the first contemporary high-speed train working in the United States

Cover PageTable Of ContentsTopicPage #Summary —————————————————————————————- 1Background ————————————————————————————- 2Finance —————————————————————————————— 4Stations —————————————————————————————— 6Land Acquisition ——————————————————————————- 7Advantages ————————————————————————————– 8Disadvantages ———————————————————————————- 9Public Opinion ——————————————————————————— 10Conclusion ————————————————————————————- 11SummaryCalifornia High-Speed Rail (“CHSR”) Project will probably be the first contemporaryhigh-speed train working in the United States. The CHSR Authority is in charge of arranging,planning, building and operating of this rail system. The CHSR expects to connect the important2areas of the state, add to economic development, create jobs and preserve farmlands. The CHSRrelies on government grants and bonds in terms of financing and assessed the cost to be between$68.4 billion and $98.5 billion. The ridership costs are expected to be $50 for one-way ticket perindividual; Although, it has gone up to $81 and $120 for express rides.The CHSR will comprise of 800 miles and 24 stations when finished. The Authority willpay a fair market price for the property and will likewise pay all the expenses that are needed forthe exchange of property title to the authority.Since fewer individuals will be driving once the project is completed, it will lessen thenumber of auto accidents. The rail will lessen the amount of energy utilized by every individual,contrasted with car or plane travel. This project will open numerous openings for employment,such as construction specialists and transportation planners. One of the detriments is that it willcost the state a great sum of money. The average that the state will need to borrow is about $700million annually to pay off the debt. This venture will also cost a few individuals their homes andlands.The reasons why voters supported the CHSR were that it will provide a sheltered andmoderate transportation option, reduce reliance on outside oil, and reduce movement clogging.Then again, the majority of the individuals who own the land that the state wants to purchasewere against the CHSR on the grounds that they would prefer not to surrender their properties.BackgroundThe proposed California High-Speed Rail (“CHSR”) Project is a large and complexpublic works project. It is likely to be the first contemporary all new high-speed train operatingon a dedicated right of way in the United States. This project requires the combined talents of awide variety of public agencies and experienced rail professionals. The CHSR Authority is3responsible for planning, designing, building and operation of the first high-speed rail system inthe nation. The CHSR will connect the mega-regions of the state, such as San Francisco, LosAngeles, Sacramento, and Fresno, contribute to economic development and a cleanerenvironment, create jobs and preserve agricultural and protected lands. Building and operatinghigh-speed rail will directly employ thousands of Californians. Jobs are being created andthousands of both direct and indirect jobs will continue to be created once construction hits fullgear. After the high-speed rail system is fully operational, it is projected to directly employ about1,500 people full-time in maintaining and operating the system. The CHSR system will take carsoff the road and reduce daily flights between major urban regions in California. Thus, boostingthe state’s economic productivity as more travelers and commuters take the train to get aroundthe state, and also less congestion for drivers and less delay for air passengers. By 2029, thesystem will run from San Francisco to the Los Angeles basin in under three hours at speedscapable of over 200 miles per hour. The system will eventually extend to Sacramento and SanDiego, totaling 800 miles with up to 24 stations. In addition, the Authority is working withregional partners to implement a statewide rail modernization plan that will invest billions ofdollars in local and regional rail lines to meet the state’s 21st-century transportation needs. TheCHSR system includes billions of dollars in infrastructure investment throughout the state. Thesefunds will strengthen, improve, and upgrade existing rail services in northern California with thenewly constructed track in southern California. The new plan also gives top priority to close theexisting gap among regions in California.Jerry Brown has been a proponent of high-speed rail for over three decades. Since he wasthe first Governor of California, from 1975-1983, Brown signed the legislation to study highspeed rail. During his 1992 presidential campaign, he vigorously promoted high-speed rail in4nationally televised Democratic debates. In 1993, California created the Intercity High-SpeedRail Commission to conduct studies and to prepare a high-speed rail plan for the state. In 1996,the state created the CHSR Authority, a state agency to oversee design and construction of astatewide high-speed rail system. In 2008, California voters approved Proposition 1A, which isthe Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century. In January 2010,the federal government announced that California would receive $2.25 billion for high-speed railfrom the American Recovery and