississippi River-22,605. Offshore Rigs operating in U.S. on August L,2OI7 was 16. Offshore fleets laid up on August 1, 2017 were: Container ships-36%, AHTS-33%, AHT-33% FSV-26%, Ocean Tug-22%o, and ERRV-?7%. Offshore construction vessels-18% including drillship-26%, semi-sub-3 L/o, and jack-up-t7o/o. There were 7-shipyard contracts, launches, & deliveries in North America. Ref: Marine Log, September 2Ot7 pp.4. The world's largest container shipping company A.P. Møller-Maersk says the impact of the Petya cyberattacks in late June, will cost them between SZOO to S3OOE6 and be reflected in its 3'd-Q results. The lnternet of Things-loT, Cybersecurity lmprovement Act of 2017, will require the U.S. government purchased devices meet minimum security requirements. Ref: Marine log, September 2O\7 pp. 16 o Questions and answers with RADM Michael Alfultis at the U.S. Merchant Marine Academy at King's Point NY. Ref: Marine Log, September 2Ot7 pp The container shipping, ship supply and demand gap is set to converge in 2018, as scrapping and postponements keep net capacity growth low, and new orders remain subdued, say RoffHabben Jansen, CEO of Hapag-Lloyd. The recent order of 9-22E3-IEU vessels was not a flood of new orders, but moving to a "fairly reasonable" level. The orderbook-to-fleet ratio from 6I% in 2007 to L4o/o in 2017 is being caused by the current high levels of scrapping, and delivery deferrals are keeping net capac ty growth at low levels. Ref: The Journal of Commerce, October 2Ot7 pp.7. Cosco Shipping and Pacific lnternational Lines, extended their partnership agreement to charter 6- vessels off each other, that will address shortages in certain trades and utilize surplus tonnage. Ref: The Journal of Commerce, October 2,2OL7 pp. 32 & 34 2.L.L.2 CNG, LNG, LPG, CGL, and Articulated Tug Barge and Barge-ATBs- The U.S. Coast Guard approved TOTE Maritime to bunker its LNG fueled Marlin Class ships from the LNG bunker barge, Clean Jacksonville, in the Port of Jacksonville, FL. Ref: Marine Log, September 2017 pp.t2 5

39 . NYC Ferry had over 1.0E6-riders since its launch in May Louisiana-based Metal Shark recently launched the 1sL2 of 4-high-speed, low-wash, L49-passenger water taxis to provide commuter passage service in the Washington D.C. metro area. They are being built for Potomac Riverboat Co. of Entertainment Cruses-one of the largest operators of pleasure boats in the U.S. Designed by BMT Designers & Planners they will be equipped with a pair of Scania Dll3-liter engines. Ref: Marine Log, September 2O77 pp.12. Honolulu-based Pasha Hawaii selected Keppel AmFELS shipyard in TX to build 2-LNG-fueled, Jones Act container ships, with an option for 2-additional vessels for its Pasha Hawaii's fleet. The 2-ship contract of willget t,2,525-TEU ships by Ref: Marine Log, September pp Reefers Update on the global cold chain infrastructure that is moving forward on several fronts, from cold storage facilities to multimodal transportation options that offer BCOs flexibility for efficient handling of perishable goods, fresh goods, and frozen foods. FL's, Port Tampa Bay is expanding its support of the global cold chain with new cold storage facility's operated by Port Logistics Refrigerated Services. CA's Port of Oakland is awaiting completion of its new coal storage facility, Cool Port, a P3 between Lineage Logistics, Dreisbach Enterprises, and the port. Rail contributions to support the global cold chain are expanding too. UP's acquisition of Railex in CA, WA, and NY, and 3PL under its Cold Connect brand, shows commitment to investment in their perishable food sector. The "big volume" produce for rail are: potatoes, onions, and carrots that have a 30-day shelf life; and natural foods, organics, and ethnic foods. The refrigerated cargo segment is forecast to be a 5t7.9EglVr market bv 2O22. Demand is up for frozen perishable commodities. Fresh fruits and vegetables are the largest share of the entire refrigerated transport market-road, sea, rail, and air. Telematics