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FIRST QUARTER 2015 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES Crossings: Updated company brand features new public-facing logo INSIDE...

Alaska Railroad branding evolves Crossings: 0022 President’s Th ousands of Alaskans and visitors each year corporate communication with Message catch a glimpse of the Alas- stakeholders because it is an ka Railroad’s iconic blue important part of our history Crossings: and gold trains as they roll and identity. 0044 COO: More through towns and country- Moving forward, you Engagement side. Using a very distinctive will see the public-facing font, the word “ALASKA” logo in various styles, from Mileposts: is emblazoned on the side of standing alone with elegant 0055 Employee each railcar and locomotive, drop shadows and lines, to Recognition emphasizing our role in state instances where it is placed transportation. Our passen- into a gold and blue stripe Mileposts: ger trains are easily our most similar to the sides of our 0066 Longest-serving recognizable asset, and we’re trains. A company identity woman retires capitalizing on that familiarity Strategic Plan has new brand. and brand guide includes with a brand refresh, including the diff erent logo styles, along with clear guide- Crossings: a new public-facing logo. lines for how and when to use a particular style. Th e 0077 Real Estate Over the course of several months, our mar- guide is available to all, and will soon be posted on Update keting fi rm, Spawn Ideas, worked with leadership our employee web site. from each railroad department to develop a brand You will not see a lot of fanfare or an external SIDINGS: that underscores all of our business lines — freight, public campaign announcing the changes. Rather, 0088 CREATING A passenger and real estate. Spawn Ideas presented the rollout will happen in phases. We fi rst intro- CONNABOOSE dozens of inventive designs, but in the end, it made duced Railroaders to the new branding design and sense to mirror our well-established railcar and logo with the Strategic Plan. Since then we’ve hung Crossings: locomotive scheme. new company safety and values posters, revised our 0099 Retirement News We began with a cleaned up version of the letterhead, published advertisements and created “ALASKA” from our railcars, and added “RAIL- some gifts and giveaways that sport the new “look Sidings: ROAD” in larger, clearer lettering, which does not and feel.” In the coming weeks, supervisors will Lessons in get lost or unreadable at smaller sizes — a fatal fl aw follow-up with employees, providing more informa- 1100 Lighting in our corporate seal in terms of brand promotion. tion and new branded materials. Despite its graphic drawbacks, we know our corpo- In a few months, our new external web site will Crossings: rate seal is recognized by some Alaskans, especially feature the revamped brand. We will use up current New Chief Info those along the Railbelt or those with direct experi- stocks of stationary (letterhead, envelopes, business 1122 Offi cer ence or ties to the Railroad. Th e railroad’s corporate cards) before ordering the new. Logo apparel and seal will remain intact and will continue to be used items in our Gift Shop will be phased in as new Crossings: on some internal documents and more formal (See “Evolving Brand” on page 3) 1133 Financial News and Warning

Wye of It: 1144 Railroad to the Rescue! President’s Message: Improving employee engagement and safety All Aboard Status on employee-focused initiatives 2 By President & CEO Bill O’Leary Available on our employee web site, the charter’s fi rst edition includes a 2014-2015 Engagement Ac- 1ST QTR 2015 In 2014, the Alaska Railroad began planning tion Plan, with dozens of initiatives that are already and implementing a number of initiatives aimed at completed or underway. improving employee engagement and safety. Below is a brief status of these initiatives. Communications Focus: Our executive man- agement team members are more accessible. Senior Employee Benefi ts: Our Human Resources leadership including myself regularly post news and (HR) team is providing more information than ever important information directly to employee emails. to help employees make good decisions. Quarterly We are out and about with scheduled in-person Benefi ts and Wellness Newsletters that began in fi eld visits, attending diff erent department staff 2014 will continue this year. Benefi ts Journals were meetings and training sessions, and welcoming new recently supplemented with a Medical Plan Tips employees during orientation. We are planning to Bill O’Leary and Tools brochure mailed to participants in the repeat last fall’s town hall meeting forums at least new Blue and Gold health plans. For retirement annually. Finally, our eff orts to rebuild the employee planning, employees get updated Summary Plan web site is nearing completion and should roll out Descriptions for the 401(k) Plan and the Pension early summer. Th e retooled external company web Plan, monthly retirement planning educational site will go live in 4-5 months. items, and access to Vanguard’s calendar of webinars and other online retirement planning tools. Employee Recognition: We are tweaking the program to tie into our company values (safety, New Employee Orientation: For months, integrity, teamwork, service excellence and sustain- Chief Operating Offi cer (COO) Doug Engebretson ability). A couple dozen employees recently took and I have personally welcomed new employees part in focus groups in Fairbanks and Anchorage, during their orientation. HR added a segment on where railroaders off ered insight into how we can our Strategic Plan and company values, and these better communicate and facilitate our recognition documents were added to the welcome packet. program. We expect to present a revised program We are currently working to develop a Railroad later this year. In the meantime, employees can 101 presentation to acquaint new employees with still use the existing Spotlight Award program to the organization. Th is is a step toward automat- highlight individuals and teams who go above and ing more of the orientation, so the information is beyond. available electronically and on our internal web site. Suggestions for enhancing the new employees’ Safety Face-to-Face: We are stepping up experience are welcome. Send your ideas to VP face-to-face eff orts to keep railroaders informed and Business Management & Corporate Aff airs Wendy engaged on the safety front. In early February, a Su- Lindskoog or to HR Director Susan Lindemuth. pervisors Safety Summit provided tools and infor- mation to pass along to employees to help everyone Non-Rep Classifi cation/Compensation: understand the safety changes and challenges ahead. Last summer, Segal Waters was hired to do a See the photo story on page 3. We invite all em- Classifi cation and Compensation Study for non- ployees to attend quarterly safety meetings to learn represented positions. Based on Job Description how we are doing and where we need more focus. Questionnaires completed by our non-represented Th ese safety forums complement our eff orts to stay employees, the consultant suggests some revised job in front of pending federal regulatory actions. titles and position descriptions. We are reviewing Federal Focus: the study fi ndings to determine possible non-rep Th e Federal Railroad Adminis- classifi cation changes. In addition, we are working tration (FRA) is taking steps to improve how the on a new non-represented performance evaluation rail industry manages safety, including how safety form and process, which may be ready to present by training is documented and delivered. While the June 2015. Alaska Railroad is already compliant with current law, we are being proactive to meet new federal Engagement: Last year, we formed an Engage- regulatory requirements anticipated in the next 2-3 ment Leadership Group and adopted four Engage- years. We are actively working on: ment focus areas (Accountability, Communications, • formalizing safety training for safety-sensitive Training, and Social Opportunities). Th e group employees (train and track workers) and train- has since developed a 2014 – 2019 Engagement Charter that outlines measurable goals and actions. (See “President’s Message” on page 3) Crossings: Carmen union and Railroad have new 3-year agreement All Aboard TCU and Railroad sign new contract ALL ABOARD3 1ST QTR 2015 Left: On April 3, the Alaska Railroad and the Transporta- tion Communica- tions International Union (TCU) Broth- erhood Railway Carmen Division TCU Local Chair Jim Abitz, left, and Local 6067 signed ARRC President & CEO Bill O’Leary a new three-year shake on the new 3-year TCU labor collective bar- agreement. gaining agreement. Pictured: Alaska Railroad President/ CEO Bill O’Leary, President’s Message ... Labor Relations Director Debi (continued from page 2) various departments, and we are investigating English, Manager learning management software options. of Car Operations ers. Th e FRA will soon be asking railroads to • developing a Safety System Program Plan Ron Thompson, prove consistency and competency within their (SSPP), as prescribed by the FRA in pending and Carman / TCU safety training programs. To that end, ARRC is regulations. As reported in an earlier issue of All Local Chairman Jim hiring a Training Manager who will eventually Aboard, our Safety Department is working on Abitz and Carman / bring all of our safety training under one um- an SSPP, which will replace our current Safety TCU Local Presi- brella, who will ensure consistency in training Management System (SMS) document. Fortu- dent Al Kinne. Not curricula and testing, and who will manage and nately, we are already doing most of the things pictured is national track the training among the workforce. Th is a formal SSPP requires. We continue to make TCU / IAM Assis- position will also provide a central management progress on organizing our program elements tant General Presi- point for professional development training. into one comprehensive document. dent Carl Tingle, We are interviewing several candidates for this who also signed. position now and should have the position Th ere is a lot going on and more reasons than (Photos by fi lled shortly. In the meantime, we are taking an ever to stay engaged as we work together to make Stephenie Wheeler) inventory of all training currently provided by our railroad a great and safe place to work. Evolving Brand ...

