San Joaquin Council of Governments
San Joaquin Council of Governments

Planning, financing and coordinating transportation
for the Cities of Stockton,
Lodi, Manteca, Tracy, Ripon, Escalon and Lathrop; and the County of San Joaquin.

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Executive Director's Update
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Read Executive Director Andrew T. Chesley's most recent Board updates.

Update from August 16, 2010

Ross Chittenden:  
Caltrans District 10 Director Ross Chittenden has give Caltrans his notice and will be leaving his post effective August 23rd.  He has taken a position as the Deputy Executive Director for Projects at the Contra Costa Transportation Authority.  This is a sister transportation sales tax agency.   He will be working for Randy Iwasaki, the former Director of Caltrans.  Randy knows talent and I am sure worked hard to get Ross to the East Bay.  This is a loss for us.  Ross was played a huge role in our successful strategy to land the I-5 HOV widening/pavement reconstruction project.  He has been a results oriented director with a great strategic view.  His one year at District 10 was not long enough.  SJCOG staff wishes him well.   

State Budget and Transportation Projects:  
Many of you have seen recent news stories regarding the state budget and its implications on projects.  The I-205 Auxiliary Lane project has been caught up in this.  Caltrans accepted bids and was negotiating with the winning bidder but will now have to hold off awarding a contract.  Are other projects effected?  For the moment existing contracts are being honored, but this could change depending upon where the IOU issue goes.  If the budget delay lasts for an extended period (and that is a real possibility) then this could start impacting projects.   

Management and Finance Committee:  
Due to our practices, the Chair of the Management and Finance Committee is the City Manager/County Administrator from the city/county where the Chair of the COG Board is from.  So Stockton's new City Manager is the Chair.  Our meeting for August will be held at Isadore's in Manteca.  With the closure of the Commercial Exchange Club we are trying a new location.  

Habitat Fee Recommendation:  
This month, the COG Board will be getting a recommendation from staff to reduce the habitat fee.  This is based on our formula process approved by the board four years ago.  The effect will be to reduce fees for ag/natural lands by about 9%.    

Projects:
I have been focusing a growing amount of attention on project delivery.  The Route 99 Manteca segment is behind schedule.  Until we resolve the issue surrounding the future of the Little John Hook ramps we will continue to fall behind schedule with little likelihood of catching up.  This most directly impacts the French Camp/99 interchange and the Lathrop Road/99 interchange components of the project which require extensive right of way action.  The concern over the issue on the Little John Hook ramp was shared with the Project Delivery Committee and hopefully we will see some progress in the next month.  The Arch-Sperry corridor has me worried.  The I-5/French Camp interchange and the widening project have right of way challenges that may impact our schedule.  The Route 12 improvement project had an aggressive schedule and that appears not achievable now with right of way challenges.  The I-5 HOV lane project is moving forward within the accelerated schedule, but just.  I am working for a resolution of the "intercept" language issue on our cooperative agreement, but if we can not we will have a choice of signing the agreement or delaying the schedule.    Hopefully you can tell I am unhappy with the way our projects are moving when it comes to right of way.  The right of way process is long, involved and highly volatile.  Admittedly several of our schedules were aggressive (Route 12 for instance) but heck, we need to do everything we can to accelerate these projects.  These projects are about putting people to work, spurring economic development and improving conditions for the traveling public.  You have the commitment of your staff to find a way to modify our procedures/practices to do what we can to increase the predictability of this phase of project development. 

Traffic:
When we get through these "bumps in the road" toward construction we need to be prepared for the challenge of traffic delays during construction.  Beginning next year, we will have seven years of major construction projects here in San Joaquin County and particularly in the Stockton area.  I-5 widening, two Route 99 widenings, the extension of the Crosstown Freeway, major I-5 reconstruction, Arch-Sperry connector, I-5 French Camp interchange, 99/French Camp interchange, Lathrop Road/99 interchange, three grade separations in Stockton on Eight Mile Road and Lower Sacramento Road and one on Lathrop Road in Lathrop, along with the I-205 Auxiliary Lane project.  We need new tools for communicating traffic challenges over a much larger area than just San Joaquin County.  We have already spoken with District 10 about a system for managing traffic from Modesto to Sacramento and the Altamont to the foothills.  We can not have construction timed to create delays on three major highways at the same time.  How do we respond at all sites as quickly as possible to incidents?  And how do we communicate this to best assure coverage to all the traveling public.  Caltrans has committed to bringing in a large regional traffic planning tool to handle this and SJCOG staff is engaged in developing a comprehensive communications strategy.   

Secretary Donovan vs. Congressman Cardoza:  
I have identified a link to an op ed piece in the Fresno Bee from Secretary Donovan in response to Congressman Cardoza's relentless challenges to the Secretary on the foreclosure crisis.  I have also identified a link to Congressman Cardoza's website where he has posted the letter he wrote to the President in response to the op ed piece by the Secretary.  This conflict between the two, which we saw clearly in Washington D.C. and which has only escalated over the last few months, has gained national attention.  How HUD responds in actual program changes is the key.  A few indicators will be the response to the Smart Valley Places grant for HUD funding.   

http://www.fresnobee.com/2010/08/10/2036896/shaun-donovan-help-for-the-central.html#storylink=misearch

http://cardoza.house.gov/index.cfm?sectionid=87&parentid=6&sectiontree=6,87&itemid=628

Update from August 11, 2010

Communications Costs: 
Earlier this year we switched our phone service from the County of San Joaquin to Verizon and our internet service as well.  After a few months we are seeing some substantial cost savings.  Our phone service cost went from about $1,650 a month to $883 in June.  Our T3 internet line went from $2,500 a month to $895.  Kudos to Steve Dial and to Calisse Volz for pursuing this option and producing dollar savings for the agency.   

Measure K:
I
n a phone call with Public Works Director Bob Murdoch I had to indicate that we are not able to provide $8 million in Measure K for the Thornton Road widening project.  This answer is consistent with board policy, but it is a wrenching one each time this issue pops up.  This is a project that is ready to go and has an opportunity for saving money in this good bid environment.  So what is the challenge?  The Measure K Early Action Plan consisting of 10 projects is already $30 million in the hole.  To add this project to the list would have added another $8 million to the deficit (though I think that number would have been less with the final bids).  Would the good bid environment result in filling the $30 million plus deficit?  Possibly, but with a number of the projects being two and three years out, it is pretty heroic to assume the good bids will continue that long.  Could we drop a project?  With six of the Early Action Projects in the Stockton area and most of the projects leveraging significant funding from other sources,....not really.   We are going out to reissue on our bonding next year and Steve Dial and I are growing concerned over what we will find in the credit market and how to position ourselves to best protect the program.   

