2018- 2022 STRATEGIC PLAN ON TRACK TO EXCELLENCE UP-N

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T ILLINOIS / WISCONSIN STATE LINE Kenosha Winthrop Harbor McHENRY Antioch NCS LAKE Zion MD-N Lake Villa UP-NW Fox Lake Harvard Ingleside Round Lake Beach

Long Lake Washington St. Waukegan McHenry Round Lake (Grayslake) Grayslake Prairie Crossing North Chicago Prairie Crossing N Great Lakes Woodstock Libertyville Lake Bluff LAKE Mundelein MICHIGAN Lake Forest

Crystal Lake Cary Lake Pingree Rd. Vernon Hills Forest Fort Sheridan Prairie View Highwood Fox River Grove Buffalo Grove Highland Park Deerfield Ravinia Barrington Braeside Lake Cook Wheeling Rd. Glencoe Northbrook Hubbard Woods KANE COOK Palatine Prospect Winnetka Heights N. Glenview Indian Hill Arlington Park Kenilworth MD-W Arlington Heights Glenview Wilmette Big Timber Central St. (Evanston) Mt. Prospect Golf Elgin Cumberland Des Plaines Davis St. (Evanston) O'H Dee Road Morton Grove Main St. (Evanston) National St. are Trans Park

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Highlands s estmont view A Wrightwood 75th Wind W Ashburn 79th 79th St. est Hinsdale Brainerd Fai r 83rd 83rd St. BNSF W Willow Springs Oak 91st St. Gresham 87th 87th St. Lawn 95th St. 91st St. 93rd St. 95th St. Chicago Ridge 99th St. 95th St. 103rd St. 103rd St. 107th St. 107th St. Worth 111th St. Washington Hghts. 111th St. (Pullman) METRA FACTS WILL 115th St. Palos Heights 119th St. 115th St. (Kensington)

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Robbins lue To S. • (Orland Park) B Bend 241 stations Midlothian 144th St. (Riverdale) • 153rd St. 147th St. (Ivanhoe) (Orland Park) Oak Forest (Sibley Blvd.) 1,200 miles of track Lockport Harvey Tinley Park • Hazel Crest 179th St. Calumet 488 route miles New Lenox (Orland Park) Tinley Park/ • HC 80th Ave. Homewood 691 weekday trains Hickory Creek Flossmoor • Joliet Mokena-Front St. 80 million average annual passenger trips RI Olympia Fields • 211th St. (Lincoln Hwy.) Laraway Road Matteson 300,000 average weekday ridership (New Lenox) • Richton Park 95%+ on-time performance rating ME University Park

• ILLINOIS / INDIANA STATE LINE Manhattan SWS TABLE OF CONTENTS

Metra Overview i Table of Contents 1 Difficult Choices 2 Current Operation 3 Mission 4 Vision 4 Timeline 5 Strategic Goals 5 Prioritize Safety and Security Awareness 6 Invest In Our Workforce 7 Deliver Quality Customer Service 8 Optimize Our Capital Assets 10 Ensure Financial Stability 12 Conclusion 14 Historical Perspective 15