Reinvestment Act of 2009. In September 2012, PresidentObama presented an idea for the CHSR project by putting the project on a fast track. The CHSRAuthority released a revised draft business plan that clarifies how the initial constructionsegment in the Central Valley is the critical first step toward a statewide system.Howard, Needles, Tammen and Bergendoff (HNTB) is one of six firms preparingengineering and environmental studies for the California High-Speed Rail Authority’s 800-mileprogram. HNTB performed the level of program environmental and engineering studies on theLos Angeles to San Diego segment of this high-speed rail program. It will develop a projectmanagement plan for the segment, which is screening alignments and station locations to identifyconstruction or operation impacts, managing the regional public outreach program, performingrail planning and exploring funding strategies. For this program, the engineering efforts arefocused on some key areas of activity, all of which are required to confirm that the designedhigh-speed rail system delivers the performance objectives. These are included in design criteriaand standards to guide the preliminary engineering, final design, and construction; maintenanceplan to determine maintenance facility requirements; a concept of operations to determineoperational facilities and approach; rolling stock performance specifications; and design of5system-wide elements where consistency across the network is critical. This includes elementssuch as the traction power, distribution systems, and train control systems.FinanceThe CHSR is expected to receive funding from several sources. The main sources offunding will come from federal grants and bonds. Labor on the Initial Construction Segment(“ICS”) began in 2013 and is expected to run up to 2017. For this ICS, the CHSR received$3.316 billion from the federal government as grants. In 2008, proposition 1A approved for abond package of $9.95 billion as requested by Jerry Brown.1 Initially, he had asked for $6 billion.Proponents of the proposition are questioning the passing of it as the estimated costs haveincreased since the initial estimate of the project. In 2011, the CHSR estimated the cost to be$98.5 billion. When the proposition was introduced to the voters, they were promised a cost of$40 billion, which didn’t sound like a huge amount compared to the most recent estimated cost.Now, it is estimated to cost between $68.4 billion and $98.5 billion.As far as ridership costs, one-way tickets were approximated to cost $50 per person.Recently, it has gone up to $81 and $120 for express rides.2 With those prices, riders are expectedto arrive from San Francisco to Los Angeles in about three hours or more. Of course, the wholeproject needs to be completed in order to establish a price on tickets. Many people wonder howthe CHSR is estimated to compete against the flying industry. A round-trip ticket from SanFrancisco International Airport to Los Angeles International Airport costs approximately $144.20with a two-week advance.3 Of course, flying is much faster. A non-stop flight will take an hour1 “California High-Speed Rail Funding Plan.” www.hsr.ca.gov. Nov. 3, 2011. Web.2 Crulckshank, Robert. “California High Speed Rail Blog.” April 19, 2015. Web:http://www.cahsrblog.com/.3 Expedia. Apr. 29, 2015. Web. www.expedia.com.6and 30 minutes, whereas the CHSR is estimated to take two hours and 30 minutes longer.Choosing the method of travel would depend on each individual in terms of money spent andtime spent. Additionally, flying would cost about $20 less if the most recent ridership costs of theCHSR were established.Before, any comparisons can be made, contracts are still being set up and looked over inorder to go further with the project. One of the contracts was signed this year with theconsortium Dragados/Flatiron/Schimmick, collectively referred to as DFS. Several companiesbid for the contract, but DFS had the most appealing bid.4 The contract was signed for $1.2billion and consists of construction of the second segment from South Fresno to Tulare/Kings,which is roughly 60 miles in distance.5 This contract fell way below the agency’s expectations, asthe CHSR Authority estimated the cost to fall between $1.5 billion and $2.0 billion. TutorPerini/Parsons/Zachary, a joint venture who bid for the second segment as well, won the bid forthe construction of the first segment. The construction of the first segment will run from Maderaall the way down to south of Fresno, which totals to a distance of 29 miles. Tutor Perinisubmitted a bid of $985 million, and with the sum of provisional costs, the contract signedresulted in about $1.02 billion.6 Though, Tutor isn’t too happy. The State hasn’t acquired all ofthe land for Tutor to begin building on, which causes delays and loss of money. Not only arepending land agreements delaying the project, but also lawsuits and contract negotiations.4 Parker, Annie. Press Release. Dec. 11, 2014. Web. www.hsr.ca.gov.5 Sheehan, Tim. “High-speed rail board awards $1.4b contract for construction south of Fresno.” Jan. 13,2015. Webwww.fresnobee.com.6 Casado, Jorge. Press Release Details. Apr. 17, 2013. Web. http://investors.tutorperini.com.7Though the state isn’t too worried about these issues. On the contrary, they keep moving forwardas they have just