MINUTES OF THE OHIO RAIL DEVELOPMENT COMMISSION REGULAR BI-MONTHLY MEETING July 19, 2012 CALL TO ORDER The meeting of the Ohio Rail Development Commission was called to order by Chairman James Bradley at 11:07 a.m. on Thursday, July 19, 2012. MEMBERS PRESENT Members present included: Chairman James Bradley, Executive Director Matt Dietrich, Commissioners Rob Greenlese, Solomon Jackson, Larry Sowers, Kevin Potter and David Moore. Commissioners Bill Lozier, Tom McOwen, Ronald Rasmus, Barbara Bennett, Senator Patton, Representative Boose and Representative Hagan were unable to attend. There were 6 voting members present, therefore a quorum was obtained. APPROVAL OF THE MINUTES OF THE MAY MEETING Chairman Bradley asked for a motion to approve the minutes of the May 10, 2012, meeting. Commissioner Greenlese moved to approve the minutes and Commissioner Sowers seconded the motion. Roll Call was taken and the minutes were approved as presented with six votes in the affirmative. EXECUTIVE DIRECTOR S REPORT Executive Director Dietrich presented his report to the Commissioners, which can be found on page 8 of the commission packet. Mr. Dietrich updated the commission on the RRIF loan process. He explained that ORDC staff is working on an MOU with the FRA to pilot this program. Chairman Bradley asked how much involvement there is with other state organizations and if it is possible to get everything established by SCORT in September. Executive Director Dietrich said the program would require more ORDC staff time and possibly ODOT fiscal to review the loan process, but the MOU and moving the program forward is not dependent upon other state agencies. There is a definite possibility of having partnerships in the future that will help, especially with the loan capacity as a loan development tool, but ORDC controls the timeline. Commissioner Greenlese asked about AASHTO s assistance and how that would work and if ORDC is allowed to use their assistance. Mr. Dietrich clarified that AASHTO s help would be on an advisory level only unless legal impediments don t hinder other assistance from them. Executive Director Dietrich invited the Commissioners to a ribbon cutting ceremony for the ARRA-funded Airline Yard Intermodal Facility in Toledo on August 29 th. He also announced that ORDC representatives were recently at a ribbon cutting ceremony for a new double-stacked clearance bridge in Niles, Ohio on July 13 th and the Marion overpass on July 18 th. Mr. Dietrich told the Commissioners that ODOT is starting work on their Access Ohio document, their long-term transportation plan, and that ORDC has encouraged all railroads to reach out to them on behalf of the Commission. Mr. Art Arnold has been helping with ORDC s efforts to get railroad support for this.
Executive Director Dietrich asked Julianne Kaercher, ORDC s public information officer, to elaborate upon the Commissions outreach efforts. He explained the new Intermodal Guides were a part of this effort and thanked Mr. Don Damron and Mr. John Rayburn for their work on that project. Ms. Kaercher pointed out the new letterhead and ORDC logo to the Commissioners as a part of the Commission s rebranding efforts. Also, the 2012-2013 rail map was included in the packet, which focuses on economic development opportunities and contacts across the state. Ms. Kaercher also explained ORDC s new social media agenda as an effort to create more transparency and accessibility. Chairman Bradley asked Ms. Kaercher to explain the new logo design. She stated that the ORDC specializes in three areas: crossing safety upgrades, economic development loans and grants and special projects. The icons on the new letterhead represent these areas: lights and a crossbuck, drawing on Operation Lifesaver s image of safety; a double stacked freight car, encompassing our freight and economic development divisions; and the state of Ohio, representing the area we serve. Lastly, Executive Director Dietrich noted the John Rayburn is no longer an intern, but a 1000 hour contract employee. In his place, Casey Devine has been hired as the safety intern. Also, Shel Senek has officially retired. Mr. Dietrich thanked him for his dedication to public service and announced Steve Friday as his replacement. Chairman Bradley commended Executive Director Dietrich and staff for their efforts with the Federal Railroad Administration in securing Ohio as the pilot agency for the RRIF loan program. He stated this has tremendous potential for the state of Ohio. Mr. Bradley also said the ORDC s new education and outreach efforts are long needed as he has felt for some time the Commission could do more to promote jobs, job creation and Ohio s freight network. There were no further questions. FINANCE REPORT Megan McClory, ORDC s Secretary-Treasurer, presented the Finance Report to the Commissioners, which can be found on page 10 of the commission packet. Ms. McClory announced that in fiscal year 2012, ORDC administered over $30 million for projects. As far as projects updates, Ms. McClory said the V&M Youngstown expansion is scheduled to be complete by mid-august. Also, the last two bridges for the CSX National Gateway clearance projects, Mud Lake Road and Knapp Road, are under construction. Ms. McClory told the Commission that 2014-2015 budget preparations are underway. The requests for budgets are due in October and she has started project reports to summarize 2012 activities so staff is able to maximize project funding for the second half of 2012. She was pleased to report the entire $2 million is available for freight funding in 2013. Commissioner Greenlese commended Ms. McClory and her staff for getting the full amount available for economic development projects. There were no questions.