are a common feature and are used to monitor conditions inside the trailers to ensure food safety and compliance with the FDA's Food Safety Modernization Act. There are higher costs to meet emissions standards for transport of refrigeration units. Ref: The Journal of Commerce, October 2,2017 pp & 48 2.L.2 Cruise Ships The American Queen, steamboat company's newest ship, the 166-guest American Duchess, is the first all-suite paddlewheeler to operate on the American inland river system. lt was christened in New Orleans on August 1.4,2OL7. Ref: Marine Log, September 2077 pp. 11. Article on cruise ship designs, using NAPA software to create a structural design and initial layout for the vessel in a fully equipped 3D CAD model, and using IMO standards on strength and stability, and lndex R requirements. Ref: Marine Log, September 20L7 pp Skagit County, WA selected Seattle-based naval architecture and marine engineering consultancy, Glosten to design a passenger/vehicle ferry to replace the M/V Guemes that provided service between Anacortes and Guemes lsland since 1979 and is nearing its economic useful-life. 6

40 Ref: Marine Log, September 2017 pp. 35. Article on cruise ship designs for trips into the Arctic regions by Scandinavian Vard and Ulstein. Ref: Marine Log, September 2016 pp U.S. Gov. Brown signed a bíll to jump start a 40-year effort to make campgrounds, hostels, or seaside cottages available along the CA coastline. The bill requires the State Coastal Conservancy to disburse accumulated lodging fees to develop the low-cost facilities, including on parkland. Over the last few decades some 524E6 in fees have been assessed by the CCC and some S14E6 is still waiting for projects. Ref: The San Diego U-T pp. A1 & A7. With deeper channels and state of the art infrastructure, the Port of Houston was back in operation on September L,20L7. The ILA members worked on Labor Day to get the port back on line. There was no flooding in the port area and no damage was done to cranes or port equipment. The port handles more than 9,000-ship calls and 200E3-barge transfers each year. 10O-steamsship lines offer services linking Houston to the world. They handle 230E6-tons of cargo/yr. There are SS0 9 in investments of plastics resin production at the port, that will be exported. Ref: The Journal of Commerce, October 2,2017 pp Founded in 1911, the Port of Long Beach in 20L6 handled 6.8E6-containers, with an overall trade value of SL80E9. lt provides L.5E6-trade-related jobs across the nation and serves 175-shipping lines with connections to 217-seaports around the world. Ref: The Journalof Commerce, October 2,20L7 pp.7o-72. Non-vessel-operating common carriers are accelerating their share of U.S. imports from Asia, handling 15% more import volume in the last 12-months ending June 30, as volume rose 4.4%. Ref: The Journal of Commerce, October 2,20L7 pp. 36 & 37 2.L.4.7 lnland Waterways Article on the Lakes Carriers' Association that has represented U.S.-flagged vessel operations since 1880 and is one of the oldest trade associations in the country, on the Great Lakes, that moves 150E6-tons of cargo across the lakes each year, including iron ore, limestone, cement, and coal. They have L3-members that operate 49-vesssels on the Great Lakes and they are working on regulations governing vessel discharges, a 2nd Poe-sized lock at Sault Ste. Marie, Ml, a 2nd heavy icebreaker for service on the Great Lakes, and system-wide dredging. Federal, uniform regulation of vessel discharges is important, because currently 2-federal agencies-the USCG and U.S. EPA and 2S-states have their own requirements, and 16-states have ballast water specific-requirements. Ref: Marine Log, September 2OL7 pp , 31 & Drayage Truck lssues 7

