Railroad project on former dinner train line stirs up dust, anger from Oakdale neighbors
The Sierra Northern Railway is mostly known for an Oakdale dinner train that once took excursions into the scenic foothills.
Lately, the growing shortline railroad is moving more freight and its new transfer station is stirring up complaints about dust, noise and more from nearby residents.
Stanislaus County officials are trying to find ways of mitigating the station’s impacts. The city of Oakdale also wants a better idea of Sierra’s plans for operations and how they might impact city residents.
The “transload” station off Wamble Road, south of Highway 108, was built in the past year without local permits because of exemptions for railroads under federal law. The station is a heavy-duty operation where grain is offloaded from railroad cars, dumped into huge piles and scooped onto semi trucks, which transport the feed grain to dairies and poultry farms.
“Because they are under federal laws, they can come in and do what they want to do,” said Derren Beland, who manages an almond farm just south of the transfer station.
Sierra Railway says it needed to move facilities from Woodland to the Oakdale site after a section of rail line was recently purchased for a flood control project near Sacramento. Sierra representatives said they have followed all applicable laws in creating the transfer station and are taking measures to address neighbors’ concerns.
The company said it’s proud of its services for farmers in the region.
A dozen neighbors near the transfer station off Wamble Road complain about impacts including noise, dust and rail yard switching close to their homes.
Beland and other neighbors complain that a shaker causes the ground to rumble. About 10 trucks per hour are running in and out of the station, using narrow country roads. Beland said his father-in-law’s almond trees, solar panels, custom home and vehicles are blanketed with a fine yellow dust that’s blown from the site.
Bob Cushing, his father-in-law, said his voice is hoarse from the constant exposure to dust.
Beland and other residents said they were never bothered by the Sierra dinner trains or freight trains that trundled by, but the new transfer station has put a busy freight operation right in their backyards.
Tom Pimley, a neighbor living where the rail line crosses Sierra Road, said crews showed up last fall and tore down fences and built two rail spurs into the site. The heavy equipment vibrated the Pimley house and its windows, knocking pictures off the wall, he said.
Today, railroad cars line up directly behind his house — virtually in his backyard, Pimley said.
“They bring the rail cars in at all hours, day and night, and put them together right behind my house,” Pimley said. “It bangs when the cars are pushed together. It sounds like a cannon. It’s that loud. The engines are left running half the night and lights are flashing into the house.”
Neighbors said motorists sometimes are waiting half an hour when trains block the nearby roads.
Stanislaus County Planning Director Angela Freitas initially served notice, in a Feb. 26 letter to Sierra Railway, that federal protections for railroads did not exempt it from local building and fire codes or environmental regulations designed to protect public health and safety.
Freitas wrote that the grain operation at the transfer station, operated by Central Valley AG Group, is not exempt from local regulations, even though the station is owned by the railroad.
The county has since changed its position and agreed the railroad is largely exempt from local permitting, but the county remains concerned about the issues and continues to research the pertinent laws. “We are coordinating with (Sierra) to see if there is anything we can do to address the complaints the neighbors have,” Freitas said.
County Counsel Thomas Boze is now taking the lead on the issue and outlined his understanding of the law in an email Friday: “The extent of preemption has been the subject of much litigation over the years, but it seems fairly clear that this preemption extends to local land use permits or other local regulations that could interfere with railroad operations.”
Boze wrote there are potential exceptions such as health and safety matters, under which railroads are not exempted from local permitting rules, as long as the rules don’t discriminate against rail transportation. He added that rail companies are also expected to obey federal environmental laws.
Boze said the county is looking closely at the onsite storage of grain at the Oakdale site, which is separate from railroad operations. “We would like to see that storage performed in a manner that prevents dust particles from affecting (the neighbors),” his email said.
Boze added that proper storage and reasonable restrictions on the trucking operation may be imposed regardless of the federal exemption.
The county counsel said it appears the railroad wants to be a good neighbor and is willing to address the community’s concerns, as long as it does not negatively impact railway operations.
Oakdale City Manager Bryan Whitemyer said the city received complaints in the winter about Sierra trains idling behind housing subdivisions in Oakdale. Since the shortline railroad is now focused more on its Riverbank-to-Sonora line, the city also wants to know if increasing rail traffic will result in more crossings blocking motorists in Oakdale.
“We have had good dialogue with them and want to have more,” Whitemyer said.
Ken Beard, chief executive officer of Sierra Northern Railway, said the company is trying to work with the residents living near the transfer station. “We sat down with (Stanislaus County Supervisor) Buck Condit and the county counsel to talk about issues the neighbors are having,” Beard said. “We shared with them the steps we are taking.”
Beard said one measure will be a 25-foot-tall fence, with fine mesh netting, to keep dust from drifting to nearby property. Beard said he has initial quotes from a vendor and the fence could be up in 30 to 60 days.
He said ultimately a large building can be constructed for grain storage and loading of trucks. Containing the grain-loading operation inside a building should mitigate the dust and noise, the CEO said.
States including California have defined railroad corporations as public utilities which have authority to condemn private property and exercise eminent domain to serve a public benefit.
Why the railroad needed a new site
Sierra Northern Railway was created in 2003 through the merger of the Sierra Railroad and Yolo Shortline Railroad. The company has more than 100 miles of track in Stanislaus, Tuolumne, Yolo and Mendocino counties, offering freight service throughout the state through connections with Burlington Northern Santa Fe railroad and Union Pacific.
