@Chig":sLple!aOgRaiiNaulAthoriy March BOARD 4, 2019 MEMBERS LennyMendonta CHAIR ThomasRithards VICE CHAIR Ms. Jarnie Rennert Director, Office Federal Railroad 1200 New of Program Delivery Administration Jersey Avenue, Washington, DC SE 20590 ErnestM.(ainacho Subject: Notice of hitent to Terminate Cooperative Agreement No. FR-HSR-0118-12-01-01 DanielCurtin Dear Ms. Rennert: BonnieLowenthal I am responding NangMiller Batory's on behalf February of the California 19, 2019 notification High-Speed Rail that the Federal Authority ("CHSRA") Railroad Administration under the Agreement intendstoterminateCooperativeAgreementNo.FR-HSR-0118-12-01-01 LynnSthenk "Agreement") March EX-OFFICIO BOARD MEMBERS Honorable and de-obligate ("FYlOAgreement"or $928,620,000 obligated the to Ronald ("FRA") effective 5, 2019. I urge the FRA to reconsider Termination of the FYIO indefensible, and it would have collaborated the precipitous Agreement gravely productively and unjustified would harm a historic for nearly action be unwarranted, it is contemplating. unprecedented, project on which and legally the FRA and the CHSRA a decade. Dr.joaquin Arambula As detailed Honorablejim Beall below, Cooperative making Agreement reasonable California BrianP.Kelly construction system Bakersfield), connectivity :funding, GAVIN NEWSOM GOVERNOR service to Los Angeles, the FRA instead engage FRA's threat departure CHSRA. Agreement in reasoned from would ' Unless otherwise Agreement and structured funding under regions, indicated and the economy action termination of damaging the in the nation. it is contemplating the CHSRA on two of one of transit of its concerns. weeks' notice and The is a sharp relationsip previously enjoyed by the FRA and the and the disruption and waste that abrupt termination of the cause, we owe it to the residents and the ARRA with Agreement expanded and elsewhere the rash and unlawful discussion This Fresno, and waste, in California by context, "Project" of the Central Valley, refers to Tasks 1 through state and federal 10 listed in the FYIO Agre'ement. 770 L Street, Suite 620, Sacramento, is of a Govei'nor important The threatened dislocation, rail (Merced, vision the initial Agreement. as providing and Sacramento. the FYIO California, to expand Valley and The CHSRA the ultimate and transforming as well disruption, collaborative of that relationship, to southei'n by the ARRA Agreement Agreement"). abandoning in the Central of high-speed reconsider the FYIO state funding of individuals distressed the productive, northern required cities cause massive should to terminate In light Valley the future far from in additional the Bay Area, would and endangering from under (the "ARRA And, to millions economically by contrast, Accordingly, running of dollars in the Central providing most system tmee of the largest connect its cornrnitments on the Project.l billions project will the nation's region rail is proposing is meeting No. FR-HSR-0009-10-01-06 progress high-speed Newsom CHIEF EXECUTn/E OFFICER the CHSRA CA 95814 a T: (916) 324-1541 * F: (916) 322-0827 * www.hsr.ca.gov Ms. Jamie Rennart March 4, 2019 Page 2 taxpayers, and the nation as a whole to continue cooperating speed rail project. EXECUTIVE on our historic and transformative high- S7Y The February 19, 2019 notification letter from Mr. Batory (the "Notice") asserts that the CHSRA has materially breached the FYIO Agreement based on four factors. But none of the conduct identified by the Notice constitutes a material breach of the Agreement, and the Notice's assertions of additional unidentified breaches are contradicted by the FRA's previous acknowledgements that the CHSRA has been complying with the essentially identical terms of the ARRA Agreement. For example, although the Notice asserts that the CHSRA has failed to make required expenditures, the only shortfall that it identifies is the failure to meet projected design and constiuction expenditures in December 2018. Deviations from projected expenditures are, however, routine in any large construction project, and nothing in the FYIO Agreement makes such a deviation a breach, much less a material one. Moreover, far from asserting any prior material breaches, the FRA repeatedly has acknowledged that the CHSRA was complying with its obligations. Under the ARRA Agreement, the FRA was permitted to release funds only if the CHSRA was complying with the Agreement. Nevertheless, the FRA released all the ARRA funds, making over 450 separate payments to the CHSRA from March 2011 to September 2017, when the account closed, thereby acknowledging the CHSRA's compliance with its spending (and other) obligations. The Notice's other assertions of non-compliance are similarly unsupported. While the Notice concludes that the CHSRA will not complete the Project by the end of 2022, the only documents cited in support of this conclusion expressly state that the Project will be completed by then. Even more fundamentally, the Notice does not point to any "time is of the essence" clause or other provision in the Agreement making completion