AGENDA ITEM 10-A
ACTION ITEM
TO:
CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
NOVEMBER 19, 2010
RE:
AUTHORIZATION TO FORWARD THE FY 2010 AUDITED
FINANCIAL STATEMENTS AND MANAGEMENT LETTER TO
THE COMMISSIONS
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive
Officer to forward to the Commissions for consideration VRE’s financial
statements for FY 2010 as audited.
BACKGROUND:
The audit of VRE’s FY 2010 financial statements has been completed and the
auditors have issued an unqualified opinion. Their report finds that VRE’s
statements, in all material respects, fairly and accurately present the financial
position of the organization.
The FY 2010 audit was conducted by the firm of PBGH, LLC. PBGH has served
as the auditors for VRE, PRTC and NVTC for the last few years and a new three
year contract for the audit of the VRE and NVTC financial statements was
approved in April 2008.
The audited financial statements will be made available at the Operations Board
meeting. The auditors met with the Audit and Finance Committee on November
19, 2010, prior to the Operations Board to review the statements and their
opinion.
FISCAL IMPACT:
There is no financial impact to the VRE Operating Budget from the presentation
of these audited financial statements.
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TO:
FROM:
DATE:
RE:
CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD
DALE ZEHNER
NOVEMBER 19, 2010
AUTHORIZATION TO FORWARD THE FY 2010 AUDITED
FINANCIAL STATEMENTS AND MANAGEMENT LETTER TO
THE COMMISSIONS
RESOLUTION
10A-11-2010
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, the VRE Operations Board, as well as the Northern Virginia
Transportation Commission, have contracted for the audit of their respective
financial statements; and,
WHEREAS, such audits have been conducted by the firm of PBGH, LLC; and,
WHEREAS, the aforementioned firm has completed the audit of VRE’s FY 2010
financial statements; and,
WHEREAS, the auditors have issued an unqualified opinion that VRE’s
statements, in all material respects, fairly and accurately present the financial
position of the organization.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
authorizes the Chief Executive Officer to forward to the Commissions for
consideration VRE’s financial statements for FY 2010 as audited.
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AGENDA ITEM 10-B
ACTION ITEM
TO:
CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
NOVEMBER 19, 2010
RE:
AUTHORIZATION TO AWARD A LEASE FOR VENDOR SPACE
AT THE WOODBRIDGE STATION
RECOMMENDATION:
The VRE Operations Board is being asked to authorize the Chief Executive
Officer to award two lease agreements to the Coffee Club Café Company, Inc. for
the operation of concessions and ticket sales in the North and South rooms of the
Woodbridge VRE station.
BACKGROUND:
On August 8, 2005, the 22’ x 20’ square foot enclosed vendor space located
inside the Woodbridge VRE station was leased to the Coffee Club Café
Company, Inc., of Woodbridge, Virginia, for a period of five years. Since that
time, the enclosed space on the opposite side of the atrium also became available
and was leased to the Coffee Club Café for use as a passenger waiting area.
As the lease agreements for both spaces were set to expire in August 2010, a
request to solicit proposals was made to the Operations Board in May of 2010.
On May 25, 2010, a solicitation was issued and one proposal was received on
June 28, 2010.
An evaluation team reviewed the proposal and requested additional financial
information. During the interim, the space continued to be leased to the Coffee
Club Café Company, Inc., on a month-to-month basis. All financial requirements
have now been met and accepted by VRE. Rent is being paid in the amount of
$300 per month. The term of each lease will be for one year, with four one year
renewable options. Authorization is being sought for the entire lease term, with
the CEO exercising the option years at his discretion.
FISCAL IMPACT:
A total of $18,000 in revenue will be received over the term of this lease
agreement. These funds will be reinvested in the Operating budget for uses such
as maintenance of the Woodbridge station.
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TO:
FROM:
DATE:
RE:
CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD
DALE ZEHNER
NOVEMBER 19, 2010
AUTHORIZATION TO AWARD A LEASE FOR VENDOR SPACE
AND TICKET SALES AT THE WOODBRIDGE STATION
RESOLUTION
10B-11-2010
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, lease agreements for two vendor spaces at the Woodbridge station
were set to expire in August 2010; and,
WHEREAS, a request to solicit proposals was made to the Operations Board in
May of 2010; and,
WHEREAS, a solicitation was issued on May 25, 2010 and one proposal was
received on June 28, 2010; and,
WHEREAS, an evaluation team reviewed the proposal and requested additional
financial information which has now been provided.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
authorizes the Chief Executive Officer to award two lease agreements to the
Coffee Club Café Company, Inc. for the operation of concessions and ticket sales
in the North and South rooms of the Woodbridge VRE station.
BE IT FURTHER RESOLVED THAT, a total of $18,000 in revenue will be
received over the term of this lease agreement.