1 DIFFICULT CHOICES

Metra has an unsustainable economic if adequate operating and capital funding Because capital funding has been inadequate, model and faces the worst financial crisis were provided, fares would cover only Metra now has the oldest commuter fleet in its 33-year history. In addition to a one-fifth of Metra’s yearly costs. in the nation. Approximately 40 percent of chronic lack of adequate funding for Metra’s assets are classified as in marginal capital assets, such as rolling stock and Over the last several years, public funding or worn condition. Half of the 800 bridges in infrastructure, Metra is now faced with has not kept up with needs. Metra has been Metra’s system are 100 years old or older. These decreased funding for operations. and is now receiving about a quarter of the assets, while safe, have exceeded their useful capital funding needed annually to achieve lives. Metra will always run a safe railroad, but Why is Metra’s current situation so critical and maintain a state of good repair on its continued use will result in higher operating for the people of northeast Illinois? Metra, existing system — never mind expanding or costs and degraded on-time performance. together with the Chicago Transit Authority enhancing its system to address regional and Pace Suburban Bus, are the threads that changes and growth. As a result, Metra has Public funding for operating costs, provided hold the economic fabric of northeast Illinois fallen behind on its maintenance investments through a regional transportation sales together. The region is highly dependent on and will continue to fall even further behind. tax and a partial state match, is falling public transportation. short. Sales tax collections have fluctuated Railroads are very capital-intensive, requiring with economic conditions and have not met Metra’s importance to the Chicago region substantial annual investment to maintain projections, even after the tax was increased cannot be understated. Metra provides rolling stock and infrastructure. Railroads own in 2008. In recent years the shift from about 300,000 passenger trips in northeast and maintain their own rights-of-way and purchasing at brick-and-mortar stores to Illinois each weekday — safely, reliably and track structure, unlike bus operations, which internet purchases has also hurt tax collections. comfortably. Metra saves its riders time and use streets that are owned and maintained The public transportation fund, a match to sales money, enhances the environmental health by the public. Metra’s capital assets are tax which came from general appropriations of the region and fuels its economic engine. diverse and extensive: locomotives, passenger from the state budget, has been cut 10 percent Metra benefits even those who do not ride cars, track signal and communications in the most recent state budget. Collections its trains. If Metra did not exist, 27 more equipment, yard and maintenance facilities, from the RTA sales tax have had a 2 percent expressway lanes would be needed during rush station buildings, platforms, parking lots and surcharge imposed by the state. The ADA hours to accommodate the extra vehicles and headquarters. Each day, the delivery of safe, program is increasing in cost, causing less arterial roads would be clogged with traffic reliable, efficient train service depends on and less money from sales taxes to be made trying to reach those expressway lanes. these assets; though many are never seen by available to Metra, CTA and Pace. riders. Constant maintenance, rehabilitation Contrary to public perception that fares and replacement, and significant funding, Public funding for capital is also falling cover most of our costs, the facts are just are required to keep Metra’s facilities and short. In past decades, the state recognized the opposite. Metra’s mandate, under the equipment in working order. the need to fund capital improvements for RTA Act, requires it charge fares that cover public transportation and did so regularly. In approximately half of its operating costs. Metra Metra must make significant investment in its recent years, the lack of a state bond program is dependent on government funding, primarily people in addition to its capital assets. Long- for capital investment has had impacts on a sales tax levied in the six-county region, for tenured, well-trained employees assure the funding for public transportation. the remainder of its operating costs and on safe transport of Metra’s most precious asset: federal and state funding for virtually all of its its riders. Metra must invest in people and Metra understands it cannot continue to ask capital needs. Combining the annual capital compensate them on a level that will attract its customers to pay higher fares in the and operating budgets, fares presently cover and retain them. Metra competes for talent absence of adequate public funding. about one-third of Metra’s yearly costs. In fact, among railroads, not government agencies.

2 CURRENT OPERATION

The current situation Metra is the commuter rail system is unsustainable, and in Chicago with an established reputation for providing safe, threatens the future reliable service to about 300,000 passengers every weekday. It is viability of the important a complex, multi-layered system with a rich pedigree dating back service Metra provides. to the city’s first railroads more Funding levels will need to change to than 160 years ago. ensure Metra can continue to provide the service its riders depend upon, or else that Metra’s system is comprised of service will have to be cut. 11 lines that radiate from downtown Chicago to the six-county metropolitan After reading this strategic plan, we hope area. The system has 487 route miles that you clearly understand our overriding and nearly 1,200 miles of track. There message: we cannot continue as we are 241 stations, including 77 in the city are. We either need to fund our public of Chicago, of which six are in downtown transportation properly or be willing to Chicago. watch it continue to degrade, including reductions in service. Metra directly owns and operates four Metra maintains one of the best lines: the Milwaukee District West, the on-time performance rates of With the proper amount of sustained public Milwaukee District North, the Metra commuter rail agencies in the investment, we can create a system with Electric and the Rock Island. Metra country, consistently operating 95 a long and bright future. It is clearly in the pays two freight railroads, pursuant to percent or more of its trains on time interest of the citizens of northeast Illinois purchase-of-service agreements, to with the lowest average fare and lowest for Metra to do so. operate commuter service over their average operating costs among its peer lines: Union Pacific, which operates the legacy commuter rail operators. UP North, Northwest and West; and BNSF Railway, which operates the BNSF Metra operates within the nation’s largest Line. Metra also has trackage rights rail hub, the only place in the country Donald A. Orseno CEO/Executive Director and lease agreements with two other where six of the nation’s seven major freight railroads to operate the Heritage Class I railroads have large terminals. More Corridor, North Central Service and than 1,300 commuter, freight and Amtrak SouthWest Service. trains operate over Chicago-area tracks James M. Derwinski each weekday, which requires tremendous Incoming CEO/Executive Director No other commuter railroad in the U.S. cooperation from all operators to or Canada has such a complex interface successfully run the daily mixture of with freight railroads. Despite that services. Metra operations account Norman Carlson complexity and the age of its rolling for 747 of those trains. Chairman of the Board stock and infrastructure,