by 2022 material. The Notice similarly fails to identify any specific deliverables that the CHSRA has failed to satisfy, much less to explain why such failures would be material and cannot be cured. Finally, contrary to the Notice's assertion, the CHSRA has not failed to take any corrective action required by the FRA: indeed, the FRA has notified the CHSRA of only one corrective action, which the CHSRA completed. The Notice also asserts that the CHSRA has failed to make reasonable progress on the Project. Here again, the Notice's assertion is belied by the FRA's prior conduct. In addition to prohibiting the release of funds absent compliance, the ARRA Agreement prohibited the release of funds unless the CHSRA was making adequate and timely progress. As a consequence, when FRA released funds under that Agreement from March 2011 through September 2017, it necessarily acknowledged that the CHSRA was making reasonable progress. Moreover, nothing in the Notice suggests that the CHSRA has stopped doing so. To the contrary, in the last year the CHSRA has made important progress in completing the Project. hideed, there are now 24 active or completed construction sites in the Central Valley, employing more than 2,600 workers, who are realigning roads and utilities, building bridges, viaducts, and crossings, as well as grading roads and constructing embankments California has not changed the overall purpose of its High-Speed Rail Plan, nor has it frustrated the purpose of the Agreement. To the contrary, Governor Newsom has reiterated bis support for the vision of is predecessors. He is, however, focused on completing the current project in the Central Valley and maximizing the benefits of that project. Far from frustrating the purpose of the Agreement, he is proposing to expand the construction contemplated by the Agreement so that the first building block of Ms. Jamie March Rennart 4, 2019 Page 3 the high-speed rail Central and three of the fastest Valley program The threatened termination departure the FRA's large from infrastructure project urges discussions Agreement If this abrupt for nearly to share facts, clarify rail to three of the largest notice the CHSRA, occurs, the FRA is necessary will not only it also will set a troubling through state-federal partnerships. its contemplated action misunderstandings, in the is a sharp and wasteful which a decade; funded cities in California. on two weeks' with termination projects to reconsider of igh-speed counties collaboration infrastructure the FRA the benefits growing of the FYIO it has collaborated future CHSRA bring fruitful project. on which undermine will any the historic precedent that may Accordingly, or, at a minimum, and resolve to complete endanger to engage the in stiuctured disagreements DISCUSSION I. THECSHRAHASNOTMATERIALLYBREACHEDTHEFYIOAGREEMENT The Notice four asserts specified provide A. that the CHSRA factors.2 The Notice, any legitimate The ground CHSRA The first however, specified identifies Funding Contribution 2018, required million projections each month. Projections are just breach. varies In any civil over progress, delays early in a project and bring of others. the project The Notice's puzzling assertion because Agreement is being granted under account closed, the final provided the ARRA the design and construction was actually path items meet such estimates design can be accelerated. path items rather million than in Agreement its expenditure is not a material and construction in one month constructed The Notice, in the FYIO or that the CHSRA progress the Project million of $141.8 But nothing from for activities does not match This because can be accelerated the actual is especially such delays to make true with may delay up for the lost back on schedule. pace of state expenditures is not yet making set of tasks needed expenditures to complete by the State and by the ARRA Agreement was exhausted CHSRA is still in the process breaches under the Project. Agreement. in September of spending the FYIO the FYIO Agreement. Agreement The rest of the funding Although 2017, when $2.5 billion is also The FYIO for the the federal money the ARRA appropriation in matching state funds under Agreement. 2 The Notice states that that the FRA's assertion of material breach is based on "many" four areas of noncompliance. identified, to It is true that the last quarterly expenditures spent. are being But later noncritical Funds of $47.9 2018. the exact pace of the final months based on and thus fails State expenditures. expenditure A deviation If the projected in subsequent critical State required in December million project, that the current CHSRA funds Project the ARRA when Sufficient the CHSRA's period. Agreement breaches for non-compliance. to make 2018 of the FYIO any material Than in December of the project. the pace of the progress More is the failure for a given infrastructure the duration the commencement time $47.9 expenditure estimates Spent and construction Plan projected the terms the Agreement shortfall: design and that only a $141.8 and one specific on final fails for terminating in the Notice only projected December breached to identify has Committed factor the $141.8 has materially however, The CHSRA and it would be fundamentally not given the CHSRA cannot respond to allegations unfair for the FRA to terminate a chance either to contest or to cure. concerning factors, but only identifies factors that have not been the Agreement based on factors that it has Ms. Jamie March Rennart 4, 2019 Page 4 Far from finding repeatedly that the State materially has recognized General Provisions breached the CHSRA's in Attachment 2 of the ARRA only if it receives adequate documentation under the ARRA Agreement. Pursuant CHSRA from March complying with Moreover, California Agreement. 