41 The New York and New Jersey effort to create an interoperable chassis pool with its 3- main chassis providers collapsed as one of the companies needed to relocate its location at the APM yard. The pool by Flexi-Van Leasing and direct ChassisLink lnc. with 8,000-chassis, was abandoned in July The pool could resume in the future and it would reduce turn times at the port. lt means the Port of NY- NJ will not have a full chassis universal availability of chassis, just 3-months after the elevated Bayonne Bridge was open, allowing the bigger ships to reach the other 3-main terminals at the port. Ships of 18E3- TEUs can now reach all 4-terminals at the Port of NY-NJ. The chassis pool had to move from the AMP Terminal in Elizabeth, NJ because APM is doing a S200E6 upgrade to enhanced berths, install 4-next generation ship to shore cranes, expanded the gate complex, and improved the container handling equipment. Ref: The Journal of Commerce, October 2,20L7 pp lnternational Norway's Hav Line AS ordered a salmon processing and transportation vessel that will use a Wärtsilä hybrid propulsion solution supplied by batteries-a first for the fish farming industry. lt will be built by Spain's Balenciaga Shipyard. Ref: Marine Log, September 20L7 pp. 14. Software and technology companies are finding the time is right to move deeper into the shipping and transport markets, focusing on shipment visibility, and enhancing product development. Article covers Trimble, 10-4 Systems companies, that track freight movements at the shipment level in the U.S. and international supply chains; WiseTechGlobal, CargoSphere-a cbntainer rate management provider in the global market, and Cargoguide-an air cargo management company. Descartes a global logistics and trade software firm, acquired MacroPoint-a provider of shipment-level supply chain visibility, and FourKites is partnering with 3GTMS. Ref: The Journalof Commerce, October 2,20L7 pp Words from the tea-leaves about the China-Europe container rail service, at the 2OL7 JOC Container Trade Europe Conference, in Hamburg in September 2017, about the 58.0EL2, Chinese Belt and Road lnitiative between China and Europe, with links to Asia and Africa. For BCOs some air cargo is too pricey at S37E3 for a 9,600-kg load to justify less than 24-hr transit and the same load would cost 53,000, via ocean transit with a 30-day+ trans t time, with risks for high-value items. For that scenario, the rail option fills the gap with 12 to 15-day transits at 58,000 for a same shipment volume. High-value electronics, including those by HP in Chongging for delivery to Duisburg, automotive parts, and industrial equipment shipments were the first to move by rail via the Belt and Road System. Security issues for the China- European rail have faded, due to container tracking, seals, and fewer stops, but the surge of peak-season cargo still is clogging some terminals. New routes will clean up pinch points, as well as smart engines, improved breaking, and dispatch systems to increase efficiency and capacity, without costly doubletracking. For European exports back to China, such as agricultural goods, food, and wine, Chinese subsidies on the backhaul, will be phased out. U.S. exporters and importers from the East Coast will dive rail and trans-atlantic transport combinations, to offer better reliability than rates via the Suez and Panama Canals, to and from Central China. All-water services to the East Coast from Asia take some 26 to 30-days, 8

42 but a truck trip to and from Central China to the ports adds another 3-days. A joint rail and trans-atlantic routing could come in at 27-days. Ref: The Journal of Commerce, October 2,2OL76 pp. 4. Update on Thailand's Eastern Economic Corridor, where the nation of 68E6-people is hoping for more trade at Laem Chabang overlooking the Gulf of Thailand, 85-mi southeast of the capital of Bangkok. lt's 2nd-Q-20L7 expansion was3.7% from 2nd Q-2016, but they are below that of Cambodia's 6.9% GDP in 2016, Myanmar-6.5/o, Vietnam-6.2To, and lndonesia-s%. Thailand's labor costs are high and major sectors of electronics and automotive production, but they need to promote advanced technology. All Western Digital's output from the Thai plants is exported because of contractual