Rail Project Delivery

Status Report

Presented to the House and Senate

Transportation Committees of The

Vermont Legislature

As required by 19 VSA § 10(e)c

January 15, 2011

- - - Contents - - -

1. FY11 Rail Budget

2. Project Report

3. Track 1 (ARRA-High Speed Intercity Passenger Rail) NECR

4. Track 3 (ARRA-NY/VT Bi-State Intercity Passenger Rail Study) Rutland to

Bennington – Western Corridor

5. Track 2 (ARRA – High Speed Intercity Passenger Rail – Ethan Allen Express

Improvements and Extension) Rutland to Burlington – Western Corridor

6. Western Corridor (Jeffords) Earmark

7. 3-Way Partnership – Economic Development

8. Topics of Particular Interest

9. Amtrak

10. Vermont State Auditor’s Oversight of Rail

11. Rail – Property Management

12. Regional Involvements

1. FY11 Rail Budget: All figures are as of December 31, 2010

a) Total FY11 rail budget = $54,917,359.57 (100%)

b) Expenditures to date = $12,371,795.82 (23%)

c) Balance remaining as 12/31/10 = $42,545,563.75 (77%)

d) Non-ARRA expended to date = $ 7,913,159.12 (64%)

e) ARRA expended to date + $ 4,458,636.70 (36%)

= $12,371,795.82

f) Exp. 11/30/10 to 12/31/10 = $5,505,767.59 (44.5%)

2. Project Report:

a) Projects bid prior and Construction Completed in 2010

Project Description

Proctor Install 1,600 ties on the VTR (Railroad Forces)

West Rutland Install 2 mi. continuously welded rail on the CLP Pittsford HPP ABRB(8)

Rehabilitation of Br. 215 on the VTR in Pittsford

b) Projects Bid in 2010 and Construction Completed in 2010

Project

Description

Middlebury STP WCRS(7) Installation of 12 miles of continuously welded rail on the VTR1

New Haven RAIL5307(16) Reconstruction of the US 7/VTR highway crossing

Ferrisburg RAIL 5306(1) Reconstruction of the Little Chicago Rd/VTR highway crossing

Barton

Rehabilitation of Rail Highway Surface by District Forces/WACR-CRL

Swanton - Lake St.

Rehabilitation of Rail Highway Surface by District Forces/NECR

Milton

Rehabilitation of Rail Highway Surface by District Forces/NECR

Clarendon

Rehabilitation of Rail Highway Surface by District Forces/GMRC

St. Albans - Aldus St. (2)

Rehabilitation of Rail Highway Surface by District Forces/NECR

S. Burlington (2)

Rehabilitation of Rail Highway Surface by District Forces/VTR

Williston - N. Williston Rd.

Rehabilitation of Rail Highway Surface by District Forces/NECR

Shelburne

Rehabilitation of Rail Highway Surface by District Forces/VTR

1 (18 of the 28 workers on this job were hired from hired locally {65%})

c) Projects Bid in 2010 with Construction to be completed in 2011

Project

Description

Rockingham STP GMRC(1) Reconstruction of Bridge 108 Parker Hill Road on GMRC

Rutland City RAIL5307(15) Reconstruction of the West ST/Forest ST/ VTR

Rockingham STPGMRC(16) Scour and slope stabilization for Br. 107 on the GMRC

Chester

STP GMRC(4) Rehabilitation of the bearings and bridge seats of Br. 114 on GMRC

Chester

STP GMRC(5) Rehabilitation of the bearings and bridge seats of Br. 121 on GMRC

d) Projects to be Bid in 2011 with Construction completed in 2011

Project

Description

Clarendon STP GMRC(7) Rehabilitation of the bearings and bridge seats of Br. 153 on GMRC

Wallingford STP GMRC(8) Rehabilitation of the bearings and bridge seats of Br. 145 on GMRC

Salisbury

WCRS(15) Reconstruction of the superstructure of Br. 232 on the VTR

Middlebury WCRS(16) Reconstruction of the superstructure of Br. 234 on the VTR

Leicester

WCRS(11) Rehabilitation of the bearings and bridge seats of Br. 229 on the VTR

Middlebury WCRS(12) Rehabilitation of the bearings and bridge seats of Br. 233 on the VTR

New Haven WCRS(13) Rehabilitation of the bearings and bridge seats of Br. 243 on the VTR

3. Track 1 (ARRA- High Speed Intercity Passenger Rail) NECR

Approximately 14 miles of continuously welded rail have been installed before winter conditions

halted the progress. Two companies, Atlas and Railworks, were awarded the welded rail

installation piece and have been working in tandem. Work will continue on signaling and

communications during the winter. Rail installation is expected to begin again sometime in

March, weather permitting. So far the project has gone very smoothly. As you may know,

USDOT awarded an additional $2.7M to this project in December. Discussions between FRA,

NECR and VTrans are ongoing to identify exactly what, within the scope of the project itself,

this additional money will support. This project has a 24 month window.