(continued from page 1) orders are placed to replace inventory as it is sold. Signs for facilities and vehicles will only be ex- changed as they age and need to be replaced. Our re-branding will better communicate what the Alaska Railroad off ers and what sets us apart. We expect the time and modest fi nancial invest- ment to generate a good return in years to come.

A Brand & Identity guidebook will pro- vide instruction on how and when to use various versions of the new public-facing logo. COO Message: Safety stays front and center All Aboard Employees engaged on safety 4 By Chief Operations Offi cer Doug Engebretson category, along with the status (done, ongoing, un- derway, needs further exploration, etc.). Th e charter 1ST QTR 2015 Safety continues to be front and center as a helps us track out eff orts — from developing better topic at the table when we meet, and as a focus in job performance appraisals and establishing a the fi eld when we work. In March, I recapped what formal safety inspection program (accountability); happened at the Safety and Engagement Summit we to hiring a Training Manager and investigating new held mid-February to ensure every railroad man- training management software (training); to sched- ager understands our safety eff orts and challenges. uling leadership visits in the fi eld and assigning all Summit participants were asked to share what they employees an email (communication); to revamping learned during staff meetings, work briefi ngs and employee recognition and organizing annual clean- other forums. In addition, all the information pre- up events (networking). sented at the summit was compiled into a printed Good things are happening. Let’s stay engaged Doug Engebretson handbook that is available electronically to everyone and keep the momentum going. on our employee web site. We all need to be aware of the issues and actions that impact our safety. Another place that employees can get the skinny on safety is at our Employee Quarterly Safety meetings scheduled in Whittier (south), Anchor- age (central) and Fairbanks (northern). Multiple sessions help to accommodate work schedules to allow any employees access to safety statistics, safety pro- gram information and progress on our safety goals. If at all possible, we want to see employees attend, and so it was great to see packed meetings at the 1st Quarter meetings. Whether at a summit or quarterly meeting — we want to engage because this is key to staying safe. Th at’s why we are not leaving our engagement eff orts to chance. We have adopted an Engagement Charter and Action Plan The Safety Summit to keep the dialog going in a purpose- presentation book ful way. Th e plan is posted on the employee web site and Engagement and we encourage you to check it out. We are mak- Charter are both ing headway on our four engagement focus areas: posted on the My accountability, communication, training, and social Safety is among the values promoted on Portal > Divisions > networking. Specifi c tasks are called out in each new posters hung around ARRC. Executive page.