3 MISSION VISION

The first step in developing a long-range We’ve taken this simple statement Metra’s vision is to be a world-class strategic plan is to understand what Metra of purpose and used it to guide the commuter rail agency linking communities is and where we want to see our agency development of a vision statement throughout the region by: go. By defining our mission, our vision and and strategic goals for the agency. our goals for the future, we are creating a Metra’s work plan will be driven by • Providing the safest, most efficient practical template to guide the future of the ideas presented in this strategic and reliable service to our customers. commuter rail in northeast Illinois. plan and outline how we intend to • Sustaining our infrastructure for keep our region’s commuter rail future generations. Through a process that solicited input service on track to excellence. from both internal and external sources, • Leading the industry in achieving including two rounds of public meetings, continuous improvement, innovation Metra developed and adopted the following and transparency. mission statement: • Facilitating economic vitality throughout northeast Illinois. As part of a regional transportation network, Metra provides safe, reliable, efficient commuter rail service that enhances the economic and environmental health of northeast Illinois.

4 TIMELINE STRATEGIC GOALS

The scope of this plan covers the next five • Year 1 (2018) will focus on initiating Knowing who we are and where we want years: 2018-2022. Based on the resources many of these efforts. to go are essential to understanding how we anticipate being available, there are a we will move Metra forward into the future. number of initiatives we plan to embark • Years 2-5 (2019-22) will focus on The mission and vision statements we’ve upon. We know it will be a challenge to bringing the initiatives to fruition. adopted will guide how we will invest in maintain our existing operations due to a our rail system and which projects and potential operating shortfall, but we will initiatives we will prioritize. This will ensure endeavor to meet our mission and work that the limited capital funding available toward our vision within those limitations. to Metra is used to address our most Of course, if additional resources are made pressing needs. Specific initiatives related available, we could do much more. to all aspects of our operations have been grouped into five strategic goals:

• Prioritize safety and security awareness; • Invest in our workforce; • Deliver quality customer service; • Optimize our capital assets; and

• Ensure financial stability.

To successfully carry forward our vision for the future, we must recognize that each of these five strategic goals are interrelated. Throughout this document, we will identify specific projects under each goal. These projects will be a fundamental part of how we measure each goal’s success. They will also help Metra determine how we navigate the existing barriers, especially in terms of securing funding, that are hindering the Metra system’s sustainability.

5 PRIORITIZE SAFETY AND SECURITY AWARENESS

The safety of Metra’s customers and Metra is pursuing the installation of MEASURING OUR SUCCESS employees will always be the top priority. inward-facing cameras for engineers and • Lower public and employee injury rates. body cameras for our police officers and We ensure our system remains safe has implemented OSHA training for all • Install, test and deploy PTC. through compliance with all federal, state front-line operating supervisors, managers and local regulations pertaining to the and directors to further improve workplace • Maintain high level of police visibility operation, inspection and maintenance and passenger safety. on board and at stations. of tracks and equipment as well as all regulations pertaining to the testing and Metra Police have implemented programs certification of railroad employees. Teams to improve safety and security for our also conduct random operational testing customers and employees. Signed in the field to increase safety awareness agreements with Cook County for and rules compliance. dispatching and court adjudication services are allowing us to dedicate more Metra The installation of the federally mandated police officers to the field, including the Positive Train Control (PTC) safety system expansion of patrol units dedicated to is quite literally the biggest safety initiative riding trains, providing a visible law that the entire railroad industry has enforcement presence and deterring undertaken. PTC is a GPS-based safety criminal activity on Metra rail lines. technology that improves safety by slowing or stopping a train to enforce track speeds, We are also working to enhance safety prevent unauthorized entry into work and security throughout our system by zones, prevent train-to-train collisions, expanding a program we use to train prevent over speed derailments or prevent front-line personnel on how to identify a train from moving through a switch that and respond to distressed individuals isn’t properly aligned. Metra is currently on near our tracks and by increasing track to have PTC installed and operational coordination with Operation Lifesaver on all 11 lines by the end of 2019. and the DuPage Railroad Safety Council on public rail safety efforts.