4. Track 3 (ARRA - NY/VT Bi-State Intercity Passenger Rail Study) Rutland

to Bennington – Western Corridor

This grant engages the State of New York and Vermont to conduct a planning study to develop a

corridor analysis, service development plan and associated Preliminary Engineering and NEPA

documents for an intercity passenger route that would serve the communities between Albany,

NY and Rutland, VT including Mechanicville, NY, Bennington, VT and Manchester, VT. The

FRA award is $500,000 with $250,000 coming from both New York and Vermont, for a project

total $1,000,000.

The Track 3 Planning Grant award is shepherded by a working group comprised of

representatives from Bennington (Rex Burke), Rutland (Mark Blucher), NYSDOT (Charlie

Poltenson and Tim Conway), VTrans (Costa Pappas and Joe Flynn) and is chaired by VTrans

(designee). The official agreement was signed with FRA in early September. RFP’s were

solicited and 6 formal responses were reviewed by the working group on November 30th

. From

that meeting a front runner was identified, and Contract Administration at VTrans is vetting the

front runner’s proposal further. The project has a 24 month window.

5. Track 2 (High Speed Intercity Passenger Rail – Ethan Allen Express

Improvements and Extension) Rutland to Burlington – Western Corridor

Application

Twice, 2009 and 2010, VTrans has submitted applications to fund improvements on the Western

Corridor, from the Vermont State-Line to Rutland (CLP) and Rutland to Burlington (VTR), for

the purpose of extending Amtrak’s Ethan Allen Express to Burlington. Both times the FRA has

not selected this application. Upon the first non-selection, Vermont worked closely with the

FRA to better understand it’s suggestions for improvement and the second application was

tailored to the guidance received.

Upon release of information of the second round awards, which did not include Vermont, we

were extremely perplexed. Over 90% of the awards went to state’s whose projects are years

away from implementation. Working with our Joint Delegation in Washington, Vermont pressed

to understand the decision of FRA and USDOT. After detailed efforts FRA has agreed to meet

in Vermont with VTrans and NYSDOT to better understand the plan. We view this as an

optimistic sign. This meeting is expected to be this winter, in advance of yet another funding

opportunity.

6. Western Corridor (Jeffords) Earmark:

Currently $19.80M remain available in this earmark intended for use on Vermont’s Western

Corridor. The Jeffords Earmark has frustrated many people for years as it sat largely unspent,

referred to as “Glacial”, at times. VTrans had a placeholder of $16M attached to the Middlebury

Spur, until the Record Of Decision (ROD) became known. With the release of the ROD in

January 2010 VTrans has met many times with OMYA and the railroad. From these meetings

and through Conceptual Design efforts, we have identified the State’s cost to construct the bridge

at US Rt. 7 to be $6.15M. We are comfortable enough, although further design is necessary,

with this estimate that the remaining $13.65M is being programmed for projects. With the

support of the Vermont Rail Council, VTrans believes that bridge # 219 in Florence, VT near

Kendall Hill Road should be the recipient of the bulk of the earmark. This bridge relocation is

estimated at $11.95M. The major reasons we feel this should be done are 1) future federal

funding will likely be scarce, resulting in the need to appropriate state funds if we don’t use the

earmark and 2) with one minor exception (project programmed now) all the bridges south of

Kendall Hill Road, to Rutland, are at the 286,000 lb. load capacity. By rebuilding bridge # 219,

we realize the investments already made south of Florence and we allow one of the largest

freight rail customers in Vermont to maximize commodity movement.