L-R: Austin Hill, Katrina Martolano and L-R: Paul Willman, Cynthia Douglas and Connor Keogh tackle issues at the summit. Willow Peyton brainstorm at the summit. Mileposts: Railroad recognized for Guard, Reservist support All Aboard ARRC receives DoD Pro Patria Award ALL ABOARD During the Alaska Railroad’s regular Board of ESGR Above and Beyond Award, who have had at 5 Directors meeting on April 1, Alaska Aerospace least one supervisor or other representative honored Corporation President/CEO Craig Campbell pre- with an ESGR Patriot Award (presented to individu- 1ST QTR 2015 sented an award recognizing the railroad’s support al supervisors), and who have signed a Statement of of its National Guard and Reserve employees. Support are eligible for the Pro Patria Award. Formerly an Alaska Lieutenant Governor and Alaska Air National Guard Adjutant General, Campell is State Chair for the Alaska State Com- mittee of the Employer Support of the Guard and Reserve (ESGR) program. Each year, ESGR grants a series of Department of Defense (DoD) awards to recognize employers. ARRC Board Chair Linda Leary and President/ CEO Bill O’Leary accepted ESGR’s Pro Patria Award, which is presented annually by each ESGR State Committee. Recipients have demonstrated the greatest support to Guard and Reserve employ- ees through their leadership and practices, including adopting personnel policies that make it easier for employees to participate in the National Guard and Reserves. Th is is the highest level award that may be bestowed by a state ESGR committee. Employers who have been honored with the ARRC Board Chair Mileposts: 14 people joined the railroad January - March 2015 Linda Leary accepts the Welcome New Hires: First Quarter Pro Patria Award. ESGR State Kristen McDonald ...... Real Estate Adam Kincaid ...... Telecommunications Committee Chair Christopher Anderson-Cruise .Maintenance of Way William Lake...... Mechanical Craig Campbell on April 1. Christopher Beach...... Mechanical James Ratchford ...... Technology Michael Bennett ...... Mechanical Robyn Simmons ...... Police & Security (Photo by Stephenie Tony Buma ...... Facilities - Fairbanks Christopher Sopp ...... Accounting Wheeler) Douglas Regan ...... Police & Security Amos Sumrell ...... Maintenance of Way Sidney Johnson ...... Maintenance of Way Jeff rey “Jacob” Turner . . . . .Maintenance of Way

Mileposts: Railroaders salute 2 retirees and welcome 5 babies Home Front: Births and Retirements

Retirements: Fond Farewells Births: New Arrivals Journeyman Mechanic Leader John Faeo Journeyman Mechanic (Fairbanks) Gerald retired March 2 from the Mechanical Depart- Schmitz III and wife Orien welcomed son Dean ment after more than 40 years of service. Anderson Schmitz, born December 30. Work Train Foreman Mike Maillet retired Journeyman Mechanic Michael Williamson February 3 from the Maintenance of Way De- and wife Lori welcomed daughter Ariana Marie, partment after nearly 40 years of service. born December 29. Program Manager for Scheduling, Logis- Journeyman Mechanic Matthew Yanney tics and Materials Don Worthley retired and wife Rachel welcomed twins Ronan and January 23 from the Project Management Amber, born February 10. department after nearly 29 years of service. Mileposts: Railroaders mark service milestones All Aboard Service Awards: First Quarter 6 1 Year 10 Years Janetta Bitton ...... Accounting Edward Ausman ...... Telecommunications 1ST QTR 2015 Moeiini Brady Jr...... Signal Marty Jones...... Transportation Karen Brenneman ...... Transportation Sasha Kincaid . . . Marketing and Customer Service 1 Kelly Reinhardt baked cupcakes, Th omas Covington ...... Safety 15 Years chocolate-dipped Cynthia Douglas ...... Information Technology Troy Arquette ...... Maintenance of Way strawberries and Denise Flowers ...... Guest Services Edith House ...... Grants Administration other treats for Branden Kressly...... Transportation Landon Messelheiser . . . . . Advanced Train Control the celebration. Aaron LeMere ...... Facilities Systems Rachel Maddy ...... Project Management Scott Siegmann ...... Transportation 2 Karen Morrissey Harley Neal...... Transportation Robert Smith III ...... Transportation and husband Laurie Gray are delighted Rodney Neal ...... Signal 20 Years Douglas Stephens ...... Real Estate with the clock Douglas Marks ...... Maintenance of Way Kellyan Taylor...... Real Estate tower naming. Robert Niessink...... Facilities Scott Th ompson ...... Telecommunications 3 Jim Kubitz unveils Kim Wilson...... Accounting 30 Years the plan to name Carol Fortier ...... Maintenance of Way the headquarters 5 Years clock tower in Troy Knutson ...... Maintenance of Way 35 Years Morrissey’s honor. Ronald Lewis...... Supply Management Daniel Forsman...... Transportation Aaron McRae ...... Maintenance of Way 4 Karen Morrissey looks through a gift book on Mileposts: Karen Morrissey marks 47-1/2 years as a railroader retirement (photo on page 7). Longest-serving woman retires

