HomeMy WebLinkAbout2011-02-28 Correspondence4
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The Chicago-Iowa City passenger rail program
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Route and train characteristies
• Two daily round trips
• Travel time under five hours one way
• Initial maximum speed of 79 mph
• Each train can accommodate 230 passengers; and will offer
coach seating and food service
• Total route of 219.5 miles
• Trains operate on Amtrak at Chicago's Union Station, 0.8
miles; BNSF Railway from Chicago to Wyanet, 111.,116.2
miles; and Iowa Interstate Railroad from Wyanet to Iowa
City, Iowa,102.5 miles
• New stations at Geneseo and Moline, III.; and Iowa City
Project costs
• Overall cost: $310 million
• Costs allocated between Iowa and Illinois
• Iowa and Illinois submitted a joint application for $248
million (up to 80 percent of the project cost) from the
High-Speed Intercity Passenger Rail (HSIPR) program
through the Federal Railroad Administration (FRA).
• The FRA awarded $230 million under the HSIPR program to
the Chicago to Iowa City route, and the U.S. DOT awarded a
$10 million TIGER II grant to Moline, IL for the passenger rail
station.
State Local State, to
520.6 M 51.2 M 558.5 M
Total project
cost
Cost by state
Cost by
funding source
*Rounded to nearest 5100,000
Service outcomes
• On-time performance will be 90 percent or higher
• Projected annual ridership is 246,800 for 2015
• Ridership includes passengersdivertedfrom other modes
annually:60 percent of passengers from automobiles; 24
percent from air travel; 9 percent from buses; and 7 percent
are new riders who otherwise would not have made the
trip
Collaboration
• Iowa and Illinois departments of transportation have a
strong partnership to initiate Chicago to Iowa City
passenger rail service.
• The Midwest High-Speed Rail Steering Group, representing
nine Midwestern states, executed a memorandum of
understanding in 2009 supporting Midwest routes
connecting to the Chicago hub.
• Agreements in principle with Iowa Interstate Railroad, BNSF
Railway and Amtrak.
• Agreements in principle were established with the cities of
Iowa City, Moline, and Geneseo for station development,
demonstrating local support.
Public and political support
• The route has broad enthusiasm and support from
community organizations and the public.
• State and local politicians have endorsed the program with
numerous letters of support.
• A variety of local, regional and state economic
development and business organizations have endorsed
the route.
"Continue to expand the rail infrastructure for transporting
people, commodities and commercial goods:'
-Iowa Chamber Alliance 2011 legislative agenda
Cost Distribution (estimated)'
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Iowa's investment in the Chicago to Iowa City passenger rail service will produce more ongoing
benefits than costs for Iowa residents and taxpayers over the next 30 years.
An Iowa investment of $20.6 million will match a federal investment of $86.8 million for the capital costs of the Iowa
segment of the Chicago to Iowa City service. Iowa's share of the expected gap between revenues and operating and
maintenance expense is estimated at $3 million annually.
The economic analysis included in this document demonstrates the cost-effectiveness of the Iowa investments in the
Chicago to Iowa City service and details the benefits that Iowa can expect from Iowa's expenditures.
Financial Outcomes
Economic Outcomes for the State of Iowa
By leveraging Federal and Illinois state funding, the Chicago to Iowa City passenger rail project generates the following
financial outcomes over the next 30 years.
• Iowa will receive $2.77 in transportation economic benefits for every $1.00 invested, according to economic
estimates prepared by the State of Iowa in accordance with methodology and standardized values issued by
the U.S. Department of Transportation.
• Federal funds will pay 80% of the capital costs, and Illinois will pay 20% of the portion of the capital costs of the
system within its state. Iowa's investment of $20.6 million wilt design, build, and equip a fully functioning $310
million new transportation service.
• Illinois will pay the majority of the operational costs for a route that will benefit Iowans with an annual Illinois
contribution for operation and maintenance costs of $7.0 million.
lob Creation
The project will generate new Iowa jobs during construction, and permanent jobs required for operation and
maintenance of the passenger-rail service.
• Creates 209 jobs each lasting four years during the design and construction period.
o Includes 117 high-skill, high-wage construction and engineering jobs.
o The typical construction workforce consists of heavy equipment operators, journeymen electricians,
carpenters, machinists, and ironworkers, and laborers, and truck drivers.
o Some of the construction jobs, such as railroad signaling, will endure through the winter, a time when
construction is traditionally slow.
