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«Message Page ] of 2 Shelly Badger From: Kesterson Kevin SSgt WADS/DOCV [Kevin.Kesterson@WADS.MCCHORD.AF.MI L] Sent: Thursday, March 30, 2006 11:11 PM To: Shelly Badger Mrs. Shelly Badger, How are things out in Yelm? Last week I returned from the Mississippi Gulf Coast back up here to our great state of Washington. The devastation from Katrina is both awe-inspiring and heartbreaking to witness. The good people there are rebuilding like crazy though, which speaks volumes for their grit and determination. My friends and I are interested to know what the status of the YPL is. Have you secured funding for the two projects (embargo lift & connector track to TR)? Did you ever find out about the track railcar-weight capacity issue between your assessed capacity of 276K and the new railcar weight of 286K? Whether or not Yelm uses our proposed financial assistance, Leo, Lou and I are rooting for the success of the YPL in the near future. I have included an updated version of the email I last sent you before I went down to Biloxi. This is just to serve as a reminder of what we would like to do for Yelm, why we have the position we do regarding train operators (lots of 'em; shippers should have control over YPL switching), and the paper from the ASLRRA about railcar weight and track weight capacity. I look forward to learning more, Kevin Kesterson (360) 923-1811 From: Kesterson Kevin SSgt WADS/DOCV Sent: Friday, February 17, 2006 6:27 PM To: 'Shelly Badger' Subject: Thank You Shelly, I just wanted to thank you for meeting with me this last Wednesday night about the Yelm Prairie Line. I really had fun meeting with you! I would like to continue talks if you feel that Yelm will not be receiving funding soon from the state or otherwise to get the two projects ( 3000' connector track and existing line upgrade) done so that rail 4/3/2006 Message Page 2 of 2 service can begin on the line. I am heading out of town on Monday and will not return until the 24th of March, and so we can get together after then. With respect to funding, I want to bring to your attention that according to the engineering report you shared with me, the YPL has a railcar weight capacity of 276,000 lbs. Wednesday night we discussed how modern railcars are currently being built for 286,000 Ib. capacity. The rehabilitation estimate you have does not seem to address this pressing issue. I have included an attachment that deals with this issue, and hope you find it informative. Once again to keep it clear, my team is willing to: Pay you what you paid for the YPL (only if necessary to secure line ownership), build the connector track, rehabilitate the line to accommodate 286,000 Ib. railcars, and then lease out the line to train operators for a fee. We will then have liability for maintenance and other issues, relieving the city of that burden. Our open line lease concept will empower your shippers. If they feel that someone else can offer them better local switching service than what they are currently receiving, they will be able to change services instead of being stuck with only one provider. There are many companies that specialize in providing local railcar switching services. I will include links to a few for the purpose of illustrating this point. http://www.railserveinc.com/ http://www.tcry.com/ourservices.htmI#switching http://www.watcocompanies.com/switching services.htm htt ://www.tgsgroup.com/contract.htm hftp://www.r*corman.com/switching.shtml These 5 examples are just a slice of the dozens of companies out there that compete to offer localized switching service just like what will be needed on the YPL between the future TR connection and shippers property sites. As you can see the issue is not finding someone to provide rail service as many clamor to do so. We feel the issue is empowering YPL shippers to use these people as well as Tacoma Rail as best suits their needs. Traffic coordination will be an important issue which we will tackle as a company with coordination plans designed by hired industry expertise. Safety will be paramount to any YPL operation and would entail our direct radio contact with train operators while moving on the YPL to monitor safety and ensure train separation. I understand from our meeting that it is important for my team to thoughtfully consider how we can seek to minimize or eliminate the risk involved from the cities standpoint of selling the line to a private entity. While I don't propose to have concrete solutions to the cities concerns right now, we would be very willing to work with the city on this. Perhaps we could sign a legal contract to ensure the line will not be abandoned or unnecessarily embargoed in the future for a given number of years; or a contract that says if we ever sold the line the city would have first priority, the possibilities are endless. It is hard to imagine, at least from my standpoint, an investment team committing 2 to 3 milllion on getting the rail line up to snuff for modern day operations, and then not doing everything possible to ensure success of the operation, and at the very least recouping the initial investment. That involves making railcar movement possible in this case. We do respect the cities concern to safeguard the lines future! We want the best for the YPL as its success will contribute to the economic vitality of Thurston County of which we are all residents. If you are able to get funding elsewhere soon for the two projects, then that is terrific, but if not we hope you will consider working with us in the upcoming months. As you can see, we believe in the potential for moneymaking on the YPL, and that it is a shame it is not being utilized to build wealth on many fronts right now- ours, train operators, shippers, taxpayers, and also the city and county tax bases. The YPL can be a tremendous asset for building economic wealth in our county and it is our hope this potential energy can be turned kinetic in the near future. Let us know if we can help. Kevin Kesterson &Team (360) 923-1811 4/3/2006 ASLRRA Page 1 of 1 i• AMERICAN SHORT LINE AND REGIONAL RAILROAD ASSOCIATION The Voice of America 's Independent Railroads To Headlines: .1 American Short Line and Regional Railroad Association 50 F Street, N.W., Suite 7020 Washington, DC 20001-1536 (202)628-4500 Fax: (202)628-6430 E-mail: aslrra@aslrra.org http://www.aslrra.org/ 4/3/2006 ASLRRA - Whats In The News-Position Papers Page 1 of 4 ❑x ASLRRA Logo ❑x F-1 n n n Position Papers 286 PROBLEM ON LIGHT DENSITY RAIL LINES America's small railroads - -the more than 500 short lines and regionals with operations in all 50 states of the U.S. - -have a long,proud history of being scrappy competitors and service-focused innovators in the railroad business. These small businesses have carved out specialized niches within the overall U.S. rail network(and now Canada,too). In most instances they have found a way to succeed where others have failed, snatching victory from the jaws of imminent defeat in the case of many rail lines that were near abandonment. Short lines and regionals have been the "growth segment" of the rail industry in recent years. The number of small railroads has more than doubled since the Staggers Rail Act of 1980, growing from about 220 companies in 1980 to more than 500 today. Today, according to 1998 statistics published by the Association of American Railroads(AAR), 29 percent of the rail mileage in the U.S. - - more than 49,000 miles of track- - is owned,maintained and operated by non-Class I railroads. Among the many significant changes that Congress made to the regulatory framework in Staggers were revision of the line sale mechanism, and revision of the abandonment provisions. The effect of these changes has been to encourage sale of lines that were identified as surplus or slated for abandonment by their Class I owner. This approach worked remarkably well and has helped to transform the rail industry. Entrepreneurs have bought hundreds of light density lines across the country. By utilizing business plans that typically include more attention to customers, innovative marketing, flexible and "user friendly" service, lower operating costs and a"can do" attitude,these new operators have been able to turn around the majority of these lines. Rail lines across the country made the transition from being money losers and abandonment candidates for their previous Class I owners,to being viable small businesses for their new owners. In the process,many thousands of miles of rail lines have been preserved and rail jobs have been saved,predominantly in rural areas. Traffic kept on the rails benefits the entire rail system, including the Class I's which almost always participate in moving the freight the small railroads originate or terminate. This phenomenon,which has seen small railroads proliferate and prosper over the past two decades,has yielded multiple winners - - small railroads, large railroads, shippers, rural communities and rail employees have all reaped the benefits. At the same time,the railroad industry has undergone a transformation and restructuring. The light density gathering network feeds traffic to the high file://C:\Documents and Settings\Shelly\Local Settings\Temporary Internet Files\OLKE\AS... 4/3/2006 ASLRRA - Whats In The News - Position Papers Page 2 of 4 volume trunk line core system. Today,the restructured U.S. rail industry is the envy of the world, and widely studied as a model of restructuring for rail efficiency. This recent history is so well known that some may now take it for granted. But there is a very real and immediate threat facing small railroads today, which is serious and far-reaching and could quickly undo much of the progress small railroads have made. This threat,which ASLRRA's President Frank Turner calls "the darkest cloud on the short line and regional railroads'horizon," is the advent of 286,000-1b. capacity rail cars. This heavy axle-load equipment is rapidly becoming the norm for commodities that are the bread-and-butter for many small railroads - - grain, lumber and paper products,to name just a few. The new 286 cars carry more commodity per car, and therefore require proportionately fewer trains, crews, locomotives, etc., to move the same amount of product. There are advantages for both shippers and Class I railroads, and these advantages have driven the rapid growth in the amount of this heavier, larger capacity equipment on the rails. Today, most newly built equipment coming on line is large capacity. The trend is clear: heavier, larger capacity cars will predominate in the future. The small railroads must find a way to cope with this new phenomenon. This heavier equipment puts significant new strains on rail infrastructure. Many short lines today can handle the heavier cars which are showing up at their interchanges only with difficulty (and at slow speeds), or in some cases not at all. The heavier cars require upgraded track and track structure beyond what is standard on most short lines today. Heavier and welded rail and better condition of ties,rights-of-way and ballast are often needed to enable small railroads to move heavier loads efficiently. Bridges must be carefully scrutinized and often upgraded, which can be extremely expensive. The rapid advent of heavier cars is creating the need for a one-time,major upgrade of most of the small railroad network's infrastructure, driven by new technology. This new technology is being thrust on small railroads due to forces that are largely beyond their control. The advantages and benefits of this new technology are enjoyed predominantly by other players - -the shippers and the Class I railroads. The impact of today's influx of heavier cars on small railroads can be compared to the switch from steam to diesel power in the railroad industry almost a half century ago. It is a rapid, one-time change driven by a superior new technology that offers clear benefits but at the same time requires major capital expenditures for the upgrade. For the small railroads, two things are needed and needed quickly if they are to rise to meet this new challenge. The American Short Line and Regional Railroad Association(ASLRRA) is working hard on both, and these are the Association's top priority for the year ahead. First,we need to obtain hard technological data on the requirements to upgrade light density rail lines to enable small railroads to efficiently handle 286 cars. Second,we need to identify sources of funding to help small railroads make the upgrade where appropriate. file://C:\Documents and Settings\Shelly\Local Settings\Temporary Internet Files\OLKE\AS... 4/3/2006 ASLRRA- Whats In The News-Position Papers Page 3 of 4 The technological data on the effects of 286 cars on light density rail lines needs to be pulled together very quickly. Several studies have been done to determine the effect of 286 cars on main line track. These studies have been ongoing since the 1980's at the rail industry Transportation Test Center facility in Pueblo, Colorado.. However,the impact of the heavier cars on light density short line and branch line tracks has been largely ignored. This is rather astonishing when you consider that over one quarter of the track in the U.S. today falls in this category. ASLRRA has worked hard to get research to focus on the effect of 286 cars on light density lines. Language in the Fiscal Year 2000 DOT Appropriations bill passed earlier this Fall recommends that such a study be funded. The Federal Railroad Administration(FRA),AAR and the Pueblo Transportation Test Center are all supporting this effort. Research to be conducted over the next year or so should establish, for the first time,the technological requirements for track, turnouts,ties, ballast, bridges, etc.,to enable 286 cars to be handled efficiently on light density rail lines. That will be the first piece of the puzzle. The second piece of the puzzle,once the technological specs have been scientifically determined,will be to find sources of funding to help with the needed infrastructure upgrades. The results are not in yet, but early estimates indicate that this need may total in the billions of dollars. It will simply not be possible for small railroads to generate the required funds internally in all cases. This need for upgrade has come upon the small railroads suddenly. It was not anticipated when these lines were purchased. The revenues the small railroads realize from these heavier cars is not sufficient to pay for the upgrade in most cases, although these revenues should cover added maintenance cost attributable to the heavier equipment going forward. It seems clear that for the small railroads to rise to the challenge, internally generated funds and conventional sources of lending will need to be augmented. Many states have played a significant role in helping to meet the infrastructure-related capital needs of the short lines through grants and loan programs. I expect that this important source of assistance will continue and help to address some of these needs. This may be true particularly for small railroads that are critical to preserving linkage to the national rail network for rural and agricultural areas. State help will be a valuable part of the solution to this funding crisis, but the states cannot shoulder this burden alone. Funding help to address this major problem must be available at the federal level as well. This is appropriate because the rail network is truly national in its scope and impact, and transportation policy in the first instance is appropriately determined at the federal level. Small railroads play a significant and well-recognized role in preserving service to rural areas and keeping the fringes of the system connected to the national network. Survival of the viable portions of the light density rail network was recognized as a national priority in the Staggers Act and remains so today. One source of help at the federal level will come from the new Railroad Rehabilitation and Improvement Financing program. This new program, created by TEA-21 in 1998, will provide $3.5 billion in federal loans and file:HC:\Documents and Settings\Shelly\Local Settings\Temporary Internet Files\OLKE\AS... 4/3/2006 ASLRRA- Whats In The News - Position Papers Page 4 of 4 loan guarantees for railroad infrastructure and equipment,with at least$1 billion set aside for small railroads. ASLRRA worked hard to get this new RRIF loan program included in TEA-21. The FRA is still in the process of developing the final regulations needed to implement the program. Hopefully this process will be completed early next year, so the first loan applications can begin to be processed. But loans alone will not do the job. Additional source of federal funding must be identified to help the short lines meet the 286 crisis. The old Local Rail Freight Assistance (LRFA)program,which provided some grant assistance to short lines, is effectively dead. LRFA did a lot of good for 20 years beginning in 1973,but seems to have outlived its usefulness a few years ago. Something must be found to take its place now. ASLRRA urged Congress to give small railroads eligibility for transportation trust fund dollars for public interest projects at state option in TEA-21. Despite considerable support,we did not prevail in that effort in 1998. However today the need is even greater than it was then,because of the 286 crisis. ASLRRA's top priority,working with the Congress,the Administration and the rest of the railroad industry, is to identify funding sources to help viable small railroads meet their capital shortfalls so they can step up to the challenge of handling 286 cars. Only by successfully solving this puzzle can small railroad remain what they are today - - an essential part of our national rail network. Alice C. Saylor is Vice President& General Counsel of the American Short Line and Regional Railroad Association. ASLRRA is a Washington, D.C.- based non-profit trade association that represents the interests of its 425 short line and regional railroad members in legislative and regulatory matters. ASLRRA was formed by the consolidation of the American Short Line Railroad Association with Regional Railroads of America, effective January 1, 1998. Short line and regional railroads today operate and maintain 29 ®.percent of the American railroad industry's route mileage, and account for 9 percent of the rail industry's freight revenue and 11 percent of railroad employment. Back to Position Papers file://C:\Documents and Settings\Shelly\Local Settings\Temporary Internet Files\OLKE\AS... 4/3/2006 Message Page 1 of 2 r Shelly Badger From: Kesterson Kevin SSgt WADS/DOCV [Kevin.Kesterson@WADS.MCCHORD.AF.MI Ll Sent: Friday, February 17, 2006 6:27 PM To: Shelly Badger Subject: Thank You Shelly, I just wanted to thank you for meeting with me this last Wednesday night about the Yelm Prairie Line. I really had fun meeting with you! I would like to continue talks if you feel that Yelm will not be receiving funding soon from the state or otherwise to get the two projects ( 3000' connector track and existing line upgrade) done so that rail service can begin on the line. I am heading out of town on Monday and will not return until the 24th of March, and so we can get together after then. With respect to funding, I want to bring to your attention that according to the engineering report you shared with me, the YPL has a railcar weight capacity of 276,000 lbs. Wednesday night we discussed how modern railcars are currently being built for 286,000 Ib. capacity. The rehabilitation estimate you have does not seem to address this pressing issue. I have included an attachment that deals with this issue, and hope you find it informative. Once again to keep it clear, my team is willing to: Pay you what you paid for the YPL necessary to secure a deal), build the connector track, rehabilitate the line to accommodate 286,000 Ib. railcars, and then lease out the line for train operation. We will then have liability for maintenance and other issues, not the city. That will mean Tacoma Rail or others. The open line for lease concept will empower shippers. If they feel that someone else can offer them a better local railcar switching service than what they are currently receiving on the YPL, they have the option to hire them instead of being stuck with only one provider. There are many companies that specialize in providing local railcar switching services. I will include links to a few for the purpose of illustrating this point. http://www.railserveinc.com/ http://www.tcry.com/ourservices.htmI#switching http://www.watcocompanies.com/switching_services.htm http://www.tgsgroup.com/contract.htm http://www.recorman.com/switching.shtml These 5 examples are just a slice of the dozens of companies out there that compete to offer localized switching service just like what will be needed on the YPL between the future TR connection and shippers property sites. As you can see the issue is not finding someone to provide rail service as many clamor to do so. We feel the issue is empowering YPL shippers to use these people as well as Tacoma Rail as best suits their needs. Traffic coordination will be an important issue. I understand from our meeting that it is important for my team to thoughtfully consider how we can seek to minimize or eliminate the risk involved from the cities standpoint of selling the line to a private entity. While I don't propose to have concrete solutions to the cities concerns right now, we would be very willing to work with the city on this. Perhaps we could sign a legal contract to ensure the line will not be abandoned or unnecessarily embargoed in the future for a given number of years, or a contract that says if we ever sold the line the city would have first priority, the possibilities are endless. It is hard to imagine, at least from my standpoint, an investment team committing 2-3 milllion on getting the rail line up to snuff for modern day operations, and then not doing everything possible to ensure success of the operation, and at the very least recouping the initial investment. That involves making railcar movement possible in this case. I do respect the cities concern to safeguard the lines future. We want the best for the YPL as its success will contribute to the economic vitality of Thurston County of which we are all residents. If you are able to get funding elsewhere soon for the two projects, then that is terrific, but if not we hope you will consider working with us in the upcoming months. As you can see, we believe in the potential for moneymaking on the YPL, and that it is a shame it is not being 2/21/2006 Message Page 2 of 2 utilized to build wealth on many fronts right now-ours, train operators, shippers, taxpayers, and also the city and county tax bases. The YPL can be a tremendous asset for building economic wealth in our county and it is our hope this potential energy can be turned kinetic in the near future. Let us know if we can help. Kevin Kesterson &Team (360) 923-1811 2/21/2006 ASLRRA- Whats In The News - Position Papers Page 1 of 4 ❑x ASLRRA Logo ❑x a n n n n Position Papers 286 PROBLEM ON LIGHT DENSITY RAIL LINES America's small