Real Estate Director Karen Morrissey all-male Operations Shop. As an organized, deter- retired from the Alaska Railroad, eff ective mined and innovative employee, Morrissey soon April 2. Having served 47-1/2 years, she managed key administrative functions before being is easily the longest-serving woman in the promoted into the ARRC’s executive ranks. As company’s history. head of Real Estate since 1996, Morrissey’s legacy is Shortly after Karen arrived in Alaska, a fundamentally sound department. she joined the railroad October 9, 1967, Railroad employees and several retirees, col- during a time when railroading was con- leagues from Denali Federal Credit Union (she is on sidered a man’s career. Her fi rst assignment DFCU’s Board), and a number of personal friends was as a Steno Clerk-Timekeeper for the gathered April 1 at ARRC Headquarters to pay tribute to Morrissey’s remarkable tenure and service. In turn, she recalled an interesting career and many memorable colleagues. “Th e Alaska Railroad has been a truly great place to work. I feel grateful to have worked with, and learned from, so many exceptional people at the railroad,” she said, naming former and current co- workers. Later, Morrissey fi nished her recollections with a note about former Land Services Manager Rob Hahn who died from cancer in 2013. “Rob always said he felt indebted to me for the knowl- edge I had, but he always brought great perspective to every issue we dealt with and he taught me so much,” she said. Th e April 1 celebration concluded as VP Cor- porate Planning & Real Estate Jim Kubitz unveiled (See “Morrissey Retires” on page 7) Sidings: Department’s wholesale personnel changes in 2014-2015 All Aboard Real Estate: staff change signifi cant ALL ABOARD Real Estate Director Karen Morrissey’s April 7 1st retirement is the latest in a string of key person- nel changes within the Alaska Railroad’s (ARRC) 1ST QTR 2015 Real Estate Department that began in 2014 and continued into the new year. In March 2015, ARRC promoted Real Estate Technicians include Kellyan Taylor long-time Leasing Manager Andy (hired March 2014), Muriel Lewis (transferred Donovan to Real Estate Director, March 2013), Bruce Shelt (hired September eff ective March 2015, giving Mor- 2013) and Christine Flanery (not pictured; she rissey and Donovan a month-long begins April 20, 2015). Th ey provide technical and transition. ARRC hired Donovan administrative support for facility use and billing, as Leasing Manager in 2002. Previously he worked permit and lease contracts and processing. Taylor for CIRI and the Alaska Permanent Fund. ARRC is reports to Donovan and Lewis, Shelt and Flanery currently seeking a new Leasing Manager. report to McDonald. In January 2015, ARRC hired In addition, Kelly Reinhardt Kristen McDonald as Real Estate returned in 2014 as a temporary, Contracts and Billing Manager, to part-time Real Estate Technician to oversee utilities permitting and other help the department catch-up and permitted uses of property outside train during staffi ng shortages and the railroad right-of-way (ROW). transitions. Previously, McDonald worked for the Alaska De- partment of Transportation. Russell Grandel joined ARRC as an Environmental Engineer, in In February 2014, ARRC hired October 2010. He assists Real Estate veteran professional land surveyor and Legal departments in assessing (PLS) Doug Stephens. As Manager and managing environmental issues of Land Services, he is responsible and actions related to railroad prop- for land surveys, title searches, land erty. He reports to Donovan. ownership issues, patent and survey approvals and maintaining the railroad’s land data. Th e Real Estate Department will Previously he was working on the Port MacKenzie benefi t from Morrissey’s experience Rail Extension. a little longer as she returns tem- porarily and part time as a special Department personnel who support leasing, permit- services employee in 2015 to help ting and land services functions include: test, implement and provide docu- Aaron Butterer was hired in mentation and training for a new land management December 2014 as a Land Services software application. Specialist. He assists Stephens with land management, including fi eld surveying, lease/permit drawings, platting and land database upkeep.

Karen Morrissey retires ... (continued from page 6)

plans to name the headquarters clock tower in Morrissey’s honor. “Th is is fi tting, given the nearly fi ve decades of time Karen has spent as a railroader,” noted Kubitz, “and for almost two decades, when she looked out her offi ce window, the clock tower was a prominent part of the view.” As one of 8 siblings growing up in Wisconsin, Morrissey was expected and required to be responsible and work hard. Th ose in- grained attributes have been highly apparent throughout Morrissey’s long career. Dozens of co-workers and friends concur that Morrissey deserves the title “Alaska Railroad’s Hardest Worker — ever!” Sidings: Mechanics and Carmen build a mobile shoving platform All Aboard Connaboose adds train crew safety 8 “Connaboose” sounds a bit like a wacky con- Anchorage Sand & Gravel (AS&G) 86-hopper traption found in a Dr. Seuss storybook. Yet the gravel trains that load at the AS&G facility along 1ST QTR 2015 railroad’s newest fabricated equipment is hardly an the Palmer Branch line. By spring 2014, deferred imaginative illustration — it’s real and it has a seri- maintenance resulted in the loop’s removal for train ous role to play in safety. operations. Th e Connaboose name comes in part from its Without the loop, ARRC gravel trains headed foundation (an intermodal container) and in part for AS&G must now pull into the Palmer wye, and from its function (a caboose). Here’s why we built then back up the wye’s north leg, and proceed along it: About a year ago, the Alaska Railroad had to the Palmer Branch with the end of the train in remove the Palmer loop track from service. Th e the lead. Th is is essentially considered a three-mile loop’s joint owners — Quality Asphalt (QAP) and shove and the new procedure requires a trainman to Granite Construction — stopped using and main- protect the activity while hanging from the side of a taining the track once their mines were depleted hopper car and communicating on a portable radio. and they moved on to gravel reserves in other areas. To address safety concerns, a team was formed QAP and Granite originally constructed the track with United Transportation Union (UTU) repre- for looping and loading their aggregate trains. Th e sentatives and staff from Railroad Safety, Transpor- Alaska Railroad also used the track to loop the (See “Connaboose” on next page)

Above: Pictured Carmen pose with the Connaboose they spent hours working on, L-R:, the Connaboose is ready to Edwin Kee, Gene go to work on gravel trains Hogate, Jeremiah headed to Palmer this spring Rider, Thomas Sikes and summer. and Nathan Lunn. Not pictured: Car- men Scott Byron and John Waldren who also worked on the project. Above Right: The two Journeyman Mechanics who worked on the Connaboose: Josh Cross, left, and Gary Smith. Connaboose ... AllALL AboardABOARD tation and Mechanical departments. Th e group discussed options in- cluding use of the 701 “Bud” car or an existing caboose, or acquiring 9 another caboose. But the idea with the most potential was building a mobile shoving platform equipped with a shelter. Once the team 1ST QTR 2015 agreed on key features and forwarded the wish list to Mechanical, seven Carmen and two Journeyman Mechanics executed the plans. With a fl atcar foundation, the shoving platform includes a shelter fashioned from an intermodal conex-style container to keep trainmen out of the rain and snow. Th e shelter is outfi tted with LED solar- powered back up lights, seats, hand holds, emergency air valves on each end with hand holds and sill steps to make getting on and off much safer. At a cost of about $30,000 for material and labor, the project got underway in late September 2014 and concluded early Febru- Inside the Connaboose. ary 2015. As safety-driven as the Connaboose may be, the men who designed and fabricated admit they had some fun working on it.