2011 through funds, for achieving is well wbich cost. Thus, no breach B. 2017, ahead of schedule 2018, the CHSRA the FRA the FRA thereby CHSRA in meeting Agreement, Under the FRA Section may authorize is "complying made 7(b) of the release with of funds its obligations" over 450 separate acknowledging its matching has submitted California's has expired, payments that the CHSRA to has been $2.5 billion California match is plainly obligation for FRA requirement. on track under approval the ARRA $970 million in state 26% of As only to meet its state match the period funding Furthermore,in20l8theCHSRAcon'imittedanadditional$3.1 toward the Project, which the State has committed of the State's The Agreement, to tbis provision, September 39% of is this match in state funding Project's of the ARRA that agreement. of a cost and the CHSRA obligationundertheARRAAgreement. billion with its obligations. As of December matching the terms compliance spending Remains would to more result in a total than its fair State contribution share of the Project, of 71% and there of the has been obligations. Committed to Completing the Project by December 31, 2022 The second factor identified by the Notice is that the CHSRA will not complete the Pro5ectby December 31, 2022. The Notice complete CHSRA's Fourth Quarter 2018 final August Completing deadline as well to resolve COO the risks Officer explain why The FRA elapsed. The Notice will prevent cross-functional charges despite these actions the CHSRA only completion submitted 25.1% concerns as the FRA completion date for that contract Teams Package Project package 4," which consistent work and its Chief COO does not-and teams cannot- by the end of 2022. Committee of the contract is just 31, 2022 and a Deputy 86.5% 31, 2022, completion to keep the Project and Audit has been in active at the the CHSRA sites, establishing an Executive in the completion with outlined to meet the December the Project Finance recently challenges, project even though by December the CHSRA by December in attendance, The Notice complete price and that the cornrnittee and mitigated required to clear productivity. that a delay knows, But as most the public and appointing cannot Finance be completed to meet those plan to the CHSRA's "Construction of the overall hideed, strategies of a contract to believe with expenditure report will that must be monitored and claims, construction one report meeting Strike on increasing years away. of2022. schedule by March on the 2019 31, 2022. be challenging. implementing the Fourth be completed reliance caru'iot are and Audit by 2022, will Valley identifies Finance to the monthly in the Central schedule to the project no reason According Committee that the CHSRA 2019 on the Project on this solely offers shows that the Notice not be completed and December contractor But this report will 31, 2022, and Audit short. and its February March as creating has expended documents work packages has set out the construction also notes contractor that most misplaced. is therefore commercial focused shows is equally Finance The Authority Operating Schedule fall documents that the Project the construction these packages acknowledges on track. of various But the only Summary showing by the Notice tasks by the end of that year. The Notice's 31, 2021, 19, 2019 evaluation Schedule Reports this February, February 2018 Far from Summary Committee 31, 2020, will Quarter and the four Audit the facts identified by the end of 2022. reports. received again, asserts that the FRA's the Project Committee 2022 Here one of four is still negotiations of the overall period contract of this one aspect which shows that a has packages. of the Project more than three to correct Project the by the end Ms. Jan'iie Rennart March 4, 2019 Page 5 Even more would fundamentally, constitute essence" provision. completion General the Notice a material Nor breach established constitutes in Attachment for this Project does not, by itself, It is also surprising to us that the FRA the agency has refused Project. In June 2018, Environment Policy Act would Nevertheless, has failed the FRA to conduct environmental be missed, clearance The need to amend or that its ultimate projects process. an interim review as the FRA (as well will should not point when it has failed scores completion The FRA of