RESOLUTION 12-08 Indiana and Ohio Railway Mason Line Rehabilitation ORDC staff member Lou Jannazo presented to the Commissioners the project briefing on page 17 of the commission packet concerning an up to $260,000 grant to Indiana and Ohio Railway to rehabilitate their Mason Line. Mr. Jannazo explained that the project would help to retain rail service to five shippers, employing 507 people, preserve 233 rail-dependent jobs and help two companies increase their rail dependency and encourage their expansions. He also explained that the total project costs are over $520,000, half of which is from ORDC and the other half is matched by I&O. Mr. Jannazo reiterated that ORDC staff would use FY 2013 funds, approximately $172,000, as well as funds left over from other I&O projects from past years, approximately $88,000 to make up the $260,000. ORDC would also require I&O to submit bids for the project by March 1, 2013 to ensure staff has time within the biennium to adjust funding if bids are significantly lower or higher. Mr. Jannazo introduced Biff Conrad from the railroad in the audience to answer any questions. Commissioner Greenlese asked if I&O can reduce the time it takes the railroad to access Mason and serve its customers once this rehabilitation project is completed. Mr. Conrad explained there is still a time issue. Chairman Bradley clarified by asking if this is purely just a maintenance project, to prevent further deterioration of the line or if there were improvements being made in addition to the maintenance. Mr. Conrad said it was just work to prevent the deterioration of the line. There were no further questions. Commissioner Sowers made a motion to approve Resolution 12-08 and Commissioner Greenlese seconded it. Roll Call was taken and the resolution was approved as presented with six votes in the affirmative. RESOLUTION 12-09 City of Dayton Rail Line Improvements ORDC staff member Eric Neff presented to the Commissioners the project briefing on page 27 of the commission packet. Mr. Neff explained ORDC recommends granting $201,500 to the City of Dayton in order to complete necessary rehabilitation work for the Northwest Industrial Lead track. The four-mile track serves the Northwest Industrial Park, located in the cities of Dayton and Trotwood. Specifically, Mr. Neff indicated that two bridges and several rail crossings need immediate attention. Additionally, Mr. Keith Klein, Senior Development Specialist from the City of Dayton was introduced if there were any questions that need answered about the project. Commissioner Greenlese referred to the diagram on page 30 and asked that since one of the bridges appears to be on a portion of the CSX-owned line, would they be willing to pay any money for the repairs. Mr. Neff advised the Commission that this one not one of the bridges in need of repair and therefore CSX would not contribute any funds.
Commissioner Greenlese made a motion to approve Resolution 12-09 and Commissioner Jackson seconded it. Roll Call was taken and the resolution was approved as presented with six votes in the affirmative. RESOLUTION 12-10 Glass Rock Branch Lease Extension with the Newark, Heath and Buckeye Scenic Railway, DBA Zanesville and Western Scenic Railroad ORDC staff member Don Damron presented to the Commissioners the approved project briefing, which can be found on page 36 of the commission packet. The Zanesville and Western Scenic Railroad has been working with ORDC since 2008 on this line. Specific milestones are outlined in the lease with required deadlines for completion of work. Mr. Damron explained the ORDC recognizes the challenge facing the Z&W because it is a small volunteer organization with limited resources and recommends the Commission support the extension of this lease. Mr. Damron indicated to the Commission that this extension does not allow operations on the line and that step will be negotiated at a later date. By extending the lease and allowing the Z&W to continue their rehabilitation of the rail line, ORDC is ensuring the preservation of the line for future freight shipping; there are nine potential businesses along the line. Mr. Damron introduced Bill Ratz and Scot Dunbar from the railroad if there were any questions. Chairman Bradley asked what resources and funding sources the Z&W has for rehabilitating the line. Mr. Ratz said each volunteer has invested $30,000-45,000 of their own money into the line in addition to a line of credit taken out with a bank. Commissioner Sowers made a motion to approve Resolution 12-10 and Commissioner Jackson seconded it. Roll Call was taken and the resolution was approved as presented with six votes in the affirmative. Commissioner Greenlese added that given the good will by this organization, he recommends flexibility with the lease deadlines. Executive Director Dietrich echoed these sentiments. RESOLUTION 12-11 Indiana and Ohio Railway Lancaster to Logan Line Phase III Rehabilitation Project Grant ORDC staff member Tom Burns presented to the Commissioners the approved project briefing, which can be found on page 53 of the commission packet. Mr. Burns explained that this project started in fiscal year 2011 with Phase I. The project was split into three phases so ORDC could financially assist the I&O for the entire length of the rehabilitation. Mr. Burns told the Commission the Lancaster to Logan line is a rebounding line, but the railroad cannot fund the rehabilitation alone. He also indicated the third phase of the project will be funded entirely by unspent funds from previous I&O projects and will not draw from the fiscal year 2012/2013 budget. The third phase of the project requires a $132,940 grant from the ORDC to preserve effective rail service to three rail-dependent users, employing over 600 people and supports modest railrelated development potential. Mr. Burns said this phase will consist of track work to the line between mileposts 44 and 49.5, mostly through the replacement of 3,000 cross ties and 80 switch ties. Again, Mr. Biff Conrad was introduced to answer any of the Commissioner s questions.