I hate giving this kind of answer.  We are about getting projects done.  For the last twenty years we have been all about finding a way to say "yes".  But how do you put a $190 million project at risk to deliver a $10 million project?  Is it right to dig our financial shortfall any deeper?   How aggressive should we be in assuming cost savings or a turnaround in the sales tax program?  This is not the first time we have had to say "no" to a member agency, and I worry we will have to start saying it more often.  

On September 16 at 7:30 a.m. we will be holding a board workshop to go over the financial challenges as we enter an update to our Strategic Plan for Measure K.  If you are able to make it I encourage your attendance and we can explore these questions as we strategize where we are going with Measure K. 

California Councils of Governments (CalCOG):
CalCOG is the state organization for regional agencies.  The organization has struggled with the question of legislative advocacy.  Recently, CalCOG's position in favor of a state increase in the gas tax came under pressure from several agencies.  Many agencies in southern California opposed the position while most other agencies took a support position.  This kind of split has happened with a little more frequency in the past year.  The four largest regional agencies in the state have put forward a proposal to eliminate legislative advocacy from the organization and to make it a place for information sharing and exchanges.  This would result in a sizable decrease in dues and maybe a change in staffing for the organization.  The Valley COG Directors had a recent discussion where we might suggest eliminating membership in CalCOG altogether and strengthening our combined work program for the Valley regional agencies.  On August 23, the COG Directors in the state will meet to discuss the future of CalCOG.

Valley Regional Policy Conference
The Valley Regional Policy Conference wll be in Modesto on October 6 and 7.  

Valley COG Directors Meeting:
At last week's meeting of the Valley COG Directors it was decided to use the Mintier Harnish contract on Blueprint implementation to explore the question of other institutional arrangements for the Valley regional agencies.  There was already a provision in the contract to address organization and this effort will be incorporated in this.  I will keep the Board updated on this study as directed at the July board meeting.  

Cooperative Agreements:
We deal with a number of issues in our cooperative agreements, but a recent language inclusion by Caltrans is proving a challenge.  Caltrans has added "intercept" language to our most recent cooperative agreement.  This language gives the Department free reign to intercept funding controlled by any state agency going to San Joaquin COG should the state believe SJCOG owes money.  I have refused to sign any agreement with this language.  The Self Help Counties Coalition of transportation sales tax agencies strongly opposes the language and so far no agency is signing on to this.  In 2005 SJCOG fought this language on the I-205 cooperative agreement and then Caltrans Director Will Kempton removed it. Today, Will is director of the Orange County Transportation Authority, a transportation sales tax agency.  This language effects our ability to bond, has no due process, and asserts a state authority that is questionable at best.  It may also be contrary to Proposition 22 which is on the ballot for November.   

New Board Member:
SJCOG welcomes Jeff Laugero to the SJCOG Board.  Councilman Gary Haskin will now be the alternate from Escalon.  Councilman Haskin has been an SJCOG Board member since 2003 and served as Chair from 2005-06.  His service to the region has been above and beyond the call.  Best wishes to him in his future endeavors.

Update from July 9, 2010

SB 375 Draft Targets from ARB Staff:

This website will lead you to the staff recommendation for target setting among the 18 Metropolitan Planning Organizations (MPOs) in the state.  These are draft recommendations and I expect the Air Resources Board (ARB) will do a good deal of soul searching on this over the next few months.  If the comments from the audience at the last ARB meeting are any indication, the pressure will be to increase the GHG Emissions reduction targets.  The ARB wants targets that are "ambitious and achievable".   That may not be a well defined direction, but my impression over the past year and a half has been that it is meant to push regional agencies outside of our comfort zones.  As a result, the data and suggested targets that MPOs have supplied up to this point are respected and appreciated, but thought to be within our comfort zones.  On the other hand, the Executive Directors who participated on the June 22nd panel before the ARB were unanimous in recommending that the ARB not over reach in setting targets.  The entire country is watching, and we want to be able to demonstrate success, and a responsible approach to making SB 375 work for the state, our regions, our local agencies and our citizens.    http://www.arb.ca.gov/cc/sb375/targets/drafttargetrelease.pdf   On July 22nd, at the Governing Board Room for the Valley APCD in Fresno there will be an ARB sponsored public workshop on SB 375 target setting.  The workshop will be webcast.  It begins at 1 and is scheduled to go to 4.  I plan on SJCOG making a presentation.  

Meetings with the Attorney General's Office:  
SJCOG staff have met with representatives of the Attorney General's office twice to discuss the environmental document for our Regional Transportation Plan Update.  It appears that the AG's office is interested in how we are handling air quality issues and greenhouse gas emission issues in our RTP.  The discussions have gone reasonably well.  There have been several changes to our EIR as a result of the discussions.  We have modified a number of the suggestions from the AG's office, accepted several, and passed on several others.  If you would like a more complete discussion please give me a call.

Hammer/99 Interchange Project:
Some good and bad news.  It appears we will have some Measure K right of way funding unexpended on this project.  The amount will be something on the order of $900,000 plus.  To go with this we have a request from the City of Stockton for additional funding to cover expenses incurred on the widening and interchange project.  This involves close out costs, additional staffing costs, and costs due to a longer constructions period than originally envisioned.  At the conclusion of this we may have $250,000 to 300,000 of that right of way savings left.

I-5 Baseline Agreement Signed:  
I will sign today the Baseline Agreement with the California Transportation Commission and the Department of Transportation for funding the I-5 HOV lane widening and pavement improvement project.   

SJRTD $5.2 million grant for Hammer Lane BRT:  
Congratulations to the San Joaquin Regional Transit District for the $5.2 Million awarded to them by the federal governments.  On hand to make the announcement were Therese McMillan, Deputy Director of the Federal Transit Administration, Congressman Dennis Cardoza, and Congressman Jerry McNerney.  The Transit District's efforts at Bus Rapid Transit (BRT) have been highly successful and we are hopeful for the future of BRT.  