obligations, not to sell those products in Thailand, because their dollar value has naturally declined with dropping global prices for digital storage, as quality and capacity improves. Thailand 4.0-the governments multi-faceted initiative is to develop higher-value manufactured goods and advanced transportatíon and logistics infrastructure for exports to Asia and other markets. They are also strong in petrochemicals and want to move on to high-value manufacturing sectors. The Eastern Economic Corridor southeast of Bangkok will call for S+g g in infrastructure construction and upgrades over the 1'L5-years, including: dual-track RRs; expansion of Map Ta Phut; phase lll of Laem Chabang's port, so it eclipses Hamburg and Antwerp in Capacity; highspeed roadways to connect Laem Chabang and other ports; and advanced industrial plants-including warehousing, and distribution facilities that specialize in cold storage and e-commerce goods. To do all this the government invoked a Royal Decree to facilitate the creation of: Fast-Track P3s. Ref: The Journal of Commerce, October 2,20t7 pp.2l-22,24 & lnternational Chinese shippers in Northwest and Central China capitalizing on lower costs and more favorable transit times are relying on Russia's, Far East ports to reach international markets. The move could save S 00 says lvan Verziev, deputy director of Veresk, a Russian-Chinese paper producer and distributor. The distance between Suifenhe in Heilongjiang province and the Russian Port of Vladivostok 1is only 230-km [1a3-mi] compared to L,500-km to the Chinese port in Dalian. Russia exports 450E3 to 500E3-TEU from the deal. The inland exports from China were 332E3-TEU in the fist 6-months ot2ol7 and were short of Russia's expected 500E3-TEUs. China exports are some 4.0E6-TEUs and TEU to the Russian port are expected to reach 2.5E6 to 3.0E6 by 2020 and 2O22with more port capacity. The Port of Zarubino would cost 53.3E9 to be upgraded to move more traffic. The Port of Posyet could also be used by the China Merchants Group. Traffic in Russia's Far East ports rose 26.4% in the 1'Lhall-20L7 to 683E3-TEU, says the Russian Association of Commercial Seaports. All of Russia's ports had 2.3E6-TEUs volume in the l'lhalf lgoogle.com: best of vladivostok & primoye beauty aerialdrone flight-you tube Ref: The Journal of Commerce, October 2,2Ot7 pp. 34 & Maintenance Operations Singapore Technologies Engineering Ltd. announced it acquired rig repair assets-adjacent to its VT Halter Marine, lnc. shipyard in Pascagoula, MS, from World Marine of Mississippi LLC. The assets 9

43 consist of a 94-acre-purpose-built facility for heavy marine fabrication, offshore oil and gas rig upgrades, and repairs and conversions. Ref: Marine Log, September 2017 pp.9. A Portland, ME federal grand jury returned a 9-count indictment charging MST and lnvestment Co. with offenses of failing to maintain an accurate oil record book as required by the Act to Prevent Pollution from Ships as well as falsification of records in 2016 and 20L7 designed to cover up overboard discharges of oily mixtures and bilge water from the ship. Ref: Marine Log, September 2017 pp Military Ships and Planes The USS John S. McCain was involved in a collision with the 50,700-dwt Liberian-flagged tanker Alnic MC, east of the Straits of Malacca and Singapore. lt claimed lo-lives on August 2L,20t7, and injured 5. Ref: Marine Log, September 2077 pp. 10. The USS Fitzgerald damaged on June L7,2OL7 from the collision with the ACX Crystal, will be moved from Yokosuka, Japan to lngall's, Pacagoula, MS's shipyard, by TX-based Patriot Shipping, with a S.f 90 contract. Ref: Marine Log, September 2O17 pp. 15. The Navy's Hershel "Woody" William, will be christened on LO-2t-77. lt is being built by General Dynamics-NASCO's shipyard on San Diego Bay. The expeditionary sea base, is named for Hershel Williams of the Battle of lwo Jima, where 6,800-U.S. service men died in WW ll. Ref: The San Diego U-T L pp. 82. Story on the Navy's supercarrier Carl