Sidings: Pension Plan and 401(k) Deferred Savings Plan updates Retirement records and fund news

Atéssa (ah-TAY-suh) Benefi ts, Inc. is taking of international securities (both equities and fi xed over recordkeeping duties for the ARRC Pension income) for all the Target Retirement funds. Plan. Th e Pension Plan Committee selected Atéssa International equity exposure will be expanded to replace Vanguard, which announced it would from 30% of total equity exposure to 40%, and no longer off er Defi ned Benefi t recordkeeping international fi xed income from 20% to 30%. services. We anticipate a smooth transition over Vanguard says its decision aims to enhance global Theresa MacLeod the next few months. Th is change only impacts the diversifi cation and decrease volatility. Th e change Corporate Pension Plan. Th e 401(k) and 457 Plans will not aff ect the overall mix of stocks and bonds remain with Vanguard. Stay tuned…we’ll keep you in each fund. Th e allocation changes are expected informed as we near the transition date. to be completed by the end of 2015. Th e ARRC 401(k) News — Vanguard recently announced 401(k) Plan currently has 12 Vanguard Target Date it will adjust the allocation model for its Target funds in the investment line-up (Vanguard Retire- Retirement Fund series. Target Retirement funds ment Index Funds from 2010 – 2060). are designed to gradually transition from a growth- Contact Retirement Specialist Pam Reil at oriented portfolio to more conservative holdings 265-2273 or Retirement Plans Manager Th eresa as the retirement target date approaches. Vanguard MacLeod at 265-2346 if you have questions or need will be signifi cantly increasing the overall weight assistance with retirement topics. Pamela Reil

Crossings: Railroad seeks other options for PTC funding Legislative Update: Bond Approval

More progress has been made towards fund- FTA formula funds to come up with $37 million of ing Positive Train Control (PTC). In addition to the needed funding. Since ARRC is a state owned the nearly $70 million spent by ARRC on the entity, legislative approval is required to issue new project since 1997, the State of Alaska added over debt. Representative Steve Th ompson of Fairbanks $34 million in funding over the past two years to introduced House Bill 140 (HB140), which would pay for the nearly $160 million project. With $55 allow ARRC to issue the additional debt. House Bill Tim Sullivan million left to go, and the state facing an incredible 140 passed out of the Alaska House of Representa- fi scal crisis, it became necessary to look for other tives unanimously on March 31 and had the fi rst options to fund the unfunded federal mandate. In of two hearings in Senate Committees on April 7. order to narrow the gap, ARRC is planning to take Barring anything unexpected, HB140 is expected advantage of lower interest rates to issue new debt to be heard in Senate Finance sometime the week of in conjunction with refi nancing old debt backed by April 12 and then on to the Senate fl oor. Sidings: Facilities tests, installs new lighting technology in shops All Aboard Learning lessons in lighting 10 Plasma, diodes, pressurized sodium, metal Each lighting technology has pros and cons, halide, fl uorescent, incandescent, lumens, kelvins… said Falgoust. For example, LED light tends to fade 1ST QTR 2015 terms like these pepper a discussion with Facilities beyond 20 feet and does poorly in heat. LEP is still Director Paul Farnsworth, Facilities Maintenance so new that quality control can be an issue. On the Supervisor Chris Corbeil and Facilities Maintenance other hand, LED and LEP off er dimming capabil- Electrician Doug Falgoust during a recent visit to ity and are much more effi cient. Facilities typically the Anchorage Yard shops. Th e men outlined eff orts evaluates new lighting at least a year before deciding to test and install new lighting technology; and to keep, replace or expand its use. explained the factors for judging how well a new Each year, Facilities spends several thousand dol- lighting technology is working: lars to install and evaluate lighting options. “More 1. Brightness and reach often than not, we off set the initial cost with lower 2. Power use operating expenses and better working conditions,” 3. Color said Farnsworth. 4. Lifecycle costs for bulbs and fi xtures In the Anchorage Car Shop, lighting was up- T-12, T-8 and T-5 graded from high pressure sodium (HPS) and metal fl uorescent tubes. halide bulbs to fl uorescent tubes that last longer, each generation is emit better light, and save about 60% in expense. smaller and more In the Headquarters Building (GOB) T-8 fl uores- effi cient. cent lighting replaced T-12 fi xtures several years ago, yielding a 30% power savings. For decades, large high/low pressure sodium (HPS / LPS) or metal halide bulbs in hooded fi xtures hung from the ceilings in Anchorage Heavy Equipment and Diesel shops. Late last year, Facili- Below: By the end ties began replacing sodium and halide lighting with of 2014 Facilities light-emitting diode (LED) panels that produce had replaced about whiter and brighter light, used less power, and burn half of the Heavy out less frequently. Th e result: Same amount of light Equipment Shop’s at half the cost. halide and In February, Facilities began testing light-emit- sodium fi xtures ting plasma (LEP) in a few shop areas. Housed in with brighter, boxy enclosed fi xtures, a single tiny LEP bulb casts LEP is being tested in shops that currently whiter, more effi - double the brightness and reach of older lighting have older sodium and halide lighting. cient LED panels. technology.

LED panels replaced Sodium and halide fi xtures in the Heavy Equipment shop. L-R: Halide, LEP and Sodium bulbs. ts xture.