SJCOG Intern:
 
Maly Boonsalat has been working with us for the past month as a summer intern.  Maly is an engineering student at UOP and a Stockton native having attended Stagg High School.  Maly (pronounced like Molly) is an exceptional young woman having served as class President in each of her four years at Stagg High School.  

SJCOG Budget Approved for 2010-11:  
Our JPA requires that a majority of jurisdictions representing 55% of the population approve our budget for it to become effective.  That was achieved with Lathrop's approval earlier this month.  You might ask what happens if this is not achieved.  Under those circumstances, last year's budget remains in force.  Oddly enough that would have meant a higher budget than anticipated revenue.  Glad we passed the budget.  

Regional Policy Council of the San Joaquin Valley:  
Mayor Johnston and Councilmember DeBrum serve as our representatives with Mayor Winn as the alternate and a regular participant.  The Council elected new officers with Mayor Spriggs of Merced to serve as Chair and Supervisor Ishida of Tulare to serve as Vice-Chair.  Supervisor Rubio of Kern has served as the only chair of the group but is leaving his seat to run for the State Senate.  If you have not heard about his most recent challenge it is worth reading about.  The Council took action this month to resolve as issue over eligibility for the Sustainability grant application being put together by a compact of Valley cities and directed staff to begin a study of the implications of a restructuring of Metropolitan Planning Organizations (MPOs)in the San Joaquin Valley.  The Council was responding to concerns that the state, the federal government or a group of MPOs might find it advantageous to form one agency in the Valley or a combination of agencies.  There did not appear much excitement among the Policy Council members for consolidation of MPOs (though some members were interested), but there was clear concern that the implications be fully understood.  

Update from May 28, 2010

I-5 Funding Approval:
We are starting the steps to administratively secure the funding. This requires a baseline agreement be signed between the SJCOG Director, Caltrans Director, and the Director of the California Transportation Commission. Kevin Sheridan of staff has started the work and we will have it to you for action in June.

Route 99 Bond Funding:
The Valley COG directors and the two Caltrans Directors for the Valley are working on a recommendation for what to fund on Highway 99 with an estimated $156 million in reprogramming. In San Joaquin County we have nothing that could be delivered by the required time frame of December 2012. Five of the six COG directors in attendance at our Wednesday meeting were in agreement that tier 2 (that is highway widening projects) should be considered in this most likely first reprogramming exercise. Stanislaus did not agree as they have two interchange projects they are pitching. The group appears to be in agreement on recommending the Goshen section of 99 in Tulare County be widened from 4 to 6 lanes. It also appears pretty sure that one of the two six to eight lane widening segments in the Bakersfield area will be approved. The remaining challenge is how to handle a short segment of four lane to six lane widening in Merced. It is expensive because the widening requires a reconstruction of the Buhach interchange. While the widening is necessary the cost of the project is fairly high for only a short improvement in the highway. Also there is a local benefit from the interchange reconstruction with very little local contribution. I have taken the position that interchanges without mainline widening should not be considered. (In contrast, Caltrans has recommended the Kiernan/99 interchange in Stanislaus.) Also, I have asked that the bar be set high for eight lane widening before six lane widening. Merced and District 10 are working to find a way to address remaining concerns for this widening project. The paucity of local funding (Merced has no sales tax measure) for the component of the project that is an interchange reconstruction is of some concern to me.

French Camp/I-5 Interchange:
We have set this project up in our STIP to give the Board the option of executing an AB 3090 agreement with the state to get this project underway a year early. Having that option is key to avoiding having to pay a million dollars extra when our metric design exemption runs out June 30, 2011. This project was designed in metrics but now English measures are the standard again. This project has been given two exemptions to remain metric, but that is likely it. This may end up for naught, if the City of Stockton does not act on a right of way agreement with Caltrans for $150 K by the end of June. The City has put taking this off to the council several times now with the budget challenges facing the council. Nonetheless, if the Council does not act, the California Transportation Commission hearing on the subject in September will have to be delayed, and we run up against the extension deadline when you play out the final schedule for completing right of way and then advertising and awarding the job. I have faith that city staff will be able to avoid this problem and that Caltrans will move through the process expeditiously as well.

NARC Conference in Cleveland:
The National Association of Regional Councils is meeting in Cleveland the week of June 14th. Mayor Sayles is the appointed voting boardmember from SJCOG and Steve Dial and I both sit on committees for the organization. Steve and I therefore will not be at the Executive Committee meeting on June 18. Dana Cowell will handle the meeting.

Route 12 Corridor Advisory Committee:
Supervisor Ken Vogel and Councilmember Larry Hansen were appointed to this body a year ago and they will finally get to attend the inaugural meeting in Lodi on June 3 at 10 a.m. The committee will be composed of Solano and San Joaquin and hopefully Sacramento elected officials who will advise Caltrans and the regional agencies as well as oversee a joint planning effort to look at longer range solutions to Route 12. They will also advocate for Route 12 improvements in the short and mid term.

Election of Officers Next Month:
The SJCOG Board adopted a policy seven years ago that rotates the membership of the Executive Committee and the Chair and Vice Chair among member jurisdictions. Staff will be preparing a recommendation consistent with that policy.

Update from May 18, 2010

I-5
I will be in Sacramento tomorrow for the vote on the Prop. 1 B CMIA bond savings. The vote will take place about 4:30 p.m. I am expecting the CTC to accept the staff recommendations, but I have also enlisted the help of area legislators to send letters or make phone calls in support. The Governor has also weighed in strongly in support of this project.

Greenhouse Gas Emissions Target Setting by Air Resources Board:
As a part of SB 375 and AB 32, the Air Resources Board is to set targets for regions on greenhouse gas emission reductions. ARB has determined that they will set a target for the eighteen metropolitan planning organizations in the state. Recognizing that they don't have the tools nor the experience to do this, ARB has reached out to MPOs (particularly the "Big Four" (Southern California Association of Governments, Metropolitan Transportation Commission (Bay Area), San Diego Association of Governments, and the Sacramento Area Council of Governments)) for technical assistance. In the Valley, Fresno COG has done the most extensive technical effort with San Joaquin and Kern almost providing as much. Kings has also done an extensive job. Madera and Tulare have also done some work, but Merced and Stanislaus have not. ARB is responsible for determining what are ambitious and achievable targets for each region. We are providing technical assistance only. At the Board meeting we will give you a run down on what the assistance is demonstrating. As a quick preview, Sacramento is showing ranges of 7 to 16% reductions under various scenarios. The other Big Four are showing 4 to 10%. In the Valley, Fresno is showing about 4 to 5%, we are showing about 2 to 3%, Kings is showing 9 to 14% and Kern is showing 0 to an actual increase of 9%. How ARB is going to synthesize this is uncertain. Next Tuesday the Regional Targets Advisory Committee is meeting in Sacramento to review this and provide some guidance to ARB. I am one of the 21 members of that Committee.

