Regional Rail Right-of-Way Company Tuesday, September 18, 2018, 10:00 a.m. DART Conference Room B 1st Floor 1401 Pacific Ave., Dallas, Texas 75202

Transcription

1 Agenda Regional Rail Right-of-Way Company Tuesday, September 18, 2018, 10:00 a.m. DART Conference Room B 1st Floor 1401 Pacific Ave., Dallas, Texas Approval of Minutes: June 5, *Overview of Regional Rail Right-of-Way Company 3. *Review of FY 2018 Third Quarter Financial Report 4. *Report on Quarterly Freight Operations for Third Quarter of Fiscal Year Identification of Future Agenda Items 6. Adjournment *This is a Briefing Item Only The Regional Rail Right-of-Way Company may go into Closed Session under the Texas Open Meetings Act, Section , Consultation with Attorney, for any legal issues, or under Section for Real Estate issues, arising regarding any item listed on this Agenda. This facility is wheelchair accessible. For accommodations for the hearing impaired, sign interpretation is available. Please contact Community Affairs at , 48 hours in advance.

2 AGENDA ITEM NO. 1 MINUTES Regional Rail Right-of-Way (RRROW) Company June 5, 2018 The Regional Rail Right-of-Way Company meeting convened at 12:10 p.m., on Tuesday, June 5, 2018, at DART Headquarters, 1401 Pacific Avenue, Dallas, with Chair Bauman presiding. The following Members were present: Sue S. Bauman, Paul N. Wageman, and Gary Thomas. The following Officers were present: Katy Galindo, Bonnie Murphy, Joseph Costello, and Harlene Kennedy. Others present: Donna Henry, Nancy Johnson, Matt Lannon and Josefina Chavira, DART Staff Approval of Minutes: January 9, 2018 Mr. Thomas moved to approve the Regional Rail Right-of-Way Company' January 9, 2018 Minutes, as written. Mr. Wageman seconded and the Minutes were approved unanimously. *Review of FY 2018 Second Quarter Financial Update Ms. Galindo briefed the Committee. Mr. Wageman inquired if there had been a meeting in the month of March, as scheduled. Ms. Murphy explained this meeting took the place of the meeting that was scheduled to occur in March due to its cancellation. Mr. Wageman noted he asked because he did not have a copy of the FY 2018 First Quarter Financial updates that would have been covered in that meeting. Mr. Wageman recommended staying on track of the scheduled meetings since this Board only met on a quarterly basis. He then requested the FY 20 I 8 First Quarter Financial updates be sent to the RRROW Company. Ms. Murphy agreed. Chair Bauman requested, in the future, should a meeting need to be cancelled that an explanation be provided. Ms. Murphy acknowledged her understanding. Ms. Galindo continued with the briefing. Mr. Wageman requested, at the next meeting, staff provide a breakdown of each of the agreements in regard to what the rate is, how it is paid, what are the terms, is it possible to get better terms, can DART renegotiate. He requested the basic skeleton of the agreement as a summary. Mr. Wageman also requested the capital cost of each agreement. Mr. Thomas agreed it would be beneficial to review the agreements. Chair Bauman inquired why the City of Grapevine was not on the report that was showing by customer. Mr. Matthew Lannon, Senior Manager of Railroad Management, explained, on this particular page, the City of Grapevine pays in August, so they would not fall into the first two quarters. Chair Bauman recommended staff add an asterisk, and footnote, indicating when the City of Grapevine information does show up on the report. After further discussion, Ms. Galindo concluded her briefing RRROW Minutes.docx 8/ 1/20 18: 8:00 A.M.

3 3. *Report on Quarterly Freight Operations for Second Quarter of Fiscal Year 2018 Mr. Lannon briefed the Committee (handout on file with the Office of Board Support) as follows: Quarterly Freight Operations Report for Second Quarter of Fiscal Year 2018 Mr. Wageman requested staff to brief, at the next meeting, on the details of the TEXRail agreement and the D enton County Transportation Authority (OCT A) agreement. 4. Identification of Future Agenda Items There were no future agenda items identified for this committee. 5. Adjournment There being no further business to discuss, the meeting was adjourned at 12:35 p.m. ~ Q h ~ Cf e Jose 1 fina Chavira, CAP Board Committee Secretary /jc * Briefing Item + Same Date Item RRROW Minutes.doc:-; 2 8/1/20 18: 8:00 A.M.