• Creates 31 new operations and maintenance jobs.
o One-third would be high-skill, high-wage jobs, such as locomotive engineers, conductors, and
maintenance workers.
o One-third would be indirect jobs related to the production and distribution chain of goods & materials.
o One-third would be jobs created by the expenditures of these wages.
o Otherjobs, not quantified, could include jobs in the hospitality and tourism industry orjobs related to
new economic activity or development.
Page 1
Business Activity Created by the Project
Construction activity and subsequent operation and maintenance will generate business revenues within Iowa. These include
the supply of materials such as steel, communication equipment, and fuel to the project, and services such as housing, food,
and utilities to construction employees and subsequent operations and maintenance employees.
• $125 million (2010 dollars) of new business revenues in Iowa during the first 4 years of construction.
• $6.76 million (2010 dollars) of ongoing new business revenues in Iowa per year for the next 30 years as a
result of operation and maintenance of the service.
• Iowa's businesses will have a proximity advantage for major construction and supply contracts.
• Other business activity, not quantified, would include an increase in land values around rail stations, spending
on goods and services by rail passengers during their train trip and at their Iowa destination, and other
business activity that occurs as a result of the new service.
Travel Cost Savings
The Chicago to Iowa City passenger rail service will reduce the cost of travel for Iowa residents and visitors that use it, as
well as costs that would otherwise be spread among all Iowa transportation users and taxpayers.
• Individual travelers will save $142.7 million in out-of-pocket transportation costs during the first 30 years of
the service, compared to the cost of using other transportation modes.
• Iowa, its residents, and visitors, will save $6 million over 30 years on avoided lost time in roadway congestion
and on highway accident costs.
Passenia; a a--„a~el Tirrie. l:n;t„ avad ConvF~nierA.:~ ~.R?~lila~i~ r`;~ar~
Transportation Options: Comparison of Time & Cost -Chicago to Iowa City and Iowa City to Chicago
Walk-Up
Out-Of- Ability to
Pocket User Same Day Work
Cost Business En Route All
Travel Time IOne- (Round Roundtrip (use laptop, Weather On-Time
Mode Way) Trip) Possible? cell phone) Reliability Performance
Automobile 3 hours 46 minutes $193 Yes Low Low Unknown
Bus 4 hours 55 minutes $46 No Moderate Low Unknown
Rail 4 hours 20 minutes $62* Yes High High 90%+
Air 3 hours 42 minutes $925** Yes Low Low 79%
'Estimated fare
"Fare based on weekday, 15-day advance ticketing as of January 9, 2011.
Transportation Options: Comparison of Convenience -Chicago to Iowa City
Mode Restroom
Facilities
Hot Water Beverage
Service
Food Service Uninterrupted
Wi-Fi
Automobile
Bus x
Rail x x x x x
Air x x x
Page 2
Freight Railroad Outcomes
The project brings specific benefits to Iowa's freight rail system and its shippers:
• Enables the Iowa Interstate Railroad to increase its reliability, efficiency, and safety of service through construction
of signaling and communications systems that are necessary for passenger service, but also of substantial utility to
the freight services on the same tracks.
• Increases Iowa shippers' guarantee of long-term access to lower-cost railroad freight transportation services.
• Increases the ability of the Iowa Interstate Railroad to attract new manufacturers, agricultural processors, and
consumer goods distributors to Iowa.
• Enables the Iowa Interstate to Increase traffic volumes at a lower cost, benefitting both existing and potential new
Iowa shippers and receivers.
Other Benefits
The Chicago to Iowa City passenger rail route has a number of positive economic impacts that cannot be directly quantified
in an economic analysis and are not included in the cost-benefit ratios described above. These effects may benefit Iowa's
ability to retain existing economic activity or attract new activity, retain or improve the attractiveness of its universities and
medical centers, and maintain or improve Iowa property values.
Transportation Connectivity and Access
• Connections to the Chicago hub provide Iowans access to multiple national and global transportation options -air,
regional and national passenger rail, and intercity transit options within Chicago.
• The service helps ensure that decisions to attend college in Iowa, reside in Iowa, or do business in Iowa, are not
influenced by travel time lost in freeway congestion in Chicago.
• The service helps ensure that Iowa residents and visitors are able to travel regardless of winter weather.