Electrician Doug Falgoust explains into this square fi this square into how LED panels are hung in the shop. tiny LEP bulb fi The Sidings: Facilities fi nds more savings in railroad car shops All Aboard Car Shop Capers: Saving more energy ALL ABOARD Th e Facilities Department, working with user In late 2013, Facilities installed a system that 11 groups, continues to help save energy in railroad car continually measures the shop’s total electrical draw. shops, where high electrical and heating bills have A strobe light notifi ed workers when power use 1ST QTR 2015 been the norm. gets too close to a set level. Th anks to the system 2014 was the fi rst full year that a new power and Mechanical employees, billed peak demand monitoring and notifi cation system was in place in dropped by half, from a high of 685 kw at the end the Anchorage Car Shop. As reported earlier, com- of 2012, to a low of 347 kw in 2014. mercial customers typically pay a “demand charge” A by-product of the focus on peak demand is to guarantee a “peak” level based on the previous an overall awareness among employees who now year’s maximum draw. In 2012, the shop’s total routinely turn equipment and lights off when not in 2012 electrical expense was $242,000 and of that, use. As a result, overall electricity use dropped dra- $98,000 (40%) was the demand charge. matically as well, from 1.85 million kilowatt-hours (kwh) in 2013 to 983,000 kwh in 2014. Anchorage Car Shop Electricity Expense Th e numbers tell the story. Th e Anchorage Car 250 shop’s annual electrical bill dropped from $242,000 $242K $239K 240 in 2011 to $154,000 in 2014 — a 36% reduction. 230 In Fairbanks, new eff orts are yielding some 220 promising preliminary results. Th is winter de-strati- 210 $ 204K fying fans were installed in the Fairbanks Car Shop. 200 190 Th e fans mix warm and cold air that would other- wise settle into layers, creating hot and cold spots. 180 The Anchorage 160 $154K Since November, feedback from workers confi rm Car Shop uses a lot 150 that the workplace environment has improved with of power. Recent 140 more comfortable and consistent air temperature. 130 eff orts to monitor Relatively less heat has been needed as well. Facili- 120 electrical use has ties estimates an energy savings of $7,000 (even 110 helped to reduce

Annual Electricity Cost (in thousands of dollars dollars (in thousands of Cost Annual Electricity 100 accounting for the milder winter) for the fi rst two 2011 2012 2013* 2014** overall demand. months the fans have been in place. Th e railroad * 2013 includes 3 months of power demand monitoring should be able to recoup the $30,000 investment in (Photos by Judy ** 2014 is the fi rst full year of power demand monitoring fans within a year of normal heating loads. Patrick) Sidings: Railroad welcomes James Ratchford All Aboard Alaska Railroad hires new CIO 12 James Ratchford joined the Alaska Railroad The Alaska Railroad’s Technolo- (ARRC) as Chief Information Offi cer (CIO) on 1ST QTR 2015 January 22, 2015, and in this role, he heads the gy group includes some talented Technology Department. He is responsible for all and hard-working people, and aspects of ARRC’s information technology (IT) applications and systems, to include data center, I look forward to working with network, telecommunications and radio. them to meet the railroad’s tech- “114 people applied for the CIO job and there were many high-caliber candidates in the bunch,” nology and telecommunications said ARRC President / CEO Bill O’Leary. “Jim was challenges and opportunities. a clear fi nalist and during the interviews, he stood out as an experienced and thoughtful manager. Jim Ratchford, CIO We’re lucky to have him on our team.” ties. “I thoroughly enjoyed mentoring today’s and tomorrow’s leaders at UW, and I hope to repeat that here in Alaska,” he said. His own education includes earning a master’s degree in Management Information Systems, and becoming certifi ed as an information systems ana- lyst, both from Bowie State University, in Bowie, Maryland. He earned a bachelor’s degree in busi- ness management from the University of Maryland in College Park. Ratchford is the youngest of four siblings. All three brothers served a tour in the military (one Air Force and two Navy). Jim followed suit, and then some. Having attained the rank of Chief Master Sergeant, Ratchford retired from the United States Air Force (USAF) in 2001 at the culmination of a Jim Ratchford, Before moving to Alaska, Ratchford held a 28-year military career. While in the Air Force, he left engages at number of executive IT posts in Washington state. accepted such challenging assignments as Data Op- the mid-February He was Senior VP of Technology for MUSIC erations Center Director, Security Systems Program Safety Summit. Group Services, a global music product holding Manager, and IT Operations Director. He held his (Photo by company; CIO for Seattle Public Schools; Technical fi nal position as General Manager of IT Operations Stephenie Wheeler) Services Director for Walt Disney Internet Group; Europe for nearly fi ve years. and IT Infrastructure Director for Boeing Employ- “Whether in the public or private sector, ees Credit Union. leading is about respect and investing in people,” While in Seattle (2002-2014), Ratchford also Ratchford said about his approach to management. contributed many volunteer hours to develop “Th e Alaska Railroad’s Technology group includes the local technology trade as president and board some talented and hard-working people, and I look trustee for the Society for Information Management forward to working with them to meet the railroad’s (SIM), Seattle Chapter, an association of CIOs, technology and telecommunications challenges and senior IT executives and other IT leaders. In opportunities.” addition, he served fi ve years as an advisory board As a world traveler (Germany, other western Eu- member for the University of Washington (UW) rope countries, Hong Kong, Philippines, Singapore, SIM / Informatics Program. China, Turkey, Arizona, California, Maryland, Texas At home in the CIO realm, Ratchford has con- and Washington) Ratchford admits a penchant for tacted several CIOs in local and state government, adventure and good food. He was drawn to the rail- and private business, to discuss common challenges road in part for location. “Alaska has such diversity in Alaska. For example, he has had conversations and culture, and the people here are some of the with the State of Alaska’s CIO about where the rail- most welcoming I’ve come across,” he said. ”I look road and state can help each other in light of dwin- forward to exploring with my family.” Ratchford dling budgets. And, he’s connected personally with resides in Anchorage with his wife Birgitt and son the University of Alaska CIO to discuss student Erik. internships, and speaking and teaching opportuni- Mileposts: 2014 Financial Statements available on website All Aboard ARRC releases, posts annual report ALL ABOARD Th e Alaska Railroad “Th e eff orts of employees and 13 posted it’s annual report management to support the mis- by the April 1 statu- sion in our strategic plan: improv- 1ST QTR 2015 tory deadline. Audited ing safety and enhancing customer fi nancial statements show service while growing revenue $14.1 million net income and fi nding cost savings can’t be on total revenues of $167.3 overstated,” said Alaska Railroad million (including operat- Board of Directors Chair Linda ing and real estate revenue Leary. “Ending the year $5.5 of $125.1 million; and million ahead of projections af- grant revenue of $42.2 mil- ter losses in our biggest revenue lion). Th e 2014 net income lines simply shows how much is about $200,000 less than hard work everyone was willing 2013, a remarkable outcome to put forward.” given the year’s dramatic In line with the Alaska declines in revenue from two Railroad’s eff orts to continually major freight business lines. reduce costs and impact on Continuing decreases in the environmental, the an- export coal- and petroleum- nual report will be published hauling business lines became electronically. Th e report is available on the Alaska clear in the spring, but due to cost containment ef- Railroad website at www.AlaskaRailroad.com (click forts implemented in 2012, 2013 and 2014, as well CORPORATION > ABOUT ARRC > Reports & as growth in other business lines, ARRC has been Policies). able to weather the economic downturns.