Operation Lifesaver spokesman Mark Kalina u speaks to students at Tinley Park High School. 6 INVEST IN OUR WORKFORCE

Twenty-two percent of Metra’s workforce Metra will continue to grow and MEASURING OUR SUCCESS will be eligible for retirement by 2019. This enhance employee performance, represents a tremendous drain of human efficiency and job competence across • Improve retention of professional and capital from the agency, and knowledge all skilled trade functions. Metra will management employees, beyond staff transfer between experienced and less continue to invest in our valued team separating through retirement. experienced employees will be key to our through constructive union relations. • Encourage and increase participation future success. in voluntary employee development Over the past several years, Metra has programs. Metra’s plans for the future rely upon used employee engagement surveys. being able to recruit, develop and retain This ongoing process gives regular • Continue development and enhancement a capable, talented workforce. To achieve feedback to senior management of employee training programs. this, Metra is investing in outreach to address employee concerns and • Evaluate success of workforce to diversify our applicant pool and is improve the lines of communication diversity goals. enhancing our in-house development about critical issues. programs for all employees. This includes • Continue to improve employee the development of defined career paths engagement and satisfaction as for employees in both administrative and measured in employee surveys. operational roles and the creation and • Sustain and grow technology implementation of a succession plan improvements that have resulted in for the executive team. improved employee efficiency. Metra continues to examine the total compensation and benefit packages for our professional and management staff to ensure that we remain competitive within the marketplace.

7 DELIVER QUALITY CUSTOMER SERVICE

Providing the safest, most efficient and • Implement Automatic Communication most reliable service to our customers has and Onboard Reporting Network long been Metra’s goal. With an average (ACORN) — real-time multi-channel on-time performance of 95 percent or customer communication system. higher and a consistent track record of achieving this mark, Metra’s customers Metra customers place a high priority on have high expectations of our service. effective communication. Metra will continue to identify ways to improve our use of To ensure that our service continues to existing communication channels to enhance meet these expectations, Metra will our customer communications through monitor customer satisfaction through: platform and onboard announcements as well as our website and social media. • Annual surveys that identify issues Metra will look to expand on our recently key to customer satisfaction. implemented “Ride Nice” courtesy campaign and to create a series of how-to videos • Daily direct customer feedback funneled focusing on potential barriers for first-time to Metra through multiple channels. users of the system. • Onboard service audits to identify customer service and fare collection Metra will also continue to explore ways to issues. use cost-effective technology enhancements such as upgrades to our GPS tracking system Metra will also work to identify and and the Ventra App to improve customer implement low-cost opportunities for experience. improvements to enhance the customer experience including:

• Pursuing opportunities for enhanced station signage that promotes visibility, improves wayfinding experience and provides real-time travel information. MEASURING OUR SUCCESS • Continuing our ongoing station • Monitor trends on annual customer rehabilitation program. satisfaction surveys. • Working with regional partners to • Review and respond to customer build upon and promote supplemental feedback through customer service services to bridge first/last mile channels. gaps between Metra stations and rider destinations. • Achieve our 95 percent on-time performance goal. • Providing training to front-line personnel on topics such as increasing • Rehabilitate stations and facilities. sensitivity to ADA needs, de-escalating customer incidents and responding to critical incidents, etc. 8 Providing the safest, most efficient and most reliable service to our customers has long been Metra’s goal.