railroads - -the more than 500 short lines and regionals with operations in all 50 states of the U.S. - -have a long,proud history of being scrappy competitors and service-focused innovators in the railroad business. These small businesses have carved out specialized niches within the overall U.S. rail network(and now Canada,too). In most instances they have found a way to succeed where others have failed, snatching victory from the jaws of imminent defeat in the case of many rail lines that were near abandonment. Short lines and regionals have been the "growth segment" of the rail industry in recent years. The number of small railroads has more than doubled since the Staggers Rail Act of 1980, growing from about 220 companies in 1980 to more than 500 today. Today, according to 1998 statistics published by the Association of American Railroads (AAR), 29 percent of the rail mileage in the U.S. - -more than 49,000 miles of track- - is owned, maintained and operated by non-Class I railroads. Among the many significant changes that Congress made to the regulatory framework in Staggers were revision of the line sale mechanism, and revision of the abandonment provisions. The effect of these changes has been to encourage sale of lines that were identified as surplus or slated for abandonment by their Class I owner. This approach worked remarkably well and has helped to transform the rail industry. Entrepreneurs have bought hundreds of light density lines across the country. By utilizing business plans that typically include more attention to customers, innovative marketing, flexible and "user friendly" service, lower operating costs and a "can do" attitude,these new operators have been able to turn around the majority of these lines. Rail lines across the country made the transition from being money losers and abandonment candidates for their previous Class I owners,to being viable small businesses for their new owners. In the process, many thousands of miles of rail lines have been preserved and rail jobs have been saved,predominantly in rural areas. Traffic kept on the rails benefits the entire rail system, including the Class I's which almost always participate in moving the freight the small railroads originate or terminate. This phenomenon, which has seen small railroads proliferate and prosper over the past two decades, has yielded multiple winners - - small railroads, large railroads, shippers,rural communities and rail employees have all reaped the benefits. At the same time,the railroad industry has undergone a transformation and restructuring. The light density gathering network feeds traffic to the high file://C:\Documents and Settings\Shelly\Local Settings\Temporary Internet Files\OLKE\A... 2/21/2006 ASLRRA - Whats In The News -Position Papers Page 2 of 4 volume trunk line core system. Today,the restructured U.S. rail industry is the envy of the world, and widely studied as a model of restructuring for rail efficiency. This recent history is so well known that some may now take it for granted. But there is a very real and immediate threat facing small railroads today,which is serious and far-reaching and could quickly undo much of the progress small railroads have made. This threat, which ASLRRA's President Frank Turner calls "the darkest cloud on the short line and regional railroads' horizon," is the advent of 286,000-1b. capacity rail cars. This heavy axle-load equipment is rapidly becoming the norm for commodities that are the bread-and-butter for many small railroads - - grain, lumber and paper products,to name just a few. The new 286 cars carry more commodity per car, and therefore require proportionately fewer trains,crews, locomotives, etc.,to move the same amount of product. There are advantages for both shippers and Class I railroads, and these advantages have driven the rapid growth in the amount of this heavier, larger capacity equipment on the rails. Today, most newly built equipment coming on line is large capacity. The trend is clear: heavier, larger capacity cars will predominate in the future. The small railroads must find a way to cope with this new phenomenon. This heavier equipment puts significant new strains on rail infrastructure. Many short lines today can handle the heavier cars which are showing up at their interchanges only with difficulty (and at slow speeds), or in some cases not at all. The heavier cars require upgraded track and track structure beyond what is standard on most short lines today. Heavier and welded rail and better condition of ties, rights-of-way and ballast are often needed to enable small railroads to move heavier loads efficiently. Bridges must be carefully scrutinized and often upgraded,which can be extremely expensive. The rapid advent of heavier cars is creating the need for a one-time, major upgrade of most of the small railroad network's infrastructure, driven by new technology. This new technology is being thrust on small railroads due to forces that are largely beyond their control. The advantages and benefits of this new technology are enjoyed predominantly by other players - -the shippers and the Class I railroads. The impact of today's influx of heavier cars on small railroads can be compared to the switch from steam to diesel power in the railroad industry almost a half century ago. It is a rapid,one-time change driven by a superior new technology that offers clear benefits but at the same time requires major capital expenditures for the upgrade. For the small railroads,two things are needed and needed quickly if they are to rise to meet this new challenge. The American Short Line and Regional Railroad Association(ASLRRA) is working hard on both, and these are the Association's top priority for the year ahead. First,we need to obtain hard technological data on the requirements to upgrade light density rail lines to enable small railroads to efficiently handle 286 cars. Second,we need to identify sources of funding to help small railroads make the upgrade where appropriate. file:HC:\Documents and Settings\Shelly\Local Settings\Temporary Internet Files\OLKE\A... 2/21/2006 ASLRRA - Whats In The News- Position Papers Page 3 of 4 The technological data on the effects of 286 cars on light density rail lines needs to be pulled together very quickly. Several studies have been done to determine the effect of 286 cars on main line track. These studies have been ongoing since the 1980's at the rail industry Transportation Test Center facility in Pueblo, Colorado. However,the impact of the heavier cars on light density short line and branch line tracks has been largely ignored. This is rather astonishing when you consider that over one quarter of the track in the U.S. today falls in this category. ASLRRA has worked hard to get research to focus on the effect of 286 cars on light density lines. Language in the Fiscal Year 2000 DOT Appropriations bill passed earlier this Fall recommends that such a study be funded. The Federal Railroad Administration(FRA), AAR and the Pueblo Transportation Test Center are all supporting this effort. Research to be conducted over the next year or so should establish, for the first time,the technological requirements for track, turnouts,ties,ballast, bridges, etc.,to enable 286 cars to be handled efficiently on light density rail lines. That will be the first piece of the puzzle. The second piece of the puzzle,once the technological specs have been scientifically determined,will be to find sources of funding to help with the needed infrastructure upgrades. The results are not in yet, but early estimates indicate that this need may total in the billions of dollars. It will simply not be possible for small railroads to generate the required funds internally in all cases. This need for upgrade has come upon the small railroads suddenly. It was not anticipated when these lines were purchased. The revenues the small railroads realize from these heavier cars is not sufficient to pay for the upgrade in most cases, although these revenues should cover added maintenance cost attributable to the heavier equipment going forward. It seems clear that for the small railroads to rise to the challenge, internally generated funds and conventional sources of lending will need to be augmented. Many states have played a significant role in helping to meet the infrastructure-related capital needs of the short lines through grants and loan programs. I expect that this important source of assistance will continue and help to address some of these needs. This may be true particularly for small railroads that are critical to preserving linkage to the national rail network for rural and agricultural areas. State help will be a valuable part of the solution to this funding crisis, but the states cannot shoulder this burden alone. Funding help to address this major problem must be available at the federal level as well. This is appropriate because the rail network is truly national in its scope and impact, and transportation policy in the first instance is appropriately determined at the federal level. Small railroads play a significant and well-recognized role in preserving service to rural areas and keeping the fringes of the system connected to the national network. Survival of the viable portions of the light density rail network was recognized as a national priority in the Staggers Act and remains so today. One source of help at the federal level will come from the new Railroad Rehabilitation and Improvement Financing program. This new program, created by TEA-21 in 1998, will provide $3.5 billion in federal loans and file://C:\Documents and Settings\Shelly\Local Settings\Temporary Internet Files\OLKE\A... 2/21/2006 ASLRRA- Whats In The News- Position Papers Page 4 of 4 loan guarantees for railroad infrastructure and equipment, with at least $1 billion set aside for small railroads. ASLRRA worked hard to get this new R.RIF loan program included in TEA-21. The FRA is still in the process of developing the final regulations needed to implement the program. Hopefully this process will be completed early next year, so the first loan applications can begin to be processed. But loans alone will not do the job. Additional source of federal funding must be identified to help the short lines meet the 286 crisis. The old Local Rail Freight Assistance (LRFA)program, which provided some grant assistance to short lines, is effectively dead. LRFA did a lot of good for 20 years beginning in 1973, but seems to have outlived its usefulness a few years ago. Something must be found to take its place now. ASLRRA urged Congress to give small railroads eligibility for transportation trust fund dollars for public interest projects at state option in TEA-21. Despite considerable support,we did not prevail in that effort in 1998. However today the need is even greater than it was then, because of the 286 crisis. ASLRRA's top priority, working with the Congress,the Administration and the rest of the railroad industry, is to identify funding sources to help viable small railroads meet their capital shortfalls so they can step up to the challenge of handling 286 cars. Only by successfully solving this puzzle can small railroad remain what they are today - - an essential part of our national rail network. Alice C. Saylor is Vice President& General Counsel of the American Short Line and Regional Railroad Association. ASLRRA is a Washington, D.C.- based non-profit trade association that represents the interests of its 425 short line and regional railroad members in legislative and regulatory matters. ASLRRA was formed by the consolidation of the American Short Line Railroad Association with Regional Railroads of America, effective January 1, 1998. Short line and regional railroads today operate and maintain 29 ®percent of the American railroad industry's route mileage, and account for 9 percent of the rail industry's freight revenue and 11 percent of railroad employment. Back to Position Papers file://C:\Documents and Settings\Shelly\Local Settings\Temporary Internet Files\OLKE\A... 2/21/2006 �i DJ f414 jp� C- - IL ooA Ir 4, 1z�� Message Pagel of 4 Shelly Badger From: Shelly Badger Sent: Tuesday, December 20, 2005 2:43 PM To: 'Kesterson Kevin SSgt WADS/DOC' Subject: RE: Yelm/Roy prarie line Kevin, I would be more than happy to meet with you and Leo before a City Council meeting in January. I am available to meet on Wednesday, January 26th at 6:00 PM in my office at Yelm City Hall, 105 Yelm Ave. W. This will give us 1-hour to discuss the Yelm-Roy Prairie Line status and your interest in it. I will have copies of materials ready for that meeting to share with you. Please let me know if that works for you. I look forward to meeting with you! Shelly Badger Yelm City Administrator sheI1yb@_ci.yeIm.wa.us ci.yelm_wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 -----Original Message----- From: Kesterson Kevin SSgt WADS/DOC [ma iIto:Kevin.Kesterson@WADS.MCCHORD.AF.MI L] Sent: Friday, December 16, 2005 4:06 PM To: Shelly Badger; Kesterson Kevin SSgt WADS/DOC Cc: Dana Spivey Subject: RE: Yelm/Roy prairie line Shelly, Just a follow-up to the email I sent a few days ago. My friend Leo and I would like to meet with you at your office sometime soon after the New Year. The trick for us is nailing down a set time. I work Mon - Fri 7 to 4, Leo has a more open schedule during the day, but we want to both be there. He is the investor but I am the one conducting the research for this potential partnership with your city. Even though my schedule is set I actually have more research time than he does. So my initial question is whether it is possible to meet with you personally during evenings or Saturdays at your city office? If not I will make time during the week. I know that you have a city council on even Wednesday evenings, and would be grateful for an opportunity to meet them if this progressed further, but we would rather meet with you one on one initially. Just a little less formal that way, since right now we are primarily interested in gathering information and a better understanding of what the needs are of those interested in making rail interchange and train service happen for the Yelm Prairie Line (YPL). From what we are able to discern, the key factor in this is Miles Sand & Gravel. The profitability of an investment likely depends more on how much material they intend to ship via railcar and for how many years, than anything else. Yelm's website (where I learned of your need for funding this project) states that the new rail connection could convert"up to 22,000 truckloads of gravel per year" to rail and off of SR 507. We would like to know how much of that"up to 22,000" truckloads Miles is serious about hauling by rail. There is potential here for a lot of rail traffic. Since a rail car can haul anywhere from 2.5 to 4 times as much freight as a truck trailer depending on type, I figure there is potential for 5500 to 8800 loaded railcars of gravel a year if the full 22,000 truckloads were shipped by rail. Even if they only shipped one quarter that amount via rail, that could remove 5000+ trucks a year off SR 507 and provide 1300 to 2200 railcar loads annually. From what I have learned about the shortline rail industry, having that volume of traffic on a line less than 5 miles long is very desirable. So you can see we are interested in learning more. We have the capital to fund Yelm's connector track and light upgrade of the YPL to lift the embargo and provide train service at 10MPH. We could provide the funding very quickly if the city and Miles are interested. Our return on our investment is negotiable on how it would work, but it would revolve around exclusive train operating rights for several years or royalties paid to us for use of the connector track by another train operator. Of course our goal would be in line with yours, to provide timely and quality service at a fair market rate, not to gouge captive shippers on a natural monopoly. 12/20/2005 Message Page 2 of 4 When we meet we would love hard copies of any information you would like to share: maps, cost analysis studies, potential shippers on the YPL, etc.... Have a great Season and I look forward to getting together, Kevin Kesterson From: Shelly Badger [mailto:shellyb@ci.yelm.wa.us] Sent: Tuesday, December 13, 2005 10:59 AM To: Kevin.Kesterson @wads.mcchord.af.miI Cc: Dana Spivey Subject: FW: Yelm/Roy prarie line Hello Mr. Kesterson, my name is Shelly Badger and I am the City Administrator for the City of Yelm. Your messages received via our website were forwarded to me regarding the Yelm-Roy Prairie Line. I have provided general answers to your questions below in red. However, with that said, I would be more than happy to talk with you further regarding your mention of a local investor who may be interested in providing assistance with the connection and initiation of rail service. My direct contact information is listed below. Please give me a call at your convenience to talk further in detail. Happy Holidays, Shelly Badger Yelm City Administrator shellyb@ci.yelm.wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 -----Original Message----- From: Kesterson Kevin SSgt WADS/DOC [mailto:Kevin.Kesterson@WADS.MCCHORD.AF.MIL] Sent: Thursday, December 01, 2005 3:29 PM To: Webmaster Subject: Yelm/Roy prarie line Hello, I am not a Yelm resident, but do reside in Thurston County. I am an avid railroad fan and have particular interest in modern-day shortline rail operations. I have learned through the internet and most specifically your website about the rail line you have wisely purchased for your future. I would like to get some more information about this rail line. I represent a local investor who believes as I do in the value of rail service and its potential to strengthen local communities financially and environmentally. We have been seeking opportunity to get involved in the modern day shortline rail industry locally and see this line as a potential entryway if the conditions are right. These are some of the questions I have: 1. The information given at your city website says the line will not be in operation until a shortline operator is found. Has this been achieved? As of my writing this, are there already plans in the works which I am unaware of at this time? The 4 1/2 miles Yelm-Roy Prairie Line is currently still embargoed. There are many complexities in getting the line up and operating. While they are not insurmountable, there is a need for regional coordination and financing to get the connection made between the Yelm-Roy Prairie Line and the Tacoma Mountain Line in the vicinity of Miles Sand & Gravel. 12/20/2005 Message Page 3 of 4 2. If not, would the entity that controls the line be receptive to someone in the local community with sufficient capital initiating a startup service? The City of Yelm is the owner of the line. Our main goal since our acquisition of the line in 2000 from BNSF was to preserve the line from abandonment by BNSF and to allow for future economic development opportunities along the corridor, specifically at Miles Sand & Gravel and the Yelm Industrial area. During 2005, there was increased awareness of the opportunity that exists via the Yelm line with the Port of Olympia, Thurston Regional Planning Council, Tacoma Eastern RR and the Army. We have been and continue to be interested in working with public or private entities to initiate service. 3. Is your prairie line connected to the larger rail network or is it rail isolated? Is this why a %mile connection with Tacoma Rail is needed? Yes, our line connects at Roy to the Burlington Northern Santa Fe line. Because BNSF has not been overly responsive to providing timely and cost effective service south of Ft. Lewis' MoBose, we are looking at other options to be able to offer service to future customers. The most viable option is a connection between our line and the Tacoma Eastern RR in the vicinity of Miles Sand & Gravel. We have prepared preliminary cost estimates for this project (just under 1.5 million dollars) and have applied for funding thru the WSDOT Freight Rail Assistance Program on two occasions, both times we were unsuccessful due to state funding cutbacks (i.e. Initiative 695 cut many valuable state rail projects). 4. Would the entity that controls the line be receptive to a private investor putting up the monies needed to constructing this connection track, in exchange for some type of return on their investment? Exclusive train operating rights until an predetermined return on the investment is captured; annual repayment with an agreed-upon interest rate are two such types of hypothetical arrangements which could make it worthwhile for a potential investor. The short answer is "yes", the City of Yelm and its regional partners mentioned in #2 are always open to creative conversations. However, the details of such an arrangement need time and study to determine what is the best solution for the greater good. 5. What is the controlling entities timetable for securing rail service on the line? Besides the Miles Sand and Gravel pit, have any other local businesses along the line expressed interest in shipping via this rail line when service becomes available? The City plans to continue working on the initiation of rail service during 2006. Because of the need for funding, I am not able to provide a more specific timeline on when actual rail service will become available, however, we are always on the lookout for funding opportunities for the connection. In addition to Miles Sand & Gravel, there are two industries in Yelm (Amtec & Lasco) that may be interested in rail if it where available in a timely and cost efficient manner. 