pre-qualified a few bidders for the third segment of construction. According tothe Fresno Bee, this third segment will consist of construction from the “Tulare-Kern line to thenorthwestern outskirts of Bakersfield.”7 Tutor Perini will once again bid for this contract just asthey did for the first and second segments. This contract will actually be lower than the first twocontracts. The state is estimating for the job to cost between $400 million to $500 million.Whether it is less or more than the estimation, the CHSR Authority has a deadline to spend thegrants that they were given by the Federal government. They have until 2017 to use the grants tocover as many expenses or the grants will be taken back.StationsThe CHSR will consist of total 800 miles and 24 stations when completed. The CHSRproject will create the stations into “station communities,” which can bring prosperous economicand social activities. In the article, “Land Use Plans, Goals, and Policies”, the CHSR stations willattract people to downtown by emphasizing entertainment, dining and art activities. The CHSRstation would reinforce and enhance local transit connections and the grade separation betweenthe project and the roadways in downtown Merced and would not affect existing downtownconnectivity. By having the CHSR station in Merced, it will provide a more convenient access tothe station, which will encourage the residents and shoppers to use public transit (p. 12).8Hauptbahnhof Main Station in Hanover, Germany, for example, is one of the finest communitystations in the country. The station has great connection to local transit and great relationship7 Sheehan, Tim. “Five teams pre-qualified to bid for high-speed rail construction in Kern County.” Apr. 20,2015. Web. www.fresnobee.com.8 Land Use Plans, Goals, and Policies, http://www.hsr.ca.gov/8with surrounding neighborhoods. The “station square” is for pedestrians only, and the cafes andthe retails are also open during night time. The high-speed rail is designed like the light railrunning on the street, but also goes underground in the downtown. The coverage for downtownand the station provides convenient connection between local transit and high-speed rail service(p. 9).9Land AcquisitionA total of 540 parcels are needed from Madera to Fresno, and 600 parcels between Fresnoto Bakersfield. On August 26, 2013, Governor Jerry Brown signed Assembly Bill 481 (“AB481”), which approved the CHSR authority to acquired property for the project. Besides acquiredproperty, AB 481 allows the Authority to sell or exchange property or interest therein atfair market value if it is not needed for the project. It can also allow the Authority to sell or leasethe property to municipalities or other local agencies for public purposes and make funding fordeveloping the area, such as parks and recreation facilities.10 According to Jeff Morales, theChief Executive Officer of the CHSR Authority, the Authority has signed contracts with HamnerJewel Associates, Continental Field Services Corp, Universal Field Services Incorporated, andGolden State Right of Way Team for a maximum amount of $8.5 million per firm. These firms’tasks are providing appraisal, acquisition and relocation assistance services. 11Before acquires the properties, the Authority will conduct environmental studies on theproperties in order to determine whether the Authority will purchase the properties. Theseassessments of potential impacts to environmental resources are required by Federal and State9 Urban Design Guideline, http://www.hsr.ca.gov/10 Eminent Domain, http://cchsra.org/cahsr-eminent-domain/11 Morales, Jeff, http://www.hsr.ca.gov/9laws, such as the National Environmental Policy Act (“NEPA”) and the CaliforniaEnvironmental Quality Act (“CEQA”). These studies will help the Authority to determine how toreduce the negative impacts on the environment.12 For acquiring the property, the Authority willpay fair market value for the property and will also pay all the fees that are required for transferproperty title to the Authority. Sellers do not pay extra expenses in the land acquisition. TheAuthority will start the appraisal early enough, so the seller will have ample time to purchase anew property. The seller will not force to move before the other property is settled. In somecases, seller may be able to rent the property, that sell to the Authority, temporarily depending onthe construction. The authority will assist the seller on finding a new property and give at least90 day notice before the sellers are required to move. Also, some sellers may be eligible forrelocation payments and benefits when moving.13AdvantagesThere are many advantages that the CHSR will bring us. The study done by professor ArpadHorvath from UC Berkeley and professor Mikhail Chester from Arizona State University showed that theHSR “will decrease California’s long-distance travels” because the CHSR will be traveling over 200 mphand will take only an average of three hours to get from San Francisco to Los Angeles. Since less peoplewill be driving on their own for the long distance, it will reduce the number of car accidents. The rail willalso show a positive effect on the environment, because it “will reduce the amount of energy used perperson, compared to automobile or airplane travel”.14 Even though the rail will be at a high cost,12 Permit-to-Enter Process, http://www.hsr.ca.gov/13 Your Property, Your High-Speed Rail Project, http://www.hsr.ca.gov/14 McCabe M. July 27, 2012. “California high-speed rail project will benefit state, study shows”.www.dailycal.org10according to Chester, “all of the investment in this project will likely be returned within 20 to 30 years.” 