NATIONAL RAILROAD PASSENGER CORPORATION

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NATIONAL RAILROAD PASSENGER CORPORATION 530 Water Street, 5th floor, Oakland, CA 94607 AMTRAK June 9, 2009 Ms. Carolyn K. Fullerton -- 6-09-7 Tenant Services Technician Community Development Agency Santa Ana Regional Transportation Intermodel Center (SARTIC) 1000 East Santa Ana Boulevard M-89 Santa Ana, CA 92701 RE: Statement of Self-insurance Dear Ms. Fullerton: Amtrak does not procure or maintain the primary Liability or Property insurance as prescribed in the Site License Agreement insurance requirements. Furthermore, Amtrak, as an interstate railroad, is subject to the Federal Employers Liability Act (FELA) and not to any Workers Compensation statutes. As such, Amtrak does not procure or maintain Workers Compensation insurance which is also prescribed in the Site License Agreement. Instead, like many other large U.S. corporations whose operations produce relatively high annual liability and physical damage loss expectancies, Amtrak retains its (1) employers liability, (2) public liability, and (3) physical damage loss exposures at very high levels and finances our risks thereto in a corporate wide self- insurance program. Amtrak does procure and maintain an Excess Liability insurance program which covers its employer's liability and public liability exposures, and a Master Property insurance program which covers its physical damage exposure, but neither of these programs have limits which attach below several million dollars per occurrence. As such, we request that the City of Santa Ana accept this statement of Amtrak's self-insurance as adequate financial guarantee of our indemnity obligation within the Site License Agreement and waive requirements for primary Liability and Property Insurance. If you have any further questions in this regard, please call Amtrak's Risk Manager, Marlin Smith, at (202) 906-3346. Sincere , Richard E. Guy Project Director Real Estate Development APPROVF") AS TO FORS - ura Stitt Shecdy Assistant City Attorney