• The service helps ensure that Iowa's elderly residents have access to comfortable and accessible transportation.
Business
• Provides convenient, stress-free transportation for business day trips to the Chicago area.
• Business travelers can make full productive use of the travel time, including the full, uninterrupted use of laptop
computers and cell phones from departure to arrival.
• Passenger rail access may assist employee recruitment and client attractiveness.
• Provides opportunities to increase tourism.
Education
• Convenient transportation for the many students attending Iowa colleges and universities that have Illinois ties,
particularly those who do not own automobiles.
• Increases competitiveness and enhances recruitment for Iowa's educational institutions.
Quality of Life
• Access to travel for those who do not or cannot drive.
• A comfortable, safe and convenient travel option for all segments of the population -students, elderly, families,
disabled, economically disadvantaged, as well as business travelers.
• Provides another transportation option for patients to receive treatment at some of Iowa's largest medical
facilities.
• Provides a safe transportation service with on-board personnel directly responsible for passenger safety and
convenience and arrives and departs from secured stations with safe indoor waiting areas.
Energy & Environment
Fuel efficient transportation option reduces Iowa's vulnerability to fuel cost escalation.
Energy efficiency promotes U.S. energy independence.
Fewer greenhouse gas emissions reduce Iowa's exposure to potential federal limits on transportation emissions and
carbon taxes.
Page 3
Public Safety Outcomes
Iowa was among the top 10 states with the highest highway-railroad at-grade crossing crashes at public and private
crossings during 2006, 2007, and 2008. Passenger rail will be accompanied by extensive upgrades for the at-grade highway-
railroad crossings on Iowa Interstate Railroad. The improvements will result in a substantial reduction in the potential for
vehicle and train collisions in the Bettendorf-Iowa City corridor.
• Improvements include upgrades to 71 at-grade crossings, including adding gates and flashing lights at 48 crossings.
In total, over $14M is being invested for at-grade crossing improvements, nearly 4 times the current annual federal
expenditure for at-grade crossing improvements statewide.
• New railroad safety systems will be implemented on Iowa Interstate with passenger rail service increasing safety:
o Centralized Traffic Control (a train signaling system) detects broken rails, vandalized switches, and many
other common causes of derailments.
o Positive Train Control system enforces train spacing and speed limits, virtually eliminating the potential for
train to train accidents.
Public Costs of Transportation
In one form or another, all modes of transportation require public support not paid with user fees. Below is a summary by
mode of how it has been supported with public funds not paid with user fees.
Highways
o Nationally, highway user revenue collected at all levels of government in 2007 ($98 billion) only accounted
for 57% of total highway disbursement.
o Since 2008, approximately $34.5 billion has been transferred from the General Fund to the Highway Trust
Fund in order to keep the fund solvent.
o City and county governments in Iowa utilize property tax and, in many cases, local option sales tax to
support road improvements and maintenance.
Aviation
o General Fund revenue supports the aviation system by funding the nation's air traffic control system and
other Federal Aviation Administration operations.
o The federal Essential Air Service program provides federal operation subsidies directly to private airlines in
exchange for providing commercial service to airports that would not otherwise have service. This
program is utilized to support service to Mason City, Fort Dodge and Burlington.
Public Transit
o Iowa's public transit systems require approximately $100 million per year to operate. Approximately $13
million comes from fare box revenue but the remainder comes from the federal government
(approximately $25 million), local government (approximately $31 million), state of Iowa (approximately
$11 million), contract revenue (approximately $16 million from federal, state and private sources), and
other sources (approximately $4 million).
o Transit funding from the federal government is primarily funded through the federa- fuel tax; however, the
transit account within the Highway Trust Fund recently required a $4.8 billion transfer of General Fund
revenue in order to remain solvent.
Passenger Rail -Chicago to Iowa City corridor
o In the first year of operation (2015), the Chicago to Iowa City corridor is expected to generate $6.4 million
in revenues from fares and food service (which is a 40.3% recovery of operating and maintenance costs).
Amtrak's revenue projections are based on Amtrak's experience with similar routes in Illinois and the
Midwest. Revenue estimates do not assume the route will initially fill to capacity and assume growth rate
in ridership of 1.5%.
o Annual operating and maintenance cost is $15.9 million.
o Operation and maintenance costs are allocated 27% Iowa, 73% Illinois.
o The estimated annual operating and maintenance cost to the state of Iowa is estimated to be on average,
approximately $3 million. Options to fund this cost are under consideration and include:
^ Utilizing existing federal transportation funding programs to cover up to 80 percent of the cost for
the first three years of the new service.