the Project. and therefore Large require expenses). since last August to advance assert that future no reason be working with design-build persistence, at the simple necessary deadlines it the will delays. that a project provides should worse, steps to reduce or establish and it certainly project. of challenges to delays, As staff this in redundant matters the the National process. of documents to take simple does not suggest be diminished, of dollars period delayed, accelerate under review and, to make The FRA and fatally have acknowledged, as millions and approval schedule and expedite encounter state environmental as well time of this Agreement." that would reviews 100% 23.c of the of any Project hopelessly actions Project is of the to achieve Section or tern'iination environmental review the Project value delays our robust routine in a multi-billion-dollar those the Project no "time state that failure To the contrary, an expiration has not acted on our application, even the most and abandon participation with in project finding of the overall contains states that "[e]xpiration to conduct of Transportation save months provision a year to take simple applied concurrent States Department measure limit the CHSRA in completion for termination. constitute is now for nearly a delay The Agreement termination grounds 2 of the Agreement because United why Agreement. does the Agreement's by the end of 2022 Provisions does not explain of the FYIO cannot be completed to terminate the FRA's the CHSRA on ways public to transportation creativity, and inter-agency cooperation. C. The CHSRA The Notice asserts Contribution either delinquent deliverables CHSRA to identify deficiencies while approved payments the agreement. Agreement, Third, 2017. could has made and plans documents, design has identified Agreement, and because less the deficiency at this time. Funding in it, the Nonetheless, it is clear that is no basis for declaring 40 reports no material were a material breach, much curable. exhausted thereby acknowledging Agreement breach and deliverables deficiencies in September that CHSRA overlap of the latter suggests with deficient before since September 2017, 2017. the FRA was in compliance those under concerning that any deficiencies with the FYIO deliverables since that time prior submissions identified plans, to the FRA. In total, in the Agreements, and other plans. The CHSRA it has delivered including detailed is unaware to are any before. substantial specifically that the FRA of the FYIO much the ARRA in the Notice than those time including and deliverables of the Agreement. were not have been any material nothing is the first has found funds deliverables," over 40 reports are obviously Agreement grant has found to this concern that there under "critical termination tern'iination that agreement, or number the CHSRA environmental under Moreover, in kind 121 documents the ARRA Deliverables or deliverable, in deliverables recognized As the deliverables there September different until fully asserts that the FRA previously above, to respond This justify report such deficiencies the Notice As noted that it might inforn'iation because to submit information. do not justify a lack of sufficient the FRA has failed any particular is not in a position to Submit it asserts that the FRA sufficient as an issue so major less termination, 2016, hi particular, or lacking fails these asserted Second, Its Obligations that the CHSRA Plans. the Notice First, Is Meeting to the FRA reports, of any deliverables Ms. Jarnie March Reru'iart 4, 2019 Page 6 that have not been submitted has been unable providing While to deliver routine guidance some other For example, enviroiunental were deliverables approvals delayed because that were were resolution Service of those the FRA shutdown the content of those have been delayed, pending due at the end of last year, which of the government deliverables such as the Interim on the content than four concerning environmental deliverables, guidance other because many when NEPA Plan, and still were others the guidance were delay also attributable ceased all work Assignment delayed to the FRA. on request. while or requested in by the CHSRA. Other the CHSRA awaited Management Plan such as the Program it provided the CHSRA subsequent requested the FRA to the CHSRA's documents, changed documents of the delays delayed Development and the FRA's additional inforn'iation. Because the Notice fails to identif5r the deliverables it contends were deficient, it is impossible to say how many D. The Finally, That of the deficiencies CHSRA Has Not the Notice is simply corrective Under contractor's compliance action which The FRA's own reports take corrective 12, 2018, confirm actions. asserts permit requirements, The last monitoring table failed action or Respond failed to The if the FRA and a notice has issued or inaction. to take appropriate by the FRA, was in a 2014 review that, contrary only FRA's Monitoring corrective action. determines that a of the corrective actions one such fu'iding and notice to the