Remaining funds ($1.7M) would be targeted at 9 other projects all on the WC between

Shaftsbury and New Haven:

Bridge 95 Clarendon

Bridge 79 Dorset

Bridge 239 Middlebury

Bridge 57.5 Shaftsbury

Bridge 63 Sunderland

Bridge 64 Sunderland

Bridge 242 New Haven

Bridge 91 Wallingford

Bridge 72 Manchester

7. 3-Way Partnership - Economic Development:

The 3-way investment program is intended to spawn economic opportunity by leveraging

projects between the State of Vermont, the railroads and freight shippers. Potential projects are

identified, costs are estimated and benefits, value and timelines are discussed. If approved, costs

are shared by the three parties. VTrans hopes to increase opportunities for Vermont businesses

to access this program. Often we are contacted either by the railroad, who have prospective

clients or by developers who also have prospective clients who seek rail siding locations. Recent

3-way projects are:

a) Late 2009 between NECR, Swanton Limestone and VTrans in Franklin County.

b) In 2010 Shelburne Limestone, Vermont Railway Inc. and VTrans joined to

construct the first truck-to-train transload facility at the Burlington Railyard in

Chittenden County.

c) Current projects involve Phoenix Feeds of New Haven in Addison County

d) Couture Trucking Co. of Lyndonville in Caledonia County.

8. Topics of Particular Interest:

a) 12 miles CWR - VAOT entered into a contract for 12 miles of continuously welded rail with

Railroad Construction Company of New Jersey. RCC’s total bid was $3,015,507, which was

$96,637.05 under the estimate prepared for VAOT by HDR Engineering. There were three

approved bidders who took out plans. No contractors questioned the completion date during

the bidding process. A one month delay was incurred due to attempts by FHWA to determine

how to account for salvaged rail removed and credited to the project. Due to this delay the

time between advertisement and the project completion date was compressed. There was one

bidder and the bid was opened on May 28, 2010. The bid was from Railroad Construction

Company, of New Jersey for $3,015,507.00. VTrans did not find anything in their bid which

justified not awarding the contract. As such we proceeded with the award to the apparent

low bidder. The contract was executed by VTrans on June 30th

, 2010. RCC began the project

on July 19, 2010. Actual rail installation began on August 17, 2010. VTrans has not

encountered any problems with the contractor to date. In fact, resident engineering staff has

been quite impressed with the contractor. Once the project began, an unusually high number

of field welds were discovered in the rail, which was not noted during the pre-purchase

inspection (note that the pre-purchase inspection was conducted by a VTrans rail employee

and two Vermont Rail Systems superintendents). There were 292 welds which required a

significant amount of grinding and prep work to the rail base to allow for the rail to be

properly installed. These grindings caused the project to be extended 28 days and added

$54,484.28 to the cost. There was also a discrepancy in the material spec’d by HDR

Engineering used to plug holes in the ties left from the removal of the old spikes. A new

product had to be agreed upon while the contractor was engaged in other aspects of the

project. This did not significantly affect timelines. Vermont Railway requested a change in

design for the location of one existing turnout at milepost 60.36. This did not create any

additional cost or time to the contractor. The project finished on November 24, 2010 one day

ahead of the revised completion date.

b) Middlebury Spur – As stated before the ROD came out in January 2010. Immediately

OMYA assembled a team of engineers to identify what would have to be built at the Verpol

plant in Florence to accept and off-load quarry rail cars. Monthly meetings have followed

between VTrans, FHWA, OMYA and the railroad. OMYA met with VTrans in October and

committed to the Spur project, contingent upon acceptable financing. Currently, OMYA and

the railroad are discussing financing options and contemplating a loan request through the

FRA, for what is known as a Railroad Infrastructure Loan (RRIF Loan). Preliminary Design

has led VTrans to estimate its share of costs, which is limited to building a bridge at US Rt.

7, at $6.15M. This bridge will be near Foster Motors and will allow the rail spur to cross in a

cut beneath Rt. 7. No further work of significance has occurred on the rest of the Spur, or is

likely to before financing is secured, however the Rt. 7 bridge design continues.

c) Middlebury Tunnel – There are two surface bridges that cross the Vermont Railway (VTR)

in downtown Middlebury, they are at Merchants Row and Main Street. These bridges were

slated for reconstruction, but continually ran into design challenges given the surface grade

and possible disruption to the cityscape of the local streets and sidewalks. All the while

VTrans and the railroad were facing decisions about the underpasses, created by these

bridges. The vertical height is limited and restricts the use of double-stack shipping

containers. Welded rail was slated to be laid through the area; however it was decided to

hold so as not to have to rip it out to perform the underpass and bridge work above. About a

year ago the concept of lowering the grade of the rail line, and utilizing a precast concrete

structure through the linear distance and then laying welded rail was hatched. Scoping of this

concept is currently underway. Imagine laying hollowed out children’s blocks, one after

another, in a long line and then passing a toy train through them? In essence, that is the

concept of the Middlebury Tunnel.