A passenger division runs tourist excursions on the Skunk Train in Mendocino County and the Sacramento RiverTrain, the company’s website says.
Sierra Railway informed the neighbors of the Oakdale site in August 2020 that it was acquiring the Wamble Road property for its freight operations including a regional headquarters, maintenance shop and storage facility.
According to Sierra, the move was precipitated by another public entity with eminent domain authority, the Sacramento Area Flood Control Agency, which purchased facilities owned by Sierra in Yolo County for a flood control project.
In the August letter to its new Oakdale neighbors, Sierra said it needed to relocate its Woodland facilities to “ensure uninterrupted service to our valued customers.”
Beard said last week the Wamble Road site was the only property along the Oakdale-to-Sonora line that was flat and large enough for its facility needs.
Beard was asked to clarify a point raised by neighbors. Central Valley AG Group, an agriculture product transportation firm, promotes the Wamble Road transload facility on its website, boasting it transfers 800,000 tons of feed ingredients and commodities annually from railroad cars to trucks.
Sierra’s CEO confirmed Central Valley AG did not have a presence in Woodland, but the railroad’s Woodland site did have a small transload operation. Beard said Central Valley serves as Sierra’s agent at the Wamble Road station and performs the work for the railroad.
When asked if the railroad would acquire additional property along the 55-mile Riverbank-to-Sonora line for other rail facilities, Beard said it has no plans at this time.
“We are growing,” the CEO said. “The railroad industry across the country is growing at a pretty dramatic rate. You never say never, but we have no plans.”
Sierra representatives said railroads have special protections under federal law and the California constitution because of the benefit they provide to the public.
“We are feeding into the ag industry,” Beard said. “We are bringing in feed products for dairies. If it is not brought in by rail, it is coming in by truck. We reduce pollution and safety issues on the road.”
Railroad files eminent domain case
Sierra Railway has negotiated purchase of the 116-acre parcel near Oakdale from Burchell Nursery and filed an eminent domain complaint in Stanislaus Superior Court in April.
According to the complaint, Burchell Nursery entered an agreement in July 2020 for Sierra to possess and use 76 acres of the property including a 100-foot-wide access for trains and trucks off Wamble Road.
The railroad deposited $2.76 million in an escrow account based on an appraisal of the 116 acres. But the railroad and nursery have not come to agreement over the price.
“They only want to pay the unused ag land price,” said Jim Austin, chief financial officer for Burchell. “We are telling them it is not unused ag land. It is some of the best soil in California. ”
Austin said the nursery has farmed the property for more than 30 years, growing bare root trees for sale to customers.
The sandy loam soil is ideal for growing the young trees and then removing them from the ground while keeping the roots intact, Austin said. “They grow well and harvest easily,” he said.
Noting the land has supported 18 percent of Burchell’s bare root production, the nursery business is refusing to give up the other 40 acres to the railroad. A court hearing was set for later this month.
“I can assure you Burchell has been offered the fair market value of their property and more,” said Attorney Glenn Block, representing Sierra.
Can the impacts be mitigated?
County Supervisor Buck Condit, who represents the area, said he sympathizes with the neighbors and participated in a June meeting with Oakdale city officials, the railroad and county staff. Condit rated the conversation as good.
He said those representing the railroad expressed surprise that neighboring residents were upset, but they discussed solutions for reducing the impacts.
“They have had their lives turned upside down,” Condit said. “It has been frustrating trying to get something done for them and not being successful. I don’t know how we are going to make the railroad do this. We are trying to figure that out.”
Condit said railroad services are good for the agricultural community, but the grain operation raises a lot of problems with dust and traffic. The county roads leading to the Wamble Road facility are not made for continuous heavy truck traffic, he said, adding that studies are looking at the traffic issues.
The solution for the dust and noise may be enclosing the grain-loading operation inside a building, which would need to be quite large and won’t likely emerge soon. “I would guess a year before that happens,” the supervisor said.
Tom Pimley, who has railroad cars virtually in his backyard, said he wasn’t sure what relief he might get from the discussions with the railroad.
Another neighbor on Sierra Road said the railroad car switching operation blocks her driveway. “It shakes the house and scares my horses,” the neighbor said. “They are slamming the cars together. It is affecting our property value negatively.”
Federal funds pay for track improvements
The Sierra Railway in June 2019 was awarded $17.4 million in federal funds for track upgrades and safety improvements on the 55 miles of track in Stanislaus and Tuolumne counties.
Rep. Josh Harder, D-Turlock, pushed for the railroad’s application. The project to replace 90,000 old railroad ties and improve 10 crossings was expected to enhance safety on the railway dating to 1897. It was also expected to help Sierra Railway to serve customers and build new business relationships, a press release said.
Harder’s staff said Friday the congressman couldn’t pull away from scheduled events in his district Friday to discuss the railroad issue. Monday, Harder was busy with meetings of the House Appropriations Committee, a staff member said.
County officials have suggested that any federal permit requirement for the railroad could trigger an environmental review focused on the Oakdale site. A creek traverses the property.
Doug Ott, another nearby property owner, said he doesn’t understand how the transfer station could be launched without local permits and mitigation measures. The dust coming from the grain piles is sticky and does not wash off easily.
“It causes mites in the trees and we are spending more money to spray our trees,” Ott said. “An operation like this can come in and have an impact on other people’s property and there are no consequences whatsoever.”
This story was originally published July 15, 2021 at 4:00 AM.
