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Item 16 2025-00515 Sacramento Valley Station Governance Operations Preliminary Recommendations (T15029000)

Sacramento City Council
March 4, 2025

Document
Item 16 2025-00515 Sacramento Valley Station Governance Operations Preliminary Recommendations (T15029000)
Meeting
March 4, 2025
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Sacramento City Council
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4
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Text extracted from the city's file for reading and search. Open the original on sacramento.granicus.com. That file is the official record.

City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00515 3/4/2025 Discussion Item 16.

Sacramento Valley Station Governance/Operations Preliminary Recommendations (T15029000)
File ID: 2025-00515
Location: 401 I Street, District 4
Recommendation: Receive and file.

Contact: Greg Taylor, AIA, Supervising Architect, (916) 808-5268, [email protected]; Lucinda Willcox, Assistant Director, (916) 808-5052, [email protected]; Department of Public Works
Presenter: Greg Taylor, AIA, Supervising Architect, (916) 808-5268, [email protected]; Lucinda Willcox, Assistant Director, (916) 808-5052, [email protected]; Department of Public Works
Attachments:
1-Description/Analysis
Description/Analysis
Issue Detail: The Sacramento Valley Station encompasses 35 acres which includes the historic depot, station platforms, and surrounding property approved for supportive private development. The station was underutilized and in disrepair and passenger rail service was a low priority when the property became available for purchase in the mid-2000s. Since that time, although it is a regional serving facility, the City has been the lead agency for major improvements, restorations, and planned future development of the Sacramento Valley Station in the Railyards.

The voters approved Measure A countywide transportation sales tax to support the facility, and it was used to purchase the property, historic depot, and leverage over $150 million in state and federal funds to relocate the heavy rail tracks, separate passenger rail tracks from freight operations, modernize station operations, restore the historic depot including seismic retrofits, install heating/cooling, and fire suppression systems, and prepare and adopt an Area Plan (2021 SVS Area Plan) for the future planned development of the site.

Since 2020, the City has secured an additional $78 million from the state Transit and Intercity Rail Capital Program (TIRCP), made possible in partnership with Capital Corridor JPA (the City is not an identified transit agency and is prohibited from direct application), for on-site SVS improvements, and offsite improvements to transit, pedestrian, and bike projects to better connect SVS to the city that

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File ID: 2025-00515 3/4/2025 Discussion Item 16.
include:
· Northbound I-5 Ramp Reconfiguration & 3rd Street Extension Study · SVS-Railyards North Entrance
· SVS PUDO (Pick-up/Drop-off)
· SVS/Railyards Storm Drain Line
· Regional Bus Mobility Center Engineering Design & Environmental (NEPA) and Construction partial match
· H Street Cycle Track (10th Street to SVS)
· SVS Regional Commuter Bus Stops (Capital Improvements) · X Street Regional Bus EV Charging Facility (Capital Improvements) · X Street Regional Bus Facility EV Charging Infrastructure · Regional (SACOG) Bus Stops 5th Street & North B Tie-in · Western Connector (Bercut St to Western Tunnel Entrance) While the City has brought this project through tremendous strides in capital investments to restore the station, establish a plan, and set it up for continued future success and development, the necessary focus of resources and management to develop and operate the envisioned facility is outside the City’s core mission, expertise, and funding limitations. There are no municipal agencies in the nation that operate a regional passenger station of this size. A dedicated SVS governance structure would provide for regional participation, operation, and funding of the facility, and expand available resource options.

In 2023, the City Council approved a study to identify potential new governance structures that would serve the ongoing operation and growth of the SVS. Over the past year, the study has resulted in a comprehensive review of the current station resources, established goals and objectives that build upon the 2021 SVS Area Plan, engaged potential regional partners, and reviewed funding and legal parameters that will lead to a final determination of the preferred governance structure.

After a year of analysis, partner engagement, and alternatives review, staff is presenting a brief background and summary of findings, with preliminary recommendations for a phased transition to an independent governance structure for the Sacramento Valley Station development area and transit center. Staff will be meeting with identified partner agencies with these preliminary recommendations for comments and will synthesize all inputs to inform a final recommendation and will return to Council within the year for Council action.

Policy Considerations: Policy Considerations: The development of the Project is consistent with the Railyards Specific Plan and the following 2035 General Plan Policies:

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File ID: 2025-00515 3/4/2025 Discussion Item 16.

Policy ED 4.1.5 Regional Transportation Facilities. The City shall work with the Sacramento International Airport, Port of Sacramento, Regional Transit, Caltrans, and railroad companies to market and support continued improvement of major transportation facilities serving Sacramento businesses.

Policy M 3.2.1 Passenger Rail Service. The City shall encourage and promote the enhancement of passenger rail service to and through the Sacramento area, including the development of new infrastructure and services associated with the California High Speed Rail Project.

Policy M 3.2.2 Sacramento Intermodal Transportation Facility. The City shall support the development of the Sacramento Intermodal Transportation Facility.

Economic Impacts: None.

Environmental Considerations: This report concerns administrative activities and government fiscal activities that do not constitute a “project” as defined by the CEQA Guidelines Sections 15378 (b)(2) and 15378(b)(4) and are not subject to the provisions of CEQA (CEQA Guidelines15060(c)(3)).

Sustainability: The transportation sector accounts for over 57% of community-wide greenhouse gas emissions, the largest single sector in the community. Providing safe multi-modal transportation alternatives helps to reduce single-occupant vehicle use and contributes towards the Sacramento region’s climate change goals. The Sacramento Valley Station Governance/Operations recommendations furthers the City’s commitment to sustainability by laying the groundwork for funding the management, operation, and expanded use of the regional multi-modal transportation hub, which will reduce the use of fossil fuels, encourage less driving, and reduce dependence on private automobiles.

Commission/Committee Action: Not applicable.

Rationale for Recommendation: Not applicable.

Financial Considerations: Not applicable.

Local Business Enterprise (LBE): Not applicable.

Background: On April 8, 2021, as part of the required decennial review process, the Sacramento Transportation Authority (STA) approved amendments to the Measure A half-cent countywide transportation sales tax implementing ordinance, and at the City’s request, the STA agreed to provide funding toward actions to identify an appropriate governing mechanism for ongoing operations and development of the Sacramento Valley Station (Sacramento Intermodal Transportation Facility).

On June 1, 2021, the City Council adopted a resolution approving the Measure A Decennial Review Expenditure Plan Amendments which included a funding agreement with STA for Measure A Capital Funds to identify an appropriate governing mechanism for ongoing operations and development of the Sacramento Valley Station.

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File ID: 2025-00515 3/4/2025 Discussion Item 16.

The City has been the lead agency for purchase and development of the Sacramento Valley Station in the Railyards, using Measure A funds to purchase the property, historic depot, and leverage over $150 million in state and federal funds to relocate the heavy rail tracks, separate passenger rail tracks from freight operations, modernize station operations, restore the historic depot including seismic retrofits, install heating/cooling, and fire suppression systems, and preparing a Master Plan for the future planned development of the site.

Measure A funds have supported the purchase and major steps in the development of the Intermodal Station in the Railyards. No further capital funds for this project will be available in this Measure A program other than current commitments to complete the Phase 3 Master Plan and support the City’s share of the Transit and Intercity Rail Capital Program (TIRCP) grant it received in 2020. The City currently does not receive any transit or rail funding and is not eligible to directly apply for most rail or transit funding since it is not a transit agency. As a result, all progress at the station will slow down or stop unless the City can find a new governance structure to access additional funds and manage expanded operations in the future.

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