Crossings: Controller warns of Fraudster sophistication Beware imposters, fakes and tricks

By Controller Wendy Richerson I had exceeded my password reset attempts and I should click on the link to reset my password. What is imposter fraud? I know it was a Fraudster, because I did not Imposter fraud is a fraudster that poses as a per- initiate a request to reset my password. son or entity you know and trust. Fraudsters may Wendy Richerson contact you by phone, email, fax or mail. What does it mean to Alaska Railroad? Alaska Railroad Finance/Accounting has ad- What does it mean to you? opted all of the Best Practice recommendations to Fraudsters try to trick you so they can obtain ensure the Railroad does not fall victim to Imposter your credit card user ID and password, or your Fraud or Vendor Fraud. Th ese best practices are de- bank account user ID and password or fool you into signed to stop fraudulent checks from being cashed giving out your credit card information or other or to prevent paying fake invoices or fake vendors. vital information like your social security number. To help us to continue to safeguard Railroad Fraudsters may use the information to steal your assets: money or steal your identity. • All bank related questions should be redi- Fraudsters are getting more and more sophisti- rected to Wendy Richerson at 265-2513 or cated. Th e best advice: If you receive unsolicited e- [email protected]. mails or phone calls (you didn’t initiate) from what • All vendor/accounts payable related questions looks like your bank, or credit card provider DO should be redirected to Michelle Maddox at NOT respond! Do not become a victim. Delete the 265-2664 or [email protected]. e-mail or hang up. Example: Last week I received an e-mail from a • All customer/accounts receivable questions Fraudster imposing as Bank of America. Th e e-mail should be redirected to Emily Hoff man at looked legitimate as it contained what looked like 265-2650 or Hoff [email protected]. the Bank of America logo. Th e e-mail indicated Wye of it: Customers and Communities benefi t from our teamwork All Aboard Alaska Railroaders to the rescue! 14 During the fi rst quarter, the Alaska Railroad an emergency at the Curry Reserve, where about 20 repeatedly shined as a team when faced with dif- people associated with Scouting Troop #210 were 1ST QTR 2015 fi cult situations. Th e three stories below illustrate permitted to camp overnight. Th e troop leader had how well and successfully we work together, across contacted his wife by satellite phone to report that departments, to come to the rescue of customers, a 13-year-old scout had broken his leg while hiking community residents... and even ourselves! the night before, and they were hoping to catch a train to transport the boy to a medical facility. Ski Train Mishap Special Agent Johnny Evans was in the depot Editor’s Note: Th e following is an account that came and took the call. He quickly coordinated with in a letter from March 14 Nordic Ski Train customers Train Dispatcher Will Hughes, who advised there Lucy and Brian: were no southbound trains through the area that It was a beautiful day in Curry, as we moseyed day, however, an MOW crew was working about off of the train, taking a leisurely pace. We fi gured 30 minutes from the Curry site. Evans connected with the snowpack we’d skip out on the skiing and with MOW crew lead Kris Kinney and requested just enjoy ourselves with a little sledding. It was a the MOW hi-rail vehicle to transport the injured relaxed time. boy. Kinney and Track Laborer Samuel Shaff ner But then disaster struck. On our last run of the arrived on site and transported the troop leader and day, Brian managed to smack his nose against the the scout to Talkeetna, where the boy’s parents were plastic edge of the sled. Blood gushed. Railroad waiting to take their son to the hospital. employees swooped in. First we were found by “Th is was another fi ne example of the ARRC Conductor George [Huling] and his stalwart co- coming together as a team to respond to a critical Conductor. [Editor’s Note: the train crew included incident and help out the parties involved,” said Student Conductor Amelia Carpenter and Engi- Chief Special Agent John Bennett. “Outstanding!!” neers Davy Registe and Kevin Bergrud. Conductor Aurora Out of Commission Harry Ross and Road Foreman of Engines Matt Shaw were also onboard and Special Agent Jason Editor’s Note: On Sunday, March 15, the Aurora Nielsen also assisted]. Th en EMT Nick P. arrived Winter Train was unable to operate as usual between and worked to staunch the blood. Ew. Fairbanks and Anchorage due to brakes not working A decision was made to run us to Talkeetna in on one of the passenger coaches. Without the coach, the hi-rail. [MOW Section Foreman Doug Marks] the train didn’t have enough seats for all passengers. valiantly drove us there, but to no avail. Th ey had a Railroaders quickly came up with a plan B, and here’s “real” emergency and the staff couldn’t help us. So what one customer had to say about our response: Paul kindly drove us back to the depot in Talkeetna Regarding the March 15 Aurora Winter Train, and talked the train into stopping for us, so we we wanted to let you know that as a family that had could make it back to Anchorage. been hoping for a train ride that day, while disap- Since I wasn’t the one with the broken nose, pointed, we were pleased with the response and ef- I had always wanted to ride in a hi-rail, this was fort that the staff put forth that morning. I’ve lived quite the adventure for me. Brian claims he wasn’t here all my life, and I know that in Alaska, in mid- in pain, and now has a guaranteed memorable cos- winter, “stuff happens”, and you have to roll with tume for next year’s train “Broken Nose Guy”. it sometimes. I was impressed with the eff orts of All told it was a fun and fascinating trip. Many, your employees, and their ability to put together an many thanks to all of the railroad employees who alternate way to get to Anchorage on short notice. helped us out, bagged the bloody sled, and got us Th ey assembled the coaches, and a large amount home again. of food and drink for the passengers in a short period of time, and the coach ride to Anchorage, Scout’s Broken Leg though not a train ride, was enjoyable. Your staff Editor’s Note: Police & Security Chief Agent John maintained a pleasant attitude working with every- Bennett shared the following account of the railroad’s one in the terminal, even when a few passengers got response to a call for help. a little anxious. I was impressed with the profession- Without hesitation, when Police & Security, alism that they all showed. MOW and Train Dispatch came to a Boy Scout’s ... We will continue to support the Alaska rescue on Saturday, April 4. Th e medical assist be- Railroad in the future for the well-run organization gan about 9:45 a.m. when the wife of a Boy Scout that it is. Troop leader called the Anchorage Depot to report Wye of it: Community Open House slated for May 9 All Aboard ARRC prep for Fairbanks Open House ALL ABOARD Th e Alaska Railroad’s 2015 “Railroad Days” Fairbanks open house events in alternating years, 15 community open house is scheduled for 10:00 a.m. with the Anchorage open house held during even- to 2:00 p.m. on Saturday, May 9. Railroad Days numbered years and the Fairbanks open house held 1ST QTR 2015 events provide Alaskans with a unique opportunity during odd-numbered years. to interact with railroaders and to learn about the Th e pre-season open house is typically preceded Below: Kellyan Tay- state’s railroad. Th e open house features popular by annual clean-up eff orts as the railroad gears up lor, left, and Greg FREE train rides, along with static displays of for the busy summer months. Th is year is no diff er- Goemer take part in railroad locomotives, railcars and other equipment ent. We are tentatively organizing clean-up events the 2014 Clean-up in that aff ord an up-close, hands-on experience. Th e in Anchorage, Whittier, Wasilla and Seward April Anchorage . 9th Army Band ensemble will add to the festive 28-29 and May 7 in Fairbanks. Stay tuned for more (Photos by Bruce atmosphere, playing popular and upbeat music. details on how / when to volunteer. Gough) Several activities re geared toward children, such as railroad balloons, tattoos and Operation Lifesaver giveaways, all staff ed by railroad volunteers. ARRC is again providing a fund-raising activity to benefi t a local Fairbanks area Scouting troop that will sell aff ord- able hot dogs, snacks and beverages. Our Fairbanks Depot gift shop and rail ticket counter will also be open, and we will be off er- ing Open House specials featuring amazing deals on summer rail travel. Let your friends and neigh- bors know! Th e Alaska Railroad organizes Anchorage and