6. Do Yelm, Roy, or Thurston County have plans to offer economic incentive to businesses to ship via the rail line? When it is time to seek proposals from interested short-line operators to operate the line, there will be discussions on marketing/pricing etc. that will be factored into the decision on who can provide the best overall service. Again, the City's goal in acquiring the line is not to make a large return on investment, but to provide the conduit for future businesses to site here that will provide family wage jobs to our area residents. Please get this email to whoever can answer these questions. I appreciate your time and look forward to further 12/20/2005 Message Page 1 of 4 Shelly Badger From: Kesterson Kevin SSgt WADS/DOC [Kevin.Kesterson@WADS.MCC HORD.AF.MIL] Sent: Friday, January 13, 2006 1:27 PM To: Shelly Badger Subject: RE: Reschedule 1-25 meeting Feb. 8th works great. We understand that others may be interested in the rail line as well. See you then. Kevin From: Shelly Badger [mailto:shellyb@ci.yelm.wa.us] Sent: Friday, January 13, 2006 11:40 AM To: Kesterson Kevin SSgt WADS/DOC Subject: RE: Reschedule 1-25 meeting Kevin, At this point, it would be best to reschedule until Wednesday, February 8th at 6:00 PM. Does that work for you and your partners? Also, I do want you to know that when the City is ready to bring on a shortline operator, we will be calling for"Requests for Proposals" from all interested parties for review to see who best meets the goals of the City. I have had similar meetings in the past with other interested parties, so I am comfortable with that, but didn't want to set false expectations for our introductory meeting. Thank you, Shelly Shelly Badger Yelm City Administrator shellyba.ci.yelm.wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 -----Original Message----- From: Kesterson Kevin SSgt WADS/DOC [mai Ito:Kevin.Kesterson @WADS.MCCHORD.AF.MI L] Sent: Friday, January 13, 2006 9:23 AM To: Shelly Badger Subject: RE: Date correction Shelly, I need to reschedule our meeting, as one of my partners will not be able to make the 25th, as he is gone till the 26th. Let me know what would work for you after that time. We do look forward to meeting and getting more facts about the Yelm rail line, we feel we can craft a deal that is a winning scenario for all involved and have the financial means to do so if there is sufficient interest from Miles and the other shippers. Thanks, Kevin From: Shelly Badger [mai Ito:shellyb@ci.yelm.wa.us] Sent: Tuesday, December 20, 2005 2:47 PM 1/13/2006 Message Page 1 of 4 Shelly Badger From: Shelly Badger Sent: Friday, January 13, 2006 11:40 AM To: 'Kesterson Kevin SSgt WADS/DOC' Subject: RE: Reschedule 1-25 meeting Kevin. At this point, it would be best to reschedule until Wednesday, February 8th at 6:00 PM. Does that work for you and your partners? Also, I do want you to know that when the City is ready to bring on a shortline operator, we will be calling for"Requests for Proposals" from all interested parties for review to see who best meets the goals of the City. I have had similar meetings in the past with other interested parties, so I am comfortable with that, but didn't want to set false expectations for our introductory meeting. Thank you, Shelly Shelly Badger Yelm City Administrator shellyb(cDci.yelm.wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 -----Original Message----- From: Kesterson Kevin SSgt WADS/DOC [mai Ito:Kevin.Kesterson @WADS.MCCHORD.AF.MI L] Sent: Friday, January 13, 2006 9:23 AM To: Shelly Badger Subject: RE: Date correction Shelly, I need to reschedule our meeting, as one of my partners will not be able to make the 25th, as he is gone till the 26th. Let me know what would work for you after that time. We do look forward to meeting and getting more facts about the Yelm rail line, we feel we can craft a deal that is a winning scenario for all involved and have the financial means to do so if there is sufficient interest from Miles and the other shippers. Thanks, Kevin From: Shelly Badger [mailto:shellyb@ci.yelm.wa.us] Sent: Tuesday, December 20, 2005 2:47 PM To: Kesterson Kevin SSgt WADS/DOC Subject: RE: Date correction My apologies, my proposed meeting date is Wednesday, January 25th, 2006 at 6:00 PM. Shelly Badger Yelm City Administrator shellybpci,.yelm,wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 1/13/2006 Message Page 1 of 4 Shelly Badger From: Kesterson Kevin SSgt WADS/DOC [Kevin.Kesterson @WADS.MCC HORD.AF.MIL] Sent: Monday, January 02, 2006 11:59 AM To: Shelly Badger Subject: RE: Date correction Wednesday the 25th at 6PM is a great time. There will be three of us. Leo has a partner investor, Lou who will attend as well. We are eager to see the material you have prepared on the proposal to reinstate rail service via lifting the embargo and constructing the connection to Tacoma Rail. If you have contact names and numbers for Miles, Amtech and Lasco that would be very helpful as well as we would like to learn from them what their needs and projections are for types and volumes of rail tonnage when the service becomes available. Same with Tacoma Rail, as their partnership would be crucial to a successful venture. We are excited about this and look forward to meeting with you soon, we hope to forge a winning scenario for all involved. Kevin From: Shelly Badger [mailto:shellyb@ci.yelm.wa.us] Sent: Tuesday, December 20, 2005 2:47 PM To: Kesterson Kevin SSgt WADS/DOC Subject: RE: Date correction My apologies, my proposed meeting date is Wednesday, January 25th, 2006 at 6:00 PM. Shelly Badger Yelm City Administrator shellyby�a�ci.yelm.wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 -----Original Message----- From: Kesterson Kevin SSgt WADS/DOC [mai Ito:Kevin.Kesterson @WADS.MCCH0RD.AF.MIL] Sent: Friday, December 16, 2005 4:06 PM To: Shelly Badger; Kesterson Kevin SSgt WADS/DOC Cc: Dana Spivey Subject: RE: Yelm/Roy prarie line Shelly, Just a follow-up to the email I sent a few days ago. My friend Leo and I would like to meet with you at your office sometime soon after the New Year. The trick for us is nailing down a set time. I work Mon - Fri 7 to 4, Leo has a more open schedule during the day, but we want to both be there. He is the investor but I am the one conducting the research for this potential partnership with your city. Even though my schedule is set I actually have more research time than he does. So my initial question is whether it is possible to meet with you personally during evenings or Saturdays at your city office? If not I will make time during the week. I know that you have a city council on even Wednesday evenings, and would be grateful for an opportunity to meet them if this progressed further, but we would rather meet with you one on one initially. Just a little less formal that way, since right now we are primarily interested in gathering information and a better understanding of what the needs are of those interested in making rail interchange and train service happen for the Yelm Prairie Line (YPL). From what we are able to discern, the key factor in this is Miles Sand & Gravel. The profitability of an investment likely depends more on how much material they intend to ship via railcar and for how many years, than anything 1/3/2006 Message Page 2 of 4 else. Yelm's website (where I learned of your need for funding this project) states that the new rail connection could convert "up to 22,000 truckloads of gravel per year" to rail and off of SR 507. We would like to know how much of that"up to 22,000" truckloads Miles is serious about hauling by rail. There is potential here for a lot of rail traffic. Since a rail car can haul anywhere from 2.5 to 4 times as much freight as a truck trailer depending on type, I figure there is potential for 5500 to 8800 loaded railcars of gravel a year if the full 22,000 truckloads were shipped by rail. Even if they only shipped one quarter that amount via rail, that could remove 5000+ trucks a year off SR 507 and provide 1300 to 2200 railcar loads annually. From what I have learned about the shortline rail industry. having that volume of traffic on a line less than 5 miles long is very desirable. So you can see we are interested in learning more. We have the capital to fund Yelm's connector track and light upgrade of the YPL to lift the embargo and provide train service at 10MPH. We could provide the funding very quickly if the city and Miles are interested. Our return on our investment is negotiable on how it would work, but it would revolve around exclusive train operating rights for several years or royalties paid to us for use of the connector track by another train operator. Of course our goal would be in line with yours, to provide timely and quality service at a fair market rate, not to gouge captive shippers on a natural monopoly. When we meet we would love hard copies of any information you would like to share: maps, cost analysis studies, potential shippers on the YPL, etc.... Have a great Season and I look forward to getting together, Kevin Kesterson From: Shelly Badger [mailto:shellyb@ci.yelm.wa.us] Sent: Tuesday, December 13, 2005 10:59 AM To: Kevin.Kesterson@wads.mcchord.af.mil Cc: Dana Spivey Subject: FW: Yelm/Roy prarie line Hello Mr. Kesterson, my name is Shelly Badger and I am the City Administrator for the City of Yelm. Your messages received via our website were forwarded to me regarding the Yelm-Roy Prairie Line. I have provided general answers to your questions below in red. However, with that said, I would be more than happy to talk with you further regarding your mention of a local investor who may be interested in providing assistance with the connection and initiation of rail service. My direct contact information is listed below. Please give me a call at your convenience to talk further in detail. Happy Holidays. Shelly Badger Yelm City Administrator shellyb(a)ci.yelm.wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 -----Original Message----- From: Kesterson Kevin SSgt WADS/DOC [mailto:Kevin.Kesterson@WADS.MCCHORD.AF.MIL] Sent: Thursday, December 01, 2005 3:29 PM To: Webmaster Subject: Yelm/Roy prarie line Hello, I am not a Yelm resident, but do reside in Thurston County. I am an avid railroad fan and have particular interest in modern-day shortline rail operations. I have learned through the internet and most specifically your website about the rail line you have wisely purchased for your future. I would like to get some more information about this rail line. I represent a local investor who believes as I do in the value of rail service and its potential to strengthen local communities financially and environmentally. We have been seeking opportunity to get involved in the modern day shortline rail industry locally and see this line as a 1/3/2006 Message Page 3 of 4 Y ' potential entryway if the conditions are right. These are some of the questions I have: 1. The information given at your city website says the line will not be in operation until a shortline operator is found. Has this been achieved?As of my writing this, are there already plans in the works which I am unaware of at this time? The 4 1/2 miles Yelm-Roy Prairie Line is currently still embargoed. There are many complexities in getting the line up and operating. While they are not insurmountable, there is a need for regional coordination and financing to get the connection made between the Yelm-Roy Prairie Line and the Tacoma Mountain Line in the vicinity of Miles Sand & Gravel. 2. If not, would the entity that controls the line be receptive to someone in the local community with sufficient capital initiating a startup service? The City of Yelm is the owner of the line. Our main goal since our acquisition of the line in 2000 from BNSF was to preserve the line from abandonment by BNSF and to allow for future economic development opportunities along the corridor, specifically at Miles Sand & Gravel and the Yelm Industrial area. During 2005, there was increased awareness of the opportunity that exists via the Yelm line with the Port of Olympia, Thurston Regional Planning Council, Tacoma Eastern RR and the Army. We have been and continue to be interested in working with public or private entities to initiate service. 3. Is your prairie line connected to the larger rail network or is it rail isolated? Is this why a %mile connection with Tacoma Rail is needed? Yes, our line connects at Roy to the Burlington Northern Santa Fe line. Because BNSF has not been overly responsive to providing timely and cost effective service south of Ft. Lewis' MoBose, we are looking at other options to be able to offer service to future customers. The most viable option is a connection between our line and the Tacoma Eastern RR in the vicinity of Miles Sand & Gravel. We have prepared preliminary cost estimates for this project (just under 1.5 million dollars) and have applied for funding thru the WSDOT Freight Rail Assistance Program on two occasions, both times we were unsuccessful due to state funding cutbacks (i.e. Initiative 695 cut many valuable state rail projects). 4. Would the entity that controls the line be receptive to a private investor putting up the monies needed to constructing this connection track, in exchange for some type of return on their investment? Exclusive train operating rights until an predetermined return on the investment is captured; annual repayment with an agreed-upon interest rate are two such types of hypothetical arrangements which could make it worthwhile for a potential investor. The short answer is "yes", the City of Yelm and its regional partners mentioned in #2 are always open to creative conversations. However, the details of such an arrangement need time and study to determine what is the best solution for the greater good. 5. What is the controlling entities timetable for securing rail service on the line? Besides the Miles Sand and Gravel pit, have any other local businesses along the line expressed interest in shipping via this rail line when service becomes available? The City plans to continue working on the initiation of rail service during 2006. Because of the need for funding, I am not able to provide a more specific timeline on when actual rail service will become available, however, we are always on the lookout for funding opportunities for the connection. In addition to Miles Sand & Gravel, there are two industries in Yelm (Amtec & Lasco) that may be interested in rail if 1/3/2006 Message Page 4 of 4 it where available in a timely and cost efficient manner. 6. Do Yelm, Roy, or Thurston County have plans to offer economic incentive to businesses to ship via the rail line? When it is time to seek proposals from interested short-line operators to operate the line, there will be discussions on marketing/pricing etc. that will be factored into the decision on who can provide the best overall service. Again, the City's goal in acquiring the line is not to make a large return on investment, but to provide the conduit for future businesses to site here that will provide family wage jobs to our area residents. Please get this email to whoever can answer these questions. I appreciate your time and look forward to further education about this great investment you have in a rail corridor. Thank you, Kevin Kesterson (360) 923-1811 1/3/2006 FROM : INNOVATIUE RAIL FAX NO. :319-436-7171 Jan. 21 2006 01:46AM P1 607 Grove Street NW V n Shelsburg,Iowa 52332 319-436-7167 Innovative 319-4 a or fmt�s. . Mwww.flt ss.comlwebhailroad! indexAnnovative ral htm ftx ib: Shelly Badger,City Administrator From: Kurt Gaylor Fax: 360.458-4348 Pages: 1 Phone: 360-458-8405 Daae: January 21,2006 Re: Yelm Rory Railroad CC: 0 Urgent X For Review ❑Plow*Comment L1 Please Reply ©Please Recycle e Comments: Ms. Badger: My name is Kurt Gaylor. I am the marketing director for BGCM Railroad in Orofino, Idaho and also run my own rail consulting business. In viewing the internet, I learned your city had purchased a rail line from BNSF in 2000. I would like to inquire into its present status. If there is not an operator,I would be willing to work with you on seeing what can be done to get the railroad moving forward. Feel free to contact me at k a lor.b cm verizon.net or any means listed above. Sincerely, TV Kurt Gaylor 661� oC4' (,1;L , Shelly Badger From: GAYLOR, KURT[kgaylor@fmtcs.com] Sent: Saturday, January 28, 2006 11:56 AM To: Shelly Badger Subject: Re: FW: Yelm/Roy Railroad ---------- Original Message ---------------------------------- From: "Shelly Badger" <shellyb@ci.yelm.wa.us> Date: Fri, 27 Jan 2006 15:47:17 -0800 Shelly: Thank you for the information. If my one of my contacts is interested, he can make this work. He owns shortlines, but also has access to rail materials. The grading of the new connection would be our biggest obstacle. Let me check around and talk to my partners. If the business is there, I think we could look at it. Kurt Gaylor >Shelly Badger >Yelm City Administrator >shellyb@ci.yelm.wa.us >P.O. Box 479 >Yelm, WA 98597 >360-458-8405 >-----Original Message----- >From: Shelly Badger >Sent: Friday, January 27, 2006 3:38 PM >To: 'kgaylor.becm@verizon.net' >Subject: FW: Yelm/Roy Railr oad >Hello Mr. Gaylor, I am in receipt of a fax expressing interest in the >Yelm-Roy Prairie Line. In December I corresponded with another interested party and I believe our exchange provides you with the information you are requesting. I am forwarding the questions posed of me and my responses (see below) . I will keep your contact information in our file of interested parties. Thank you, >Shelly Badger >Yelm City Administrator >shellyb@ci.yelm.wa.us >P.O. Box 479 >Yelm, WA 98597 >360-458-8405 >1. The information given at your city website says the line will not be in operation until a shortline operator is found. Has this been achieved? As of my writing this, are there already plans in the works which I am unaware of at this time? The 4 1/2 miles Yelm-Roy Prairie Line is currently still embargoed. There are many complexities in getting the line up and operating. While they are not insurmountable, there is a need for regional coordination and financing to get the connection made between the Yelm-Roy Prairie Line and the Tacoma Mountain Line in the vicinity of Miles Sand & Gravel. >2. If not, would the entity that controls the line be receptive to someone in the local community with sufficient capital initiating a startup service? The City of Yelm is the owner of the line. Our main goal since our acquisition of the line in 2000 from BNSF was to preserve the line from abandonment by BNSF and to allow for future economic development opportunities along the corridor, specifically at Miles Sand & Gravel and the Yelm Industrial area. During 2005, there was increased awareness of the 1 Shelly Badger From: System Administrator To: kgaylor.bgcm@verizon.net Sent: Friday, January 27, 2006 3:38 PM Subject: Undeliverable:FW: Yelm/Roy Railroad Your message did not reach some or all of the intended recipients. Subject: FW: Yelm/Roy Railroad Sent: 1/27/2006 3:38 PM The following recipient(s)could not be reached: kgaylor.becm@verizon.net on 1/27/2006 3:38 PM The e-mail account does not exist at the organization this message was sent to. Check the e-mail address,or contact the recipient directly to find out the correct address. <serverl.ci.yelm.wa.us#5.1.1 smtp;550 5.1.1 unknown or illegal alias: kgaylor.becm@verizon.net> 1 Message Page 1 of 2 Shelly Badger From: Shelly Badger Sent: Friday, January 27, 2006 3:38 PM To: 'kgaylor.becm@verizon.net' Subject: FW: Yelm/Roy Railroad Hello Mr. Gaylor, I am in receipt of a fax expressing interest in the Yelm-Roy Prairie Line. In December I corresponded with another interested party and I believe our exchange provides you with the information you are requesting. I am forwarding the questions posed of me and my responses (see below). I will keep your contact information in our file of interested parties. Thank you, Shelly Badger Yelm City Administrator shellyb@ci.yelm.wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 1. The information given at your city website says the line will not be in operation until a shortline operator is found. Has this been achieved?As of my writing this, are there already plans in the works which I am unaware of at this time? The 4 1/2 miles Yelm-Roy Prairie Line is currently still embargoed. There are many complexities in getting the line up and operating. While they are not insurmountable, there is a need for regional coordination and financing to get the connection made between the Yelm-Roy Prairie Line and the Tacoma Mountain Line in the vicinity of Miles Sand & Gravel. 2. If not, would the entity that controls the line be receptive to someone in the local community with sufficient capital initiating a startup service? The City of Yelm is the owner of the line. Our main goal since our acquisition of the line in 2000 from BNSF was to preserve the line from abandonment by BNSF and to allow for future economic development opportunities along the corridor, specifically at Miles Sand & Gravel and the Yelm Industrial area. During 2005, there was increased awareness of the opportunity that exists via the Yelm line with the Port of Olympia, Thurston Regional Planning Council, Tacoma Eastern RR and the Army. We have been and continue to be interested in working with public or private entities to initiate service. 3. Is your prairie line connected to the larger rail network or is it rail isolated? Is this why a '/<mile connection with Tacoma Rail is needed? Yes, our line connects at Roy to the Burlington Northern Santa Fe line. Because BNSF has not been overly responsive to providing timely and cost effective service south of Ft. Lewis' MoBose, we are looking at other options to be able to offer service to future customers. The most viable option is a connection between our line and the Tacoma Eastern RR in the vicinity of Miles Sand & Gravel. We have prepared preliminary cost estimates for this project (just under 1.5 million dollars) and have applied for funding thru the WSDOT Freight Rail Assistance Program on two occasions, both times we were unsuccessful due to state funding cutbacks (i.e. Initiative 695 cut many valuable state rail projects). 4. Would the entity that controls the line be receptive to a private investor putting up the monies 1/27/2006 Message Page 2 of 2 needed to constructing this connection track, in exchange for some type of return on their investment? Exclusive train operating rights until an predetermined return on the investment is captured; annual repayment with an agreed-upon interest rate are two such types of hypothetical arrangements which could make it worthwhile for a potential investor. The short answer is "yes", the City of Yelm and its regional partners mentioned in #2 are always open to creative conversations. However, the details of such an arrangement need time and study to determine what is the best solution for the greater good. 5. What is the controlling entities timetable for securing rail service on the line? Besides the Miles Sand and Gravel pit, have any other local businesses along the line expressed interest in shipping via this rail line when service becomes available? The City plans to continue working on the initiation of rail service during 2006. Because of the need for funding, I am not able to provide a more specific timeline on when actual rail service will become available, however, we are always on the lookout for funding opportunities for the connection. In addition to Miles Sand & Gravel, there are two industries in Yelm (Amtec & Lasco) that may be interested in rail if it where available in a timely and cost efficient manner. 6. Do Yelm, Roy, or Thurston County have plans to offer economic incentive to businesses to ship via the rail line? When it is time to seek proposals from interested short-line operators to operate the line, there will be discussions on marketing/pricing etc. that will be factored into the decision on who can provide the best overall service. Again, the City's goal in acquiring the line is not to make a large return on investment, but to provide the conduit for future businesses to site here that will provide family wage jobs to our area residents. 