Vison, that is at North lsland waiting to be deployed in January The ship prepares 5,000-meals/day when out at sea. ln deployments at sea it s escorted with the cruiser Lake Champlain, destroyer Michael Murphy, and Wayne E. Meyer, plus a nuclear attack submarine. Ref: The San Diego U-T pp. AL & A lnternationa I lssues Kurdish fighters pulled out of disputed areas across northern and eastern lraq on LO-t7-I7 giving up the oil city of Kirkuk. lraqi forces begun an assault on the Kurdish-held City of Kirkuk and its oil fields. lraq's Prime Minister Haider-al-Abadi ordered forces to impose security in the area. Ref: The San Diego U-T 10-L8-L7 pp. A6 and L7 pp. A3 o Secretary of State Rex Tillerson slipped into lraq on LO-22-17, after leaving Afghanistan, and meet with Prime Minister Haiden al-abadi of lraq. President Trump may not make the customary presidential visit to the border between North and South Korea on his 72-day trip to S-Asian nations. 10

44 Ref: The San Diego U-T to-24-l7 pp. A3 & A5. Tillerson was in New Deli and told Pakistan to stop funding terrorist groups. China's President Xi Jinping was elevated to the status of Mao Zedong and Deng Xiaoping for his efforts of political philosophy opposed to the West, to nationalist socialism, that will not threaten the world, but defend its interests. Ref: The San Diego U-T pp. A3. U.S.-backed fighters captured Syria's largest oil field from the lslamic State group-lsls-. Ref: The San Diego U-T pp. A3. As the U.S. and South Korea prepare for joint Navalexercises, North Korea on 1O-L3-L7 renewed their threat to launch ballistic missiles near Guam- a U.S. territory. The drill will involve the aircraft carrier Ronald Reagan and willstart on LO-L6-L7, east and west of South Korea, and will last lo-days, says U.S. Navy's 7th Fleet. The nuclear-powered submarine Michigan [commissioned in 1982], arrived at the South Korea Port of Busan on L7, and South Korea war planes willjoin the exercise. Ref: The San Diego U-T pp. A3. President Trump says he will always be with Puerto Rico. Ref: The San Diego U-T pp. A4 o More guilty pleas in the Fat Leonard case. Ref: Marine Log, September 20L7 pp. 8 Prime Minister Shinzo Abe, in Japan won a commanding majority for his Liberal Democratic Party, in elections on L0-22-L7. Ref: The San Diego U-T pp. A3. Beijing's Great Hall of the People had a ceremony on L to introduce China's new leaders-members of an elite committee that governs by consensus and is compared to, as a corporate board of directors. They stood to show President Xi Jinping being raised as an equal to Deng Xiaoping in the Politburo of 7-people. Ref: The San Diego U-T pp. A3 3.0 Water lssues 3.L Regulation Funding Update on water and wastewater spending from 1956 to 2OL4for operations and maintenance and capital outlays in the U.S. from 1956 r.o 2OL4 for O & M and capital. Ref: ENR, October 9,20!7 pp. P6 3.2 Rivers and Lakes Dams 11

45 Work on the Oroville Dam by Kiewit Corp.'s contractor Kiewit, will cost more than S500E6 and excludes the cost of other contractors and emergency response, in the immediate aftermath of the spillway failure that caused evacuations of some 200E3-people. Crews will excavate unstable dirt, replace it with concrete, and top it off with rebar-reinforced concrete, anchored into the bedrock. Kiewit will rebuild the main spillway, place a 65-ft underground wall to stop erosion on the emergency spillway, and lay concrete at least L0-ft thick between the cut of wall and a concrete weir that holds water in the lake that should be done by November t,2ol7.lt will allow l-month to cure and be ready by December Ref: The San Diego U-T pp. All o Article on the Folsom Dam Project that will protect Sacramento against 200-year-flood risks. With U.S. ACE and the Department of the lnterior, Kiewit lnfrastructure West, delivered a 1,lO0-ft-long approach channel, a 2,000-ft-long upper spillway channel, a 900-ft step chute, and a 2O0-ft-long stilling basin, in 4Lmonths. Ref: ENR, October 9,2Ot7 pp. CA8-CA9 3.5 Recycled Water MunicipalWaste San Diego launched on IO-17-L7 its application for St.Ze9 in low-interest state loans to pay for an ambitious plan to boost the city's water independence by recycling treated sewage water into drinking water. Ref: The San Diego U-T pp Desalination Formosa Petrochemical Corp.