Commissioner Greenlese commended the ORDC staff, specifically Mr. Jannazo and Mr. Burns, for their budgetary discretion. Commissioner Greenlese made a motion to approve Resolution 12-11 and Commissioner Jackson seconded it. Roll Call was taken and the resolution was approved as presented with six votes in the affirmative. Chairman Bradley noted to the Commission that the Approved Project Briefing on the City of Lebanon, LM&M Tourist Railroad Rehabilitation Project is tabled and will be presented once the city completes negotiations with the operator and reevaluates their economies of scale. COMMITTEE REPORTS Executive Director Dietrich presented the Contract and Property Advisory Committee Report, chaired by Chairman Bradley in Commissioner McOwen s absence. In the meeting, Executive Director Dietrich reported that in conjunction with the Z&W lease renewal, there is potential for a possible property ownership partnership. Mr. Dietrich also gave an update on the City of Jackson rail line. Mayor Heath was in attendance at the committee meeting. Mr. Dietrich informed the Commission that staff needs more information from US Rail to move forward with the agreement and is aware that the Commission wants to vote on the situation sooner than later. Executive Director Dietrich assured the Commissioners he would have a recommendation in September on whether or not ORDC should continue their negotiations. Lastly, Mr. Dietrich let the Commissioners know staff is negotiating a long-term lease with Ohi- Rail on the Piney Fork Line and looks to move forward with that agreement with the Commission s blessing. He explained this lease would be similar to the recently completed Panhandle long-term lease. There were no questions. Commissioner Jackson presented the Human Resources Committee Report. He explained that the meeting was focused on succession planning and what staff is doing to plan for that. Secretary-Treasurer McClory shared with the committee the two big steps being taken to prepare for retirements. First, staff has documented both economic development and safety project procedures as a resource to new staff. These documents not only lay out the process for project selection, but also explain where decisions are coming from. Second, staff is working on restructuring the organizational chart to create more flexibility and uniformity. Safety and Economic Development will fall under one manager to help organize and provide consistent oversight on projects and programs, especially where there is overlap. By doing this, ORDC can then use the vacant position to apprentice a lower lever project manager who can transition in to a safety project manager position as people retire. There were no questions
There was no Long-Term Strategy/Economic Development committee meeting due to Commissioner Bennett s absence. Secretary-Treasurer McClory distributed an updated version of a 2008 funding matrix that reflects different funding mechanisms at ORDC s disposal. OLD BUSINESS There was no old business to come before the Commission. NEW BUSINESS There was no new business to come before the Commission. PUBLIC COMMENT Henry Zitter, a citizen from the City of Defiance, requested ORDC s support to establish quiet zones in the city. He stated that CSX estimates a 20% increase in traffic along their line in the city. Mr. Zitter also stated that noise and vibration has increased along the National Gateway and is a nuisance to the city. Executive Director Dietrich told Mr. Zitter that he would be happy to have a conversation with him about the establishment of quiet zones, but that it needs to be a locally-driven process initiated by their local highway authority and the community. Mr. Dietrich suggested someone from the city or the county contact ORDC to continue the conversation. Mr. Zitter explained the community is hesitant to go forward with the quiet zone because it is a costly endeavor and their liability for accidents increase. Mr. Dietrich explained that other communities have been able to work it out in the past and the costs should not be assumed until they discuss it in depth. Executive Director Dietrich made a note that Jim Seney, former ORDC Executive Director, passed away in a tragic boating accident in June. Mr. Dietrich said he meant a lot to a lot of people; he did a lot for the ORDC and the city of Sylvania and was a true mentor and friend. Commissioner Sowers requested a moment of silence for Mr. Seney. Chairman Bradley asked if there were any updates on the October Commissioner retreat. Commissioner Greenlese explained he has reached out to TMACOG to host the event and to various Toledo-area economic development contacts to join the Commission. Matt Sapara from the Toledo-Lucas County Port Authority, Jerry Hayes from the Defiance County economic development office, and Tom Blaha from the Wood County economic development office have all been invited. Commissioner Greenlese was enthusiastic about the retreat and stated it should be very successful. He indicated the focus will be on rail-oriented development with regards to economic development. The retreat is scheduled for October 11, 2012. ADJOURN Chairman Bradley adjourned the meeting at 12:12 p.m.