1/27/2006 Message Page 1 of 2 Shelly Badger From: Shelly Badger Sent: Friday, January 06, 2006 8:50 AM To: Stephanie Ray Subject: RE: Citizen Railroad Question Yes please! That sounds like a type of eqpt we need to hand on to. Thank you, Shelly Shelly Badger Yelm City Administrator sheIIyb(@ci.yelm.wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 -----Original Message----- From: Stephanie Ray Sent: Thursday, December 29, 2005 8:04 AM To: Shelly Badger Subject: RE: Citizen Railroad Question Ya, I have talked to Tim. I can't really explain it that well other than my understanding is that it is a piece of equipment that is used to switch the train from one track to another.....that is probably why it is at Amtech...you know how the there are two rail pieces there. I agree that it seems strange to give away 'stuff without a process. Should I call the guy back and say 'not at this time'. From: Shelly Badger Sent: Wednesday, December 28, 2005 6:55 PM To: Stephanie Ray Subject: RE: Citizen Railroad Question s....I have no idea what this is, could you check with Tim to see if anyone in PW knows if it is useful or not in the future. My thoughts are that we don't want to give pieces and parts away. Even if it is junk, we don't just give our property away without a process. Thanks, sb Shelly Badger Yelm City Administrator shgl[yb@ci.yelm.wa.us P.O. Box 479 Yelm, WA 98597 360-458-8405 -----Original Message----- From: Stephanie Ray Sent: Thursday, December 22, 2005 9:09 AM To: Shelly Badger Subject: Citizen Railroad Question Hi, Tony Woore (15909 Quail Meadows Court 458-8972) stopped by to see me yesterday and wanted to know if he could have the "switch stand" that is in the blackberry bushes by Amtech. It is part of the rail spur but according to Tony has been lying in the bushes for a long time. He collects this type of stuff and thought it would be cool to 1/6/2006 Message Page 1 of 3 Shelly Badger From: Kesterson Kevin SSgt WADS/DOC [Kevin.Kesterson@WADS.MCC HORD.AF.MIL] Sent: Tuesday, December 13, 2005 2:52 PM To: Shelly Badger Subject: RE: Yelm/Roy prarie line Shelly, Thank you for the informative reply. My friend and I are going to do a bit more research with the information you have given us, and will get back with you, but likely not until after the holidays. We all have plenty on our plates between now and then. Once again, we are local investors who are fascinated with your cities rail link and the potential it may have. The successes of other shortline operations in Western Washington such as the Ballard Terminal, Meeker Southern, Puget Sound & Pacific and Tacoma Rail lead us to believe that such success could be possible on your own stretch of track. This is especially true if the Sand & Gravel pit and the other two customers you mentioned all were to commit to rail shipping with a startup operation. Given the chance, we would love to pitch this to them. With respect to your answer to question #1, there probably is not much that we (the interested investors) could do for"regional coordination", except to present our case to involved parties as to our desire to both build the connection AND initiate train service, or build the connection and have Tacoma Rail provide train service. Our interest is in possibly providing funding for two areas. The first is a connection with Tacoma Rail and sufficient cleanup of the line to warrant reliable train movement at 10MPH. The second depends on whether Tacoma Rail would have interest in providing train service on the rail line. This would be ideal, but if they are not initially interested, then the second interest is in service startup. This could be accomplished with as little as one locomotive and 2 employees initially, providing service daily as needed, and growing from that beginning. Of course, like you mentioned this would all be contingent upon at least a couple of factors. First for us would be a profitable return on our investment in a reasonable period of time through some means such as line surcharges based on carload, operating rights, or other. The second factor would be the "regional coordination" and other legal processes such an endeavor would entail. I do believe that we could receive a significant return on our investment in this line, and do so in a way that helps your community if there was support for our investment from and the terms were satisfactory. I will talk this over some more with a couple other people, contact you after the New Year, and see where interests lie at that time. Thank you for taking a moment of your day to respond to what may have seemed like an odd inquiry, Kevin From: Shelly Badger [mailto:shellyb@ci.yelm.wa.us] Sent: Tuesday, December 13, 2005 10:59 AM To: Kevin.Kesterson@wads.mcchord.af.mil Cc: Dana Spivey Subject: FW: Yelm/Roy prarie line Hello Mr. Kesterson, my name is Shelly Badger and I am the City Administrator for the City of Yelm. Your messages received via our website were forwarded to me regarding the Yelm-Roy Prairie Line. I have provided general answers to your questions below in red. However, with that said, I would be more than happy to talk with 12/13/2005 Message Page 3 of 3 customers. The most viable option is a connection between our line and the Tacoma Eastern RR in the vicinity of Miles Sand & Gravel. We have prepared preliminary cost estimates for this project (just under 1.5 million dollars) and have applied for funding thru the WSDOT Freight Rail Assistance Program on two occasions, both times we were unsuccessful due to state funding cutbacks (i.e. Initiative 695 cut many valuable state rail projects). 4. Would the entity that controls the line be receptive to a private investor putting up the monies needed to constructing this connection track, in exchange for some type of return on their investment? Exclusive train operating rights until an predetermined return on the investment is captured; annual repayment with an agreed-upon interest rate are two such types of hypothetical arrangements which could make it worthwhile for a potential investor. The short answer is "yes", the City of Yelm and its regional partners mentioned in #2 are always open to creative conversations. However, the details of such an arrangement need time and study to determine what is the best solution for the greater good. 5. What is the controlling entities timetable for securing rail service on the line? Besides the Miles Sand and Gravel pit, have any other local businesses along the line expressed interest in shipping via this rail line when service becomes available? The City plans to continue working on the initiation of rail service during 2006. Because of the need for funding, I am not able to provide a more specific timeline on when actual rail service will become available, however, we are always on the lookout for funding opportunities for the connection. In addition to Miles Sand & Gravel, there are two industries in Yelm (Amtec & Lasco) that may be interested in rail if it where available in a timely and cost efficient manner. 6. Do Yelm, Roy, or Thurston County have plans to offer economic incentive to businesses to ship via the rail line? When it is time to seek proposals from interested short-line operators to operate the line, there will be discussions on marketing/pricing etc. that will be factored into the decision on who can provide the best overall service. Again, the City's goal in acquiring the line is not to make a large return on investment, but to provide the conduit for future businesses to site here that will provide family wage jobs to our area residents. Please get this email to whoever can answer these questions. I appreciate your time and look forward to further education about this great investment you have in a rail corridor. Thank you, Kevin Kesterson (360) 923-1811 12/13/2005 111111111119 N 1001 Air Brake Avenue Phone 1-877-922-2627 GLOBAL SERVICES Wilmerding, PA 15148 Fax 412.825.1499 www.wabtec.com September 16, 2004 OCT - 4 2004 Shelly Badger Yelm Roy Prairie Line "- 105 Yelm Ave. West PO Box 479 Yelm, WA 98597 Dear Shelly Badger: At Wabtec Global Services, we implement solutions that help our customers improve the efficiency and productivity of their businesses. As a division of Westinghouse Air Brake Technologies Corporation (Wabtec), formerly WABCO, Wabtec Global Services was created to exclusively focus on railroad service. You probably know us best for our high quality freight and locomotive pneumatic valve reconditioning and upgrade services but are you aware that Wabtec Global Services also provides hardware and software to optimize critical field operations like railway vehicle repair and maintenance? Did you know that our solutions also include full service electronic component repair including EOTs, contactors, switches, modules and other devices as well as inventory management, logistics, comprehensive field service and education? Enclosed you will find our new brochure, detailing Wabtec Global Services' comprehensive mix of service capabilities and information about our locations. Whether you maintain rolling stock or provide products and services to customers that do, Wabtec Global Services is ready, willing and able to be your high value service provider. Contact us today or visit our booth at the upcoming Railway Supply Institute show at the Chicago Hilton & Towers (Wabtec Corporation booth #200) to learn how we can improve operations for Yelm Roy Prairie Line. Sincerely, Jason T. Connell Vice President Sales & Marketing Phone: 1-877-922-2627 E-mail: globalservices@wabtec.com Encl: Wabtec Global Services Brochure World-Class Business Solutions WabtecGLOBAL SERVICES For high-value service, look to Wabtec Global Services. We implement solutions that help customers achieve operational efficiencies to reduce costs and in turn, impact profitability. Asset Management Electronic Services Wabtec Global Services offers a Wabtec Global Services offers the finest variety of solutions for managing in electronic repair and addresses the customer assets including fleet needs of today's mobile work force maintenance, Car Repair Billing through a variety of wireless service and Wabtec Managed Inventory. capabilities. E-Commerce Field Service Wabtec's user-friendly e-commerce Available at a moments notice, our web site, WabLinkTm, provides expert field service professionals customers a quick and efficient way provide a variety of services including to order OEM and component parts troubleshooting, applications and Wabtec training publications. In engineering and product selection. addition, customers can view order history, track shipments, search for Pneumatic Repair products and catalog frequently With over 130 years of experience, ordered parts for future orders. Wabtec Global Services takes pride in offering top-quality maintenance Education solutions to quickly restore performance Our expert instructors travel as well as a wide variety of upgrade throughout the world to educate rail capabilities for freight and locomotive personnel on the operation and equipment. maintenance of rail equipment. We offer on-site training, air brake Wabtec Managed Inventory seminars and an assortment of Available via Wabtec's e-commerce web training manuals. site, WabLinkTm, Wabtec Managed Inventory (WMI), assists customers in Electro-Mechanical Repair recording real-time inventory data and Wabtec Global Services offers state eliminates the need to place orders for of the art Electro-Mechanical repair replacement stock. for products such as power contactors, reverser switches, Wireless Applications controller mechanisms, etc. We As used by several Class I, shortline and completely disassemble, rebuild and regional railroads in North America, we qualify per OEM specifications and offer solutions for the maintenance and offer unit exchange, repair and utilization of railcars, trailers and return or outright sale. containers. Contact Wabtec Global Services today at 1-877-922-2627 or view our website at www.wabtecglobalservices.com to learn more about our industry leading solutions. ©2004 Wabtec Corporation WGs-0003-04 Wabtec GLOBAL SERVICES I At Wabtec Global Services, we are committed to providing world-class business solutions. Located within close proximity to North America's major rail centers, our team of experts quickly fulfills customerr requirements. For value- added service, contact any of our locations or call the toll-free number listed below. QUALITY DELIVERY CONVENIENCE • • 0 Wilmerding O Chicago 0 Boulder 1001 Air Brake Avenue 380 East 167th Street 4735 Walnut Street Wilmerding, PA 15148 Harvey, IL 60426 Suite A Phone: 1-877-922-2627 Phone: 708-596-6730 Boulder, CO 80301 Fax: 412-825-1499 Fax: 708-596-7858 Phone: 303-447-2889 Fax: 303-447-2894 Columbia © Kansas City 0 Carson City 1222 Bluff Road 4800 Deramus 5401 Arrowhead Drive Columbia, SC 29201 Kansas City, MO 64120 Carson City, NV 89706 Phone: 803-256-1612 Phone: 816-245-5450 Phone: 775-882-0282 Fax: 803-799-8402 Fax: 816-245-5460 Fax: 775-882-4796 Stoney Creek San Luis Potosi Calgary P.O. Box 2050 EJE 126 No. 230 2620 58 Avenue S.E. Hamilton, ON Zona Industrial Park Del Potosi Calgary, AB Canada L8N 3T5 San Luis Potosi, SLP Canada T2C 1G5 Phone: 905-561-8700 ext. 235 78090 Mexico Phone: 403-723-2117 Fax: 905-662-6616 Phone: 52-444-834-4807 Fax: 403-723-2118 Fax: 52-444-824-1621 To learn more, call 1-877-922-2627 or visit www.wabtecglobalservices.com. ©2004 Wabtec Corporation WGS-0012-04 Wabtec Asset Management GLOBAL SERVICES Wabtec Global Services (WGS) offers a variety of solutions for managing assets. As used by several Class I, shortline and regional railroads in North America, our systems help customers achieve a multitude of benefits. Car Repair Billing & Back Office �A Wabtec Global Services' CRB and Back Office applications utilize wireless technology and customized software to streamline the labor intensive process of recording and invoicing repairs conducted on freight cars at interchange. The applications also integrate with customer systems to replenish inventory based on usage. BENEFITS: • Labor savings Fleet management • Data accuracy and availability • Automated quality processing • Improved budgeting • Efficient use of time Wabtec Managed Inventory WGS' solution for inventory management, Wabtec Managed Inventory, assists customers in recording real-time inventory data and eliminates the need to place orders for replacement stock. With use of Wabtec's friendly e-commerce web site, WabLinkT"" , customers manage usage, receive/return material, generate reports and track shipments. When inventory levels reach predetermined minimums, WabLinkT"" automatically generates orders for replenishment parts. BENEFITS: • Better inventory management • Decreased costs • Peace of mind Wabtec Global Services helps customers do more with fewer resources by freeing capital, personnel and facilities for better use through our fleet maintenance solution. Our geographically dispersed service center network ensures that customers have what they need where they need it. Currently, WGS maintains an end of train (EOT) fleet of over 2,700 units for a Class I railroad including a mix of Wabtec and non-Wabtec products. BENEFITS: • OEM Support from the leading railway equipment manufacturer. • Better inventory management including improved cycle repair time. • Fixed monthly pricing agreement • One point of contact • Improved quality • Guaranteed availability • Repair tracking To learn more, call 1-877-922-2627 or visit www.wabtacglobalservices.com. ©2004 Wabtec Corporation WGS-0004-04 Wabtec GLOBAL SERVICES www. wablink.com Wabtec's user friendly e-commerce web site, WabLinkT"^, provides customers the ability to generate OEM and component parts orders 24 hours a day and features our Wabtec Managed Inventory (WMI) customer based inventory replenishment system. . . WabLinkTM and Montana Rail Link Customer Benefits As a regional railroad, Montana Rail Link (MRL) operates Increased Efficiency approximately 1,000 miles of • Instant pricing information track spanning from Montana and ability to submit parts to Washington. Kim Griffin, orders and orders for Wabtec — Senior Purchasing Manager at training publications around Montana Rail Link frequently the clock. uses WabLinkTM to purchase replenishment parts for • Less waiting - no phone MRL's fleet of more than 2,100 freight cars and 120 calls, faxes, etc. locomotives. As part of our effort for continuous improve- Ability to search for ment, Wabtec contacted Ms. Griffin to obtain Montana products by Wabtec part number or customer part Rail Link's feedback on our e-commerce site. We found number. that like many customers, MRL uses WabLink to place orders, check order status and history, search for • Access to complete parts in our catalog and to obtain shipment tracking order history and real information. Ms. Griffin noted that she appreciates time shipment tracking information. how WablinkTm is "very easy to use and extremely efficient" and that "whether Wabtec's office is open • Reduced response time. or closed, I know that my order will be processed." • Ability to save frequently Register to use WabLinkTm ordered items in a catalog for in three easy steps! future orders. Type WabLinkTM 's URL, www.wablink.com, Technical Information ® in the internet address menu bar. • Ability to view Wabtec Operation and Maintenance Select "Login as Guest." documents, Service Bulletins, Choose "Sign Me Up" from the main menu. Instructional Leaflets and Fill out the registration form and click "OK". outline drawings. To learn more, call 1-877-922-2627 or visit www.wabtacglobalservices.com. ©2004 Wabtec Corporation WGS-0005-04 Wabtec • I GLOBAL SERVICES Wabtec Global Services' expert instructors travel throughout the world to train railroad ` personnel on the operation and maintenance ° of rail equipment. Our industry-leading educational solutions include: e On-site Training = Committed to providing educational services across the globe, we bring seminars to customer locations and tailor subject matter to meet specific customer objectives. • Instructor Guides and Training Manuals With use of our complete training system, customers can Freight Car Air Brakes instruct personnel on a variety of topics. Visit our training catalog at www.wablink.com to purchase Wabtec workbooks, February 24 - 27, 2004 instructor guides, overhead slides and presentations. e Air Brake Seminars April 13 - 16, 2004 Wabtec Global Services hosts locomotive and freight air brake seminars at our training facility in Wilmerding, Pennsylvania. September 14-17, 2004 Sessions include a demonstration of Wabtec's 150-car test rack, a tour of the WABCO Locomotive Products production October 26 - 29, 2004 facility and in-class simulations of Wabtec's ABDX freight car and 26-L locomotive brake equipment. Locomotive Air Brakes Freight Car Air Brakes Locomotive Air Brakes Designed to teach students This course provides an March 9 - 12, 2004 all aspects of freight car air overview of locomotive air brakes, this seminar brakes using 26L and 30 May 4 - 7, 2004 outlines basic braking ACDW brake equipment October 5 - 8, 2004 principles and details the and includes an introduc- operation of the ABDX tion to EPIC Electro-Pneu- November 16 - 19, 2004 Control Valve. Topics matic locomotive brake include basic air brakes, equipment. Topics include auxiliary and emptyAoad basic air brakes, braking equipment, principles of principles, main reservoir long train operation, and ' air supply, principles of manual and automated . long train operation and TODAY! single car test procedures. how to read air brake diagrams. 4M Iraw ©2004 Wabtec Corporation WGs-0006-04 IWabtec GLOBAL SERVICES Wabtec Global Services (WGS) offers the finest in component level electronic repair and addresses the needs of today's mobile workforce through our broad array of wireless service capabilities. • • i, ELECTRONIC REPAIR K ' WGS offers a variety of programs to satisfy customer needs including standard repair and return, unit exchange and the outright sale of electronic equipment that meets OEM standards. We repair, renew and upgrade Wabtec products as well as: • Wabtec acquisition product lines • Handheld wireless equipment including Pulse Electronics, Rockwell • Consumer and industrial goods Railway Electronics, TSM, and Q-Tron • Motorola & Harmon radios ON-SITE SUPPORT FCC licensed, our Available to provide on-site electronic technicians engineering support, our highly follow proper ESD skilled technicians assist customers precautions and practices with problem repairs, the that meet industry standard, ANSI/ESD S20.20. procurement of equipment, test In addition, our technicians continuously attend procedures, rework instructions, training with OEM's and technical schools to training and software upgrades. In stay on the forefront of today's technology. addition, our on-site support team drives our ability to manufacture and Our highly skilled repair technicians design test equipment to meet possess a variety of qualifications customer requirements. including: Troubleshooting down to the component level WIRELESS SERVICES The use of state of the art electronic test WGS' wireless solutions help to measuring equipment eliminate inefficiencies and reduce Diagnosis and analysis of product failure modes costs through the rapid deployment U Interpretation of source codes(C++, Cobol, Job of critical communications Control Language) infrastructure. We uniquely match •Computerprogramming customer requirements to the • Microprocessor technology latest technologies without manufacturer bias to ensure total • Analog and digital circuitry customer success. To learn more • RF(Radio Frequency) about our capabilities, please see • Interpretation of schematics and blue prints the reverse of this page. To learn more, call 1-877-922-2627 or visit www.wabtecglobalservices.COM. 02004 Wabtec Corporation Wabfec GLOBAL SERVICES - ♦, - mole WIRELESS SERVICE CAPABILITIES Wabtec Global Services offers a powerful combination of communication capabilities to deliver combined voice and data solutions over a single wireless LAN infrastructure. Wireless Site Survey - WGS' wireless Inventory & Equipment Management - site survey involves a series of tests to Wabtec Global Services offers a web based determine customer network design. The reporting and tracking system for wireless survey includes the analysis of bandwidth networking equipment. As part of the requirements, range, coverage and spec- system, WGS can perform a variety trum as well as a RF/wireless interference of functions including: and security. Customers receive a final report including product recommendations Procurement Management - WGS based on network requirements as well as coordinates the placement of multiple a complete design. purchase orders with corresponding vendors relating to all equipment, Wireless Site Certification - To ensure the software and accessories. correct installation of wireless equipment per the wireless site survey, WGS verifies the Asset Tag Management - WGS original site specifications through testing of tracks equipment via asset tags and bandwidth requirements, range and coverage, serial numbers. spectrum, RF/wireless interference and security. Certification includes network design Repair Management - WGS manages verification, a final report and site warranty. all equipment issues including the repair process. Wireless Bridging - Designed to withstand harsh environments, WGS' Warranty Management - WGS wireless bridging enables high-speed long ensures that warranties are range outdoor links between buildings. administered with associated repairs. The high speed links between the wireless bridges deliver throughput several times Reports - WGS' reporting interface faster than T1 lines for a fraction of the allows customers to view location cost. equipment inventory data, the service history for mobile and wireless devices, Custom Software - WGS designs custom the ability to track units and estimates software to satisfy customer needs. monthly repair costs. To learn more, call 1-877-922-2627 or visit . , ©2004 Wabtec Corporation WGS-0007-04 Wabtec _ I GLOBAL SERVICES a Wabtec Global Services offers the finest in freight and locomotive equipment reconditioning and upgrade services. With over 130 years experience we take pride in offering top-quality maintenance solutions to quickly restore performance. UPGRADE CAPABILITIES: FREIGHI Vibration Protection - Control valves without vibration protection can fail in as little as two A FUNDAMENTALLY years. This upgrade option helps to reduce BETTER COT... premature failures due to vibration as well as undesired emergency brake applications. Wabtec Global Services Wabtec performs this upgrade to ABDX has developed a variety of control valves at no charge and as an optional tools and processes, service to any ABD or ABDW control valve. including wire brush deep cleaning of ports and Leakage Protection & Stabilization - passages, specialized tools Performed during a typical Clean, Oil & Test for the removal of O-rings (COT) operation, this upgrade greatly reduces and reverse flush cleaning the potential for undesired emergencies and tools that have improved brake related wheel defects. the quality of repairs and provided customers with LOCOMOTIVE significant savings. Our Compressor Upgrades - We tools salvage many valves offer remanufactured air that would not normally cooled and water cooled air be repairable. They also compressors for outright remove contamination sale or unit exchange and buildup behind bushings can upgrade compressor features to include and other internal ports TCIS (Thermostatically Controlled Intercooler resulting in extended System), Rapid Unloader, cold temperature in-service life. bypass, 3rd bearing upgrade, etc. to extend compressor life. Repair Kits- Wabtec Global Services offers repair kits for customer use in performing component upgrades. To learn more, call 1-877-922-2627 or visit www.wabtecglobalservices.com. 02004 Wabtec Corporation Wabtec GLOBAL SERVICES "- I V1 I 7mWhy Select Wabtec Global Services? QUALI . , . 