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AGENDA ITEM 10-C
ACTION ITEM
TO:
CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
NOVEMBER 19, 2010
RE:
AUTHORIZATION TO SELL TEN LOCOMOTIVES
RECOMMENDATION:
The VRE Operations Board is being asked to recommend that the Commissions
authorize the Chief Executive Officer to execute a sales agreement for ten GP39
locomotives with MotivePower, Inc., or the next highest proposer, for the amount
stated in the confidential envelope provided to Board Members.
BACKGROUND:
In June of 2007, the VRE Operations Board authorized the Chief Executive
Officer to pursue the sale of VRE locomotives as they were replaced with new
equipment. VRE posted the sale of this equipment on the website and notified
several potential purchasers of the sale. Since that time, of the 18 available units,
VRE has sold three F40 and three GP40 units.
VRE subsequently received a proposal from MotivePower, Inc. to purchase 10
GP39 locomotives. Negotiations have been completed and a sales agreement,
mirroring those already approved by the Operations Board for equipment, is being
readied. Work is underway to develop a mutually agreed upon schedule to
deliver the locomotives to MotivePower as VRE receives new locomotives.
FISCAL IMPACT:
All sale proceeds will be reinvested in the railcar acquisition project to be used as
match to upcoming federal and/or state grants.
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TO:
FROM:
DATE:
RE:
CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD
DALE ZEHNER
NOVEMBER 19, 2010
AUTHORIZATION TO SELL TEN LOCOMOTIVES
RESOLUTION
10C-11-2010
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, in June of 2007, the VRE Operations Board authorized the Chief
Executive Officer to pursue the sale of locomotives as they are replaced with new
equipment; and,
WHEREAS, MotivePower, Inc. has made a proposal to purchase 10 VRE GP39
locomotives; and,
WHEREAS, VRE has received no other expressions of interest for these
locomotives.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the Commissions authorize the Chief Executive Officer to
execute a sales agreement for ten GP39 locomotives with MotivePower, Inc., or
the next highest proposer, for the amount stated in the confidential envelope
provided to Board Members.
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AGENDA ITEM 10-D
ACTION ITEM
TO:
CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
NOVEMBER 19, 2010
RE:
AUTHORIZATION TO
AGENDA
APPROVE THE 2011 LEGISLATIVE
RECOMMENDATION:
The VRE Operations Board is being asked to recommend that the Commissions
approve the 2011 VRE Legislative Agenda and authorize the Chief Executive
Officer to actively pursue the elements set forth in the document.
BACKGROUND:
The VRE legislative agenda is formulated to advocate VRE priorities in
coordination with the Commissions and local jurisdictional staff. Additional
advocacy positions related to specific federal and state legislature are also
presented.
FEDERAL
1. Request for Capital Appropriations and Authorization of Transportation
Legislation
Congressional staffers have already begun working on the next Reauthorization
legislation following SAFETEA-LU. However, all indications are that Congress will
not take up the issue until January 2011. Congress has continued to pass
continuing resolutions to fund transportation. However, both the Administration
and Congress have acknowledged that a new authorization bill must be passed in
order to determine the magnitude of future funding and the revenue source for
those funds.
Given the success that VRE has enjoyed over the past decade, work will continue
to secure appropriations in this fiscal year’s budget. This year, efforts will focus
on the acquisition of 50 new bi-level railcars to replace and expand upon the
aging railcars in VRE’s fleet. VRE will continue to pursue funding requests as
follows, listed in priority order:
Priority List of VRE Projects for Inclusion in the Reauthorization Bill
1.
2.
3.
4.
5.
Mid-day Storage of Rail Equipment
50 new high capacity railcars
Parking Expansion
Platform Extensions/Additions
Expansion of commuter rail service
to Gainesville/Haymarket
6. Acquisition of new fare collection system
TOTAL REQUEST:
$20 Million
$120 Million
$41 Million
$41 Million
$136 Million
$5 Million
$363 MILLION
VRE, as it has done for the past four years, will also support APTA in their
advocacy efforts to bring awareness to the need for additional, as well as
dedicated, funding for public transportation.
2. Federal Liability Cap
One of the recurring themes on the federal agenda has been to raise awareness
for the need for modified language in the federal code regarding liability insurance
coverage. VRE will continue to advocate for capping liability insurance for
commuter rail operations.
This issue remains a challenge as not all commuter rail agencies face the same
dilemma when it comes to carrying liability insurance (some are self-insured,
some are protected by state law, and yet others carry lower premiums than VRE).
CSX and Norfolk Southern continue to request liability insurance of $500 million
per incident as an element of the access agreements. VRE will promote
amending the current federal liability cap of $200 million to include third party
claims.
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3. Corridor Improvements
VRE will also continue to partner and support the efforts of the Commonwealth
and our host railroads to secure funding to improve railroad capacity. This
includes, but is not limited to, additional high speed rail funding for the Powell’s
Creek to Arkendale project.