-FPCC-, Taiwan commissioned IDE Technologies to build a desal plant in Yunlin County, Taiwan, to be the first large scale application for IDE's high- purity boron-removal process. The 3-step process combines reverse-osmosis-ro-membrane technologies [seawater RO followed by 4-stages of brackish-water ROl, and ion-exchange system that uses specialized resin to absorb baron. lt reaches boron concentration levels of 0.0l-ppm for its cogeneration process plant. Water of that purity can be used in up to l0o-cycles to meet blowdown water discharges. The plant will have a capacity of 105E3-m3/d and began commercialoperation in 2-years. Ref: Chemical Engineering, August 201"7 pp. 7 & Pipelines and Tunnel lssues 4.1 Pipelines Sewer Lines Cardiff State Beach is undergoing an upgrade to an outfall pipe that transports treated wastewater out into the Pacific at a cost of some 58.5E6. Ref: The San Diego U-T pp. 81" & Oil and Gas 72

46 ln the transport of oil and gas in pipelines ice-like substances called gas-hydrates, build up inside pipelines that were traditionally mitigated, by insulating the pipelines or by using antifreeze additives. Researchers say an alternative coat ng for the inside of oil and gas pipelines can prevent hydrate buildups and clogs. Hydrates have been found in abundance on sea floors and in permafrost soils in the Arctic. The new method uses a coating on pipeline walls to promote a formation of water-repelling film by attract ng liquid hydrocarbons present in petroleum that prevents gas hydrates from sticking by using cyclopentane. Ref: Earth September/October 2OL7 pp Transportation Environmental lssues President Trump selected Kathleen Hartnett White of TX to serve as Chair of the Council on Environmental Quality and Barry Myers was chosen as Under Secretary of Commerce and Head of the National Oceanic and Atmospheric Administration. Ref: The San Diego U-T pp. A7. National park visit fees could go up 180% for repairs to roads, bridges, camp-grounds, and bathrooms. The annual pass for all federal lands will remain at S80.00/yr. Ref: The San Diego U-T L7 pp. A2 5.L Maritime Transportation Emissions 6.0 Transportation Financial lssues The U.S. consumer prices rose 0.5% in September2OLT. Energy prices shot up 6.t%ledby a73.1% surge in gasoline prices, because of Hurricane Harvey. Over the last year, overall prices were up 2.2%with inflation up 1.7%. The inflation from the 3'd-Q-2016 will result in a cost of living adjustment o12%in 2Ot8 to some 70E6-recipients of Social Security and other government benefits: ln 2Ot2 it increased 3.6%. The Federal Reserve expected a 2%o annual price gains, but in September 20L7 it was only 1.4%. Ref: The San Diego U-T 10-L4-17 pp.c2 6.1 Ports From the viewpoint of U.S. shippers, the combined damage from the Hurricanes Harvey and lrma could reach S290E9. Waves of disruption in available truck and rail capacity are radiating out from areas in TX, the Louisiana Gulf Coast, and FL, that took direct hits from the hurricanes. The economic aftershock is affecting freight flows and transportation prices across North America. Tight capacity will be a problem throughout North America through the peak season of 2OI7. Ref: The Journal of Commerce, October 2OL7 pp.10-l2 & 14 and U.S. Maritime regulators are being pressed to deliver a decision on demurrage and detention fees at the nations ports. John Thune-U.S. Senate Commerce Committee, is urging whither the fees can be considered unreasonable and void. The FMC will hold meetings on the issues of port congestion, the divergent array of demurrage, detention, and per diem assessment practices. Shippers and brokers say costs are being increased because of labor delays and severe weather. Carriers and marine terminals do not want to be burdened with de facto insurance issues. 1_3