Proud Parents at SJCOG:
We are all proud parents here but a couple of parents have special things to brag about. Steve Dial's son Chris won the San Joaquin Athletic Association Golf Tournament. Chris also qualified for the Sac-Joaquin Masters. Chris is a senior and will be attending Whittier College next year where he will study hard and play golf for the Fighting Poets. Dianne Barth's son Blake Fiest, as a freshman, won Lincoln High School Lacrosse Team's MVP award. It was the first year Lincoln fielded a Lacrosse team and they finished third in conference.

ACE Operating Budget:
The San Joaquin Regional Rail Commission got a look at next year's operating budget which shows a decrease of 3% for next year. SJRRC has done a very good job of proactively making budget cuts but Executive Director Mortensen indicated that any more cuts are going to go beyond just efficiency and hurt effectiveness..

HUD and One Voice:
Attached is a notice from HUD announcing the reallocation of Neighborhood Stabilization Program funds and an increase in the amount of funding for the program to deal with the hardest hit areas. While not initially a priority in our One Voice effort this became one of the key discussion items back there lead in large part by Stockton Vice Mayor Kathy Miller and Councilmember Dale Fritchen. Our D.C. consultant and Congressman Cardoza have both indicated that our efforts in D.C. and particularly our meeting with Chairman Frank were instrumental in effecting this policy change from the administration. Congratulations One Voice!

Route 99 Bond Funding Reprogramming:
Caltrans is leading the Valley RTPAs in a meeting on May 26 to reprogram Route 99 funds in light of the lower cost estimates for projects. I am seeking and have been supported by my fellow COG directors some policy changes to protect SJCOG's reprogrammed projects and funds. Caltrans 10 District Director Mr. Chittenden has been supportive as well. The California Transportation Commission will have to weigh in. Districts 10 and 6 are proposing four new projects be added to the mix. One is in Tulare County, a widening from 4 to 6 lanes that is well under way in terms of delivery. A second is the Route 99/219 interchange in Stanislaus County. The third and fourth are widenings of Highway 99 in Kern County from 6 to 8 lanes. Mr. Chittenden and my fellow Valley Directors have engaged in a discussion about the disappointment that we have only one 4 to 6 lane project that can be delivered by the end of 2012. While SJ County has a section from Lodi to Sacramento that falls into this category, it is the segments in Merced County that have been recognized as the highest priority but that are now languishing because there is no funding to do the necessary project development work.

Railroad Crossing Safety Program:
The Technical Advisory Committee had an involved discussion on this topic, and recommended taking our time on the development of a policy. This is an important issue that we will be taking through our committees. It involves whether we should lower the dollar amount for each project on the list; should we be building in a cost savings sharing policy for the Measure K allocation; should we be eliminating the reserve dollars in the program......etc.

Update from April 15, 2010:

Off to DC:

Nicole Gorham, Steve Dial, Dianne Barth and I will be out of the office next Monday through Thursday on our annual One Voice trip to Washington, D.C.  If you have any questions during this time we will all be tracking our email and will have our cell phones on.  If you need something that absolutely requires a personal touch you can contact Rebecca Montes or Mike Swearingen in our office.   

I-205 Auxiliary Lanes:
Good news.  The State of California sold almost $4 billion in bonds and about a fifth of that went to transportation.  As a result the California Transportation Commission voted an appropriation to the I-205 aux. lane project in bond funding.  This means we will not have to do a letter of no prejudice with the State of California.  As a reminder, a letter of no prejudice means we would loan the state their share of the project cost with a promise to pay us back but on an uncertain and undefined schedule.  This means we will have no carrying cost for the state's share of the construction costs.  The project went out to bid yesterday and bids will close in six weeks time.  The bid environment remains good.  

SB 375 Target Setting:

The Air Resources Board (ARB) is responsible for setting greenhouse gas emission targets for passenger vehicles and light trucks.  This makes up about 28% of all greenhouse gas emissions in California.  The ARB has asked the big 4 of the Metropolitan Planning Organizations (MPOs) to assist in this task and any other regional agency.  A few of us in the Valley are providing technical assistance in an effort to influence the process as much as possible.  In addition I have been invited to participate with the "big 4" directors in a weekly conference call on this issue.   

Fresno, Kern, Madera, Kings, Tulare and San Joaquin are providing the technical work for ARB to assist in establishing targets.  Preliminarily it appears our targets should be lower than the big four.  In some very, very preliminary technical work it appears that the target for the Sacramento region should be in the 12 to 16 percent reduction range.  San Diego, the Bay Area, and Southern California would be in the 7 to 10 percent range.  The Valley target would fall in the range of 1 to 7 percent.  I am thinking our target will be in the 3 to 5 percent reduction range when all is said and done.  There will be another 25% reduction on top of that which will be applied to every region based upon assumptions about mechanical and engineering changes that will reduce vehicle GHG emissions over time.  Our smaller target will be based on policies, urban density, alternative transportation options etc.   

The Directors of the COGs in Merced, Stanislaus and San Joaquin are looking at sharing technical tools and expertise to reduce the cost of the SB 375 exercises.   

ARRA Projects:
One of the requirements of ARRA funding is that agencies invoice the feds in a timely manner.  Several local agencies have not done that and we are working with Caltrans to notify these jurisdictions to get their invoices in quickly.  Failure to meet the federal deadline will mean that the local agency will be responsible for all the incurred costs.    

Dana Update:
Thank you for your concern for Dana and his family.  He has gone through his second round of chemotherapy this week.  How he feels is a daily and uncertain thing, but yesterday he was feeling pretty good and had even gained back a few pounds.  We do not know when he will be able to return to doing work.  Initially it will be work from home as he is supposed to avoid large groups of people while on his treatment schedule.  