CHSRA's oversight related and the CHSRA to the Notice's report of items that the FRA the CHSRA Actions to issue a finding The FRA to its own promptly implemented under of a a corrective the matter. and the summaiy The Notice which with resolved That Corrective has consistently reports. Agreements. are attributable established it is supposed in its monitoig and FYIO plan, to Take the procedures is required, usually the ARRA Failed by the FRA asserts that the CHSRA false. action required, asserted CHSRA requiring identified received corrective areas of interest to satisfactorily address. suggestion, This the CHSRA from action the FRA in the report in the 2017 annual does not support has not failed to was dated February is empty. monitoring the Notice's review, assertion that the CHSRA has failed to take corrective actions becausethe FRA never notified the CHSRA that corrective action was required. Moreover, contrary responding to the Notice's to issues raised the CHSRA conduct Sacramento headquarters package (tbis multiple topics oversight, fails to address office only trends." In fact, however, completed schedule federal process. an updated for completion, grant agreement. aspect year the FRA the CHSRA For example, of a supposed Project failure Schedules has made cost estimate a one-day Valley grant site review reviewing This to review issues to satisfactorily to respond efforts plan to complete for passenger that have arisen before over the that the CHSRA them. the CHSRA, on past performance and improve plan process, the work service covers to construction to its monitoring: to update and at the CHSRA's each construction address based and effort meek-long review management as part of its business and budget every been a suggestion and budgets extensive in June 2018, and an implementation from has never or has failed hideed, packages). an opportunity There by the FRA "realistic baseline time reviews. includes of the program and the FRA one example has not developed which has spent considerable days in the Central needs and concerns. asserts, and budgeting every the issues raised offers Review, monitoring site tour of the construction the CHSRA future the CHSRA annual and three a one-day and involves providing The Notice a Site Monitoring includes year and ongoing suggestion, in the FRA's and its scheduling the CHSRA underway, an updated and completion of the it Ms. Jarnie March Rennart 4, 2019 Page 7 In addition, numerous examples of the CHSRA responding to the FRA concerns can be cited. For example: Staff Capabiliy and Capacig -In * staff to facilitate 2017, project the CHSRA delivery created and made internal delivery response to the FRA's suggestion that the CHSRA reorganize and fill key positions a new Program improvements Delivery with project Office, in its governance deliveiy restructured experts, to focus and decision-making in August on program structure to improve communications. InternalProcesses-InresponsetotheFRA'ssuggestiontoimplementacontrolsystem * addressing Program Management Management and Oversight management and change Plan requirements, branch the CHSRA and implemented a more established formalized a Program process of configuration control. ServiceDevelopmentPlanning-hiresponsetotheFRA'ssuggestionthattheCHSRAexplain * the independent utility contracted an Early with including Plan a Merced and will of the Central Train to Bakersfield be discussed further Right-of-Way Acquisitiom -In * of-way acquisitions, Construction all Construction of the high-speed wbich evaluated approach, that were in a report to the Legislature stepped 4, increased Packages, portion consultant, discussed rail program, different in the CHSRA's in May the CHSRA service options, 2018 Business 2019. response to the FRA's suggestion to increase the pace of right- the CHSRA Package Valley Operator 74% from up its acquisitions 39% complete of the property so, for example, in 2017 needed acquisitions to 80% by December has been delivered for 2018. For to the design-build contractors. Here again, could justify II. THE the Notice has failed termination CHSRA ts MAKING In addition to asserting Agreement, the Notice to show any material breach of the terms of the FYIO Agreement that of the Project. REASONABLE that the CHSRA contends PRO(,RESS materially ON THE Puo.m,cr breached that the CHSRA its commitments is not making reasonable and obligations progress under on the Project. the That is also wrong. Since the CHSRA matching ARRA has not yet accessed dollars, progress Agreement, however, progress. hi addition payments unless the FRA 2017, continued in the Notice to make 90% * There shows of the design been delivered are more payments under that progress progress. work funding compliance, and timely progress on the Project from into stalled down the required hi releasing funds has been making the ARRA progress Agreement has materially hideed, Agreement. that the CHSRA absent adequate as it spends the ARRA adequate the ARRA have been making substantial Agreement against has acknowledged was "making over 450 payments must