47 Ref: The Journal of Commerce, October 2,2017 pp Container Ships The potential to use reasonability priced technology to cut transportation costs, is squandered because of reluctance among BCOs, terminal operators, container lines, and truckers to share information. Ref: The Journal of Commerce, October 2077 pp.8. Carriers serving the Asia-European and trans-pacific trades are going to their old habit, of chasing market share as the slack October period approaches, threating pricing disciplines that has driven prof tability n the last 6-years. As carriers canceled sailings, over Golden Week when most Chinese factories are forced to close by the Ministry of Environmental Protection and as Beijing's ongoing battle against pollution actions also appear to be curbing container exports, that are traditionally strong in the late-september period. Carriers rate hikes and peak-season surcharges ahead of the Chinese factory closures and U.S. import surge amid overcapacity, is far from certain. Ref: The Journal of Commerce, October 2,2017 pp. 16 & 18 and State, County, and City CH2M reached a settlement with the Central Texas Regional Mobility Authority, that delayed completion of an Austin, TX, toll-lane project that had a S375E6 cost-more than twice its winning bid of S136.7E6 in The project began as a 2O-month project injanuary 201,4and stretched to more than 4-years over design delays related to water-main relocations. The case was settled for a SfSg.ge6 payment to CH2M and they must have the toll-road done by October 22, CH2M also wrote off S120E6 in project losses. Ref: ENR, October 9,2OL7 pp Rail, HSR, and Light Rail. Article on the operating ratio, from the formula-operating express/revenue, for North American RRs. Present ratios have been 80% in 2005 to75%in2007, and 650/o in Operating expenses ate up 77C of every dollar the Class I railroads took in in lnvestors and Wall Street like the numbers improvements, and it advances capital spending. CN has set the pace for the industry in 20L6 when their operating ratio was 55.9%. BNSF uses a methodology of, what's left in the cash register after expenses, but before taxes and debt payments are made-return on invested capital. Ref: Trains, November 2O17 pp Airport Airport passenger facility charges-pfc-could be raised from S.S0 to for funding more airport projects. Privatization of U.S. airports is still an uphill battle in the U.S., but in Europe some 33% are privatized and 50% of the world's top 1.00-airports rely on some sort of privatization policy. On airport cyber-security, Los Angeles says they block 10.0E3-attempts/day, with 4O%in web site attacks, 3O% are viruses, and25% are phishing attempts. t4

48 Many see the U.S. as a major P3 player worldwide and New York has the largest P3 project in the U.S. with the S4.0E9 Central Terminal at La Guardia Airport. Congress approved a 6-month extension for FAA programs on September 28,2077 when the House passes a Senate-amended version of the measure, and President Trump signed the bill on September 29,2OL7. For construction it carries through March 28, 2018, reauthorization of FAA's Airport lmprovement Program-AlP-grants, and holds the AIP at the FY annual rate of S3.35E9. lt authorizes aviation taxes such as a passenger ticket tax at current levels and retains the ceiling on-pfcs-. Ref: ENR, October 9,2OL7 pp. 13 & P2 7.0 Airport and Global Space lssues 7.1 Airports Safety The aircraft that crashed near El Capitan Reservoir, a EXTRA EA 300 plane left Gillespie Field and was found by county and state officials. Ref: The San Diego U-T LO-24-L7 pp U.S. All incoming flights to the U.S. will be subject to new security screening procedures before takeoff, including American citizen's, and foreigners possibly facing security interviews from airline employees. Says the U.S. Government. Ref: The San Diego U-T pp. AI2 7.2 Globaland Space Planets L Mars Article on Mars's timeline to 202O, and illustration of the Mars 2020 Rover, that will be able to make oxygen [Oz] from COz in the Martian atmosphere. Ref: Earth, September/October 2077 pp Deep Space The mystery of the Universe and collision of 2-neutron stars, confirmed that it was the source of gold, platinum, and other heavy elements. Neutron stars are massive stars whose cores collapsed, in super nova explosions. A teaspoon of neutron-star stuff weighs a billion tons. Ref: The San Diego U-T pp. A1 & 4L2 8.0 Border and Cultural lssues 8.1 Border lmport/export 15