Measure K Cash Flow:
As we continue to have poor revenue statements (though they are not as bad as they had been), we are growing more concerned about how to meet our cash flow needs.  At the moment we are going to be able to meet our requirements.  Still, we will be challenged to engage in loans or letters of no prejudice.  The good news has been that project bid costs have been 25 to 40% below estimates.  So, in order to take advantage of this bid environment and improve our cash flow we need to get as many projects out the door as quickly as possible.  However that means we may need to do more loans or letters of no prejudice.   I think you can see the challenge.  The attitude of your staff has always been to push project development and be aggressive about project delivery.  We will maintain that attitude with a very close and watchful eye on our cash flow and on the bidding environment.  

Route 99 Manteca:

One way to push project delivery is to carve out of this Prop. 1 B project a phase of delivery for just the freeway widening.  There is no right of way issues for this and thus we could go out to bid on this phase of the project potentially in 2011, taking advantage of the bid environment as best we can.  We would then bid separately the interchange projects at French Camp and Lathrop Road which have extensive right of way acquisitions and are on a more protracted schedule.  Ross Chittenden and I have not heard the final recommendations from our staff on this, but once we do we will put our heads together and see if we can make a recommendation for you and the CTC. 

Crosstown Freeway Extension Project:
The firm of BKF has done an excellent job on our environmental document.  We are now ready to move into the design phase (PS & E).  We have sent out an RFQ to solicit firms to bid on the job. 

Update from March 23, 2010

Next week I am on vacation:

I will be taking the family to Washington D.C. for vacation.  The trip is to introduce the kids to our nation's capital.   

Gas Tax Swap Bill Approved by Governor:
After threatening to veto the bill without specific changes the legislature last night passed a gas tax swap bill that the Governor could approve.   The bill apparently still contains the $400 million one time payment for public transit, which is good news.  The bad news is that it guts public transit's "guarantee" of state funding.  That guarantee has not been of much value as public transit has taken over a $3 billion hit over the past three years in the state's effort to shore up the general fund.  The bill does not immunize local road and street gas tax funding from future raids, but it does tend to provide some more insulation.  As with any budget bill the devil is in the details.  The following is an analysis provided by DeAnn Baker of CSAC.  

The following is a quick recap of ABx8 6 and ABx8 9 and specific details on SB 70:
ABx8 6:
~ Eliminates the sales tax on gasoline and increases the excise tax on gasoline by 17.3 cents.
~ Beginning in 2011-12, increases the sales tax on diesel fuel by 1.75 percent (5% to 6.75%) and decreases the excise tax on diesel by 4.4 cents in 2011-12 (from 18 to 13.6 cents). The Board of Equalization will adjust this tax annually thereafter to maintain revenue neutrality. This change holds local streets and roads harmless under the new law as cities and counties will receive as much new gas tax as would have been otherwise received by Prop 42.

ABx8 9:
~ Appropriates $400 million to transit operators to help fund operations for the remainder of 2009-10 and 2010-11.
~ Provides that 75 percent of revenue from the diesel sales tax be directed to transit operators beginning in 2011-12 (roughly $350 million per year). The amount available for intercity rail and other state purposes will grow, via receipt of 25 percent of the state sales tax on gas and most of the non-Article XIX transportation funds (about $72 million per year).
~ Protects the education funding guarantee (Prop 98).
~ Appropriates approximately $700 million of revenue from the increased gas excise tax to go to bond debt service on an annual basis. The remaining funds will be split as follows: 12% SHOPP, 44% STIP, 44% Local Streets and Roads.

Sales Tax on Diesel Exemption and Impacts of AB 186:

Under current law, certain fuel consumers are exempt from excise taxes, others pay a reduced excise rate, and others are exempt from sales tax. Included are the following three groups: users of “dyed diesel fuel”, school buses and transit buses, and users of aviation gasoline. This bill would revise the tax provisions, so that the special fuel users would not see any negative tax impact from the gas tax swap. For example, the users of dyed diesel fuel would be exempt from the increase in the sales tax on diesel fuel, since they would not receive the compensating benefit of a reduction in the excise tax (because they are already exempt from the excise tax). With the amendments in this bill, the tax changes are not only revenue-neutral overall, but are also revenue neutral for each of the special industry groups. Had dyed diesel users been subject to the sales tax increase, their net tax obligation would have increased about $30 million. For more information on the transportation tax swap package visit the CSAC blog at: http://www.csac.counties.org/blogs/    

San Joaquin Valley Coordinated State Transportation Improvement Program (STIP) Proposal:
On behalf of the 8 regional agencies in the San Joaquin Valley I gave the presentation to a sub group of the California Transportation Commission yesterday.  Six of the eight regional agencies were in attendance yesterday.  Another subgroup of the CTC will hear from the remaining two regional agencies on Thursday in Los Angeles.  So far the proposal has been well received.  The CTC must move 30% of STIP programming out of the next four years and into the following two years.  By working together we brought forward a proposal that moves 32% of the programming out and assures that projects that can be kept on schedule will not be delayed.  Fresno and Kern, which have projects that are slipping on their schedule effectively created the programming that allowed projects in San Joaquin, Tulare, and Merced to remain on schedule.  Our proposal has a few projects that are proposed to be advanced which may run into a challenge with the CTC, but so far all signs have been good.  

Tree Planting Project on I-205:

Caltrans put out to bid a project on I-205 and got back some very good news.  The bid environment is still very competitive.  The low bid was 42% under the engineer's estimate.   

Regional Policy Council Meeting On Friday:
Mayor Johnston and Mayor Winn are scheduled to attend this workshop in Fresno that will explore the role of the Policy Council, the coordination between regional agencies, and the institutional and policy relationships with the Air District and the Partnership for the San Joaquin Valley.  This will be a very substantive discussion about what works, what doesn't work and what is the best way for local agencies and regional agencies to work together to advance policy questions relevant to all.

