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Capital Investment Plan for Amtrak Equipment

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Capital Investment Plan for Amtrak Equipment CAPITAL INVESTMENT PROGRAM FOR AMTRAK EQUIPMENT DEPLOYED IN STATE SUPPORTED SERVICES FY2014 – FY2018 October 14, 2014 PRIIA Section 209 Equipment Capital Work Group of the Next Generation Equipment Committee Capital Investment Program FY2014 – FY2018 Acknowledgements The development of this first Capital Investment Program (CIP) for Amtrak Equipment Deployed in State Supported Services was a collaborative effort of Amtrak, its state funding partners, and the Federal Railroad Administration (FRA) through the Next Generation Equipment Committee’s (NGEC’s) Passenger Rail Investment and Improvement Act of 2008 (PRIIA) Section 209 Equipment Capital Work Group. Special thanks go to the members of the Work Group who worked to see the CIP through to completion. The members of the Work Group are: Ron Pate, WSDOT, Chair David Kutrosky, CCJPA Allan Paul, NCDOT Kerri Woehler, WSDOT Richard Jankovich, Jeff Mann, consultant to CTDOT NCDOT Jeremy Jewkes, WSDOT James Fox, CTDOT Michael Jenkins, ODOT Brent Thompson, WSDOT Jon Foster, CTDOT Andy House, AASHTO Mike Rowswell, WSDOT Marci Petterson, CTDOT LeAnna Wall, WiSDOT Mario Bergeron, Amtrak Eric Curtit, MDOT Arun Rao, WiSDOT Tom Butler, Amtrak Ray Hessinger, NYSDOT Holly Gierisch, FRA Max Johnson, Amtrak John Bell, NYSDOT Nico Lindenau, consultant Dan Ruppert, Amtrak to FRA Patricia Quinn, NNEPRA Darrell Smith, Amtrak Ashok Sundararajan, Brian Beeler II, NNEPRA consultant to FRA Nikki Rudnick, Amtrak 1 Table of Contents Acknowledgements ........................................ 1 Passenger Cars ............................................. 53 1. Introduction ............................................... 3 Amfleet .................................................... 54 Purpose .......................................................... 3 Cab Control Cars ...................................... 62 Roles and Responsibilities .............................. 4 Horizon Fleet ............................................ 65 Amtrak........................................................ 4 Superliner ................................................ 68 State Partners ............................................ 5 Surfliner ................................................... 72 Federal Railroad Administration ................ 6 Talgo ........................................................ 76 CIP Plan Period ............................................... 7 Diesel Locomotives ...................................... 78 CIP Updates .................................................... 7 Acquisitions .................................................. 82 Minor update ............................................. 7 4. Implementation and Reconciliation ........ 83 Major update ............................................. 7 Reconciliation Process ................................. 83 2. Amtrak Equipment in State Service Draft Reconciliations ................................ 83 Deployment Plan ................................................ 9 Final Reconciliation .................................. 84 Example Units Used Calculation .............. 10 Detailed Records ...................................... 84 FY2014 Forecast Amtrak Units Used Expected Differences between Draft and (average per day) ..................................... 13 Final Reconciliations ................................ 84 FY2015 Forecast Amtrak Units Used Spending Plans and Variance Reporting (average per day) ..................................... 21 Threshold ................................................. 85 FY2016 Forecast Amtrak Units Used User Groups ............................................. 86 (average per day) ..................................... 29 State of Good Repair Credits ....................... 87 FY2017 Forecast Amtrak Units Used (average per day) ..................................... 37 Credits for Past State Investments .............. 89 FY2018 Forecast Amtrak Units Used 5. Next Steps ................................................ 91 (average per day) ..................................... 45 3. Capital Investment Program per Amtrak Fleet Type ......................................................... 