FYIO be measured the FRA to prohibiting the CHSRA the CHSRA Nothing * made must Agreement toward March Project since then. completion." quarter has been completed, contractors; than 24 active or completed construction and 74% September To the contrary, CHSRA of the rights of way have sites in the Central Valley; As of 2017. at this point: to the CHSRA's the reasonable prohibited 2011 through at least the third State under has Ms. Jarnie Rennart March 4, 2019 Page 8 State Route * Two * 99 has been realigned, overhead as a trench * Over * In total, 44 miles small Overall, the Project the CHSRA the high-speed rail CHSRA, as stewards we risk both for which wbich final objection federal funding for high-speed made clear ultimate rail in a recent goal remains that eventually will north foundation for the San Francisco high-speed upon ultimate focus, completion purpose frustrating with future the purpose and maximizes are for construction construct expressly Governors system will from Valley portion of and environmental and the the Project. Project Otherwise, that would not be and constniction changed the purpose for that he shares that ambitious Rail Moreover, Authority, San Francisco Like as I the Authority's to Los Angeles/Anaheim The Governor in the Central in building SYSTEM the truth. to San Diego. service. be completed fiu'iding that frustrates and Schwarzenegger. on the ground" RAIL State of the State Address, of the High-Speed that comiects trains OF THE HIGH-SPEED confirmed Brown and south Governor expense of doing segment will three major important segment Newsom connect merely Valley with a and to lay the each block expanding and identified all mega-infrastructure blocks eventually and Sacramento This expansion will which project into of the largest make 'furthers, also furthers Bay Avenue, the initial rather approximately Bakersfield in the Central growing projects, placed the system traveling building block counties, (ACE) in to its brings area and then to the Los Angeles high-speed basin. These California to Merced, to to bearing the so that this initial Fresno, as well grants the CHSRA of Bakersfield, and Amtrak rail program of the federal tangible that and Bakersfield), as providing traveling to the Bay to Los Angeles. of the high-speed the purpose north (Merced, Bakersfield goal of a statewide system and north Valley expands rail program. by 50 miles-with Express from focus and they require 15 miles California Corridor than frustrates, rail system, this project cities the Governor's in the high-speed rail downtown of the fastest the ultimate high-speed block to expand to the Altamont and to bus services step in California's the San Francisco south building grants, of the igh-speed Poplar is proposing and three connectivity and ARRA of the first portion from reach three universities Area productive, the utility so-to transit of the FYIO of the initial a 1 19-mile Madera. first Newsom to Los Angeles/Anaheim system mobility completed a proposal be further is to "get rail 488 extent. Far from Valley wich involved for both the FRA so far, to complete in his recent and made to the chairman rail and Valley, in the Central statewide PURPOSE could to Sacramento near-term service Governor a high-speed pragmatic, the California Newsom, of his predecessors reach as well constructed; output. of a partially THE OVERALL Nothing memorandum is in progress; viaducts or in progress; it is critical invested other are being in the Central sections deliver two as utilities have made this investment. in California was awarded. In his State of the State Address, vision quickly abandonment is that Govemor Rail workers on multiple funds as well and ponds finished in economic achievements, taxpayer HAS NOT CHANGED goal for High-Speed than 2,600 to more the taxpayers for bridges is either $6 billion and visible roads have been completed; work progress and the unthinkable CALIFORNIA The Notice's more concurrently sigificant of other and abutments nearly significant of the sigificant failure fit for the purpose the overall has employed program of these and a viaduct and embanlanent and achieved has made In light a bridge, are in progress; of grading businesses, benefits. III. crossings, in Fresno and the realigiunent benefits rail more immediately grants. The expanded system by ensuring that will encourage Central that the extension to Ms. Jamie March Rennart 4, 2019 Page 9 IV. THE THREATENED UNFORTUNATE Inn addition unjustified, a decade, achieving the first challenges moved. municipalities among Together, in 2010 the federal occurred in September full much Agreement now, have termination Valley, would a region unfinished bridges, termination, infrastructure system. nationwide. grant and the Federal were awarded. estimates the state and federal construction, design, construction At a minimum, the FRA IA including right is already in light in down funds. to assure the Terminating the FYIO opportunity to be heard, threatens, 2,600 jobs in the Central that area strewn Since funds of way underway. with California to satisfy