In addition, VRE continues to work with Congressman Moran and Senators Webb
and Warner on potential public-private partnerships that could bring
improvements to the rail and public transportation networks at L’Enfant and
Washington Union Terminal. Under both proposals, VRE has been asked to
comment on conceptual ideas but additional involvement could develop into
support for efforts to fund the Maryland Avenue redevelopment and Union Station
redevelopment efforts.
4. Commuter Benefits
The American Reinvestment and Recovery Act (ARRA) contained a provision that
created temporary parity between parking and transit commuter benefits. This
provision raised transit benefits up to the $230 per month threshold allowable for
parking. This provision is set to expire on December 31, 2010. Without an
extension or permanent inclusion in the Internal Revenue Code, transit benefits
will be reduced back to $120 per month. VRE will continue to advocate that
transit benefits remain the same as the parking benefits.
5. Miscellaneous Items
Under the language of the US Rail Safety Improvement Act of 2008, Congress
mandated that the Federal Railroad Administration fully implement Positive Train
Control (PTC) by 2015. VRE continues to work with federal agencies and the host
railroads to ensure compliance by the deadline. VRE’s initial implementation plan
has been approved by FRA and efforts are underway to find funding to help
defray implementation costs.
STATE
1. State Funding
VRE will partner with VTA and the local jurisdictions to advocate for an increase in
the state’s transportation investment, including continued growth of state funding
for transit and for the Commonwealth to meet the statutory goal of funding 95
percent of eligible transit capital and operating costs from the Mass Transit Fund.
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VRE will also continue to advocate for its current share of state allocated funding
as well as secure appropriations in the upcoming budget cycle, all while being
mindful of other public transportation partners. Projects would mirror those listed
above in the federal program.
VRE will also continue to advocate for capacity improvements such as
construction of a third main line track from Washington to Fredericksburg and,
more specifically, for a third mainline track from Hamilton to Crossroads in
Spotsylvania County. The project has an estimated cost of $18M and is part of the
contractual agreement between VRE and Spotsylvania County for the provision of
revenue service to Spotsylvania County.
2. Legislative Policy
There are several legislative initiatives or requests that VRE has identified as
important for consideration during the upcoming legislative session of the General
Assembly:

Amend the Virginia Code to cap liability for commuter rail operations. The
existing cap enacted in a prior session excludes third party claims. VRE
will also seek exemption for freight railroads and VRE from liability for
terrorism.

Seek both short term (offering a budget amendment allowing VRE such
latitude) and long term remedy (amending the Virginia Code) to allow VRE
to, at its discretion, utilize an independent third party or the Virginia Division
of Risk Management (DRM) to manage the liability insurance plan and
oversee the VRE Insurance Trust Fund.

Re-examine the merits of offering legislation to amend the Virginia Code to
prohibit pedestrians from crossing public thoroughfares when trains are
present. VRE has been working with CSX and Norfolk Southern to get
legislation in the Code to match the nearly 20 other states who have similar
laws.

Seek to codify language that would dedicate funds, apportioned under
federal law from the Equity Bonus program, (which mandates 13% of these
funds goes to public transportation) to VRE to pay for contract fees (such
as right-of-way and real estate leasing) currently paid to CSX
Transportation, Norfolk Southern and the National Railroad Passenger
Corporation
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
Amend Chapter 774 of the Virginia Code that would increase the
aggregate awardable liability claim a rail passenger could make per
incident (as requested by the Virginia Trial Lawyers Association in 2006).
The provision is set to begin in January 2011. Under the Code, the current
threshold ($100,000) would be amended upward each year based on the
percentage change in the medical care component of the Consumer Price
Index (as published by the Bureau of Labor Statistics). Were this provision
to remain, it could increase the existing $250 million dollar liability
insurance threshold imposed by the Class 1 freight railroads. VRE would
advocate for the elimination of this amendment such that there is no annual
index increase.
FISCAL IMPACT:
There is no direct funding impact associated with adopting this agenda. As in the
past, based on the success of federal and/or state appropriations, some local
match may be required to fulfill grants or program money.
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TO:
FROM:
DATE:
RE:
CHAIRMAN MILDE AND THE VRE OPERATIONS BOARD
DALE ZEHNER
NOVEMBER 19, 2010
AUTHORIZATION TO APPROVE THE 2011 LEGISLATIVE
AGENDA
RESOLUTION
10D-11-2010
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, VRE is an essential part of traffic mitigation for the Northern Virginia
and DC Metropolitan region; and,
WHEREAS, VRE has advocated positions with Congress and the Virginia
General Assembly that are supportive of the transportation philosophy of the
Northern Virginia region; and,
WHEREAS, VRE shall seek to promote its legislative positions during the
upcoming calendar year on both the state and federal levels.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the Commissions approve the 2011 VRE Legislative Agenda
and authorize the Chief Executive Officer to actively pursue the elements set forth
in the document.
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