53 Capital Investment Program FY2014 – FY2018 1. Introduction Purpose This document comprises the first edition of a “defined five-year investment program in cooperation with each state that describes the capital investments to be made over the period and the payments expected from the states throughout the period to support the five-year capital program” as set forth on page 9 of the PRIIA Section 209 Cost Methodology Policy, November 20, 2012 Corrected Version, as adopted by the Surface Transportation Board in a decision effective April 14, 2012 (“Agreed 209 Methodology”).This document describes the roles and responsibilities of the involved parties required to implement the methodology, as well as the processes and procedures developed by the parties to consistently meet the requirements of the Agreed PRIIA 209 Methodology. In the event of any conflict, contradiction, or inconsistency, the provisions of the Agreed PRIIA 209 Methodology shall prevail. A Next Steps section has been included at the end of the CIP. Progress has been made on several elements of the Agreed 209 Methodology. More work is necessary to meet the key objectives outlined in said methodology. Releasing the document in its current form provides a basis for including Capital Equipment Use Charges into state contracts for the immediate operating years. This document was developed by Amtrak in coordination with the Section 209 Equipment Capital Work Group of the Next Generation Equipment Committee (NGEC). This effort is separate from efforts of the Performance Standards Work Group and Operating Cost Work Group. In establishing the Equipment Capital Work Group, the NGEC charged it: …to build a straightforward work plan that will then be used to develop a defined 5- year capital investment program acceptable to Amtrak and the states. The program must be sufficiently comprehensive, detailed and justified by objectively verifying costs to allow states to: . understand and agree to the capital equipment work to be performed; . identify all work elements and associated costs included within the approved work; . identify the state of repair of equipment before and after it is overhauled; . identify quality control procedures, associated costs and warranty processes for rework, if needed; 3 Capital Investment Program FY2014 – FY2018 . assure budgeted work is performed and establish a reconciliation process for budgeted work not performed but funded; . understand cost allocation and develop reconciliation processes for the capital plan and capital charges for equipment shared among states or states and national/long distance or Northeast Corridor fleets; . identify and track costs of each element pursuant to standard accounting principles. As stewards of public funds, states must manage expectations of their stakeholders and justify the level of expenditures for state-sponsored service. Capital equipment costs are no different in this regard. States need a sufficient level of detail to justify the expenditure of public funds. Scrutiny from the public, elected officials, and other agencies is part of normal business practice for state passenger rail programs. Increased financial burden from the implementation of PRIIA Section 209 serves to amplify this scrutiny. Surety in costs and expenditures will better enable the states to sign contracts for capital equipment expenditures. With the constraint of budgetary allotments, states have concerns for volatility in costs, as well as variances between plans and expenditures. While details of process vary by state, these basic requirements of government are consistent between all states. Amtrak’s interest is in providing a passenger fleet that is in a state of good repair, maximizes passenger satisfaction and minimizes day-to-day maintenance and repairs. States and the federal government, as Amtrak’s funding partners, share in this interest as a well-capitalized fleet lowers operating fund requirements. Amtrak is committed to performing quality work as funding provides and to meet or exceed any future performance standards agreed to with the states. Therefore, this Capital Investment Program (CIP) provides a plan towards this mutual interest for the portion of Amtrak’s fleet that is deployed on state supported corridors. Amtrak, the states, and the federal government have a shared interest in maintaining a well-capitalized fleet that will deliver safe, high quality, reliable, competitive, and cost- effective passenger rail service for the traveling public. Roles and Responsibilities Amtrak Amtrak will update its equipment capital investment program to reflect the state partners’ forecast requirements for Amtrak-owned equipment for the upcoming five-year term. In doing so, Amtrak will adjust its plans to the extent possible to account for increases and decreases in state demand for Amtrak-owned equipment, and will endeavor to optimize the amount and types of equipment maintained relative to demand for that equipment. 4 Capital Investment Program FY2014 – FY2018 Amtrak will ensure that the scope, schedule, and budget for equipment overhauls is managed and completed, that the work performed meets regulatory requirements and is performed in a workmanlike manner, and will document any variances and make any necessary year-end reconciliations as described in this CIP. State Partners In accordance with PRIIA, state
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