7n • We utilize only Wabtec OEM rubber and Wabtec OEM component replacement parts to meet both Wabtec and the AAR's stringent specifications in the r repair and rebuild of brake system devices. '' 'r Manufactured to perform in cold weather, Wabtec quality rubber will withstand cold temperatures to a -40° Fahrenheit. ` We continuously work to improve processes to better serve our customers. Automated Single * We back our work with a warranty on replacement Car Testers parts and workmanship. * We have the capabilities and resources to upgrade older pneumatic braking components to enhance their overall performance and reliability. nFf ivF v Wabtec Global Services' close proximity to North America's largest rail hubs via our network of service _ centers ensures the timely transfer of parts to and from customer locations. * We maintain a finished goods inventory at our ' service locations to facilitate immediate delivery. ' ' ' ' = • ' * With decades of experience, our well-equipped shops offer professional service at competitive prices. * Committed to providing high value service to our ' customers, we provide a variety of reports based on ' customer need such as weekly inventory status, - • • monthly warranty reports, five step corrective action reports and quality action team reports. * We provide nonstandard M-1003 services which can include special packaging, painting and additional cleaning operations. • We can remanufacture otherwise scrap valves or provide new if necessary. ©2004 Wabtec Corporation WGS-0009-04 Wabtec GLOBAL SERVICES e Available via Wabtec's e-commerce web site, WabLinkTM, Wabtec Managed Inventory (WMI) assists customers in recording real-time inventory data and eliminates the need to place orders for replacement stock. HOW DOES WMI WORK? OP Welcome To Wabtec Managed Inventory tit T o v, .c ,• vw d. edy�t� pv^m1, a.av+.o.vvw:m �o w,e•�,a e: In 2002, one of ,-° rec•ntc S:.aSd9srdAY 21 GdiS.NeSsu?If.s—wg¢tgs. r es•aP parts to cat•gori•.. reruns North America's largest " s:�;•, •�ta,re,•n,. N , matarws rr•m w,nt•c. ane va<••m sbs. anzfer van b-evoo �i railroads, CSX Transpor- ° tation, selected Wabtec Global Services to Q <-..„•,.•. ..� , . ..rv.,, exclusively maintain an WabLink TM automatically generates orders for inventory of nearly 40 replenishment parts when customer inventory products at ten locations levels reach predetermined minimums. Customers for a period of ten years. utilize WabLinkTM to manage usage, receive/return Through close work with CSXT and the use of material, generate reports and to track shipments. Wabtec's Quality and Performance system BENEFITS INCLUDE: (QPS) tools, Wabtec DECREASED INVENTORY MANAGEMENT COSTS Global Services * Significant inventory reduction through optimized automated the process pool size and mix. for supplying replace- a Dramatic decrease in purchase orders and invoices ment parts. As a result (1 per week) of the program, CSXT • Reduced transportation costs now receives only what is needed when it is BETTER INVENTORY MANAGEMENT needed and enjoys lower • One interface, multiple products costs, increased • Real time visibility and reports operating efficiencies PEACE OF MIND and reduced inventories * Automatic ordering with rapid turn around and as a result of WMI. delivery ensures material availability L� a Wabtec quality To learn more, call 1-877-922-2627 or visit www.wabtecglobalservices.com. ©2004 Wabtec Corporation WGS-001 1-04 Wabtec GLOBAL SERVICES Aimed at helping customers achieve cost saving - efficiencies, Wabtec Global Services (WGS) offers solutions for the maintenance and utilization of railcars, trailers and containers. Car Repair Billing (CRB) Wabtec Global Services' CRB application streamlines the process of recording and invoicing repairs conducted on freight cars and integrates with customer systems or with Wabtec Managed Inventory, our web-based inventory replenishment system, to eliminate the need to place orders for replacement stock. Key Benefits: •Labor savings •Data accuracy & availability •Improved budgeting ability •Fleet management Back Office In response to the AAR's push for electronic standards and programs, WGS' Back Office application automates the labor intensive administrative tasks of car repair billing including identifying billable repairs, identifying the correct bill to party, AAR, RAC and contractual pricing, and the generation of paper and electronic invoices. Key Benefits: *Automated quality processing *Efficient use of time WabTrax Designed for shippers, shortline railroads, car management companies and leasing companies, the WabTrax internet-based railcar management platform allows for the collection, analysis and distribution of valuable business intelligence from rail car location message data. Key Benefits: *improved utilization *Fleet sizing •Reduced excess empty miles *Demurrage tracking •ETA's and trip times Track Inspection System (TIS) The Track Inspection System application allows for "in the field" data entry of track inspections, defects and repairs. Track inspections and defect records are transmitted to a central server via satellite, radio frequency or modem connection. The central repository stores track inspection records for FRA review, management reporting and track analysis. Key Benefits: •Inspection recording *Track analysis *Centralized data repository •Integration with client systems To learn more, call 1-877-922-2627 or visit www.wa b te . . ©2004 Wabtec Corporation Waftm GLOBAL SERVICES , Contract Repair System Wabtec Global Services' Contract Repair System helps freight car owners reduce the amount of time their cars spend at contract shops by determining the best facility to repair damaged cars and by tracking the car's arrival. The application decreases the amount of time required to review and approve contractor estimates by automating specific review functions including the separation of estimates that require manual review and estimate approval notification. The process not only reduces time spent generating, validating and pricing repair estimates, it ensures that estimates and the amount to be paid are valid. Key Benefits: •Reduction in time spent determining car disposition and in reviewing estimates as well as final invoices. •Tracks cars as they move to the shop and when released. •Automated quality processing and identification of estimates not in accordance with AAR rules. •Determines non-billable repairs based on leased car agreements and responsibility. Trailer & Container Repair Billing With use of state of the art PC-based computer systems, Wabtec Global Services' Trailer and Container Repair Billing (TCRB) application allows for "at the equipment" data entry of inspection and repair information. Complex repair requirements and the governing AAR Intermodal Interchange Rules are the backbone of the TCRB application. Select lists and required fields simplify complex rules and decisions so that repairs are entered correctly the first time. Key Benefits: •Labor savings -Reduction in time spent invoicing, storing and retrieving billing information. -Reduction in time referencing the AAR Intermodal Interchange manual. - Improved resource allocation through fast and accurate information. •Data accuracy and availability -Correct and complete repair records. - Data integrity across the enterprise. •Budget control - Increased revenue by increase in identifying associate repair. •Fleet management -Identification of repeat failures and improve equipment repair turn around time tracking. To learn more, call 1-877-922-2627 or visit www.wabtecglobalservices.com. 02004 Wabtec Corporation WGS-0010-04 aw 9� City of Yelm 105 Yelm Avenue West YELM P.O. Box 479 WASNINOTON Yelm, Washington 98597 April 30, 2003 (360) 458-3244 Washington State Department of Transportation Rail Office Ken Uznanski, Manager P.O. Box 47387 Olympia, WA 98504-7387 RE: Transmittal of City of Yelm WSDOT Freight Rail Assistance Application Dear Mr. Uznanski: The City of Yelm is pleased to submit the attached Freight Rail Assistance Application for the connection of the Yelm Roy Prairie Line to the Tacoma Rail Mountain Line near the Miles Sand and Gravel Company outside the City of Roy. As you will see by our application and the accompanying letters of support, this project, has the support of local, county and state government, chamber of commerce, economic development and port agencies, as well as the development and business community. Since the 1999 acquisition of the then-to-be abandoned section of the Prairie Line from Yelm to Roy, the City, in partnership, has been working to establish a connection of the Yelm Roy Prairie Line to the Tacoma Rail Mountain Division. This connection alone could divert upwards of 22,000 truckloads of gravel per year from SR 507 to freight rail, as well as support rural economic development of commercial and industrial growth in Yelm, Thurston County's fastest growing community. And last, but surely not least, the connection provides a unique and exciting opportunity— commuter rail between east Thurston County and Tacoma's Freighthouse Square, where the Sounder commuter train now stops. A connection that could enable the City of Yelm to be the first community in Thurston County to have commuter rail service to Tacoma and Seattle! In closing, we thank you for your consideration of our request for funding of this diversify beneficial project. Sincer fy: -.-...----_...._--- Mayor Adam Rivas, City of Yelm The City of Yelm is an Equal Opportunity Provider Washington State Department of Transportation Freight Rail Assistance Application Connection Track Yelm Roy Prairie Line to Tacoma Rail Submitted by: City of Yelm - April 30, 2003 1. Contact Information: City of Yelm Attn: Ms. Shelly Badger City Administrator 105 Yelm Avenue P.O. Box 479 Yelm, WA 98597 Phone: 360-458-8405 Fax: 360-458-4348 E-mail: shelly@yelmtel.com WSDOT Freight Rail Application Submitted by: Citv of Yelm, 4/30/03 2. Project Description: The project will construct a new connection from the City of Yelm's Yelm Roy Prairie Line (YRPL) to the Tacoma Rail mainline between Roy and McKenna as shown on the attached Exhibit A. The connection will be approximately 3,000 feet long. The project will include the following improvements: ■ Two (2) turnouts. One in the Tacoma Rail mainline and one in the YRPL mainline. ■ 3,000 feet of connection track ■ One 80-foot long grade crossing of SR-507. ■ One set of cantilever grade crossing signals with gates. ■ Box culvert at Murray Creek. The new track will cross property owned by the City of Yelm, City of Tacoma, and Miles Sand and Gravel Company(Miles). All have agreed to provide the required right-of-way for the track. The project will have a number of partners working together to build the project. The City of Yelm is the lead proponent. Tacoma Rail, Miles, Wilcox Farms, and others will participate to varying degrees on the project. One purpose of the project is to open additional markets to and provide competitive rail service to customers along the YRPL. Currently, service is provided exclusively by the Burlington Northern Santa Fe Railway (BNSF). The new connection will open opportunities for existing Yelm industrial area businesses to ship to destinations along the Tacoma Rail system and to gain access to the Union Pacific Railroad (UPRR) via Tacoma Rail. The project will also provide an added marketing incentive to attract future companies to the area. An additional purpose is to give Miles access to rail service and reduce truck trips into the Tacoma metropolitan area. Miles intends to ship approximately 5,000 carloads of gravel per year across the connection into a facility in the Tacoma area. This will reduce heavy truck traffic on SR-507 and SR-7 by approximately 22,000 round trips per year between the Miles pit and Tacoma since this material is currently hauled by truck. Miles also sees an opportunity to develop markets for gravel south of Yelm along the Tacoma Rail corridor into Chehalis. The City of Yelm will follow the necessary environmental review processes in the planning and design of the project. WSDOT Freight Rail Application Submitted by: City of Yelm, 4/30/03 3. Project Timetable: The project is currently scheduled as follows dependent upon funding: August 4, 2003 Begin Permitting and Design March 31, 2004 Complete Permitting and Design April 2, 2004 Advertise for Bids April 30, 2004 Bid Date June 1,2004 Issue Construction Notice to Proceed November 5, 2004 Complete Construction WSDOT Freight Rail Application Submitted by:City of Yelm, 4/3"3 4. Project Costs Worksheet: DESCRIPTION QUANTITY UNITS UNIT COST TOTAL COST Construct Track Subgrade 3,000 TF $- 25.00 $ 75,000.00 Construct Track 3,000 TF $ 120.00 $ 360,000.00 Construct Turnouts 2 EA $ 50,000.00 $ 100,000.00 Construct Grade Crossing 80 TF $ 750.00 $ 60,000.00 Install Crossing Signals & 1 SET $ 125,000.00 $ 125,000.00 Gates Fencing and Gates 1 LS $ 30,000.00 $ 30,000.00 Construct Box Culvert 1 LS $ 100,000.00 $ 100,000.00 SUBTOTAL $ 850,000.00 Contingency 25.0 % $ 212,500.00 Design& Constr. Admin. 12.0 % $ 127,500.00 WSST 8.4 % $ 89,250.00 Right-of-Way Expense 50,000.0 SF $ 3.00 $ 150,000.00 TOTAL $ 1,429,250.00 The project will have substantial local funding and in-kind contributions. The support will come from several local sources including both private and public entities. The support is similar in nature to the cooperative effort and financial support garnered by the City of Yelm, City of Roy, local businesses, and economic development agencies for the initial purchase of the YRPL from the BNSF several years ago. A breakdown of the estimated funding sources is as follows: Local Funding $ 50,000.00 Miles Sand & Gravel (in-kind contributions) Right-of-way $ 150,000.00 Track Ballast $ 10,000.00 WSDOT Freight Rail Assistance $ 1,219,250.00 Total Project Cost $ 1,429,250.00 WSDOT Freight Rail Application Submitted bv: City of Yelm, 4/30/03 5. Safety or Emergency Situation Information: The project will take approximately 22,000 round trip truck trips off of SR-507 and SR-7 as described above. This significant reduction in truck traffic on those stretches of regionally significant highways will enhance safety and reduce congestion. The connection may also reduce truck traffic along SR-507 and SR-510 through the City of Yelm's core area. Several existing industries that previously used rail and currently use trucks may return to rail service if it can be achieved competitively. The new connection will improve access to competitive rail rates. Up to 100 truck trips per year may be reduced from those routes. WSDOT Freight Rail Application Submitted by:City ofYelm, 4/30/03 6. Preservation of Rail Line: Construction of the new connection to Tacoma Rail provides the opportunity to restore service to this line by creating a competitive alternative for Miles to ship gravel to the Tacoma market area by rail. It may also bring previous rail customers back to rail by providing the competitive connection offered by Tacoma Rail to the UPRR and other markets along the Tacoma Rail system. WSDOT Freight Rail Application Submitted by: City of Yelm, 4/30/03 7. Project Benefits Worksheet: Benefits from the project include the following: ■ Avoided Highway Impacts ■ Opportunity Costs ' ■ Transportation Cost Savings ■ Environmental Impacts Each of these items will benefit from the construction of the connection to the Tacoma Rail mainline. Some of the benefits are immediate and some take place over time. All are substantial. Avoided Highway Impacts Miles currently ships 22,000 round trip truckloads per year from their pit located between Yelm and Roy into the Tacoma area. They typically travel on SR-507 between the pit and the junction with SR-7 and then into Tacoma along SR-7 and SR-512. The total distance traveled by the trucks is approximately 25 miles each way. It is also estimated that existing industries that previously used rail will return to rail for a limited amount of their business. This will lead to a reduction of 100 trucks per year from SR-507 and SR-510 in Yelm's core. Opportunity Costs In addition to the reduction of truck traffic on the state highways, several opportunities for additional savings to businesses may result from the project. Some of the industries in the Yelm industrial area previously used rail. A propane distributor and two plastic products manufacturers both received products by rail until BNSF rail rates became non-competitive with trucking. Amtech and Lasco,the plastic products manufacturers have expressed interest in returning to rail service if the rates can be competitive. The propane distributor may also consider returning to rail for inbound tank cars. The connection also provides a potential commuter rail link to Sounder via Tacoma Rail to Freighthouse Square in Tacoma and beyond. Sounder is currently constructing a commuter rail station there and construction will begin in May 2003 of the connection from Tacoma Rail to the BNSF mainline for service into Seattle. There are currently approximately 250 acres of industrial land available in the Yelm area that are immediately adjacent the YRPL. Competitive rail service to these sites greatly enhances the opportunities for development of new industries and their associated employment. Perhaps most importantly, the connection will develop new business for Tacoma Rail to haul approximately 5,000 carloads of gravel into Tacoma each year. The value of this business alone for Tacoma Rail should be in the range of$500,000 to $1,000,000 per year. In addition to this business,the local plastic products manufacturers and the propane distributor may generate an additional 40 to 50 carloads per year. WSDOT Freight Rail Application Submitted by:City of Yelm, 4/30/03 7. Project Benefits Worksheet: continued... Transportation Cost Savings Anticipated savings due to the change from truck to rail for the gravel shipments are in the range of$1.00 to $2.00 per ton of gravel or between$400,000 and $800,000 per year. Additional savings may be realized from existing businesses returning to rail service. Environmental Impacts Reducing truck trips from Yelm into Tacoma by approximately 22,000 round trips per year and shipping the gravel by rail reduces fuel usage and air pollution significantly. Perhaps more significant is improved safety along the highway corridor due to the large reduction in truck traffic. Additionally,the two state highways SR 507 and 510 converge in Yelm's city center. Currently these highways carry over 35,000 trips per day through the heart of Yelm on streets originally built for local traffic. Removal of the trucks from existing businesses upon their conversion to use of rail, as well as from future industrial growth utilizing rail service, will help to alleviate the congestion which deters economic development, hampers emergency response efforts, school transportation and transit service, and lowers the quality of life for the community's residents. WSDOT Freight Rail Application Submitted bv: City of Yelm, 4/30/03 8. Economic Vitality of the Rail Line: Currently, the Yelm Roy Prairie Line has no traffic. Construction of this project is expected to generate more than 5,000 carloads of gravel from the Miles pit alone. In addition to that traffic, the connection to Tacoma Rail may generate an additional 50 carloads per year from existing industries along the line due to the ability to have more competitive rail rates and to connect directly to both the BNSF and UPRR through Tacoma Rail. The area also has a large potential for industrial development with approximately 250 acres of industrial land immediately adjacent to the YRPL in the Yelm area. Part of the long-range plan for the line has been and remains to attract rail-served industries to these sites. The connection to Tacoma Rail enhances this plan. The Yelm area, including Roy and McKenna, is one of the fastest growing areas in the region. Improved rail service with the potential to provide both freight and commuter rail to the communities will enhance economic development and increase the number of family wage jobs available to residents. WSDOT Freight Rail Application Submitted bY: City of Yelm, 4/30/03 9. Audited Financial Statement: Not applicable WSDOT Freight Rail Application Submitted by: City of Yelm, 4/30/03 10. Traffic History: The rail line has had no traffic during the last two years. Approximately 5,000 to 5,500 cars per year are projected for the each of the next ten years. WSDOT Freight Rail Application Submitted by: Citv of Yelm, 4/30/03 11. Future Project Cost Increases due to Special Factors: No future project cost increases due to special factors are anticipated. WSDOT Freight Rail Application Submitted bv: City of Yelm, 4/30/03 12. Efficiency Description: This project is not designed to enhance the efficiency of the rail line. It is,however, anticipated that the new connection will improve the overall efficiency of moving products to and from the Yelm industrial area. Specifically, the new connection will immediately improve the efficiency of moving gravel from the Miles pit into the Tacoma area. ' When constructed, the project will also improve the efficiency and safety of SR-507 and SR-7 due to the significant reduction of truck traffic on those routes. The level of service(LOS) should improve. WSDOT Freight Rail Application Submitted by: City ofYelm, 4/30/03 13. Shippers List: The YRPL has no currently active shippers. Please see the attached letters of support from area businesses and community representatives. WSDOT Freight Rail Application Submitted by: City of Yelm, 4/30/03 Washington State Department of Transportation Freight Rail Assistance Application Connection Track Yelm Roy Prairie Line to Tacoma Rail Submitted by: City of Yelm- April 30,2003 Signed: i Ada Rivas Mayor, City of Yelm WSDOT Freight Rail Application Submitted by: City of Yelm, 4/30/03 1, 6 3 s � # � f` � ;yf, ;.,� .