d) Rutland Railyard Improvement Project – The Environmental Assessment (EA) regarding this

project was released in November 2009. It identified what is called the Preferred Alternative,

which is the plan chosen to proceed with. In this case it was Preferred Alternative 5. A

public comment period was opened until January 29, 2010. During this period the public

could comment on the plan (5) chosen to be built. After much input, it became clear that

there was little to no public support for the Plan as chosen. VTrans position was and is that it

supports this project, but it will not force it upon the community that openly does not support

it. Meetings were held between the City of Rutland, the Town of Rutland and the Rutland

Redevelopment Authority. In the end a request was made by VTrans to the FHWA to allow

this project to circle back to the Environmental Impact Statement (EIS) instead of forging

ahead with Preferred Alternative 5. The benefits of this request were many. However, it

serves two main points, the first being that if Alternative 5 as identified in the EA is not built

the State will have to repay about $1.3M to the FHWA. Also, going back to the EIS allows

new ideas and old sites to be reexamined and new sites to be explored. Granted, after an EIS

process there may still not be a favorable decision. Expenditures under an EIS may not

require repayment, if FHWA determines the best alternative is what is called No Build. We

await a response to return to the EIS from the FHWA.

e) Green Mountain Railroad Corporation (GMRC) – On December 30, 2010 VTrans and the

GMRC agreed on terms by which the Lease by the State to GMRC to operate their railroad

renewed for the preset length of ten-years.

f) Washington County Railroad (WACR) – The WACR runs from Montpelier Junction where it

meets the NECR to Websterville, which is its terminus. For many years there was sporadic

traffic on this line. This minimal activity spawned habits and encroachments by citizens that

are contrary to safe practices regarding rail lines. Then in November 2009 an announcement

that increased rail traffic may well occur resulted from plans to ship waste granite, stored in

Websterville, to points in the US where shore stabilization projects were being undertaken.

Clearly this news became of great interest to Montpelier, Berlin, Barre and Barre Town.

Subsequently there have been numerous meetings with stakeholders about aspects of this

activity with primary focus on safety. Candidly, there are concern about plans for bike paths

which have been designed, funded and intended to be located on part of the railroad right of

way, the potential length of trains, their frequency and the effects on the communities. In fall

2010 VTrans applied for FRA funding ($2.9M) to relocate 1.32 miles of the line in

Montpelier adjacent to what is known as Country Club Road, on an existing State-owned

railbed. If federal funding is unavailable VTrans would discuss State funds for this

realignment. This proposition has also caused concern on a few fronts. Factually, the State

is the steward of the property and the railroad has the right, under Federal Regulation, to

conduct rail operations on the line. Together the State and the railroad partake in

maintenance (railroad) and upgrades (State) on this line.

g) White River Junction Railroad Station – In November 2009 VTrans began discussing the

acquisition of the WRJ station with it’s current owner, Byron Hathorne. Mr. Hathorne

advised VTrans he was putting the station and land on the market for sale at the price of

$875,000. Of primary interest is 5.5 acres to the east of the station, owned by the State of

Vermont. This acreage is land-locked by the WRJ station and efforts to buy a slice to

“unlock the land”, were unsuccessful. WRJ also houses the Amtrak station, offices for the

GMRC, NECR, controls parking for Amtrak customers and some parking for the adjacent

Vermont Court House. In August 2010 we submitted a TIGER II application for funding to

purchase the station, which was not selected. Also, as mentioned before, we still have an

earmark request filed for funding as well.