9 OPTIMIZE OUR CAPITAL ASSETS

Reliable rail service depends on perpetual the Metra system. More than 450, or 55 • Continuing to install the federally maintenance of capital assets, such as percent, of these bridges are 100 years mandated Positive Train Control safety track, signals, rolling stock, communications old or older. At the present rate of three system, which is expected to cost up to equipment and buildings. For many years, bridges per year, it will take Metra 150 $400 million to install and about $15 however, Metra has been falling behind years to replace these aged assets and 275 million to $20 million a year to operate. on these investments. A legacy system years to replace all of the existing bridges. • Procuring new railcars and new or like Metra’s has many aging components These numbers, on their face, convey remanufactured locomotives. The actual approaching or past their useful lives, with the urgency of Metra’s financial number of each will depend on the about 40 percent of its assets classified in needs to its funding partners. response from manufacturers, the funding marginal or worn condition. While Metra will available and whether Metra can use continue to operate our aging system in a Until and unless our funding situation is financing alternatives, such as leasing, safe manner, the availability of federal, state addressed, Metra will do everything it can to maximize its funding. This will help us and local funding for transit capital projects with the resources it has available. Metra’s begin to replace the oldest commuter rail has not kept pace with our needs. cost-benefit analysis will help guide those fleet in the nation. efforts. In addition, Metra is currently For instance, the state’s capital help has engaged in other work that will help, been intermittent and insufficient, with just including developing: three doses of funding in the last 30 years. In 1989, Metra received a portion of a $290 • A Station Optimization Study that million bond issue, which was shared with will present recommendations for other transit agencies in northeast Illinois. station distribution, to use our In 1999, Metra received $850 million as part resources in an efficient way while of the Illinois FIRST program. And in 2009, addressing community mobility needs. Metra received a combined commitment • A Transit Asset Management of $1.1 billion from two separate programs; Plan and coordinating asset however, much of the funding was put on management activities to STATE OF GOOD REPAIR hold and Metra now expects only $835 comply with Federal Transit million. Anticipated Estimated unmet Administration requirements. federal formula state of good Detailed information about funding for repair need Metra is committed to continuing to capital projects our assets will help our operate safely with the equipment and investment decisions. Total 10-year infrastructure that is available, but more $2.3 $9.7 need: funding is needed to replace many of Billion Billion About half of Metra’s capital $12 Billion the components of the Metra system. program is dedicated to major Metra’s principal infrastructure elements projects including: are passenger cars and locomotives, Annual investment Annual investment bridges, track structure, signals and required to keep up required to eliminate communications, and stations. with capital needs capital project backlog

While in the past few years there has been Total annual $590 $610 need: considerable focus on passenger cars MillionMillion MMillionillion $1.2 Billion and locomotives, most attention will be given to bridges. There are 823 bridges on Source: RTA Capital Asset Condition 2016 Year 5 Assessment (2/17) 10 • Rehabilitating railcars and locomotives The remainder of the Capital Program MEASURING OUR SUCCESS through several programs, most of is focused on ongoing maintenance of • Complete construction projects on them in-house. This work will extend the the existing system. This includes: time and on budget. useful life of these assets until they can renewal of track components, retaining be replaced. walls, and bridges; signal, electrical and • Purchase new and rehabilitate existing communications system maintenance; railcars and locomotives to reduce • Remanufacturing locomotives to create facilities and equipment; and stations environmental pollution and the practically brand new locomotives on and parking. average age of the fleet. existing frames in cooperation with off-

site contractors to achieve financial and However, at the current rate of • Maintain favorable comparisons in operational efficiency while significantly investment, we will never be able to RTA’s performance measure evaluations. and cost-effectively reducing the catch up with the rate of deterioration locomotive emissions. • Complete initial Transit Asset of our system. Management Plan. • Expanding our main railcar rehabilitation facility to enable us to complete up to 60 • Complete Station Optimization Study. railcars a year. • Replacing bridges that carry Union Pacific North Line trains over 22 streets on the North Side of Chicago. The reconstruction of the Ravenswood Station, the busiest station on the line, is part of this multi- year project. All these bridges are 120 years old and can no longer be economically maintained. A bridge that carries this line over the Chicago River’s North Branch also will be rehabilitated. • Replacing a single-track bridge on the Milwaukee District West Line, which dates from 1881, with a modern double-track bridge, eliminating a bottleneck on the line. • Removing two sections of two-track bottleneck on the Union Pacific West Line through completion of 8 miles of third track on the Union Pacific’s busiest freight line.