✓# Er' .00 r l • t 1rr ;. j ,,............ I` '■ { �I�wr'C�.T! 7(� f .....,....,f �f"_ i ...".. `�� _`4 y f l��_ y .� ...���' ......,,K w�._� f k f p• jj)) i I •' �� ty Rm ii: E •� t lilt" THURSTON REGIONAL PLANNING COUNCIL 2404 HERITAGE COURT SW #B OLYMPIA, WASHINGTON 98502-6031 Members: April 24, 2003 City of Lacey City of Olympia City of Rainier Ken Uznanski, Manager City of Tenino Washington State Department of Transportation Rail Office City of Tumwater PO Box 47387 City of Yelm Olympia,WA 98504-7387 Town of Bucoda SUBJECT: Letter of Support—City of Yelm WSDOT Freight Rail Assistance Thurston County Application—Yelm Roy Prairie Line &Tacoma Rail Mountain Intercity Transit Division Rail Connection Port of Olympia Griffin School District Dear Mr. Uznanski: North Thurston Public Schools Confederated Tribes of the Several years ago, the City of Yelm acquired a then-to-be-abandoned section of the Chehalis Reservation Prairie Line from Yelm to Roy. This far sighted decision preserved a section of ever Nisqually Indian Tribe dwindling Class III rail for freight and passenger use. This project will connect the Thurston Conservation District Yelm Roy Prairie Line to the Tacoma Rail Mountain Line near the Miles Sand and Timberland Regional Library Gravel Company in Roy. The 2000 foot track connection between the Yelm Roy Prairie Line and Tacoma Rail Charter Member Emeritus: Mountain Line will provide competitive common carrier freight rail service to The Evergreen State College Yelm's industrial sector and Miles Sand and Gravel Company. Upwards of 22,000 truckloads per year of gravel alone could be diverted from travel on State Route 507 to freight rail. The connection will also support rural economic development of commercial and industrial growth in Yelm, Thurston County's fastest growing Lon D.Wyrick community. Executive Director The connection provides another unique opportunity — commuter rail between east Thurston County and Tacoma's Freighthouse Square, where the Sounder commuter train now stops. The City of Yelm could very well be the first community in Thurston County to have commuter rail service to Tacoma and Seattle! (360)786-5480 This rail connection has been discussed several times by the Thurston Regional FAX 754-4413 Planning Council. As the MPO/RTPO, the Council indicated their ongoing support of this regionally significant project which would strengthen our area's economic www.trpc.org vitality and improve freight mobility. This project also expands and strengthens developing ties between east Thurston County and southeast Pierce County, an area of burgeoning population as well as extensive commercial and industrial growth. Providing Visionary Leadership on Regional Plans, Policies and Issues w Ken Uznanski, Manager Page 2 Apri124, 2003 State funding for the Yelm Roy Prairie/Tacoma Rail Mountain Lines connection was cut from the WSDOT budget in addressing the statewide 2001 budget shortfall. Without the state's support and partnership, local public and private partners cannot make this project happen. We ask you to re- establish your support for this rail connection. Sincerely, Lon D. Wyrick,Execu ' e irector 75:Ib cc: Adam Rivas, Mayor, City of Yelm Virgil Clarkson, Chair,Thurston Regional Planning Council Ken Jones, Vice-Chair,Thurston Regional Planning Council Shelly Badger, City Administrator, City of Yelm ADAM SMITH COMMITTEE ON ARMED SERVICES STH DISTRICT,WASHINGTON SUBCOMMITTEES: 227 CANNON HOUSE OFFICE BUILDING TACTICAL AIR AND LAND FORCES WASHINGTON,DC 20515 TERRORISM,UNCONVENTIONAL THREATS AND (22 OFFICE: congrezz of Me Untteb *tater CAPABILITIES DISTRIRICT OFFlCOMMITTEE ON 1717 PACIFIC AVENUE,#2135 J000e of regentatibez INTERNATIONAL RELATIONS TACOMA,WA 98402 SUBCOMMITTEE: QW)5934" 9l)ingtonAIC 20515-4709 ASIA AND THE PACIFIC TOLL FREE 1418"MITH09 , CONGRESSIONAL INTERNET CAUCUS e-mail:httpY/www.house.govNvriterep/ http:/Mrww.house.gov/adsmsmitK' NEW DEMOCRAT COALITION April 29,2003 Ken Uznanski Manager WA State Department of Transportation Rail Office P.O. Box 47387 Olympia,Washington 98504 Dear Mr. Uznanski: I am writing to express my strong support of the City of Yelm's Freight Rail Assistance application for the connection of the Yelm Roy Prairie Line&Tacoma Rail Mountain Division Rail Connection. Having worked with the City of Yelm and representatives from throughout the region, I am excited about the prospect of a community pulling together to preserve an incredibly vital link for the Yelm and Roy region. I have supported the acquisition of the Shortline Railroad and believe that this segment is vital to the economic and industrial future of both Yelm and Roy. This track connection would provide a competitive common carrier rail freight service to Yelm's industrial area and the Miles Sand and Gravel Company located between Roy and Yelm. This link will benefit the area by enhancing the profitability of existing businesses and improve the prospects of attracting new businesses to this area. I am pleased to have the opportunity to share my support for this important project. Sincerely, Adam Smith Member of Congress AS:tlj PRINTED ON RECYCLED PAPER i °P Olympia Office: 326 john A. Cherberg Buil ling YO Box 40402 hingtResidence: mWas Olympia, WA 98504-0402 on State Senate 33419 Mountain Hwy E (360) 786-7602 Eatonville, WA 98328 FAX: (360) 786-7020 Senator Marilyn Rasmussen Phone/FAX: (253) 847-3276 Hotline: 1-800-562-6000 Cellular Phone: (253) 677-3536 rasmusse_ma@leg.wa.go\ 2110 Legislative District senrasnutssen@rainierconnect.corn April 24, 2003 Washington State Department of Transportation Rail Office Ken Uznanski, Manager P.O. Box 47387 Olympia, WA 98504-7387 Re: Letter of support — City of Yelm WSDOT Freight Rail Assistance application — Yelm Roy Prairie Line & Tacoma Rail Mountain Division Rail Connection Dear Mr. Uznanski: I would like to support the City of Yelm's Freight Rail Assistance application for connection of the Yelm Roy Prairie Line to the Tacoma Rail Mountain Division Line. This 2,000-foot track connection would provide competitive common carrier rail freight service to Yelm's industrial area and the Miles Sand and Gravel Company located between Roy and Yelm. This link would offer direct rail service to the Miles Sand and Gravel Pit, converting up to 22,000 heavy semi-truck loads of gravel per year from State Route 507 to freight train. The link could also serve to enhance the profitability of existing businesses and provide incentive needed to attract future companies to the greater Yelm area. Another exciting future opportunity with a completed connection, is the commuter train opportunity in Yelm because the Tacoma Rail Mountain Division will connect with the Sounder commuter trains at Freighthouse Square in Tacoma. From early 1999, the City's acquisition of the Yelm Roy Prairie Line from Burlington Northern Santa Fe Railway, has had the support of local, county and state government, chamber of commerce, economic development and port agencies, as well as the development and business communities. The connection of the Yelm Roy Prairie Line and the Tacoma Rail Mountain Division Line only strengthens the potential for economic vitality and improved freight mobility. We ask for your favorable consideration of the City's request for funding. Sincerely, tateena ss n ct Standing Committees: Agriculture, Ranking Member • Education, Member Itulct. nlmlll 'l' boint select Committee on Veterans' and Military Affairs State of STATE REPRESENTATIVE Washington CAPITAL BUDGET 2nd DISTRICT House Of TECHNOLOGY, ROGER BUSH Representatives TELECOMMUNICATIONS&ENERGY RULES IJA77. ? JOINT SELECT COMMITTEE ON April 2003 ; . .h A� VETERANS'&MILITARY AFFAIRS p �.,e Ey WSDOT Rail Office Ken Uznanski, Manager P.O. Box 47387 Olympia, WA 98504-7387 Re: City of Yelm Freight Rail Assistance application Dear Mr. Uznanski: This letter is to express my strong support for the City of Yelm's Freight Rail Assistance application for the connection of the Yelm Roy Prairie Line to the Tacoma Rail Mountain Division Line. This important link would provide competitive common carrier rail freight service to the industrial area of Yelm and to Miles Sand and Gravel company located between Roy and Yelm. One of the most critical aspects of this project, in my opinion, is that this rail link would provide for the transfer by rail of what is currently approximately 22,000 semi-truck loads of gravel per year moving along State Route 507. In addition, the potential for economic vitality in this area would be greatly enhanced by the improved freight mobility achieved by the connection of the two rail lines. Existing businesses would benefit from increased profitability, and new businesses would have added incentive to consider locating in the greater Yelm area. This is an opportune time to establish this rail connection between the Yelm Roy Prairie Line and the Tacoma Rail Mountain Division Line. Doing so would present an opportunity at a future date for a commuter train in Yelm when the Tacoma Rail Mountain Division connects with the Sounder commuter trains' Freighthouse Square in Tacoma. This is a highly worthwhile project that would be of great benefit to the people and businesses of Yelm and the surrounding communities. Please give this application your utmost consideration. Sincerely, Representative Roger Bush 2"d Legislative District LEGISLATIVE OFFICE: 425 JOHN L.O'BRIEN BUILDING,PO BOX 40600,OLYMPIA,WA 98504-0600 • 360786-7824 TOLL-FREE LEGISLATIVE HOTLINE: 1-800562.6000 • TDD: I-800635-9993 PRINTED ON RECYCLED PAPER a*� P,,,,,q,,, YeIm Area Chamber of Commerce Shop LoeaUg Support the businesses of Roy, Ye*McKenna,Rainier and surrounding areas P.O. Box 444 (360) 458-6608 Yelm, WA 98597 Fax (360) 458-6383 www.yehnchamber.com Email: info@yelmchamber.com April 24,2003 Washington State Department of Transportation Rail Office Ken Uznanski, Manager P.O. Box 47387 Olympia,WA 98504-7387 Re: Letter of support—City of Yelm WSDOT Freight Rail Assistance application— Yelm Roy Prairie Line&Tacoma Rail Mountain Division Rail Connection Dear Mr. Umanski: The Yehn Area Chamber of Commerce's Board of Directors would like to extend our support of the City of Yehn's Freight Rail Assistance application for the connection of the Yelm Roy Prairie Line to the Tacoma Rail Mountain Division Line. The Yelm Roy Prairie Line's 2000-foot track connection would provide competitive common carrier rail freight service to Yehn's industrial area and the Miles Sand and Gravel Company located between Roy and Yelm. This link would offer direct rail service to the Miles Sand and Gravel Pit, converting up to 22,000 heavy semi-truck loads of gravel per year from State Route 507 to freight train. The link could also serve to enhance the profitability of existing businesses and provide the added incentive needed to attract future companies to the greater Yehn area Another exciting future opportunity with a completed connection,is the commuter train opportunity in Yelm because of the fact that the Tacoma Rail Mountain Division will connect with the Sounder commuter trains' Freighthouse Square in Tacoma From early 1999,the City's acquisition of the Yelm Roy Prairie Line from Burlington Northern Santa Fe Railway has had the support of local, county and state government, chamber of commerce, economic development and port agencies, as well as the development and business communities. The connection of the Yehn Roy Prairie Line and the Tacoma Rail Mountain Division Line only strengthens the potential for economic vitality and improved freight mobility. The Chamber Board of Directors would like to ask for your favorable consideration of the City's request for funding. Sincerely, Glen Cunningham Cecelia Jenkins President Executive Director Shop locally and support the businesses of McKenna,Rainier,Roy, Yelm and surround area. ti{fF,\ Economic Development Council X>` of Thurston County 721 Columbia SW Olympia WA 98501 It's About Jobs. 360.754.6320 fax 360.586.5493 www.thurstonedc.com April 30, 2003 Washington State Department of Transportation Rail Office Ken Uznanski,Manager P.O. Box 47387 Olympia,WA 98504-7387 Re: Letter of support—City of Yelm WSDOT Freight Rail Assistance application—Yelm Roy Prairie Line&Tacoma Rail Mountain Division Rail Connection Dear Mr. Uznanski: The Economic Development Council of Thurston County would like to add our support of the City of Yelm's Freight Rail Assistance application for the connection of the Yelm Roy Prairie Line to the Tacoma Rail Mountain Division Line. Since early 1999,the City's acquisition of the Yelm-Roy Prairie Line from Burlington Northern Santa Fe Railway has had the support of local, county and state government, chamber of commerce, economic development and port agencies, as well as the development and business communities. The connection of the Yelm Roy Prairie Line and the Tacoma Rail Mountain Division Line strengthens the potential for economic vitality and improved freight mobility. Another future opportunity that would accompany a completed connection, is the commuter train opportunity in Yelm because of the Tacoma Rail Mountain Division connection to the Sounder commuter trains' Freight house Square in Tacoma. This 2000-foot track connection would provide competitive common carrier rail freight service to Yelm's industrial area and the Miles Sand and Gravel Company located between Roy and Yelm. This link would offer direct rail service to the Miles Sand and Gravel Pit, converting up to 22,000 heavy semi-truck loads of gravel per year from State Route 507 to freight train. The link would also enhance the profitability of existing businesses and provide the added incentive needed to attract future companies to the greater Yelm area. We ask for your favorable consideration of the City's request for funding. Sincerely Dennis Matson Executive Director Commissioners ((� Port of Olympia Steve Pottle Paul Telford Bob Van Schoorl April 24, 2003 Washington State Department of Transportation Rail Office Ken Uznanski, Manager P.O. Box 47387 Olympia, WA 98504-7387 Re: Yelm Rail Dear Mr. Uznanski: The Port of Olympia writes this letter in support of the City of Yelm's application for a Freight Rail Assistance Grant to connect service of the Yelm Roy Prairie Line to the Tacoma Division Line. The Port of Olympia supported City of Yelm's original acquisition of this rail line and has been working with City of Yelm on marketing strategies for developing Yelm's Industrial area. Maintaining the rail link is an important component of this Yelm's economic development strategy for this industrial area. This additional track connection would provide valuable link to the Miles Sand and Gravel operation and work to attract additional businesses to the greater Yelm area. The possibilities of future commuter connections also offer great opportunities from these connections. We encourage your support for this important economic development initiative for the City of Yelm. If you have any questions, please do not hesitate to contact me. Sincer y, • Nick Handy Executive Director 915 Washington Street NE,Olympia,WA 98501 Tel(360)528-8000 Fax(360)528-8090 vvvvvv.portolyrnpia.com I Executive Director,Nick Handy isVVILLIAmS GROUP f[r�tmrt@cY Xfa �rfi�y 7, F^. Investing In The Future 29 April 2003 Washington State Department of Transportation Rail Office Ken Uzanski, Manager P.O. Box 47387 Olympia, WA 98504-7387 Re: Letter of Support—City of Yelm WSDOT Freight Rail Assistance application— Yelm Roy Prairie Line&Tacoma Rail Mountain Division Rail Connection Dear Mr. Uzanski: I absolutely support the City of Yelm's Freight Rail Assistance application for the connection of the Yelm Roy Prairie Line to the Tacoma Rail Mountain Division Line. The key communicators in Yelm and the Yelm area are proactively planning for the future. The vision for the future of Yelm is that Rail will play a significant role in our ever-expanding foundation for economic growth and quality of life. The tangible and intangible economic benefits resulting in the States choosing to invest in the Yelm area will be exponential in nature in the short, interim, and long term horizons. In the past,the City of Yelm has enjoyed a pleasant and constructive association with your Department, and your willingness to embrace this project has not gone without notice. As we attempt to execute on this far reaching initiative I would ask for your favorable consideration of Yelm's request for funding. cerely Yours; J. . Williams esidentJCEO 701 Prairie Park Lane, Suite J Post Office Box 5210 • Yelm, Washington 98597 Email: williamsgroupllcCaol.com • Telephone: 360-458-8533 • Fax: 360-458-8501 ' v �cn DAVID EVANS AND ASSOCIATES, MEMORANDUM 3900 Pacific Highway East Suitc 3>> TO: Ken Garmann - Public Works Director Tacoma,Washington 98424 FIRM: City of Yelm FROM: Charles Burnham, P.E. Tel: 206.922.9980 DATE: May 19, 1998 Fax:2o6.922.9781 SUBJECT: YELM BRANCH LINE PROD.#: YELM0001 COPIES. Pursuant to the direction of the City of Yelm, DEA is preparing information on operation of the Yelm Branch of the Burlington Northern Santa Fe Railway(BNSF) as a shortline. Information regarding costs of initial repairs to track and structures,annualized maintenance costs, and the cost of train operations is included in this memo. The names of two regional railroad operators is also furnished for the city's use. The costs are preliminary and are based on our inspection of the line,discussions with rail operators, and DEA's database of cost information relating to railroad maintenance and operations. Information regarding existing traffic on the line from Lakeview to Roy has not been provided by the BNSF. We believe that this lack of cooperation on the part of the railroad is the result of ongoing discussions between the major carriers and their customers and shortlines regarding open access. The open access issue relates to rail users wanting access to either the BNSF or the Union Pacific Railroad no matter which rail line they may be located on. This issue may be resolved by the end of the month. For this reason, this memo includes estimates of traffic which may require updating when information becomes available from the BNSF. Initial Repairs: The general condition of the track and structures was discussed in our memo dated April 7, 1998. The following repairs are prioritized to indicate which need to be done before resuming operations on the line and which can be scheduled to be performed over some approximately the first year of operation. The non-priority repairs will also be dependent upon the level of traffic and by location on the line. For instance,the repairs to the track and turnout near the end of the line in Yelm can be delayed until such time that that particular section of the line is needed for servicing customers. Immediate Repairs: 1. Replace truss pins,Bridge No. 23 12 each @$10,000 $100,000. 2. Epoxy grout piers, Bridge No. 23 Lot 10,000 3. Deck/walkway repairs, Bridge No. 25 Lot 2,000 4. Replace ties east of Bridge No. 23 100 each @$85 8,500 Total Costs $120,500 E M B E R • Outstanding Quality SITIAIR a'o c: DAVID EVANS AND ASSOCIATES, Ken Garmann -Public Works Director May 19, 1998 Page 2 Scheduled Repairs: 1. Replace ties 400 each a) $85 $ 34,000 2. Replace switch ties 20 each @$200 4,000 3. Install culvert east of Bridge No. 23 1 each @$2500 2,500 4. Switch repairs Lot 2,500 5. Install rail and hardware Lot 2,500 6. Install bumping post I each @$500 500 7. Surface, line and dress track 1000 T.F. @$5 5,000 Total Costs $ 51,000 The immediate repairs need to be performed prior to using the track for rail service to Yelm. The scheduled repairs should be performed during the first year of service or sooner if traffic levels require. Annualized Maintenance: Maintenance costs are generally spread out over fiscal years. DEA estimates that during the first several years of operation the line will require the following repairs each year. 1. Replace ties 250 each @$85 $ 21,250 2. Replace rail 390 L.F. @$25 9,750 3. Misc bridge repairs Lot 10.000 Annual Maintenance Costs $ 41,000 This equates to $ 8,200 per mile each year which is comparable to costs in our database for shortline rail operators. Shortline Operators: The following companies are regionally located shortline operators which may be interested in operating the line for the city under contract or some other arrangement. Puget Sound&Pacific Railroad Co. David Parkinson, CEO 7525 SE 24th Street 206-232-1748 Suite 350 Mercer Island,WA 98040 • • MENUMM �cn DAVID EVANS AND ASSOCIATES, Ken Gar harm - Public Works Director May 19, 1998 Page 3 Willamette and Pacific Railroad Company Robert Melbo, President Albany, OR 541-924-6565 At some point in the near future it may be appropriate to contact these companies to detennine a livel of interest in operating the line and what type of operating arrangement might be appropriate. Additional information will be prepared regarding the number of existing and projected carloads on the line when information becomes available from the BNSF. If you have any questions or conunents, please call me. / J Orllllq � 4© an:)G yCf Q~ �t� tllyn Hca t ^CF wQQ J Herry4& I �F 1� Ravens400 auDvr Palm BIOCll 6tan rnpa a` 30y ShLjr C 10 TACOMA f 'fe Dieringer l er 4 vnl _nterSunner 7 V Ness* HUlsdat r �l7 8;iocoam Tacoma >'uya�ut� MI*,e er rY tr' LAKEVIEW` Nicoond adcrton qN TMIcum d McMtll!n -ems SrOna nt• � � }SCanaway OLYMPIA tilttlurst Fr9drlcksan 4p -v� k1squally`t Q1- i Graham �` '� Thrift Turnwpter of t,Cloir 4- 0y;OY, 8al7wre Celt � ' Osy€r,la ltoacwsln Flu YELP r 1 WoKonno Naytnwn ]rE w9stsrn Jc+ clay city Littlerock 9. egole �a e p. G o Rainer {date O -�> GD $ a lenino YGfI !GE0 BcadQ . tiE4' �m f�t- 3u Nttrt�sli e2als*� - Controlio 1�(t Mincr�yl CHEHALIS olae P G ��povine Morton WlnlnCb: City of Yelm Branch Line oder rELMRoI UK Ole qua 0 6 10 1ALM Cu-tle Rock � 6 10. .is•KfLOwms .r DAVID EVANS AND ASSOCIATES, DAVID EVANS AND ASSOCIATES, MEMORANDUM Trans Pacific Trade Center 3900 Pacific Highway East, Suite 311 Tacoma, Washington 98424 TO: Joe Williams Shelley Badger Tel: 253.922.9980 FIRM: Yelm Rail Advisory Committee Fax: 253.922.9781 FROM: Charles Burnham DATE: Decemember 4, 2000 SUBJECT: RAIL LINE TRANSITION: PURCHASE TO OPERATION PROJ. #: YELM0000.0004 COPIES: Pursuant to telephone conversations with Mr.Joe Williams and Ms. Shelley Badger,we have prepared the following list of next steps to move from closing the purchase with Burlington Northern Santa Fe Railway (BNSF)to starting operations on the rail line between Roy and Yelm. These steps include administrative, maintenance and repair,and operations tasks recommended for taking the railroad from its current state of disuse to a fully operational line. They are generally in chronological order from first to last. Some of the tasks will overlap during the start-up period. 