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C. 46
To: Board of Supervisors
From: TRANSPORTATION, WATER & INFRASTRUCTURE COMMITTEE
Date: March  9, 2021
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: Acceptance of the Northern Waterfront Short-Line Railroad Feasibility Study
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On:   03/09/2021
APPROVED AS RECOMMENDED OTHER
Clerks Notes:

VOTE OF SUPERVISORS

AYE:
John Gioia, District I Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor
ABSENT:
Candace Andersen, District II Supervisor
Contact: Robert Sarmiento (925) 674-7822
cc: Amalia Cunningham    
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED:     March  9, 2021
Monica Nino, County Administrator
 
BY: , Deputy

 

RECOMMENDATION(S):

ACCEPT the Northern Waterfront Short-Line Railroad Feasibility Study.

FISCAL IMPACT:

No impact.

BACKGROUND:

One of the recommendations from the 2019 Northern Waterfront Economic Development Initiative Strategic Action Plan and prior economic development studies is to conduct a short-line railroad feasibility study in the Northern Waterfront area. In May 2018, the County was awarded $37,500 in grant funding from the U.S. Economic Development Administration to conduct the Northern Waterfront Short-Line Railroad Feasibility Study ("Study"), which would cost a total of $75,000. The Northern Waterfront Economic Development Initiative Ad Hoc Committee ("Northern Waterfront Committee") concurred with providing a 50% match ($37,500) from the Northern Waterfront implementation funds to fund the shortfall.  
BACKGROUND: (CONT'D)
      

    The Study, which was completed on September 28, 2020, evaluated the feasibility of implementing a short-line railroad in the Wilbur Avenue Corridor (“Study Area”), which encompasses an area from the Fulton Shipyard in Antioch east to the Contra Costa Logistics Center in Oakley, and from the waterfront south to about 18th Street in Antioch. This area was selected for having the most opportunity sites within

    close proximity of existing Class I1 rail lines. The proposed short-line railroad would transport goods between businesses located in the Study Area and the Class I railroads.  
      
    The County coordinated with staff from the Cities of Antioch and Oakley during development of the Study.  
      
    Both the Transportation, Water, and Infrastructure Committee and the Northern Waterfront Committee reviewed and accepted the Study at their meetings on November 9, 2020 and December 17, 2020, respectively. Both committees directed staff to bring the Draft Final Study to the Board of Supervisors for acceptance as a final report, which will close out this effort.  
      
    The Draft Final Study (Exhibit A) consists of three parts:

    • Assessment of Existing Conditions,
    • Market Analysis, and
    • Findings and Conclusions
    The Assessment of Existing Conditions (“Assessment”) analyzes four components:
    • Engineering Feasibility,
    • Environmental Concerns,
    • Commercial/Economic Development Conditions, and
    • Transportation System
    The Assessment identifies five parcels along the waterfront in the Study Area, which were previously served by railroads, that have the greatest potential to be developed as railroad-served businesses. The Assessment provides cost estimates to re-establish a rail connection to each of the five parcels. Four of the five parcels are currently in the process of environmental remediation. As parcels are developed, additional evaluation of the impact on wildlife would be needed. The Assessment determines that the existing businesses in the Study Area rely primarily on trucks to transport goods. Finally, the Assessment provides information on the existing roadway network, Class I railroads (Burlington Northern Santa Fe [BNSF] and Union Pacific [UP]), and maritime facilities in the Study Area, along with the goods movement that occur on each of these transportation facilities.  
      
    The Market Analysis evaluates the following:
    • Customer Types,
    • Land Development Opportunities,
    • Short-Line Railroad Operators, and
    • Relationships with Class I Railroads
    The Market Analysis determines that businesses seeking a location with lower land and business costs and good connections with water, Class I railroads, and highways would be attracted to the parcels in the Study Area. For the five parcels that have the greatest potential for short-line railroad service, the Market Analysis provides details on each parcel's characteristics that make it attractive for business development. The Market Analysis identifies five short-line railroad operators that would be good candidates to serve a short-line railroad operation in the Study Area. The Market Analysis notes that BNSF does not support an independent short-line railroad operation in the Study Area, but instead prefers to provide in-house railroad service to the individual parcels in the Study Area. The Market Analysis determines that a new railroad connection from the UP railroad line just south of the Study Area would be too costly to build and limited in providing short-line railroad service in comparison to BNSF.  
      
    The Findings and Conclusions states that a new independent short-line railroad operation is not feasible in the Study Area for the following reasons:
    1. the lack of support from BNSF for an independent short-line railroad operation that would connect to its track,
    2. the infeasibility of constructing a separate railroad line to connect the five parcels due to the lack of available right-of-way, and
    3. the high cost to construct a new railroad connection from the UP line.
    The Findings and Conclusions recommends that economic development staff from both the County and the two cities establish ongoing communication with BNSF economic development staff to stay informed and coordinate on development opportunities that have potential railroad access in the Study Area. At the December 17, 2020 meeting, the Northern Waterfront Committee directed staff to reach out to BNSF to set up a meeting to discuss potential opportunities to coordinate with BNSF to provide short-line rail service to land developments in the Northern Waterfront. The meeting would include the Northern Waterfront Committee, County economic development staff, and BNSF ecomonic development staff.  
      
    1 Class I refers to large railroad companies with operating revenue in excess of $490 million annually.

    CONSEQUENCE OF NEGATIVE ACTION:

    If the Study is not accepted, the County will not be able to complete final reporting requirements for the U.S. Economic Development Administration grant award. In addition, the County would not be fulfilling one of the recommendations from the Northern Waterfront Economic Development Initiative Strategic Action Plan.

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