11 ENSURE FINANCIAL STABILITY

2018 FUNDING SOURCES As a public agency, Metra is dependent Today, based on data compiled by the on funding sources for its operating and RTA, Metra has $1.2 billion a year in capital capital costs that are unpredictable and needs over the next decade — $590 million 2018 OPERATING FUNDS ($ millions) often insufficient. This business model is annually to maintain the existing system, unsustainable. The effect will be a gradual and $610 million annually to eliminate a decline in the level of service provided to backlog of unfunded work. In 2018, Metra passengers. This will be counterproductive will have $196.8 million available to spend to Metra’s desire to increase service on capital projects, and in each of the next reliability to attract additional riders. four years, starting in 2019, it expects to spend less than $250 million. $404.9 $1.5 Fare revenue pays for roughly half of $3.1 Metra’s operating costs. The remaining Without adequate funding, the backlog $33.3 operating costs are covered by public will continue to grow. As noted previously, $354.4 subsidies, primarily proceeds from a Metra anticipates its capital needs over the regional transportation sales tax but also next 10 years will be $12 billion; however, in Sales Taxes $404.9 including a partial match from the state of its 34-year history, Metra has received only Fare Revenue 354.4 Capital Credits, Leases, etc. 33.3 Illinois. If the growth in sales taxes keeps $8.6 billion in capital grants. Reduced Fare Subsidy 3.1 up with the growth in costs, then fare Transportation Security Grant 1.5 increases don’t need to be frequent and/ Total $797.2 or significant. However, if funding sources

Sales Taxes 404.9 Fare Revenue $354.4 Capital Credits, Leases, etc. 33.3 Reduced Fare Subsidy 3.1 Transportation Security Grant 1.5 Total $797.2 don’t keep up, Metra has no other way to balance its budget other than to raise fares or cut service. Cutting service is usually 2018 CAPITAL FUNDS ($ millions) not a viable option, because it is difficult to achieve significant savings without major, counterproductive cuts. Fare increases are regressive and cause ridership losses that offset some of the revenue growth. This situation is further exacerbated by shortfalls in capital funding, which has forced Metra in recent years to raise fares $171.6 not for operating costs but for capital $4.9 $20.3 needs.

Federal Transit Administration $171.6 Metra 2018 Farebox Revenues 20.3 RTA Innovation, Coordination and Enhancement 4.9 Total $196.8

12 It is clear that the funding mechanisms We are actively: currently in place cannot sustain the • Investigating new sources of Metra system, nor do they allow for financing to fund our capital needs. MEASURING OUR SUCCESS future growth. Metra cannot continue as presently constituted. Without • Working with stakeholders to secure • Continue to balance the agency dedicated sustainable sources of capital new sources of funding. budget each year. and increased operating funding sources • Implement cost-saving measures. that grow over time, public sector • Examining our fare structure to transportation funding will always identify improvements with potential • Leverage funding sources and financing. to increase ridership and revenue. lag behind needs. • Initiate backlogged capital projects. • Identifying and implementing To reverse this course, Metra and its improvements that result in operating • Maintain and grow ridership. Board of Directors are committed to cost savings and greater efficiencies. • Grow non-fare revenue. exploring ways to change the status quo and provide stability and sustainability • Maximizing secondary revenue • Meet federal and non-federal DBE goals. to Metra’s funding outlook. streams to secure non-fare funding to meet transportation needs. • Expand outreach to continue to grow Disadvantaged Business Enterprise (DBE) participation, enhancing the economic health of the region.

However, these actions can only affect our situation at the margin. Ultimately METRA ASSET CONDITION AND one of three things needs to happen: REPLACEMENT VALUE (a) Metra needs to procure a large- Distribution of Metra Asset Conditions by Asset Category ($2015) scale funding enhancement; (b) Metra needs a massive increase in ridership 7

on existing services; or (c) Metra needs 6 to implement large-scale service reductions. 5 4

3

Dollars in Billions 2

1

0 Facilities Guideway Stations System Vehicles Elements

Marginal OR Worn Adequate Excellent OR Good

Source: RTASource: Capital Asset RTA Condition Asset Assessment Condition Report, Assessment 2016 Report, 2016

13 CONCLUSION

As we hope this document makes clear, Metra cannot continue along its current path. Its capital needs are great, and its capital funding is inadequate. This has pressured Metra to increase fares — historically used to fund operations — to make up part of the capital shortfall, and that has hampered our ability to raise fares to meet growing operating costs. The situation is not sustainable.