49 Qualcomm filed legal actions against Apple in China to seek to ban sale and assembly of iphones in China, over patent fees issues. Ref: The San Diego U-T pp. AL & 4L0. Talks to rewrite NAFTA stalled over tough American demands that will cause delay of an agreement until 20L8. A 4th round of negotiations between the U.S.-Mexico-Canada ended in mutual exasperation on 10- L7-r7. Ref:The San Diego U-T pp. All. Car sales are forecast to drop 3% in 2OL7 from the 20t6's t7.5e6, stay flat for a few years, and it will only effect railroads where they serve assembly plants. Ref: Trains, November 20t7 pp. L2-I3. Tesla is moving closer to becoming the first wholly owned manufacturing operation in China. Present business practice in China is limited by the government to 50:50 joint ventures, where most technology and profits are with a Chinese partner. The other option s to manufacture in a free-trade zone in China, protecting their secrets, but forking over steep tariffs. Tesla is working with the Shanghai municipal government to give Tesla ownership of its facility and be in a free-trade zone. Any arrangement will still need to be approved by the Central Government in Beijing. Ref: The San Diego U--l L0-24-L7 pp. C3. Article on China's efforts on controlling pollution in factory audits enforcing 2013's regulations. They have shut down tens of thousands of Chinese factories, says Gary Huang, director of Hancock lnternational. The closures are from Jilin Province in the north to Zhejiang Province south of Shanghai, to the cities of Chongqing and Chengdu. Guangzhou factories are next on the Ministry of Environmental Protection's list. Exports form China rose 5.4To to 5.9E6-TEUs in the first 7-months of 2017, led by furniture, nuclear equipment and components, and plastics, says HIS Markit. One other problem is the factory may be compliant, but the supplier not, that could shut down the factories. Ref: The Journal of Commerce, October 2,zOLg pp. 28, 30 & 32. China is planning to ban scrap commodity imports of 160E3-TEUs of mixed scrap paper, but not cardboard and newspaper, as of the end of 2OL7 and the order was issued on July t8,2ot7.lt will affect westbound Pacific scrap-paper exporters at the LA-LB ports. China's Reform and lmplementation Plan, wants to prohibit the entry of foreign waste that can be replaced with domestic resources such as recyclables. lt follows the 20L3 "Green Fence" and National Sword" of 2Ot7 initiatives. China's classification of wastepaper is: old corrugated containers-6o%, old newspapers-35% and mixed paper-5 to t5%. Waste paper is one of the lowest and undesirable rated cargos billed at S250/FEU, from the U.S. West Coast. Ref: The Journal of Commerce October 2,2OL7 pp. 30. Article on the global wine industry shows a growth rate of 4.7% lrom 2OL6-2O2I reaching a value of S3S5.2E9 over the S-year period. The Asia-Pacific and Eastern Europe regions are leading that growth. North America and Western Europe are tending to craft brewers and distillers. 1,6

50 Ref: The Journal of Commerce, October 2,20L7 pp. 50 & Ports of Entry Some 8-prototypes for the U.S. Mexican wall are completed, in its 3'd-full week of work on 10- L3-t7, since it started on Ref: The San Diego U-T pp. A1 & 413. President Trump capped refugee admissions at 45E3 for FY-2018, starting October 1,2OL7. Ref: The San Diego U-T pp. A4 John G Wotzka 72O Ath Ave. San Diego, CA 92101, Ph: , johnwotzka@gmail.com t7