15Finally, this project will open many job opportunities, such as construction workers, transportationplanners, safety and security specialists, architects, engineer and more. Also, according to Madeline Janis,“The California High-Speed Rail Authority has already negotiated a comprehensive ‘construction careers’program with the State Building and Construction Trades Council of California, one that guaranteesaccess to apprenticeship programs for disadvantaged and unemployed workers, prioritizing those from thestate’s poorest areas, including Fresno and the Central Valley.” 16DisadvantagesEven though there are many positive sides to the CHSR, there are still some disadvantages to it.One of the disadvantages is that it will cost the state millions of dollars. The approximate amount the statewould need to borrow will be about $700 million annually to pay off the debt. Another concern of thisproject is that it will promote the spreading of diseases, since more people will be traveling more oftenfrom Southern to Northern California, and they will be carrying their sicknesses which will cause it tospread quicker.Lastly, this project will cost some people their homes and land. Therefore, the state is offeringpeople money for their lands, but some Californians are doubting if they should agree and vote for theCHSR because of previously abandoned large projects, such as power plants and freeways. The commonreason why they were abandoned is because the state underestimated the cost of lands in order to receiveapproval for the projects. The rail is going to be 381 miles long, it is a huge distance and in order toprocess the project, the rail will have to go through the 7,680 –foot-high Tehachapi Mountain where theywill need to tear up paths through the mountain; therefore, planners decided to pick the flattest area for15 [1] Mccabe M. (July 29, 2012) “California high-speed rail project will benefit state, study shows”www.dailycal.org16 Janis M. 2014. LA Times. “Op-Ed High-speed job creation for California”11the rail path. Out of 822 needed parcels, the government acquired only 106 properties. 17 They offeredfarmers “fair value” for the properties but the owners rejected to sell their lands. Bakersfield will suffer alot since “more than 228 homes and more than a half dozen churches would be taken, many of them inlow-income minority communities on the city’s east side.” 18 As Chriss W. Street said, “But just like themedieval land confiscations and heavy taxation of the peasantry to pay for those “great cathedrals ofEurope” as monuments to the egos of their elitist rulers, Central Valley family farms are being confiscatedfor less than fair value so that high-speed rail can serve as a monument to California’s modern elitistrulers.”19Public’s OpinionIn the very beginning when the project was just an idea the polling from J. MooreMethods for Proposition 1A for the statewide $10 billion dollar bond measure to build a highspeed train system showed significant public support, and it had a big movement between May2008 and July 2008. In May 2008, 53% supported the proposition, 36% opposed; then in July of2008, 58% supported and 33% oppose. In just two months, 5% more of population decided tosupport the Proposition.What made so many people change their opinion about the CHSR? The research showsthat the gas prices had a major affect on the public. As the price of oil rose, people began torealize the value of the HSR.Here are the results of the reasons why voters supported the CHSR:17 Street C. February 16, 2015. “Cal High Speed Rail Confiscating Farms for Development Profits”.www.breitbart.com18 Vartabedian R. October 22, 2011. “California bullet train: The high price of speed”.www.articles.latimes.com19 [2] Street C. (Feb. 16, 2015) “Cal High Speed Rail Confiscating Farms For Development Profits”braitbart.com12-Providing a safe, affordable transportation alternative (77%),-Reducing dependence on foreign oil (74%),-Reducing traffic congestion (69%).20As shown, the oil prices play a huge role on why the public chose to support the Proposition 1A.On the other hand, most of the people who own the land that the state planned to buy areagainst the CHSR because they do not want to give up their lands. As Street C. mentions:The state promised that the easiest part of the project would be assembling needed land from thepoor rural farmers. But it turns out that many of the supposedly dumb farmers are retired lawyers,doctors and dentists. They have been unwilling to sell for “dog biscuits,” and many have thefinancial wherewithal to afford fighting the CHSR in court. 21The state did not expect this problem and we see that there are great amount of people who donot approve the project and can even slow it down, as it actually already did.Conclusion20 Cruickshank R. 2008. “Big Public Support for Proposition1” www.Cahsr.blogspot.com21 Street C. March 15, 2015. “Bullet Train Fiasco: Farmers sue over land rip-off; contractor demandspenalty” web: www.breitbart.com13