Update from March 5, 2010

CTC Meeting:

Good California Transportation Commission Meeting this month. Staff had done some good spade work with Caltrans staff and working with Caltrans management we came out with some good results from the meeting. South Stockton Route 99 allocations for right of way were approved as submitted. This is important because to stay on schedule we need Caltrans to have the staff resources to go out and buy what is going to be the largest set of land acquisitions in San Joaquin County since the Crosstown Freeway. The I-205 construction management allocation was approved and we should be moving to award of a construction contract on the auxiliary lane project by the end of the year. The Commission approved our Letter of No Prejudice for the I-205 project but we are hoping there will be bond or ARRA dollars available to avoid once again taxing our Measure K resources. Lastly the Airport Way project construction was approved using Transportation Enhancement funding.

Budget Proposal Heading for Approval Today:
A complex swap of transportation funding was approved today in the state legislature and is expected to be signed by the Governor today. The swap is designed to free up state general fund capacity by eliminating the sales tax on gasoline at the retail pump. The lost revenue will be offset by increasing the gasoline tax to create a revenue neutral impact. There will also be an indexing of the gas tax to assure that Proposition 42 requirements are met in the future. There will be a shift of bond repayment from the General fund to the gasoline tax but the initial impact on highways and roads and streets will be neutral. The big hit is once again on public transit. While there has been an effort to save $400 million for public transit (the word "restore" has been used), this will constitute about a half billion reduction in revenue available for operations to the state's transit programs.

April 29th will be the April COG Board Meeting Date:
This is one week later than normal but is scheduled so as to avoid a conflict with the One Voice trip.

Update from February 17, 2010

TIGER Grant Announcement:

Great news for the region.  The Port of Stockton's joint application with the Ports of Sacramento and Oakland was awarded $30 million in this highly competitive application process.  The grant will make improvements at the Port of Stockton that will allow for the start up of a short sea shipping operation between the Port of Oakland and the Stockton Port.  Please congratulate the Port Commissioners and the Port Director for a job very well done.  http://www.dot.gov/documents/finaltigergrantinfo.pdf  See page 48.   It is hard to overstate how competitive this process was.  Approximately 1% of all funding requests were met.   

Democrats Budget "Gas Tax Swap":
The Budget Committee of the Senate passed a gas tax swap proposal sponsored by the Democrats.  Not surprisingly it had only Democratic votes.  The swap proposal is improved over where it was several weeks ago but is still devastating to public transit.  And public transit has been hit very hard over the last three budgets.  Effectively the swap holds the State Transportation Improvement Program and Local Road and Street funding harmless.  Even allows for indexing of the gas tax to slowly increase funding.  I am no expert on the impact to public transit but it appears to amount to more than $550 million which is almost solely operating support dollars.  The proposal has a provision allowing MPO boards (that is the SJCOG Board) to impose a "sinclair paint fee" on gasoline.  The language for this has not been written.  The bill appears to allow SJCOG to impose the fee without a vote, but all bets are that this will be modified to require a public vote. 

Update from February 11, 2010

Seems the COG Board May Be Called Upon to Solve the State's Transit Funding Crisis:
 
The Democratic proposal in the Senate to create a tax swap that increases general fund revenue also contains a provision to allow MPOs (SJCOG) to impose a "transit" fee.  This from CalCOG, "One Democratic proposal is that MPOs within SB 375 would be authorized to impose a new environmental mitigation fee on gasoline in an MPO's region, and that fee would be used for transit operations. The fee would require a majority vote of the MPO board. They would also have the option of putting it on the ballot for a vote by the people. The fee would be paid for at the pump."  

Boardroom in Use:  
UOP's forum on the economy and the safety net drew 140 people to SJCOG yesterday.  The panel did an excellent job and the University's interest in becoming more involved as a part of the solution in addressing the region's problems was apparent.   Friday at 7:30 the Sierra Club and the Spanos Companies are sponsoring the first in a series of Sustainability workshops.  The event is cosponsored by the City of Stockton and the Council of Governments.  The top quality speakers and the collaboration between the Sierra Club and the Spanos Companies has produces a good deal of interest in this.  If you have an interest please feel free to attend.  

Route 99/Hammer Acosta Settlement:  
Caltrans, on behalf of the COG Board appealed a local judge's ruling regarding compensation for an acquisition related to this project.  The appeal was unsuccessful.  No action by the COG Board is required since the Board had already agreed to the compensation amount.  A successful appeal would likely have substantially lowered the compensation and that would have required board action.  

Route 4 Crosstown Extension and Route 12/88 Public Meetings:  
On Thursday February 18 from 5:00 to 9:00 p.m. there will be a public meeting on the Route 4 Crosstown Extension.  The draft environmental document is in public circulation.  So far Kevin Sheridan, Dana Cowell and Scott Guidi of Caltrans have skillfully dealt with the public concerns over the project.   This public meeting will be held at Washington School right there in the Boggs Tract neighborhood.   On Tuesday February 23 from 5:30 to 8:00 p.m. there will be a public meeting on the Route 12/88 Project.  This is a part of the alternatives defining portion of the environmental process.  For the communities of Lockeford and Clements the defining of acceptable alternatives is crucial.  Once again, Kevin Sheridan, Dana Cowell, and Caltrans as well as our consultant team have been doing outreach in the community.  

Route 239:
Contra Costa County received a federal allocation in 2005 for a corridor study connecting Contra Costa, Alameda and San Joaquin Counties.  It has taken a while to get the effort underway, but now Contra Costa has prepared a draft RFP that we as well as other interested agencies are reviewing.  Mountain House, San Joaquin County Public Works and the City of Tracy have been involved in a couple of meetings on the topic.  It was also suggested that Contra Costa reach out to the Port of Stockton.  

Snow in D.C.:  
Fresno COG canceled their annual trip to D.C. due to the snow.  I am hoping that they will have cleared away all the snow in D.C. by April 19th.

Update from February 3, 2010

National Association of Regional Councils:

Attached is an e-regions newsletter we get monthly and occasionally more often from our national association.  Steve Dial and I will be back at the national policy conference from February 21 through the 23rd.   

Community Outreach:
Our Boardroom will be the site of the University of Pacific's Beyond Our Gates: Partnering to Rebuild the Area's Economy forum.  More on this can be found HERE.  This is part of President Eibeck's efforts to build bridges between the community and the University.  

Sustainability Forum:
Also, you received an email blast on the Sustainability Forum to be held here at 7:30 a.m. on Feb. 12th sponsored by the Sierra Club, the Spanos Companies, the City of Stockton and the San Joaquin Council of Governments.  There is planned to be five of these forums over the next four months.   