^ Working with other states to encourage the creation of a federal program to provide on-going
operating cost assistance similar to existing federal programs for public transit.
^ Identifying existing state funding programs that could provide funding support.
Page 4
Ridership and Revenue Projections
• Ridership includes the number of riders that get on and get off the train on any segment of the corridor. A rider
could get on and off at any of the nine stations on the route (e.g., someone who gets on at Iowa City and off in
Chicago would be considered a rider; someone who gets on at Geneseo, Illinois, and off in the Quad Cities would
also be considered a rider.)
• The ridership estimate and the revenue projections were provided by Amtrak using the Amtrak Corridor Passenger
Rail Demand Forecasting Model developed by AECOM.1
• The ridership is forecast to be 246,800 (when service is initiated in 2015).
• The expected revenue of $6.4 million includes projected revenue from ticket sales and food service sales at the
forecast ridership level. Revenue estimates assume that coaches on average are filled to 70% capacity daily,
which will accommodate peak demand periods and growth.
• The estimated annual ridership growth for the Chicago to Iowa City corridor is conservatively estimated at
1.5%. Ridership growth on Amtrak's state-sponsored routes in 2010 was 6.5%.
• Fare is based on the level that would optimize revenue collections, taking into consideration the variables in
the model.'
Similar Midwestern Route Comparison
Comparison with Comparable State Snnnserpd -t~,.rp~
Route Chicago to Carbondale Chicago to Quincy (Illinois
(Illini/Saluki) Zephyr/Carl Sandberg) Chicago to Iowa City
Status Existing Existing Planned
Ridership (Annual) 264,934 (FY 2010) 209,466 (FY 2010) 246,800 (Projected
Opening Day)
Average Annual
Ridership Growth 3.7% (actual last 4 years) 5.5% (actual last 4 years) 1.5% (projected)
Roundtrips per Day 2 2 2
University of Iowa,
Universities and Colleges University of Illinois at
Urbana-Cham ai n
Western Illinois Augustana College
Served ,
P g St. Ambrose University
Southern Illinois Palmer College of
Chiropractic
Ma'or Station Sto s
~ p Champaign/
Urbana
Carbondale
Galesburg
Quincy Quad
Iowa City
Cities
Distance from Chicago 129 309 162 258 174 221
(miles)
Destination Cities
Population Estimate (2009) 226,000 58,000 69,000 77,000 379,000 152,000
1 The Amtrak Corridor Passenger Rail Demand Forecasting Model uses a number of variables which, over time, have proven to
be important determinants of ridership demand. Those variables include total market size, station locations, mode share, service
characteristics of competing modes, passenger rail timetable (taking into consideration travel time, frequency, schedule and
schedule attractiveness) and average fares (based on observed average yields per mile in existing Amtrak markets within the
Midwest. )
Page 5
Notes:
This updated economic analysis compares the expenditures made solely by the state of Iowa to the economic outcomes
that would accrue to State of Iowa. This differs from the economic analysis that accompanied the grant application
which compared the total expenditure to the outcomes that would accrue to the States of Iowa and Illinois.
The economic effects are based on the estimated expenditures to implement the Chicago-Iowa City passenger-rail
service (as determined by the Federal Railroad Administration), the estimated expenditures to operate and maintain the
service (as determined by the Federal Railroad Administration and Amtrak), and the anticipated passenger ridership and
revenue (as estimated by Amtrak.) Some of these quantities are estimates, while others are based on the most recent
actual performance of similar passenger-rail services and other transportation services.
r~1lowa Department
~ of Transportation
01/12/2011
Page 6
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Recycling: Now, it's easier!
No ~nre bays and less sorti~ryi
Changes to the recycling program
Bags are gone! You no longer need to use bags to sort your recyclables .
Easier e~orting! Create two sort piles -one for Fiber and Paper and another
for Plastics and Metal Cans. Stack similar items together, place
them in your bin...and take it to the curb for pick-up!
Fiber and paper
You coy recycle t~tis:
^ Newspapers (including ad sections)
^ Magazines and catalogs (IOO~ slick pages)
^ Mixed paper (computer paper,
envelopes, file folders, greeting cards, mail, eic.)