4 Agenda Item No. 2 Agenda Report Regional Rail Right-of-Way Company DATE: September 18, 2018 SUBJECT: Overview of Regional Rail Right-of-Way Company RECOMMENDATION This is a briefing item. No action is required at this time. BUSINESS PURPOSE The purpose of this item is to provide an overview of the Regional Rail Right-of-Way Company. Areas of focus for the overview will include: o Organization & History o Goals o Common Carrier Obligations o Trackage Rights The discussion of this item will help achieve DART Board Strategic Priority 3: Optimize DART s influence in regional transportation planning. The Regional Rail Right of Way Company s mission is to further the public purposes of Dallas Area Rapid Transit (DART) by preserving DART s railroad corridors for current or future DART passenger rail service and, as holder of an exclusive, perpetual freight rail operating easement on all active DART-owned railroad corridors, to maintain existing freight service over the railroad corridors rrrow ar - RRROW overview 1 9/14/ :56 PM

5 Agenda Item No. 3 Agenda Report Regional Rail Right-of-Way Company Attachment: 1. Third Quarter, FY 2018, Financial Update DATE: September 18, 2018 SUBJECT: Review of FY 2018 Third Quarter Financial Report RECOMMENDATION This is a briefing item. No action is required at this time. BUSINESS PURPOSE The purpose of this item is to review the FY 2018 Third Quarter financial reports for Regional Rail Right of Way Corporation. Financial Reports for the period consisting of Balance Sheet, Statement of Revenues and Expenses, and a Schedule of Cash Receipts and Payments are included as Attachment 1. The discussion of this item will help achieve DART Board Strategic Priority 3: Optimize DART s influence in regional transportation planning rrrow ar - RRROW FY18 Q3 Financials 1 9/14/ :01 PM

6 Attachment 1 Regional Rail Right of Way Financial Reports As of and for the Quarter Ended June 30, 2018 These financial reports have been prepared for internal use only

7 Regional Rail Right of Way Summary Financial Information As of and for the Quarter Ended June 30, 2018 Table of Contents Page Report Highlights Balance Sheet Statements of Revenues and Expenses Schedule of Cash Receipts and Payments

8 Regional Rail Right of Way June 30, 2018 Report Highlights Balance Sheet Total assets are $1.4 million as of June 30, 2018 which is a decrease of $21,954 or 1.6% compared to September 30, The majority of the decrease is due to use of cash to pay out administrative fees to DART in the amount of $150,000 at the beginning of the fiscal year. This was offset by payments received for trackage rights agreements with Dallas Garland Northeastern Railroad (DGNO), Union Pacific, and Fort Worth and Western Railroad in the amount of $126,454. Total Liabilities are $1.2 million as of June 30, 2018 which is an increase of $1,161 compared to September 30, The increase is due to a slight increase in the amount of advance payment received from DGNO compared to last year. Consumer price index (CPI) increases are added to the DGNO billing annually. The amount of service due to DGNO is shown as a liability on Regional Rail Right of Way s books. Statements of Revenues and Expenses Trackage rights revenues are $124,410 as of June 30, 2018 which is an increase of $11,484 or 10.2% from the same time last year due to an increase in the revenues generated from Union Pacific. Union Pacific had an increase in the per car base rate and an increase in the number of car miles. Operating results for Regional Rail Right of Way for the three quarters ended June 30, 2018 is a net loss of $25,590 which is $11,484 better than this time last year. The loss is mainly due to payment of administrative fees. Schedule of Cash Receipts and Payments Regional Rail Right of Way started the fiscal year with a cash balance of $206,228. We collected $126,454 from our customers and paid an administrative fee of $150,000 leaving an ending cash balance at June 30, 2018 of $182,682. 2