We have spelled out our vision for the future of Metra: To be a world-class commuter rail agency linking communities throughout the region by providing the safest, most efficient and reliable service to our customers; sustaining our infrastructure for future generations; leading the industry in achieving continuous improvement, innovation and VISION transparency; and facilitating economic vitality throughout northeast Illinois. To be a world-class commuter rail agency We have also outlined the steps we can and will take to work toward each of our linking communities throughout the region, goals within our existing resources. That is easier in some of our strategic goals, such as prioritizing safety and security by providing the safest, most efficient and awareness, investing in our workforce and delivering quality customer service, than it is in goals more directly affected by funding reliable service to allour customers; sustaining uncertainty, such as optimizing our capital assets and ensuring financial stability. our infrastructure for future generations; We are committed to doing everything we can to make our vision a reality, and we are leading the industry in achieving continuous proud of everything we have accomplished so far. But if Metra is to truly succeed, to make its vision a reality and to achieve its improvement, innovation and transparency; strategic goals, it must be funded at a level that corresponds to its value to the Chicago region. and facilitating economic vitality throughout

14 northeast Illinois. HISTORICAL PERSPECTIVE

For the Chicago region’s commuter reliable, comfortable service. But after always subsidized the commuter rail system, the financial crisis that hit more than three decades, Metra is now operations, were also suffering for many public transportation in the late 1960s at risk of returning to those troublesome of the same reasons. It became clear that and 1970s led directly to the creation of times because its needs are once again far if commuter rail service was going to Metra in the early 1980s. The new entity exceeding its available resources. continue in the Chicago area, government and new state and federal subsidies help would be necessary. reversed years of disinvestment to create Understanding public transit in Chicago a world-class system known for its safe, as it exists today requires knowledge of Help came in the late 1960s, when, in its history and a major thread running the Chicago area, suburban mass transit throughout this history — financial crisis. districts were formed along several lines in What we think of as public transit today, in order to channel some public capital dollars, Chicago and the U.S. for that matter, was federal and state, toward commuter rail created and operated by privately held operations. This resulted in the purchase transit companies. More often than not of new rolling stock and other upgrades on throughout the city’s history, rapid transit some lines. rail and street railway services in Chicago were in bankruptcy or reorganization. Chicago’s situation was not unique. Post- These adverse economic circumstances World War II passenger rail operations eventually led to the formation of the were hemorrhaging money, especially Chicago Transit Authority (CTA), which commuter operations on the East Coast. commenced operations 70 years ago on In 1971, Amtrak was formed to take over Oct. 1, 1947. Yet another financial crisis in the nation’s long-distance passenger rail To be a world-class commuter rail agency the 1950s and 1960s planted the seeds service. The restructuring of Conrail in the that led to formation of the Regional 1970s transferred East Coast commuter linking communities throughout the region, Transportation Authority (RTA) in 1973. operations to the public sector. The economic factors that led to the Deferral of capital improvements among by providing the safest, most efficient and formation of Metra and Pace Suburban Bus those East Coast commuter operations was in the 1970s and 1980s were different. High rampant. In the Chicago area, however, it inflation, a recession, downtown job losses, was the operating cash crunch — at the CTA, reliable service to allour customers; sustaining suburban sprawl and competition from cars the commuter railroads and suburban bus (and free parking) were impacting revenue companies — that resulted in the creation at the CTA, the privately owned suburban of the RTA in 1973. The RTA’s mission was to our infrastructure for future generations; bus companies and the privately owned coordinate and assist public transportation freight railroads then operating commuter and to serve as the conduit for state and leading the industry in achieving continuous rail service throughout the Chicago area. federal subsidies needed to keep the system operational. The RTA did not at first directly Most of the privately held bus companies operate commuter rail service, but paid the improvement, innovation and transparency; and freight railroads had already been railroads to do so under purchase-of-service deferring capital investment, and then agreements. At about the same time, in operating costs started to far exceed 1974, Congress first authorized using and facilitating economic vitality throughout the revenue they received from fares, federal funds to help pay for mass which were kept low by public policy. The transit operating expenses. railroads’ freight businesses, which had northeast Illinois. 