In November 2010, a Lease and Grant of Option to Purchase the WRJ station was entered

into by the owner and the State, giving the State until November 5, 2013 to purchase the

station. This Option cost $87,500. Also in November 2010, the Department of Buildings

and General Services (BGS) leased the building from the owner and operates the building

until December 2013. The State shall pay the owner $7,845 per month and the State collects

all rent from the tenants. During this Lease, the owner continues to pay property taxes, water

and sewer, insurance and all major interior and exterior maintenance, with the State

responsible for basic utilities. As such, we have 34 months remaining to come up with

funding to buy the WRJ station.

h) FRA Bridge Regulations – There are 210 bridges on the state-owned lines. VTrans used to

perform it’s own bridge inspections on a 24-month basis. New FRA regulations now call for

all rail bridges to be inspected on an annual basis. Due to this doubling of effort and

difficulty at times gaining access to the lines (due to securing proper agreement to provide

access and railroad flagging services) VTrans is now engaged in soliciting proposals to hire

the inspection work out. This is in the very preliminary stages. A scope of work has been

outlined, we have talked to other states and to local railroad partners about their experiences

with contracting bridge inspection work and we intend to let a formal RFP out soon. The

actual impact on costs to meet these new regulations, due to the accelerated inspection

frequency is not known at this time.

i) Essex to Burlington (Winooski Branch) – The Western Corridor travels all the way up the

western side of the state from Bennington to Burlington to Essex to St. Albans to Alburgh

and the border with Canada. The stretch from Essex to Burlington is on the NECR line.

There has been a desire to upgrade this line to increase freight capacities and some passenger

rail opportunity between the Village of Essex and outlying areas and Burlington. To date

VTrans has had the opinion that this concept has merit, however in the immediate future

there was a queue of projects and initiatives. This will continue to be a topic of interest and

VTrans will remain engaged with all parties regarding this initiative.

9. Amtrak:

Amtrak and the State of Vermont have a long history. Currently Amtrak provides two passenger

train services daily in Vermont. The “Ethan Allen Express” runs between Albany-Whitehall-

Rutland and the “Vermonter” runs between St. Albans and Washington D.C. Amtrak (National

Railroad Corporation) operates on the federal fiscal year. On October 1, 2010 VTrans renewed

it’s Service Agreement with Amtrak to maintain our present level of service.

Efforts to aggressively market Vermont’s Amtrak service began in earnest under Charlie Miller

and Commissioner Rob Ide. The marketing budget is comprised of $50,000 from the Rail

budget and $100,000 through Amtrak. Today, we have a very detailed marketing plan which

taps into radio; print (newspapers & VT. Life), television, venues (Burlington Airport, VT. Lake

Monsters, UVM Athletics, Vermont Symphony Orchestra) to mention a few.

Follow these links to our newest TV ads, produced, acted and shot locally:

http://www.youtube.com/watch?v=1y_Gjkx0m9I http://www.youtube.com/watch?v=bdpqmdjXEKs http://www.youtube.com/watch?v=2QAgujQwMnY

The importance of marketing is never clearer than the impact measured by ridership and revenue

numbers. The more revenue generated through selling tickets to riders results in fewer subsidy

dollars paid by taxpayers. The FFY11 subsidy is forecasted at nearly 14% less than the previous

forecast. Below are four charts, the first two shows the FFY10 in total and the second two shows

FFY11 YTD. In both cases you can see the encouraging movement in ridership and revenue. (One wild card of note is fuel. Like with any of us the unknown is difficult to predict. Current revenue projections

are based on industry assessments of fuel. Escalating fuel prices will have direct one-to-one impact on budgets):

Amtrak's Ethan Allen

State Contract Period: 10/1/09 - 9/30/10

Ridership Ticket Revenue

Month FY10 FY09

% Chg. FY10 FY09

% Chg.

Oct 3,999 3,870 +3.3 $186,368 $187,469 -0.6

Nov 3,711 3,817 -2.8 $181,442 $199,289 -9.0

Dec 4,652 4,682 -0.6 $238,743 $245,854 -2.9

Jan 3,758 3,668 +2.5 $191,841 $191,891 -0.0

Feb 3,244 3,234 +0.3 $166,722 $164,371 +1.4

Mar 3,831 3,501 +9.4 $196,558 $180,859 +8.7

Apr 3,606 3,466 +4.0 $176,529 $169,362 +4.2

May 2,971 3,100 -4.2 $142,409 $154,534 -7.8

Jun 3,880 3,512 +10.5 $194,117 $171,329 +13.3

Jul 5,720 4,891 +16.9 $289,714 $239,369 +21.0

Aug 5,484 5,646 -2.9 $274,371 $278,322 -1.4

Sep 3,175 3,361 -5.5 $160,182 $164,713 -2.8

Contract Period Total 48,031 46,748 $2,398,998 $2,347,362

Contract Period Cumulative Thru September FY10

Ridership Ticket Revenue

FY10 FY09

% Chg. FY10 FY09

% Chg.