1. Embargo the Line: Place an embargo on the line in order to provide time to perform maintenance and repairs to the track and structures and to select an operator for the line. File a formal notice of the embargo with the American Association of Railroads(AAR). The main purpose of the embargo is to prevent shipment of any cars to a destination on the line without notice to the city and without an operator in place to provide service.Cars can still be handled on the line on an individual basis under a permit arrangement. BNSF could provide the switching service during this interim period.The embargo notice is ready to file and would become effective upon filing. 2. Develop Operator Selection Criteria: Develop criteria for selection of a contract operator for the line. The criteria should include past experience,financial capacity,a business/operating plan for the line, safety history, and cost to the city. Include both freight and passenger service components in the RFP. Prepare a schedule for the selection process. The criteria should be developed such that both public and private operators can submit responsive proposals. Typically the RFP process should take 4 to 6 weeks. Negotiation with the preferred operator following selection may take several months to work out the details of an agreement. The process will generally include the following steps: a) Selection of the preferred operator through the RFP process. b) Negotiation of the operating agreement with the preferred operator. c) If negotiations fail to produce an agreement,the city may opt to open negotiations with the second ranked operator from the RFP or to readvertise and start the RFP process anew. (,M Boyo • Quality GLOBAL ALL-K Shelley Badger Decemember 4, 2000 Page 2 3. Prepare Request for Proposal(RFP)for Operator: The RFP should be prepared in a format that meets the selection process determined to be most advantageous to the city. The city attorney may need to review the RFP to confirm that it meets the statutory requirements of the city. Options to consider include qualifications based selection with negotiated fees, selection based on cost only,and a combination of selection criteria with both qualifications and costs determining the"best"operator. A list of potential candidates for consideration includes: Tacoma Rail Dennis Dean,Deputy Director 253-502-8891 Ballard Terminal Railroad Byron Cole 206-782-1447 Puget Sound&Pacific R.R. Tom Foster,VP—General Manager 360-482-4994 Willamette&Pacific R.R. Bob Melbo,President 541-924-6565 4. Update Track and Structures Condition Report:The condition report should be updated to reflect conditions at the present time. This may include a walking inspection of the track and structures, inspection of bridge pier scour at the Nisqually River Bridge,review of the latest Burlington Northern Santa FE Railway(BNSF)inspection reports,and review of Federal Railroad Administration(FRA)defect reports. The cost estimate of the maintenance and repairs previously recommended should be updated. It may be appropriate to include both the immediate repairs and the long-term maintenance of the line in the RFP for operator selection. Another alternative might be to have a separate contractor perform the immediate repairs and have the operator be responsible for the maintenance of the line. 5. Identify Funding Sources for Repairs,Improvements,and Development: A number of sources for various types of projects on the rail line are available. Other shortlines have obtained funding from Washington State Department of Transportation,Federal Railroad Administration,Economic Development Administration,and private sources. A Class I railroad recently reached an agreement with a connecting shortline railroad to provides funds for track upgrades to accommodate increased traffic. The agreement included a long-term agreement with one of the shortline's customers to ship exclusively on the Class I carrier. Both grants and low interest loan programs are available. 6. Prepare Development Plan for Adjacent Properties: A development plan for adjacent properties that abut the railroad should be prepared as a companion piece to the business/operating plan for the shortline. Business development of such properties will have a significant impact on the success of the railroad. Rail-served businesses should be targeted for marketing efforts. The amount of rail-served property in the region is declining rapidly. The value of rail-served sites is estimated to be as much as 6 to 10 percent higher than sites without rail service available. Yelm has a number of parcels immediately adjacent to the railroad north of the city center. Additional parcels are located near Roy and at the Miles Sand and Gravel pit. 7. Investigate Potential for Passenger Operations: Investigate the potential for various types of passenger operations on the line. Several types of passenger uses might be considered such as a trolley feeder to a Lakewood connection with Sound Transit,excursion trolley, and steam train. We recommend that the responsibility for managing and operating passenger services be assigned to the selected operator. 8. Prepare Strategy for Rails with Trails Development: Develop a strategy and preliminary schedule for development of a trail along the right-of-way in accordance with the requirements of the TEA-21 grant agreement. This process is not of immediate importance,but must be addressed in a timely manner. p Ay\ye1m0000.0004\memo l 2-5-OO.doc . h �cn Shelley Badger Decemember 4, 2000 Page 3 9. Investigate the Feasibility of Tacoma Rail Connection: Investigate the feasibility of a connection from the Yelm line to the Tacoma Rail line. The connection might be feasible at several locations. Prepare a conceptual design for a connection. This connection would give the Yelm line access to both Class I railroads in the region,BNSF and UPRR. This is the type of project that might qualify for state and/or federal funding. 10. Prepare List of State and Federal Filings: Prepare list and submittal schedule for state and federal filings required for the rail line. The only filing that we are currently aware of is the notification to the Surface Transportation Board of the selected operator. Either the owner or the operator can file this notice,but it is recommended that the operator be made responsible through the operating agreement in order to save the city money. The city should also require that all future filings regarding the railroad that the operator may want to make must be approved by the city prior to filing. p\y\ye1m0000.0004\memo I2-5-OO.doc DAVID EVANS AND ASSOCIATES, 3700 Pacific Highway East TO: Mr. Ken Garmann Suite 311 FIRM: City of Yelm Tacoma, Washington 98424 FROM: Charles Burnham, P.E. Tel: 253.922.9780 DATE: April 7, 1998 Fax: 253.922 978 1 SUBJECT: ROY-YELM RAILROAD INSPECTION PROD.#: YELM0001 COPIES: The city of Yelm and various community leaders requested that David Evans and Associates, Inc. perform a track inspection of the Burlington Northern Santa Fe(BNSF)branch line from Roy to Yelm to determine the general condition of the track and structures on the line. The line was originally constructed in 1873. There is a weight restriction on the line of 276,000 pounds. There are no clearance restrictions for legal dimension loads. DEA engineers walked the line from Milepost 20.5 in Roy to Milepost 25.5 in Yelm on March 27, 1998. The track and structures were found to be in generally good condition. The following paragraphs detail the results of the inspection. Track The line is currently closed to traffic south of approximately Milepost 21.0 south of Roy with a red flag marking the limit of track in service. The track and roadbed condition from there to the end of the line in Yelm is generally fair to good. The rail is mostly 85#with a section from approximately Milepost 22.2 to Milepost 23.2 laid in 112# rail. The ties and track ballast are in fair condition with a few isolated areas of poor tie condition. Overall, the track appears to meet the requirements for Federal Railroad Administration (FRA) Class 2 track. Class 2 track has a maximum allowable operating speed of 25 MPH. The requirements of Class 2 include a minimum of eight serviceable ties per 39-foot rail or one-third of the total number ties. The inspection found that in almost all locations 65-70%of the ties are in good condition. Rail condition is fair to good with the 854 rail still having some service life, but beginning to show signs of needing replacement. It is well worn,with occasional engine burns, broken joint bars, loose and missing joint bolts and other minor defects. No broken rails were observed during the inspection. The 112# rail is in good condition with no specific defects noted. The track ballast condition is fair with the majority of the material being made up of bank gravel. Some locations have insufficient shoulders off of the ends of the ties. The ballast appears to be free draining and clean. The roadbed section meets the requirements for FRA Class 2 track. Between Milepost 23 and the east end of Bridge 23 the stream is beginning to cut into the toe of the slope supporting the track embankment. The bank remains stable, but may require rip-rap or other stabilization in the future. The only other erosion problem is at the north side of the east embankment of Bridge 23. The ditch is blocked at the bridge and ponds water for a distance of nearly 300 feet east of the bridge in the north track ditch. When this area overflows it is causing heavy erosion next to and under the east bridge abutment. This flow could be routed away from the bridge by installing a culvert 100 feet east of the bridge and ditching the flow over the south track embankment. 1 I Quality A E t"t B E R P SI1'IAIN F c:4nsoffice\winword\ye1m l.doc L �cn DAVID EVANS AND ASSOCIATES, Mr. Ken Garmann April 7, 1998 Page 2 All of the turnouts in the line are in fair to good condition except for the last turnout near the end of the line in Yelm. The switch ties follow the pattern of approximately one-third being defective. Switches appear to be operable with the exception being the one noted above which is missing a switch point and other components. It appears that the BNSF is taking rail and hardware from the track in Yelm for repairs at other locations on their system. There are 8 sets of joint bars, one rail, approximately 25 tie plates missing from the track in Yelm. These are minor defects and are easily correctable. The bumping post located at the end of the line is not installed properly and is not capable of stopping a rail car. It is not bolted to the rail, has no tie down rail, and is not sitting on the ties. Structures There are three bridge structures on the line, two timber trestles and one steel truss and girder bridge. The bridges are in generally good condition. The timber trestles constructed with 5-pile bents and 4-stringer chords. Both trestles have been inspected and post-treated by the Osmose Company with the last seven years. Some specific observations regarding each structure are as follows. Bridge 22: This timber trestle is located in a curve and crosses above a failed masonry arch culvert from the original construction of the line. The rail across the trestle is jointed 1129 with an inner guard rail across the deck and on the approaches. The bridge is in good condition and does not appear to have any needed repairs at this time. Bridge 23: This structure consists of deck girder approach spans on each end of the bridge and two steel through trusses across the main channel of the Nisqually River on tangent track. The rail on the bridge is 85# with an inner guard rail. The Steel structures are in generally good condition. The timber deck ties are in good condition. Some superficial spalling of concrete is evident on the piers and abutments, but can be repaired relatively easily and does not represent any structural inadequacies. The track approach on the west is low and the ties are unsupported by ballast, a condition which must be corrected prior to any train traffic. Two special concerns need to be addressed on this structure. First, the structure is a pinned truss and the pins are not accessible for inspection without removal. We recommend that this type of inspection be performed and if necessary the pins replaced. There are a total of 12 pins on the bridge. Second, the center pier in the rive appears to be scouring on the downstream side. This may include scouring under the pier itself, but this cannot be determined without further investigation in the river. We recommend that this inspection also be performed. Bridge 25: This timber trestle is located in Yelm on tangent track. The piling and stringers are in good condition. There are 10 defective bridge ties and the walkway timbers and planks are in poor condition. We recommend that the walkway be removed immediately. The rail is 854 with no inner guard rail. This bridge is a low clearance structure over a drainage course, but appears to be meeting the flow capacities demanded of it. In general the structures should be serviceable, but some additional inspection is recommended on the bridge over the Nisqually River. 1511-B South Main St. Willits, CA 95490 S1 Phone: (707) 456-9515 Fax: (707) 459-0973 J U L 17 2CO3 July 11, 2003 Dear Signal Department, Recently you received a brochure from Summit Signal; please take the time to read it over. Summit Signal is a crossing construction and maintenance company serving the Western United States Railroad Industry. Summit Signal provides high quality installation with state of the industry components. We take pride in providing cost effective and timely installation of new crossings or the refurbishing of existing sites. Summit Signal can provide a fully documented preventative maintenance program designed to reduce system failure, increase earnings, and diminish liability. The addition to your bottom line can be substantial with Summit Signal. Thank you for your time and please contact us if you have any questions or would like to receive a quote. Sincerely, t C Pete Mihelcic President, CEO S., .Sym > 4b• �?'3ZFA M Y y�� t k � ..-,.y�.,�7y� a.•.df ..r , F £`�_ i >M v' �c As r-1 r* .- �•-+�,, va '-'- rz.' zs :n. ;y3- .f- y • �R ;c and o `d l l �p tw ,�. °}f ^ ' �t rtij4 ,, �'s :�:�j !aF f�.'n!�4t - `t t- �� }r.I..�.�T {� ::;�, Iid�.�s L'+ � ,�3�-•:��'A�'"° t�f A'�Y#,A�` � t:; '�`.�x` NO } � �+ tk #9 lr ?* a :?► a[�°S t ��t1ni�i "r':f{... { r3-' �� i,$ '+�7 �.'! 3.��i3�"t!;�f "�1.ef •` �:�� .f %� +-� •q�.y*� � r;;Y•- .N��� �' '� �3'y;�? ..�'YFli�s �� � ,1' :t�[ .��.'•!. i $.�;.-t rh7 �`YD�+'�� °�"�{�4i13r't''de�_ '� �t •��! rI "`.J -1#S .si° t'� °r �..rs lit �, }.- }� .,i ,�:�r ��,•. �r,�•fptt .,..��'r�i ��ix�`..�.�'L"` �.oFf���{t4,,,}`Y.,�,s''� � '�'`�T.'"�"_ -* r'e3�5 i An � >Y+. '4{ i1,l.l•� fy �4fr��'.St��g. +ri'{r`4.-'`�� �,�� .i-6�'�' � ,3�`"f`t: "�3'�1'�` �� � 4-• �� at,;_t t�tk t -s�j�r l`�ys.�- ,r +'� ,'�.r y;. xf � r ' ? x pf IV• _ � ;w, a5 -•1 -, r 4y'i t: f se :alp a is r; CAW A4 I toll I H .�K .. :$, ik a• r _. x� ay ..z ro. 41 1 t T l "�:'- 5 ta'' Kern Valley Railroad Company P.O. Box 26421 Salt Lake City, Utah 84126 (801) 972-8330 - (801) 972-2041 Fax May 21, 2002 Shelley Badger City Manager Yelm City Hall P.O. Box 479 - Yelm, WA 98597 RE: Yelm City Railroad Dear Ms. Badger, It was a pleasure speaking with you last week. I would like to formally express our interest in operating the Yelm City Railroad. The investors I represent own five shortline railroads, a railroad materials company and various commercial properties throughout the country. Any information or requests for proposals can be sent to my attention. Thank you very much for your time. Sincerely, ':::: jJonoane S , Welcome to Railbike Tours, Inc. (www.railbike.com) Page 1 of 2 Railbike along the scenic Willamette River between Lake Oswego and Contact Info Portland _7 History Enjoy a truly unique experience! For Link -7 Railbike. ;l>:: : :: -.�: ..:: . .:.::. p bicyclists and non- Buying Railbikes I I bicyclists alike! Press Release As seen on KING-TV's Northwest Backroads, Sunday April 23, Railbike Q&A 2000! Request Info Safety We have now finalized an agreement with the City of Search Lake Oswego and other public entities in the Portland area Railbike.com: to offer railbike tours on the Willamette Shore Trolley Line. The line runs from Willamette Park in Portland to Lake Search Oswego and back. Reset Reservations and Information When do the tours start? Tours will start July 21st. We will offer tours Saturday & Sunday at 8:00 a.m and also at 1 :30 p.m. We will also expand the schedule to include Monday and Tuesday trips by the end of the summer. Anyone interested in reservations for these tours should contact us at: reservations()railbike.com. You can also fill out a form online. Please leave your email address and phone number with dates and times you might like to take these unique tours. We look forward to offering tours on this lovely line. The round trip will take 2 1/2 to 4 hours, passing through a tunnel over several trestles and along the Willamette River. The length of the tour will be about 10 miles round trip. How much do tours cost? The rates depend on how many total riders are in your http://www.railbike.com/ 5/20/2002 Welcome to Railbike Tours, Inc. (www.railbike.com) Page 2 of 2 group. Here is the rate schedule: 1 rider = $49 ($49 total) 2 riders = $47 each ($94 total) 3 riders = $47 each ($141 total) 4 riders = $45 each ($180 total) 5 riders = $45 each ($225 total) 6 riders = $43 each ($258 total) 7 riders = $43 each ($301 total) 8 riders = $41 each ($328 total) 9 riders = $41 each ($369 total) 10 riders = $39 each ($390 total) Riders must sign up as a group for the same trip to get the discounts. A trip may have several groups with different rates. Where do I call for more information? Information is available by contacting us in Olympia, Washington, at the following numbers: Phone: 360-438-2010 FAX: 360-493-1739 Email: railik railbike.com Wanna see railbiking in action? click here for a short video clip in Real Plater format(filesize: 297 KB) Don't have Real Player- you can get Real Player at www.real.com I Home I Railbike Q&A I Railbike History I Buying Railbikes I Railbike Tours Inc Press Release I Links I Email I Web Design by Acuity Design Solutions Copyright 2000 http://www.railbike.com/ 5/20/2002 Railbike Tours, Inc. - Railbike History Page Page I of 3 Railbike along the scenic Willamette Contact Info River between History Lake Oswego �] and Portland Buying Ra Links Enjoy a truly unique Railbike Q&A Raillbilke Tours,, Inc. experience! Request Info For bicyclists and non- Safety bicyclists Press Release alike! Home As seen on KING-TV's Northwest Backroads, Sunday April 23, 2000! Search A Brief History of Raillbiking Railbike.com: Research shows that railbiking has been around nearly as long as railroads and bicycles. A railbike patent in the U.S. Patent Office Search Reset database is dated 1869. Scores of patents for railbike systems were filed between 1880 and 1920 around the world. ........ . ..... ... ..... .... .... Railbikes were once used by railroad companies for track checking, moving workers at work sites as well as going for assistance when http://www.railbike.com/history.htm 5/20/2002 Railbike Tours, Inc. - Railbike History Page Page 2 of 3 the locomotives broke down. Telegraph companies also used railbikes to maintain telegraph lines that often followed railways. In the Midwest and other regions with sufficient winds, workers using railbikes sometimes put up sails to power them along the tracks. E� pppp r •..:t,:a> ••;�.•,.` :�iv,:> ,! t:.. ?;:.:.dap ';,k... ��? ,fin..., : '• w•• ':;r ' ::::..:... 4 w' ................... C Like its contemporary, the bicycle, railbike design went into decline with the advent of the internal combustion engine and the automobile. A few independently minded designers and tinkerers kept the concept alive for the last 90 years and today there is a resurgence of interest in railbiking. http://www.railbike.com/history.htrn 5/20/2002 Railbike Tours, Inc. - Railbike History Page Page 3 of 3 Using modern materials and fabrication processes, Railbike Tours, Inc. builds safe and efficient railbikes for use on authorized railroad lines for the enjoyment of the general public. . .. .. pAv '•� ;;� `.off, ' ..�>. \ < .;�!r S � MA 3 s .ze*"'.y°',. w< ,,� �,~ -\ •� , h ms's& c n <, back to thetog of the gage HomeI Railbike Q&A I Railbike History I Buying Railbikes I Railbike Tours Inc Press Release I Links Email I Web Design by Acuity Design Solutions Copyright 2000 http://www.railbike.com/history.htm 5/20/2002 Page 1 of 6 Shelly Badger From: "Michael Rohde" <railbike@railbike.com> To: <shelly@yelmtel.com> Sent: Monday, May 20, 2002 2:29 PM Attach: Dscf0008 Jpg; Dscf0016.jpg; Dscf0006.jpg Subject: Railbike Images Shelly, Nice talking to you today. 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Si}}:}i:•:):ii::)•i:n+i::._:::ii:}i}:.:$:::::ii:<{C'? ......v:::•::;:v::........................ :::. .I................ ...:U::::;•:: :: r:;i;:::...y,::::i.:..: .......:::.v:. ...i:...;j::j:i'.i:: 5/20/2002 too 3 yCOX, } w Wa 1 n B s ........... � r „ 9 ti 4 AGENT FLIER MLS No. 20062796 Envision your own unspoiled 15 acre sanctuary. A place of rare natural beauty where cool fresh water cascades along 3000' of pristine waterfront. Enjoy the unequaled privacy of being the only resident on this 29 acre peninsula located in a secluded natural setting just 2.5 miles from town. This could be your own private reserve with a security en- —" trance and a 1/2 mile private road leading to your 2600 sq. For more information call: ft. 2-story retreat overlooking the Nisqually River. Fea- Chuck Galambos tures include 3 bedrooms 2.5 baths bonus room, a master Century 21 suite opening onto the patio and a commercial Wolf stove Real Estate Center for canning fruits and vegetables from the large garden (360) 894-2269 and fruit trees. (360) 791-2822 Enjoy having the ability to generate your own electricity and having your own private well making this a self suffi- cient property. Your can sit in the comfort of your living room and enjoy the sounds of the rushing water of the Nisqually River. See how good life can really be. Offered below appraised value at Li g. OVE r JUL - 2 2001 S A L E INDUSTRIAL GRADE 5/811 X 61? TRACK SPIKES (Available for Immediate Delivery) Birmingham Rail & Locomotive Company, Inc. PO Box 530157, Birmingham, AL 35253 Phone: (205) 424-7245 (800) 241-2260 Fax: (205) 424-7436 email: bhamrail@aol.com www.bhamraii.com tie �� p� �✓ s c�, v I d f� ly � ' rT+ !�� Q N t e Sd ��►a • .