15 Dating from the 1920s, the Chicago Rapid September 1984, the freight railroad sold was needed, spurring the reorganization Transit Company and the three electric the South Shore Line to a newly formed of the RTA by Springfield in 1983. The RTA interurban railways in the Chicago area private company that entered bankruptcy initiated a regional transportation sales tax were all controlled by interests that also in April 1989. In December 1989, a private to subsidize public transit operations, and controlled Commonwealth Edison, today’s holding company acquired the South Shore. a commuter rail division (CRD) was created Com Ed. The three interurban electric By Dec. 31, 1990, it sold the “passenger to oversee commuter rail service starting railways were the Chicago Aurora & assets” and the mainline in Indiana in in 1984. At the same time, a suburban bus Elgin (CA&E), the Chicago North Shore & two transactions. division (later named “Pace”) was created. Milwaukee and the Chicago South Shore & South Bend. The South Shore is the From the 1950s to the 1980s, three RTA remained as the parent organization sole survivor of the three and the only commuter operations serving the Chicago for CTA, the CRD and Pace, which are remaining electric interurban railway in the region were also abandoned: the New known as the three service boards. Due U.S. Abandonments and restructuring of York Central’s service to Chesterton, Ind., to the complicated and patchwork nature ownership began in 1955 and concluded the Pennsylvania Railroad’s service to of commuter rail at the time, in 1985 the Dec. 31, 1990. North Shore’s original Shore Valparaiso, Ind. and the Chicago & Western CRD came up with the “Metra” name as Line route was abandoned in 1955. The Indiana’s service to Dolton, Ill. Metra’s North a service mark for the entire system. The route paralleled today’s Union Pacific North Central Service, in part, was the recreation idea was to bring a unifying identity to all Line from Waukegan to Wilmette and of the Wisconsin Central’s suburban the various components, no matter who used today’s CTA Purple Line route from service to Wheeling, Ill. owned or operated them. Wilmette to Chicago. The CA&E ceased operation in 1957 on a route that paralleled As the 1970s progressed, the financial Federal funding for mass transit operations the Union Pacific West Line from Chicago situation of Chicago’s existing commuter were phased out in the 1990s and by the to Wheaton with branches to Aurora and services deteriorated rapidly. The Rock mid-2000s, funding shortfalls for both Elgin. The North Shore’s Skokie Valley Island and then the Milwaukee Road operating and capital budgets elicited calls Route, paralleling the Edens Expressway to declared bankruptcy, forcing the RTA by the CTA for change in the formulas used Waukegan and Milwaukee with a branch to start operating commuter railroads for sales tax distribution to the service to Mundelein, was abandoned in 1957. or see them fold. The RTA created the boards. Following budget seasons in 2007 Today’s CTA Yellow Line is the remnant of Northeast Illinois Regional Commuter and 2008, where both the CTA and Pace this route. The South Shore Line enters Railroad Corporation (NIRCRC) to acquire proposed service cuts, Metra deferred Chicago’s Loop over the Illinois Central and operate those lines. The Rock Island capital projects and all three agencies tracks, today’s Metra Electric Line. abruptly shut down on March 31, 1980, implemented fare increases, the Legislature and the Chicago & North Western (C&NW) passed amendments to the RTA Act that The South Shore Line survived due to was directed to operate the Rock Island’s increased sales tax rates, altered some of extensive freight traffic and acquisition service until NIRCRC could assume the the distribution formulas related to the new in 1967 by the Chesapeake and Ohio operations. Meanwhile, the Illinois Central revenues and amended various laws to deal Railway. Tired of subsidizing the passenger Gulf (ICG) was in serious financial difficulty with the underfunding of the CTA’s pension operations, the freight railroad petitioned to but survived due to a massive line sale plan. But even with these changes, funding abandon the passenger service in October program. remains inadequate. 1976. The Interstate Commerce Commission denied the petition in March 1977, which Unfortunately, the subsidies still didn’t keep Today, Metra directly operates seven lines was one of the catalysts behind the pace with expenses. In 1981, the RTA ran through NIRCRC and has purchase-of- creation of the Northern Indiana Commuter out of money, and fares were dramatically service agreements with other railroads to Transportation District in April 1977. In increased across the system. More help operate four of its lines. Metra purchased

16 what is now the Metra Electric from ICG in 1987. At the same time, Metra took over the operation of the ICG’s Heritage Corridor Line over tracks now owned by Canadian National (CN). It assumed control of the SouthWest Service Line from Norfolk Southern in 1993. In 1996, Metra started the North Central Service Line over tracks now owned by CN. Metra maintains its longstanding purchase- of-service agreements with BNSF Railway, and with Union Pacific, which purchased the C&NW lines in 1995.

17 as part of a regional transportation network, Metra provides safe, reliable, efficient commuter rail service that enhances 2018- the economic and environmental health 2022 of northeast Illinois.

547 West Jackson Boulevard Chicago, Illinois 60661-5717 metrarail.com 11 | 2017