48,031 46,748 +2.7 $2,398,998 $2,347,362 +2.2

Amtrak's Vermonter

State Contract Period: 10/1/09 - 9/30/10

Ridership Ticket Revenue

Month FY10 FY09

% Chg. FY10 FY09

% Chg.

Oct 7,179 7,042 +1.9 $370,165 $372,436 -0.6

Nov 6,872 5,998 +14.6 $378,787 $357,688 +5.9

Dec 7,941 7,449 +6.6 $456,032 $427,728 +6.6

Jan 6,563 6,029 +8.9 $367,071 $342,029 +7.3

Feb 6,238 5,126 +21.7 $338,817 $266,499 +27.1

Mar 6,638 5,946 +11.6 $377,268 $323,308 +16.7

Apr 6,412 5,613 +14.2 $355,077 $301,036 +18.0

May 5,923 5,182 +14.3 $326,747 $282,236 +15.8

Jun 7,780 5,759 +35.1 $427,913 $296,997 +44.1

Jul 9,928 7,014 +41.5 $573,474 $370,521 +54.8

Aug 8,596 7,764 +10.7 $482,654 $409,207 +17.9

Sep 6,175 5,094 +21.2 $324,741 $262,246 +23.8

Contract Period Total 86,245 74,016 $4,778,747 $4,011,930

Contract Period Cumulative Thru September FY10

Ridership Ticket Revenue

FY10 FY09

% Chg. FY10 FY09

% Chg.

86,245 74,016 +16.5 $4,778,747 $4,011,930 +19.1

Amtrak's Ethan Allen

State Contract Period: 10/1/10 - 9/30/11

Ridership Ticket Revenue

Month FY11 FY10

% Chg. FY11 FY10

% Chg.

Oct 3,333 3,999 -16.7 $168,477 $186,368 -9.6

Nov 3,670 3,711 -1.1 $188,522 $181,442 +3.9

Dec 4,652 $238,743

Jan 3,758 $191,841

Feb 3,244 $166,722

Mar 3,831 $196,558

Apr 3,606 $176,529

May 2,971 $142,409

Jun 3,880 $194,117

Jul 5,720 $289,714

Aug 5,484 $274,371

Sep 3,175 $160,182

Contract Period Total 48,031 $2,398,998

Contract Period Cumulative Thru November FY11

Ridership Ticket Revenue

FY11 FY10

% Chg. FY11 FY10

% Chg.

7,003 7,710 -9.2 $356,999 $367,810 -2.9

Amtrak's Vermonter

State Contract Period: 10/1/10 - 9/30/11

Ridership Ticket Revenue

Month FY11 FY10

% Chg. FY11 FY10

% Chg.

Oct 7,970 7,179 +11.0 $422,833 $370,165 +14.2

Nov 7,812 6,872 +13.7 $455,320 $378,787 +20.2

Dec 7,941 $456,032

Jan 6,563 $367,071

Feb 6,238 $338,817

Mar 6,638 $377,268

Apr 6,412 $355,077

May 5,923 $326,747

Jun 7,780 $427,913

Jul 9,928 $573,474

Aug 8,596 $482,654

Sep 6,175 $324,741

Contract Period Total 86,245 $4,778,747

Contract Period Cumulative Thru November FY11

Ridership Ticket Revenue

FY11 FY10

% Chg. FY11 FY10

% Chg.

15,782 14,051 +12.3 $878,154 $748,952 +17.3

PRIIA Section 209 – The Passenger Rail Investment and Improvement Act of 2008, passed by

Congress and known as PRIIA, charges Amtrak with developing new methodology for cost and

revenue allocation to be applied to State supported/sponsored Amtrak services. Per the

legislation, the new methodology must be applied beginning no later than 2013. VTrans has

been closely engaged with Amtrak and the States for Passenger Rail Coalition in attempts to

negotiate reasonable outcomes from this legislation. Early drafts given to VTrans by Amtrak

indicate the present level of service to Vermont would cost 90% more under the new funding

scheme. Clearly this is unacceptable and VTrans has strongly communicated that both to

Amtrak and the Delegation. Amtrak continues to work with the States for Passenger Rail

Coalition who represents our concern in PRIIA matters, especially Section 209. The

encouraging news is that an unofficial extension of six months has been agreed to by both parties

(Oct. 2010 – April 2011). During this time frequent meetings are taking place in Washington

with Amtrak. To date those meetings are bringing more favorable definitions of Direct Costs,

Shared Costs and Capital Costs, all earlier points of contention. Clearly, the cost to operate

Amtrak service will rise from its plane today to something higher, soon. However, the task at

hand is to identify reasonable and fair costs as well as revenue credits resulting in the least

negative outcome for Vermont. There will be more to report on this as time goes by.