acquisition, service, The FRA in a sincere building disruption effort capital Thus, and waste to work of a statewide and 2011 when matching them to the undone. for high-speed rail the ARRA and state funds, Central Valley environmental or identified. and waste that an abrupt through leaving based on the best available management, not step away projects, or leaving costs to complete construction and of the federal goal we have set together has appropriated funds. have all been committed should itself block in 2010 termination future states may be unwilling infrastructure those projects the FRA in which undermine on the reliability As a result, on future Gas Reduction needed of the massive with that time, manner on the important the first that would cast doubt commitments. to focus in partnership precedent would of funding to complete and interim to agree to engage Similarly, state matching that has created the precipitous of dollars choice and Greenhouse construction, given Government goal was established funds which to slow arrangement that the Notice may leave set a troubling the termination billions the unenviable Proposition expended, agreed the arrangement deadline. the clawback of a project on its funding in investing including final Especially and the rest of the nation: That fully is spent. a fair and reasonable with was filed, payment amount we have made. and ultimately also would in delivering with statutory of the grant mutually match including, changes. and viaducts. has been threatened, government government California over the future economically, it go forward, as a partner the federal I urge the FRA FYIO should of funds government federal overpasses, projects withdrawal join create uncertainty that has struggled 2017 the CHSRA if paired match dirt is and the Project costs until match a tapered of the progress providing various or access to alternative under to the September Especially a tapered the full until agencies execution and the CHSRA of the appeal to cooperate prior without until of private such cooperation challenging to pay for capital the FRA we are proud consequences. to allow by state match the results funds terms be used first continued to be done, especially grave grant litigation faces or addressed of numerous since the original is a goal of magnitude and acquisition predicted to accommodate after notice our common of tis have enjoyed six times hurdles was on appeal, pending ARRA remains would followed and the CHSRA use of the federal would This 2017, construction, FRA While funds as the same litigation the project And'the ARRA patience and the FRA in 2012, the ARRA be fully weeks' the CHSRA. toward review, that cannot numerous on two with together environmental Agreement now States. A project and, at times, For example, renegotiated whereby :[unding, the CHSRA have overcome until in the United of construction now, IS A SHARP AJSJD to end the Project have been working system the ARRA and 2011. and the CHSRA late 2013, Until threat collaboration the cooperation amending the agencies agreements sudden planning, challenges Consequently, things, rail AGREEMENT PRACTICE its fruitful and the FRA stage, from is required. other from the CHSRA to the physical actually FROM PRIOR true high-speed at every property OF THE FYIO the FRA's wasteful-departure For nearly FRA DEPARTURE to being sharp-and TERMINATION all of these termination the issues raised mitigation, Moreover, extensive efforts. would in the Notice cause, I ask and save the Ms. Jamie March Rennart 4, 2019 Page 10 nearly decade potentially of collaboration irreparable vaguely references justified and still meaningful concluding California made Please cloud live, to discuss of how a multibillion cannot faith in which specify to respond harm be completed as stewards to make of the funds to them We also should and productive spent And, engage should come to that has been cause. as soon as possible our cooperation without before both the great progress at this stage would in a fashion finally, officials only and, where them. it, the FRA these arrangements to continue and that the Notice individually of workers. and abandoning the Project any precipitous prompt can see for themselves that abandoning We owe it to taxpayers in a more thousands Before the deficiencies to cure or mitigate employing so that they us so that we can begin over the Project. rail project. should an opportunity project the Project and the devastating to act in good ways igh-speed the FRA such issues may be cured dollar that the Project and inspect contact is taken, and give the CHSRA discussion endangering on our historic action and remove on this historic any endeavor and and to be spent in the Agreement. CONCLUSION Based on the above, minimum, any and all issues Thank I urge the FRA that it defer you for your any final of concern to decide termination and preserve consideration. /' that the FYIO decision the historic Agreement and meet Project should constructively on wich not be terminated with the CHSRA we have cooperated or, at a to resolve for so long.