Crossings: Police Chief reminds railroaders to keep an eye out If you see something, say something

By Police & Security Chief Agent John Bennett providing protection. If so, please report the location of this activity to ARRC Projects or Police During the spring and summer months, warmer departments. It is not uncommon to fi nd out that weather means we will begin to see more activ- some people are doing work within our ROW with- ity either on the tracks or within the right-of-way out the proper authorization or permits, so please… John Bennett (ROW). It is incumbent upon all of us as Alaska IF YOU SEE SOMETHING, Railroad employees to keep an eye out. If you see something that looks suspicious or “just does not SAY SOMETHING! look right” please gather as much information as possible (description of person/vehicle, license plate, ARRC Phone Numbers: milepost, direction of travel etc.) and report it to • Police related/suspicious activity, call the ARRC Police & Security Department. If at all Track Watch 265-2463 possible, take a photograph. • Projects Offi ce, call 265-2347 Th ere may be other occasions when you see • Real Estate Offi ce, call 265-2465 people and machinery working in the ROW, or too close to the tracks without an ARRC employee • Train Dispatcher, 265-2315 or 2316. PRSRT STD U.S. POSTAGE PAID AALLLL AABOARDBOARD ANCHORAGE, AK PERMIT NO. 845 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES

Alaska Railroad Corporation P.O. Box 107500 Anchorage, AK 99510-7500 Printed on recycled Member & www.AlaskaRailroad.com paper Suppporter

FIRST QUARTER 2015 Great Shot! Photos on the Rail Employee Photo submissions eligible for $200 drawing. Seeking more photos for 2015!

All Aboard is always looking for photos of employees and railroad operations to share in the newsletter. At year end we draw from the names of folks who submitted a photo. One lucky submitter receives $200 in gift certifi cates. To participate, submit photos to Stephenie Wheeler by email or company mail. Digital cameras should be set to “fi ne” or “high resolution” to ensure photos are suitable for print. Questions? Contact Wheeler at 265-2671 or [email protected].

Bruce Gough captured railroaders Blake Adolfae (left) and Tim Sullivan enjoying the Anchorage Open House with their young children, May 3, 2014.