I-5 Update:
The Department of Transportation has submitted to the California Transportation Commission their priority list for using project cost savings from Proposition 1B CMIA projects.  It is uncertain how much in cost savings there are in northern California but the estimate today is $180 million and that will likely grow.  The Department of Transportation and SJCOG submitted I-5 widening in North Stockton and requested $42 million.  The priority list has this project as number 4 in the Tier 1 list of projects.  I have attached Randy Iwasaki's letter to the Commission and the priority list.  This is very good news, but not a done deal.  The Commission will still need to make the decisions on this and we will be depending upon the Commission to move cost savings generated in the Bay Area to our region.  While I feel good about our chances of being awarded funding, there is still outreach left to do to assure the Commissioners that our project is ready and can happen within the year.   

Evaluation:
I want to thank the Board again for the kind words and acknowledgments of the good work of this agency and your staff.  It is an honor and a privilege to work for you and to work with this outstanding staff.

Update from January 28, 2010

Consent Calendar for January Board Meeting:
The consent calendar is chock full of stuff.  Several of the items I would normally have placed on the agenda for discussion but with the Blueprint discussion and the change in health insurance taking up a good deal of discussion time I have loaded up the consent calendar.  I would like to be sure that you are aware of these items:  
8. C. Proposition 1 B Public Transportation Modernization, Improvement, and Service Enhancement Account.  This programs $23.6 million in anticipated bond funding over this fiscal year and the follow seven fiscal years.  You may note that a few of the program recommendations also assume approval of item 8.J. and vice versa.  There was some initial concern with the recommendations but these were resolved and the recommendation to the board was unanimous at the Technical Advisory Committee.  
8. E. The I-205 Letter of No Prejudice.  We are hoping that we do not have to go this route but this authorizes SJCOG to sign with the California Transportation Commission a Letter of No Prejudice meaning that we would use Measure K funding to cover the State's share of the I-205 auxiliary lane project (Prop. 1 B share) and then reimbursed at a future date.  
8. G.  Proposition 1B Corridor Mobility Improvement Account Project Savings.  We are recommending that the Board support and authorize an effort to secure cost savings from CMIA projects in northern California for the widening of I-5 in north Stockton.  This is a rather involved proposal that has been supported by the Project Delivery Committee and the Executive Committee.  
8. J. Congestion Mitigation and Air Quality Program funding recommendations.  This recommends 18 projects over the next four fiscal years to receive $25 million in funding.    I would ask that you pay particular attention to these items and if you have any questions please contact me or the identified staff member.  When you add up items C. and J. it is almost $49 million in programming.  Also the potential commitments from E. and G. could result in an up front commitment of $88 million of Measure K in order to secure the I-205 auxiliary lane project and the widening of I-5 with a substantial pavement reconstruction.  These would not normally have been consent calendar items and I want to assure that you have read and understand the recommendations.

High Speed Rail:  
http://usdotblog.typepad.com/a/
6a00e551eea4f588340128771ffb23970c-pi  
This link gives you a map of the High Speed Rail grant awards from the Department of Transportation.  I am not sure how much of this goes to the San Joaquin Valley section.   

Health Benefits:  
Assuming the Board approves the plan for benefit coverage for the staff the transition from the County to an independent COG coverage should be effective March 1.   This assumes no unforeseen glitch.

Update from December 24, 2009

Governor Gas Tax Proposal:
The press has indicated that the Governor will be proposing a "Gas tax swap" as part of a larger budget "fix". The proposal is not well enough documented in the press to get the full gist of its impact but I have attached a report that gives you some indication of what the swap is. The effect is clearly devastating to public transit. Public transit has been the hardest hit of all transportation programs over the past two years and this proposal, no matter how you cut it, puts a fork in state budget support for public transit. This does not necessarily mean the end of HUTA but it is hard to imagine that the powers that be in Sacramento won't make another run at HUTA this year. Most transportation programs (minus public transit operations) have been only incrementally effected by the budget crisis but this proposal marks an end to that.

This from the LA Times: "The $1 billion in mass transit and other transportation money the governor will propose raiding is supposed to be off limits to the state for plugging budget gaps. Court rulings have declared previous attempts to get at it illegal." The administration will seek to get around those rulings through a complex gas tax swap. As part of the scheme, an existing sales tax on gasoline would be eliminated and, at the same time, a new per-gallon excise tax would be imposed. The price at the pump would drop about 5 cents per gallon The shift would gut a voter-approved measure, Proposition 42, that protects how current gas taxes are spent. Public transit -- buses, rail and other forms of mass transportation -- now receives 20% of all gas sales tax. After the tax swap, that requirement would disappear. The tax swap could also cost schools -- as it would result in the share of tax revenues they are entitled to under state law dropping by more than $800 million. Jim Earp, executive director of California Alliance for Jobs, a group that advocates for public works spending -- including on transportation -- derided the plan as a scheme "to rob Peter to pay Paul." "We're not solving any problems. We're just moving money around from one cup to another," Earp said.

I-5:
Caltrans District 10 Director Ross Chittenden has been busy advocating the funding of a large SHOPP project on I-5 in Stockton from Charter Way/MLK north to March Lane. He has expanded his efforts to coincide with the limits of our I-5 widening proposal (Country Club to Hammer Lane). There are economies of scale by working the SHOPP and widening projects together. Ross and I along with Caltrans and SJCOG staff will be meeting next week and the following week here and in Sacramento to try and put a winning proposal together. I have meetings with the CTC Executive Director, with CTC staff, with Caltrans HQ staff, with Commissioners Earp and Assemi and with Caltrans Director Iwasaki for the first week in January to see if we can make something happen. I want to single out Ross Chittenden for making a mission out of I-5 rehab and widening. He and I are making our staff (Scott Guidi of District 10 and Kevin Sheridan of SJCOG) go through numerous permutations with project scopes to come up with a winning proposal. Our consultant Keith Meyer is punching up new estimates as I write this. Next week Wil Ridder, Kevin Sheridan, Dana Cowell, Steve Dial and I will be completing our package for CTC and Caltrans. There is more hope now than at any time for this improvement.