Castleton Station – In November 2009 we moved the Amtrak Station from Fair Haven to

Castleton. Boarding numbers are running consistent and Amtrak is working with the railroad to

construct a permanent platform and additional parking on railroad property.

Montreal – Return of passenger rail service to Montreal is a high profile subject. The biggest

obstacle to reasonable and effective passenger rail service through Vermont to Montreal is

border security. Presently, the Amtrak Adirondack has to stop once it crosses from New York

into Quebec and clearing the train can take hours. Everyone and all baggage are off-loaded

while Canadian Customs (CBSA) performs their duties. VTrans, with other border states, has

been asking for designation of secured space in Montreal at Central Station from which all in-

bound and out-bound passengers are cleared, similar to airport operations. Fortunately this

concept is gaining traction. The State of New York is working with Amtrak and Central Station.

Space has been identified, renovation costs are being estimated and discussions have occurred

between the US and Canadian and Quebec Governments. VTrans has attended several meetings

on this subject and has made formal notice to Central Station of it too having the desire to utilize

the expected secure facility. There is a fair amount of work remaining as service plans, time

tables, union agreements, revenue and subsidy projections etc. all need to be dealt with.

However, from an infrastructure perspective the prospect of passenger rail service returning to

Montreal has advanced significantly within the last year. As you know, Governor Shumlin has

asked Brian Dubie to assist the Administration with his contacts in Quebec.

10. Vermont State Auditor’s Oversight of Rail:

The SAO conducted an audit of VTrans Rail in December 2008. It is fair to say that the finding

left VTrans and the Rail Section with plenty of homework. For the last two years we have

worked to address all items mentioned regarding oversight of railroad activities with the State

from, contracts, invoicing, rent, interest, procurement of materials used on jobs funded by the

State and other items. In the last year we have had several meeting with the Auditor’s office and

I believe have an excellent working relationship. As is practice, the SAO is now conducting a 24

month-out review of progress, testing policies and seeking to identify any challenges that remain.

The outcome of this review will be made known as soon as it is completed.

11. Rail Property Management:

The State of Vermont owns 305 miles of active rail line and 148 miles of rail trail (rail-banked).

VTrans manages and oversees this real estate. With this much land there are hundreds and

hundreds of abutters. Like any property line often there are issues of encroachment, violations,

agreements, leases and the like. Property Management staff addresses these and more on a daily

basis. Below is a chart of new projects and agreements undertaken in the last few years:

Type of Agreement Total Number of Agreements (Fiscal 2009-

2011)

License 6

Lease 23

Master License 21

Private Crossing 3

Temporary 7

Grand Total 60

Fiscal Year Total Number of Agreements

2009 13

2010 38

2011 9

Type of Agreements Total Number of Pending Agreements

License 1

Lease 5

Master License 11

Private Crossings 10

Grand Total 27

Along with getting these agreements finalized, we have been able to generate lease revenue. We

have set a goal of $375,000.00 to be reached by June 30, 2011. As of January 4, 2011, we are at

$242,359.34. On November 16th

our numbers were at $184,995.00. This is a $57,364.34 increase

in 7 weeks. Over the past several years we have been able to increase our revenue significantly

since 2004 when we started keeping track. In FY09 we generated $312,484.55 and FY10 we

generated $354,746.64. We had a $42,262.09 increase between the two years. With 5 months left

to reach our goal we are confident Property Management can reach and even exceed the goal.

12. Regional Involvements:

VTrans is actively involved with the New England States, New York and Quebec on regional rail

issues. The major rail projects requiring coordination and planning are (map included):

New England & New York Transportation Compact

Springfield (MA) to White River Junction High Speed Rail designation

Boston to Montreal

Knowledge Corridor (MA)

Inland Route – New Haven to Springfield to Boston

Capitol Corridor – Boston to Concord

Downeaster (ME)

Northeast Corridor (Coast)

Empire Corridor (NY)

Adirondack Corridor (NY)

We attend regular Transportation Leaders meetings and from a planning perspective all major

projects are discussed with emphasis on regional impacts.