^ Chipboard (cereal boxes, cardboard egg cartons,
paper towel tubes, etc.)
^ Cardboard (under bin)
... but l~oT t~r~s:
^ Books (rto hardcover books, paperbacks,
or phone books)
^ Food boxes (no milk or juice cartons, wax coated
orslick-coated frozen food boxes, orANYTHING
with food still in it or on it.+)
Plastics and cans
You carr rec cue this:
y
^ Plastic jugs and containers (#~-sand #~)
^ Cans (fruits, vegetables, soup, tuna, pet foods,
canned pasta meals, etc.)
^ Please wash these containers before
' recycling to prevent contamination!
:...6ut IVOT t~ris:
^
^
Aluminum (no aluminum foil, pie tins, etc.)
Wire hangers or miscellaneous metals
(no copper; brvuzc, crc.)
Some types of plastic (no plastic bags, wraps,
#6 plastic food p~•ade containers, kids' toys, motor oil
bottles, styrofoa»~, polystyrene, etc.)
^ Paper products (no carbon paper, facia! tissue,
paper cups, paper plates, photographs, napkins, etc.)
How to stack your bin
You no longer need to sort your recyclables in bags. Stack
similar items together. If using one bin, put ne~rspapers
on one side, magazines on the other, cardboard under-
neath,plastics ontop, etc. For rivo bins, sort and stack
fiber and paper in one, and plastics and ran. in lhr ~~iher.
For more information
How many bins
should you use?
t'se one or more bins -whatever works best for you.
Extra bias may be purchased fiom the City for S 12 by
calling 319.356.5180. You may also buy bins elsewhere
(a City tag is no longer required), but if it's lost or dam-
aged, the City cannot replace it. If it's a City bin, we can.
~_' See the back of this flyer for additional
"'~r`~~ information about recycling in Iowa City,
~'~;'r'~~•~
~_~+^-~ or call the City's Solid Waste office at
CITY OF IObVA CITY 319.356.5180.
No glass, please!
Iowa City's curbside recycling program does not
accept glass, but there are places that take it locally.
Information on glass recycling appears on the back of
this flyer.
More recycling options
Recycling drop-off sites
Iowa Ciry has several recycling drop-off sites located throughout the community for your convenience.
The chart below shows what items can he recycled at each site.
oa'~ ,sta ~oo~ a4,¢` ~~ ~~d'''f ~ ~~' q,~
rrr~ nunn_npp CrTFC ~~~ G°Q' G~~ G"~~ Cs~'~ tj`0~ tt'~` t1~~ 4~'~0 4~'~ 4~~/
City Cartnn Recycling ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
3 E. Benton Street
Eaet Side Recycling Center ~ ~ ~ ~ ~ ~ ~ ~
X401 Scott Blvd. SE
EaAtdale Plaza ~ ~ ~ ~ ~
1st Ave. & LowerMuscatine
Hy-Vee ~ ~ ~ ~ ~ ~ ~ ~
1201 North Dodge Street
Hy-Vee Drug ~ ~ ~ ~ ~
301 North !st Avenue
lnwa City Landfill & Recycle Censer ~ ~ ~ ~ ~ ~ ~ ~
3900 Hebl Ave. 54~~
Questions About...
Yard waste at curb: Composting or Iowa City Furniture:
See wwwicgovorg/yardwaste Community Compost: Still usable
Ca11319-356-5180 See www icgovorg/landfill See www..icgovorg/furnitureproject
Call 319-356-5185 Ca11319-887-6160
Free yard waste disposal at the : pa r - ~ curb)
landfill for residents (self-haul): ~ Recycling appliances or $~ http: //wwwicgovorg/garbage
See www icgovorg/landfill electronic waste: Ca11319-356-5180
Ca11319-356-5185 r i e :
:
lf--haul to landfill)
Pa t re-use
: See www.icgovorg/garbage ,e
Hazazdous waste disposal: ; Ca11 3 1 9-356-5 1 80 See www icgovorg/landfill
See www.icgovorg/default/?id=1616:
.
Landfill (self-haul) Ca11319-356-5185
Call 319-356-5185 ; See www.icgovorg/landfill
Ca11319-3S6-S18S :
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CITY OF IOIb'A CIT1" ,~~ ~
I+or more information on recycling,
' ~~
_
s Recycling Coordinator
contact the City ~
319.A87.6160 ~ ~ ~p v
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