Prop. 1 B CMIA Cost Savings:
Related to the I-5 project is an effort to capture cost savings from Proposition 1 B projects in northern California. The California Transportation Commission has a cost savings policy that allows us to pitch to them taking cost savings from projects (I-205 aux. lanes for instance) and putting those savings on related projects within the region. We must sell this to the CTC though, otherwise they will collect all cost savings and look to program new projects. If they program new projects we will be looking to promote the I-5 project which is the only project in our region that meets the CTC criteria.

Holiday Hours:
We are open Dec. 28 through Dec. 31 and will be closed Christmas and New Years Day. I am closing the office a little early today and on New Year's Eve.

Other:
Just a few other things that have been happening. Kevin Sheridan and I met with a representative of Delta College over the Manteca 99 widening project which involves a small sliver take from their property. Dana, Tanisha, Aaron and I met with Regional Transit District staff to go over three projects they are seeking our support in programming from bond funding and a new round of federal CMAQ funding. These are the Regional Maintenance Facility at Filbert and Myrtle, the third phase of Bus Rapid Transit on Hammer Lane in Stockton, and the further replacement of diesel buses with hybrid vehicles. Monday was a meeting of the Central Valley Regional Rail Group which brings elected and appointed officials together from Caltrans, High Speed Rail, ACE, Sacramento, San Joaquin, Stanislaus and Merced Counties. Great effort being spearheaded by the San Joaquin Regional Rail Commission. I also met with Caltrans staff on a feasibility study for a new Amtrak facility in Stockton and am looking to meet with City of Lodi officials over improvements at Harney/Route 99, among other activities.

Update from December 16, 2009
I-5:

Ross Chittenden and his staff at Caltrans have been working overtime to get I-5 from Charter Way to March Lane programmed for state maintenance funding.  One of the few good stories out there is the great bid environment public agencies are experiencing with this economic slowdown.  Bids are coming in 15 to 40% under the engineer's estimate and Caltrans and the state highway system is a big beneficiary.  In particular, it looks like I-5 will be a beneficiary of this.  We are working with Caltrans to see how we can link the widening of I-5 with these maintenance improvements.

A Valleywide State Transportation Improvement Program:
While not a done deal, Dana Cowell and Wil Ridder of SJCOG staff have lead an initiative to link the eight San Joaquin Valley regional agencies into one STIP submittal to the California Transportation Commission (CTC).  The CTC has directed all regional agencies in the state to move 30% of the funding in the first three years of the STIP to the last two years of the STIP.  This impacts each agency differently.  If we join together we can minimize the negative impacts.  For instance, Kern, and Fresno have some capacity to move projects out, but Merced has no ability.  Kern wants a project moved up a year which could never happen if they go in by themselves.   Wil has masterfully put together a proposal.  It is not a sure sell to the state.  We take a lot of their tough decisions away but we also limit some of their flexibility to use programming capacity in other regions of the state.  We are tapping our Sacramento advocate Mark Watts, to assist in reaching out to Caltrans and the CTC.  District 10s Ross Chittenden and Fresno's District 6 have both been very supportive.

Lockeford Bypass:
We anticipate holding a public meeting in Lockeford to show the public the options that are being considered in the environmental process.  It is expected that the public will weigh in and maybe some of the options will be better defined or even eliminated.  This is a challenging project with no clear winning option.  One of the options impacts Lockeford Elementary School.  SJCOG staff had an excellent meeting with Lodi Unified School District staff.  LUSD has secured funding for building on the school site in 2010 and it would be unreasonable to expect them to wait until the end of the environmental process and to wait until we are certain of funding before moving ahead with their plans.  We are exploring other options around this alternative.  Art Hand and his staff at LUSD have been very helpful.  

Route 4 Crosstown Freeway Western Extension:
A public hearing has been scheduled for January 26 from 5 to 9 p.m. at Washington Elementary School to discuss this project with the public.  We are actually a little ahead of schedule.  Our consultant team of BKF has been doing a good job but I want to single out Kevin Sheridan of our staff and Scott Guidi of Caltrans District 10 staff for their excellent work in negotiating away or minimizing project impacts on businesses and property owners.  These two men have developed excellent teamwork and it has shown through clearly on this project.  

The Transition:
Transition is how we are referring to the separation of SJCOG from the County payroll system.  All pieces must be in place for Monday morning December 21.  Beginning in January we will have moved our payroll function to a private vendor.  The health insurance changes will be on the board's January board agenda.  The County of San Joaquin has been asked to take on some extra work to make this happen and they have agreed to do so.  We are grateful.   

Another Save Proposition 42 Measure in November 2010:
Jim Earp of the Alliance for Jobs addressed a group of us COG directors last week saying there will definitely be a ballot measure to protect transportation funding next year.  This measure will eliminate present loopholes used by the legislature to redirect transportation funding and more to the point will eliminate the ability of the legislature to raid HUTA.  Interestingly the ballot measure protects funding in this budget year, but does not mean that the legislature will not make a raid on HUTA prior to the November election.  Jim Earp warned everyone that this measure could be an expensive one as several public employee unions want the loopholes to remain.  

National Association of Regional Councils Meeting February 21 thru 23:
This is an annual conference that covers the efforts of our national association to represent regional agencies when it comes to federal legislation and national initiatives.  Mayor Sayles and Mayor Ives have attended this conference in the past.  Steve Dial and myself are officers in the organization and will be attending this year but we have room for two elected officials.  This is an excellent opportunity to learn about other regional agencies and even to take the opportunity to reach out to administration and legislative officials in D.C.  If you are interested please let me know.  You can find more information on the conference here.

High Speed Rail:
We met with the Altamont Working Group as a follow up to the scoping meeting held last month here at SJCOG.  Routing for the Altamont will be a large issue to narrow for the scope of work for the consultants.  We will be meeting again January 11th.  Meanwhile the Merced to Sacramento segment will be holding a scoping meeting for the EIR for this segment in Stockton likely the 20th or 21st of January though this is not finalized. 

Bond Funding:
While it may appear unreasonable.....the projects programmed to use bond funding must remain on their existing schedules even though there is great uncertainty if bonds will be issued in a timely enough fashion to assure their on time delivery.  In fact it appears unlikely that bond funding will be available as originally anticipated.  We continue to pursue project delivery as if the schedule will be met.   With this news it may appear even more odd that the CTC has adopted policies that may take bond project cost savings and use them to program new projects.  We are preparing to pursue the French Camp/I-5 or I-5 widening as the winds of state funding waft us in whatever direction.

 

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