9 ASSETS CURRENT ASSETS REGIONAL RAIL RIGHT OF WAY COMPANY BALANCE SHEET As of June 30, 2018, and September 30, /30/ /30/2017 Cash $ 182,682 $ 206,228 Trackage Rights Receivable 41,764 40,172 TOTAL CURRENT ASSETS 224, ,400 NONCURRENT ASSETS Freight Operating Easement 1,158,611 1,158,611 TOTAL NONCURRENT ASSETS 1,158,611 1,158,611 TOTAL ASSETS 1,383,057 1,405,011 LIABILITIES CURRENT LIABILITIES Unearned Trackage Rights Revenue 35,585 31,949 TOTAL CURRENT LIABILITIES 35,585 31,949 NONCURRENT LIABILITIES Transfer from DART 1,158,611 1,158,611 TOTAL NONCURRENT LIABILITIES 1,158,611 1,158,611 TOTAL LIABILITIES 1,194,196 1,190,560 EQUITY Retained Earnings 188, ,451 TOTAL LIABILITIES AND EQUITY $1,383,057 $1,405,011 These financial reports have been prepared for internal use only. 3

10 OPERATING REVENUES REGIONAL RAIL RIGHT OF WAY COMPANY STATEMENTS OF REVENUES AND EXPENSES For the Quarters Ended June 30, 2018 and /30/ /30/2017 Trackage Rights Revenues $ 124,410 $ 112,926 TOTAL OPERATING REVENUES 124, ,926 OPERATING EXPENSES Administrative Expense (150,000) (150,000) TOTAL OPERATING EXPENSES (150,000) (150,000) NET OPERATING LOSS ($25,590) ($37,074) These financial reports have been prepared for internal use only. 4

11 REGIONAL RAIL RIGHT OF WAY COMPANY SCHEDULE OF CASH RECEIPTS AND PAYMENTS For the Quarter Ended June 30, 2018 Amounts Balances BEGINNING CASH BALANCE AS OF OCTOBER 1, 2017 $ 206,228 CASH RECEIPTS* Union Pacific (January March 2017) 17,648 Union Pacific (July September 2017) 17,173 Union Pacific (October December 2017) 20,204 DGNO (January December 2018) 64,943 Fort Worth & Western Railroad (January December 2017) 6,486 TOTAL CASH RECEIPTS 126,454 CASH PAYMENTS Administrative Fees (150,000) TOTAL CASH PAYMENTS (150,000) DECREASE IN CASH BALANCE (23,546) ENDING CASH BALANCE AS OF JUNE 30, 2018 $ 182,682 *City of Grapevine pays in advance for service provided from September through August of any given year. These financial reports have been prepared for internal use only. (Concluded) 5

12 Agenda Item No. 4 Agenda Report Regional Rail Right-of-Way Company DATE: September 18, 2018 Attachment: 1. Third Quarter, FY 2018 Freight Operations Update SUBJECT: Report on Quarterly Freight Operations for Third Quarter of Fiscal Year 2018 RECOMMENDATION This is a briefing item. No action is required at this time. BUSINESS PURPOSE The purpose of this item is to review the Quarterly Freight Operations for the Third Quarter of Fiscal Year A summary of freight revenues received by RRROW from short line railroads (DGNO and FWWR) and Class 1 (UPRR) through Trackage Rights Agreements, is included as Attachment 1. The discussion of this item will help achieve DART Board Strategic Priority 3: Optimize DART s influence in regional transportation planning rrrow ar - RRROW FY18 Q3 Freight 1 9/14/ :02 PM

13 Attachment 1 Quarterly Management Report - 3rd Qtr (FY 2018) Rental Invoices: Union Pacific RR $17, May-July Joint Trackage-Cotton Belt Quarterly Totals $17, Fiscal Year to Date Total $130, Other Matters: 6/30/2018 DART and FWTA executed a Transportation Access Agreement and Easement for the FWTA TEXRail Project in December FWTA began the construction and installation of TEXRail within the Cotton Belt corridor in September TEXRail is anticipated to begin revenue service in January Meeting Date: 9/18/2018 Mission Statement The Regional Rail Right of Way Company s mission is to further the public purposes of Dallas Area Rapid Transit (DART) by preserving DART s railroad corridors for current or future DART passenger rail service and, as holder of an exclusive, perpetual freight rail operating easement on all active DART-owned railroad corridors, to maintain existing freight service over the railroad corridors.