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Ms. Michelotti commented that the loan is now non-reimbursable by the grant since the rules have changed. Mr. Hovingh hoped the City would not adopt the draft resolution until the agreement is rewritten so that the City would not be out the thirty thousand dollars. Ed Churka, 507 St. John Street, briefly described how this project got started in 1989. This project is trying to draw international attention. He referred to other historic trains, such as the Durango line which has a 28 mile section of track going through the granite of the Rocldes heading to Silverton. They are nmning narrow gauge, coal burning engines which are authentic trains and tracks. There is the Skunk Train in Felton and the Old Town Sacramento Railroad Museum, which is the national location for railroad history and memorabilia. This will be the last chance for funding under the TEA grant. It has been reduced from $50 million to $15 million. Currently, the six miles of railroad that is built from Niles to downtown Sunol is operating. They will celebrate their annual event this weekend. Some people have even rented a whole car and they have had to turn some people away who did not buy tickets in advance. He then reviewed other trail applications and associated problems. The big problem is getting the funding. The PRA has not requested money from the City, but will have sweat equity labor along with donations. Parking is not a problem since the corridor is 100 feet wide. They'll use the parking facility twice a month and the rest of the time it is free for other uses. It costs $120- $250 thousand to put in a grade crossing, but with sweat equity labor it should cost only about $30 thousand. Alameda County has licensed the PRA at the Pleasanton Sunol Road at the Verona crossing. Alameda County has required, as a condition of erossing the corridor, that the City put in that grade crossing. Mr. Lum stated that in discussion with Alameda County, the County has _aslc_txl, as a condition of crossing the transportation corridor, that the railbed be installed. The County has not requested the signal hardware which is more expensive to install. Ms. Michelotti asked if the railway were extended beyond Bemal, would the Association pay for the entire crossing and would the traffic issues have to be dealt with? She asked if Mr. Churka felt it was feasible to bring the train to Junlpero. Mr. Churka stated that was not an issue since it was up to the City and the downtown merchants if they wanted to have the train come in further. He stated that the railbed as it gets to lunipero dramatically drops off both sides and there would be a tremendous amount of land fill, piping, etc. Mayor Tarver asked if that could be evaluated as an alternative in the EIR? Mr. Churka replied yes, but the cost would be exorbitant. Ms. Michelotti asked if the Association had been able to obtain any other grants for projects like this? 11/28/95 -4-