� ao� xa / 0 5 fo� 17oe- � � ;� . y ji i ' M a Iia M d cf -a r "i r s y a,4 w , a �� N a all a c1 a777 e a 7 L rot �„ n o 62 Y a Q' e7 a-A s p 7 T -t -I-Ino •► 11-f __.._�..,._____..��p�.�^a a Q�s���` __--iii�c e. �.a ��.._._.�✓_�+�s�_.t✓_�_.4t�.._______._ C'� 4e IOJ�► -Ito 4 ice__�___ 4 e- 0- -e v.1 o .) �A c, /O C..+1 1 Pill W 0 1 a hJ O � � S V� a X1.2 _T l��. •,.� b Q k v'� + '�v 400 e- Ai Ko CIA 00 YK A Ir p �► ►J 0 a. ", , s i � r=II MORRISON METALWELD PROCESS CORPORATION Executive Offices:3685 STUTZ DRIVE•P.O.BOX 519•CANFIELD,OHIO 44406-0519.800-458-9402 OR 330/702-5188•FAX:330/702-5199 May 31, 2001 n [EC !EVjj�LJYelm Ro Prairie Line JUN - 4 200Y 105 Yelm Avenue PO Box 479 Yelm, WA 98597 Attn: Shelly Badger Dear Sir or Madam: Morrison Metalweld specializes in the welding of railroad switches and rail by a patented welding process using a patented welding electrode and has been in continuous operation since 1929 servicing shortline railroads, transits and industrial accounts in 50 states. Our enclosed brochure will explain our services for frogs and switch points, as well as crane rail runway welding. Morrison is considered the experts in the welding of rail and uses a number of procedures to correctly diagnose our customer's rail problems. We also weld stacker rail, gantry, trolley rail and stacker retrieval runways. Morrison Metalweld is the national sales representative in the United States for Railwel Industries, Inc./Calorite Thermite Welding; Portec Rail Products, which specializes in rail joints and lubrication systems; Hi-Rail rubber crossings, Pandrol Fasteners and National Railway Equipment Co. Locomotive Services. Currently, Morrison Metalweld Process Corporation has offices in 5 cities and offers free inspection services, at our customer's convenience. A written proposal will be presented to your company with no obligation on your part. We would like to solve any of your rail problems and look forward to hearing from you -in the near future. Please feel free to telephone our office at (800) 458-9402. Very truly yours, MORRISON METALWELD A ay V� 04tz Gary L. Smith, President GLS/mr Sales Offices in Principal Cities:Portage,IN•Memphis,TN•Pittsburgh, PA•Apple Valley,CA MORRISON METALWELD PROCESS CORPORATION Executive Offices:3685 STUTZ DRIVE•P.O.BOX 519•CANFIELD,OHIO 44406-0519•B00-458-9402 OR 330/702-5188•FAX:330/702-5199 MORRISON METALWELD PROCESS CORPORATION would like to be your consultant for railroad track and crane rail welding._ We also offer professional consultation for the companies we represent who provide quality products to the railroad industry. ❖ Free Railroad Track Welding Inspection ❖ Frog and Switch Welding—In or Out of Track ❖ Rail Joints and Calorite Thermite Welding ❖ Crane Rail and Stacker Rail Welding Please telephone for assistance 1-800-458-9402 or Fax: 330-702-5199 or visit our website at www.morrisonmetalweld.com or E-mail us at MORWELD @ AOL.COM SALES REPRESENTATIVE FOR: Portec Rail Products, Inc. Standard and Insulated Rail Joints (Poly or 3M fiberglass) Bonded Rail Joints and Kits Poly Plates and Insulation Kits Mechanical, Hydraulic, Electronic and Solar Wayside Lubricators Hi-rail Lubricators and Centrac On-Board Lubrication System Track Mats Bulk Transfer Lubrication Rail Anchors & Track Spikes Railwel, Inc. Calorite Thermite Welding(Including One-Shot Kits) (Technicians, Equipment and Materials) Hi-Rail Corp. Rubber Grade Crossings Pandrol USA Track Fastening,Systems National Railway Equipment Co. Locomotive Repair, Sales, Leasing and Parts ABC-NACO,Inc. Specialty Track Products Switches, Frogs, Guard Rails, Crossings Switch Stands (including ergonomic designs). Sales Offices in Principal Cities:Portage,IN•Memphis,TN•Pittsburgh,PA•Apple Valley,CA I n cczp , 1 Yd � s lam - ��- -\ I Ikrii � t II z L C�64- LoC� w�t V,�rjol)cwrS 1 �w� �� _ ,� 1� wb I c� D � le l use � � 2r� � �t��� cin . SCJ Se - E S �'lo�c� �� �� ���h� � uaG Z� I��mi�� e SiM1�'I f. �i��"r�� - i )n yq gJA �� J r 1oDd VIA ow/ W[Tafd far O-)y)l c l� ���e f �117 1 FY b7 00 5 Ih.e hV1401 A'kltO I Gds E( V Page 1 of 1 From: Shelly Badger<shelly@yelmtel.com> To: AGRivas@ywave.com <AGRivas@ywave.com> Date: Thursday, April 05, 2001 3:53 PM Subject: Rail $ Adam, here is the info so you can e-mail our senators/reps....(book with e-mail and phone#s is on your table): Via Ray Allred: Senate budget proposal did NOT have any new money in it for capital projects for freight rail. House is currently working on their freight rail assistance budget and it is critical that they include$for capital projects such as Yelm's and others that will help to lessen traffic on the heavily traveled roads. Miles 25 rail cars a day taking 100 trucks off road is an awesome example. More to follow on Y-2/Y-3 info as I have yet to connect with DeBolt. Thanks, Shelly 04/05/2001 NOV. 15.2000 3:32PM BETTS PATTERSON MINE NO.790 P. 1 1$W Offices BETTS FAX MESSAGE PATTERSON & MINES, P.S. 900HmncWCmw Fax: (206) 343.7053 1215 Fourth WWLivenue 5eatde,WaBhingtOn 98161-1090 Fax: (206)343-7053 Date: 11115100 Phone: (206)292-9988 To: Ms. Shelly Badger Fax#: (360)458-4348 (Include area code for ALL numbers.) Company: City of Yelm From: Stephen L. Day File#: 5782.0001 Re: ------------------------ -----------•--------- Number of Pages: 2 NOTICE: Information contained in this communication is ' (including this cover sheet) privileged and/or confidential, intended only for the individual/entity named above. If reader of this cover page is i not the intended recipient, you are hereby notified that any i Please call Kathy Titterington i dissemination, distribution, or copying of this information is i at(206)292-9988, ext. 446 i strictly prohibited. If you have received this fax in error, please if you do not receive any of these pages or if immediately notify us by phone (206) 292-9988 and return this there is a problem. i fax to above address via U.S, Mail, Thank you. NOTES: Shelly: Attached is a copy of Len Johnson's business card that Steve Day asked me to send to you. URGENT! ! DELIVER IMMEDIATELY 95373/111500 1524157920001 NOV.15.2000 3:32PM BETTS PATTERSON MINE NO.790 P.2 ' I 1 {r PACIFIC CAPITAL MANAGEMENT, INC. i I LEN JOUNSON PRMID04T I i 1120 POST AlJuly,-SLM 20•Sl�kTll%WAhlllNc°N 95101 (2*682-6377•QARIi•1u.8'(206)6826498 Vi- •,x�.� .S .�1• .,.7f •� ' 'T�'.• •�' �' • '• , �'.'•�-, it viii,;•�. .. •ie� ' iii .. .. •1 .1 ` r • ''f.�'• • ••�' -•:•fir,.�� � ' •'{ � •%' .�! •�.�j',�•� ��{� '1.. .'�i' ::�r�:� fes: �.::� . n *is dbwp*,l,Z©1 OfIMF � . STATEMENT OF QUALIFICATIONS HISTORIC RAILWAY RESTORATION 7006009. ...--... 9521232 ND ST SW EDMONDS, WA 98020 (206) 542-1957 FAX (206) 542-0398 HISTORIC RAILWAY RESTORATION TABLE OF CONTENTS Page Company Background and Goals 1 Range of Services 1 International Connections 1 Project Experience 2 Resume - Tom Mendenhall, Partner 4 Resume - Vince Mendenhall, Partner 5 Services Overview 6 Attachment A- Sample Inspection Sheet HISTORIC RAILWAY RESTORATION COMPANY BACKGROUND AND GOALS Historic Railway Restoration (HRR) has been in the business of bringing history back to life for over five years. Our desire is to help people better understand the past by bringing an important piece of that past, the streetcar, in to existence again. HRR is currently a partnership that developed from a sole proprietorship founded by Tom Mendenhall back in 1992. Mr. Mendenhall has spent over twenty years in the streetcar and locomotive industry, volunteering his time at various museums, working as a transportation subcontractor for streetcars, and finally starting his own streetcar restoration business. Recently, Tom Mendenhall restructured HRR to be a partnership with his son, Vince Mendenhall. Vince has spent the last ten years assisting Tom in the various projects completed and is an integral part of the business development for HRR. Together they mean to provide quality services in the streetcar and locomotive industry with the highest integrity. RANGE OF SERVICES HRR offers a variety of services with streetcars and locomotives. Services include: ♦ Consulting ♦ Equipment Evaluation ♦ Price Quotes ♦ Feasibility Studies ♦ Transportation ♦ Full Car Restoration ♦ Locating of Streetcars and Equipment ♦ Re-Manufacturing of Equipment and Car Parts. ♦ Overhead Power Systems ♦ Track Systems HRR is available to provide consulting, inspection and restoration services at the clients location or within HRR's own facilities. INTERNATIONAL CONNECTIONS HRR has spent a great deal of time locating parts all over the world. Many countries used, and still use, streetcars as a major form of mass transit in their cities. Contacts have been made with countries such as Peru, Columbia, Equador, Sweden, and Italy. Future inquiries to Japan and surrounding Asian countries are currently being planned. Because so many foreign countries continued the use of streetcars in their cities, the opportunity to attain car bodies, trucks, and parts that are in good working order from these countries is excellent. HRR makes sure it exhausts every resource to provide its customers with the best selection of equipment. t HISTORIC RAII,WAY RESTORATION PROJECT EXPERIENCE The following is a description of streetcars and locomotives HRR has services or restored: ♦ Double Truck Clear Story Car#503 - Rebuilt the exterior wood sheeting of the vestibule and installed trucks to underside of streetcar. ♦ Double Decker Open Car#48 - Stripped and re-varnished the interior of the streetcar body. Completely disassembled, modified, and reassembled streetcar trucks to meet wider treat standards. ♦ Open W-2 Car#1187 - Serviced truck brake system including air lines and provided full replacement of deteriorated wood interior. ♦ Single Truck Car#166 - Mounted and assembled streetcar body to the truck. Connected all existing electrical and mechanical components, and air systems to meet operational standards. ♦ Single Truck Car#181 - Removed and replaced all damaged wood on streetcar. Removed air compressor, replaced or serviced all components and reinstalled - compressor. ♦ Single Truck Car#189 - Compiled various streetcar parts in storage and from other car bodies to assemble on Car#189 to create an operational streetcar ♦ Single Truck Car#122 - Complete restoration of interior and exterior of streetcar body. ♦ Birney Car#74 - Located car body, transported car body from California to Washington State for restoration. Removed all wood components on car body for replacement. Car body is presently under full restoration, HRR is designing and manufacturing a truck for the streetcar. ♦ Interurban Car 473 - Removed structure from around streetcar body and reinstalled front end of car that had been previously removed. ♦ Railroad Post Office Car#1191 - Designed and installed temporary supports for transportation of streetcar. ♦ Birney Car#407 - Provided complete restoration of streetcar. Removed all sections of the streetcar for full inspection. Then reinstalled reusable parts and manufactured all necessary parts for car completion. Designed and built transportation and static display facility for streetcar. 2 HISTORIC RAILWAY RESTORATION ♦ 25-Ton Locomotive - Rebuilt air and brake systems, repaired mount brackets for wheel assembly, and also shipped to new sites. ♦ 44-Ton Locomotives - Provided full repairs to make locomotive operational and did transportation of locomotive to a new location. ♦ F-7 Diesel Locomotive - Re-built damaged engine cylinder. 3 HISTORIC RAMWAY RESTORATION Tom Mendenhall Partner Education Business Management Seminars, 1987-1989 Lynnwood Electronics School, Wiring and Diagramming, 1970-1971 Shoreline Community College, Business Program, 1966-1968 Professional Historic Railway Restoration, Seattle, WA, Partner/Consultant, 1992-Present History Tom Mendenhall, Seattle, WA, Owner/Operator of Contract Trucking Service, 1982-1992 Tom Mendenhall, Independent Contractor/Wood Specialist, 1961-Present Professional Mr. Mendenhall has performed a variety of projects and services while Experience involved in the streetcar and railway industry. He is currently a partner in Historic Railway Restoration and is responsible for all project management. Previously, Mr. Mendenhall has acted as a subcontractor providing transportation services to many museums, cities, and private clients. His experience with dismantling and reassembling streetcars and streetcar components exceeds over two hundred pieces of equipment. In addition to the contract services Mr. Mendenhall has provided, he has also volunteered many years of his knowledge and skills to assist in the - reconstruction of different types of rail equipment. His involvement with three well known rail museums follow. Museum Oregon Electric Railway Historical Society, 1978-present. Mr. Mendenhall Membership currently holds a lifetime membership with this museum. He has also served on the board of trustees, and was appointed the Supervisor of Maintenance for all buildings and bridges on the museums property. Mr. Mendenhall volunteered much of his time to the museum for streetcar restoration. facilities maintenance, and overall operations. He is presently head of acquisitions for equipment. Indiana Transportation Museum, 1992-1994. Mr. Mendenhall volunteered his time to work performed on locomotives, rail passenger cars, electrical locomotives, and electrical streetcars. He presently advises museum on any restoration of streetcar equipment Northwest Locomotive Preservation Association, 1993-1995. Mr. Mendenhall acted as a board member and also directed all transportation activities involved with the transport of any rail equipment for the Association. 4 HISTORIC RAILWAY RESTORATION Vince Mendenhall Partner Professional Historic Railway Restoration, Seattle, WA, Partner/Consultant, 1996-Present History Production Welding, Columbia SC, Apprentice Welder, 1995-1996 Schippers Construction, Seattle, WA, Carpentry Apprentice, Manager of Demolition and Disposal, 1992-1995 American Greeting Card Company, Seattle, WA, Supervisor, 1986-1989 Professional Mr. Mendenhall has had the opportunity to work in employment Experience positions that allowed related skills to be applied to the restoration and re- manufacturing work on streetcars and locomotives. He has also taken most of his youth and spent time learning the detailed industry of streetcars and locomotives from his father and partner, Tom Mendenhall. He has assisted with dozens of streetcar transportation projects and is fully qualified to transport any type of rail equipment. Vince Mendenhall has a natural ability to work as a team member on projects. He contributes ideas to streetcar restoration projects that utilize the advantages of today's technology with the restoration of historical pieces of equipment. Mr. Mendenhall acts as the business development manager for Historic Railway Restoration, and his insightful ideas for the future use of the streetcar will help keep the historical equipment around for years to come. Museum Oregon Electric Railway Historical Society, 1978-present. Mr. Mendenhall Membership holds a current membership with this museum. He became a member along with his father, Tom Mendenhall, and has spent most of his available time working on different streetcar projects. He has also contributed to the maintenance of the museum grounds and filled in as streetcar operator from time to time. Indiana Transportation Museum, 1993-Present. Mr. Mendenhall volunteered his time to work performed on locomotives, rail passenger cars, electrical locomotives, and electrical streetcars. He has assisted with a variety of restoration projects. 5 HISTORIC RAII.WAY RESTORATION SERVICES OVERVIEW EQUIPMENT EVALUATION PROCEDURE The first step taken in evaluating historic rail equipment is a preliminary visual inspection of the entire car body including the interior, the exterior and the trucks. Next a series of preliminary pictures are taken of the entire streetcar to document its current condition prior to restoration. After assessing the whole body, Historic Railway Restoration(HRR) then makes use of a specialized inspection sheet which provides extensive details about specific components of the car body and truck. An example of the inspection sheet is included in Attachment A. During the inspection of each component, additional photographs are taken to document the condition of each component evaluated. The following is a summarized list of the components that are evaluated on the streetcar: ♦ Roof and Catwalk ♦ Car body (Interior and Exterior) ♦ Truck ♦ Motors — ♦ Electrical System In addition to the physical evaluation of the streetcar equipment historical research is performed to document original construction and details about the streetcar. Research information is collected from the owner of the car, local libraries, local historical societies, and any other entities that has pertinent information regarding the equipment. PRICE QUOTES Once a full evaluation of the streetcar body or equipment has been performed, HRR can provide the client with a variety of cost options for having a complete restoration performed or simply creating a static display of the streetcar. HRR can also inform the client of the costs involved in purchasing a fully operational streetcar or streetcar system. HRR feels that taking the opportunity to restore a historic streetcar to its original condition is much more cost effective and allows the client to customize certain areas of the streetcar if so desired. FEASIBILITY STUDIES HRR works closely with the client to determine what type of streetcar operation the client is interested in. The next step is identifying the true costs of an operational layout . The cost of installation for the system is then determined and an evaluation of the entire operating system is performed to decide if it is cost effective to operate. After this, recommendations are made to the client as to if there are any alternative options available which will be more cost effective to the client. HRR attempts to provide the client with as much information as possible to help the client make beneficial decisions. 6 HISTORIC RAILWAY RESTORATION TRANSPORTATION Transporting a streetcar requires detailed knowledge of streetcar bodies and considerable patience to ensure a successful transport. The partners in HRR have over sixteen years of transportation experience and have moved over two hundred pieces of rail equipment. These pieces include streetcars, interurbans, railroad cars, diesel locomotives, and a variety of associated parts. The procedure for transporting a piece of rail equipment demands the knowledge of procuring permits, loading, disassembling and reassembling of equipment, and determining the proper method of transportation (i.e., truck or rail). The goal is to transport the client's rail equipment safely and damage-free, and HRR has performed those goals numerous times. FULL CAR RESTORATION Based on equipment evaluation, the extent of restoration required for the streetcar is determined. All equipment and parts are removed from the streetcar body and the body is taken to the frame stage. At this point restoration is begun by rebuilding or re- manufacturing any parts that required replacement. Attempts to replace all parts on the car to original standards are made in order to retain the historical value of the car. For example, brass screws are used throughout the car and wood type is matched to original wood as closely as possible. Then re-installation of all parts removed from the car is performed. The remaining steps in restoring the streetcar involve the complete re- _ finishing of all interior and exterior wood, installation of the canvas roof, and a final paint is applied to match the original paint scheme. LOCATING OF STREETCARS AND EQUIPMENT In addition to HRR's international connections to streetcars and streetcar equipment, many contacts in the rail industry throughout the United States and Canada have been established. HRR has developed working relationships with a variety of private owners, museums, and companies to have the largest stock of streetcar and locomotive parts available to them at all times. RE-MANUFACTURING OF EQUIPMENT HRR re-manufactures equipment upon customers request. Manufacturing is based upon equipment specifications provided by the client. An example is the re-manufacturing of a 79E-1 truck created to fit under Birney Safety Cars. Additional information can be attained through HRR if requested. OVERHEAD POWER SYSTEMS & TRACK SYSTEMS HRR works closely with various contractors who have many years of experience with installing power and track systems. Additional information can be attained from HRR if requested. HISTORIC RAILWAY RESTORATION ATTACHMENT A SAMPLE INSPECTION SHEET INSPECTION SHEET STREETCARS Owner/Contract Date Address Telephone W( ) H( ) Equipment Location Present Car Value GENERAL INFORMATION DIMENSIONS Manufacturer Length,overall,ft.-in. Date Built Length,end sill to end sill City of Origin Width,max.,ft.-in. Car# Height,max.,ft.-in. Type Trucks,each,lb. Gauge,in. Distance Between Trucks Centers Color Scheme Other TECHNICAL DATA CAR BODY Motors: Number per Truck Interior Type Ceiling: Floor. Horsepower per motor Seats: Wood Cloth Windows: Sills Arm Rest Manufacturer Vestibule: Model/Make Walls: Journal Bearings Exterior Size Roof- Type: Friction Roller Catwalk: Wheels,diameter,in. Sides: Compressor Frame: Wood Metal Brake Cylinder& Rigging INSPECTION SHEET STREETCARS Controllers NOTES Air Gauges Current Status (circle one) Handbrakes Operating Stored Servicable Air Brakes Stored Unserviceable Display Door Motors Under Restoration Electrical Switches If Stored (circle one) Compressor Outside Outside Under Cover Inside Building Main Circuit Restored YES / NO Date Restored Light Natures Mechanical Conditions Head Lights Electrical Conditions Resistance Grids Other: Significant History,Condition of Sale REPLACEMENT VALUE: 1 INSPECTION SHEET LOCOMOTIVES Owner/Contract Date Address Telephone W( ) H( ) Equipment Location Price GENERAL INFORMATION DIMENSIONS Manufacturer Length,overall,ft.-in. Date Built Length,end sill to end sill Builder's Number Width,max.,ft.-in. Height,max.,ft.-in. Type Trucks,each,lb Gauge,in. Wheel Base,each,lb Color Scheme Trucks,each,lb TECHNICAL DATA Distance Between Tracks Centers Motors : Number per Unit Type Other CAR BODY Horsepower available for traction Interior Ceiling: Traction Motors: Number Floor: Model/Make Seats: Wood Cloth Windows: Sills Arm Rest Journal Bearings Size Vestibule: Type: Friction Roller Walls: Wheels,diameter,in. Exterior Compressor Roof- Brake Cylinder&Rigging Catwalk: Controllers Sides: Air Gauges Frame: Wood Metal Handbrakes HISTORIC RAILWAY RESTORATION 9521 232nd ST SW EDMONDS, WA 98020 (206)542-1957 FAX(206) 542-0398 1 INSPECTION SHEET LOCOMOTIVES NOTES Air Brakes Current Status (circle one) Door Motors Operating Stored Servicable Electrical Stored Unserviceable Display Switches If Stored (circle one) Outside Outside Under Cover Main Circuit Restored YES / NO Light Date Restored Light Fixtures Mechanical Conditions Head Lights Electrical Conditions Resistance Grids Other: Significant History,Condition of Sale REPLACEMENT VALUE: HISTORIC RAILWAY RESTORATION 9521 232=d ST SW EDMONDS, WA 98020 (206) 542-1957 FAB(206) 342-0398