Appendix A
PROJECT BRIEFING: CITY OF GREENFIELD,
MIDLAND CITY TO GREENFIELD LINE BRIDGE REHABILITATION
January 20, 2011
Project Costs Project Benefits
ORDC Grant $235,000 Helps Re-Open Rail Service to Johnson Controls
City of Greenfield up to $58,000 Helps Restore 120 Rail-Dependent Jobs
INTRODUCTION: ORDC staff recommends approval of a grant of $235,000 to the City of Greenfield for the rehabilitation of 4 bridges, 4 miles of track, and 8 bridge approaches on the 29.5 mile long Midland City to Greenfield Line. The work will include platform replacement, bridge tie replacement, walkway removal/replacement, ballast replacement and installation, track raising and other necessary repairs. Should there be funds remaining from addressing these immediate needs, the purchase and installation of additional bridge ties and ditch cleaning will be advanced. The $235,000 in ORDC work will be matched by the Indiana and Ohio Railway’s engineering expertise and contributions from the City of Greenfield.
BACKGROUND:
Brief History of the Line: The Midland City to Greenfield Line was formerly part of the CSX Transportation east coast to St. Louis mainline. In the early 1980’s, CSX discontinued using most of the Ohio portion of this line as mainline track, abandoning some portions, and operating others as branch lines. In 1987, CSX filed to abandon the 29.5 miles of branchline operations between Midland City and Greenfield because it was losing money for CSX. At that time, the major shippers were two grain elevators as well as two manufacturing plants, Packaging Resources, and Johnson Controls. Candle-lite had a small facility in Leesburg along the line but was not using rail service at the time. Because the line had heavy, welded rail, the net liquidation value of the 29.5 miles of track was high, $2,400,000.
The shippers and prospective shippers along the line formed the Greenfield Shippers Association (GSA) to preserve the line. The Ohio Department of Transportation, Division of Rail (ODOT Rail) worked with the GSA, the City of Greenfield, and the fledgling Indiana & Ohio Railroad (I&ORY) to save the line from being torn up. ODOT Rail provided $1,341,966 in Federal Railroad Administration funds and $346,034 in State funds to the City of Greenfield to help it to acquire the line. The GSA and I&ORY provided $712,000 toward the purchase. The City has owned and the I&ORY has operated the line under a lease with the City since the City purchased the line in 1988.
Initially, the Greenfield Line connected to the CSX Midland Subdivision Line between Columbus and Cincinnati. In October, 2004, RailAmerica, the parent company of the I&ORY, obtained a long term lease for the Midland Sub from CSX. The Greenfield Line now has direct access via I&ORY and RailAmerica lines to interchange traffic in Cincinnati and various other connecting points on the CSX, Norfolk Southern, and Canadian National. A map of the southwest Ohio area is included as Exhibit “A”.
Initially, the grain traffic provided the base for rail operations. However, grain traffic diverted to trucks to local consumers or to the Ohio River to be loaded on barges. The traffic generated by Candle-lite (inbound paraffin) helped replace the grain traffic as Candle-lite grew from a small company with a few dozen employees to a sizable manufacturing concern which now employs about 667 people in Leesburg and 62 people in sales and marketing in Blue Ash. Packaging Resources (in New Vienna) was acquired by Huhtamaki and currently employs about 250 people. It receives inbound plastics via rail. Johnson Controls in Greenfield mothballed its Greenfield operations in 2008 which had been receiving hazmat chemicals by rail used to produce foam products.
Recently, Johnson Controls has begun the process of re-opening the Greenfield plant and will begin to employ approximately 120 people while the plant runs at half capacity (one production line) initially, with plans to open the second production line sometime in 2011. The plant had employed 220 people before it was closed, and will return to that approximate level once both lines are restored. Early startup of the plant will use truck service, but rail is required for continued competition in the market. Once this rail service is begun, Johnson Controls will require 70-75 carloads yearly, with this demand ramping up to approximately 145 carloads yearly once the second production line is restored.
In 2009, ORDC provided the City with a $210,000 grant matched by $50,000 from the City’s railroad fund, (funds raised by a $60 per car charge that both the shippers and I&ORY (i.e. $120 per car) pay into the City fund). The work performed was the installation of 2,600 ties from MP 45 to MP 49, MP 67.5 to MP 70, and MP 74 to MP 75.5, the repair of turnouts at MP 56.9 and MP 64.2, and surfacing where ties were installed. In November 2010, ORDC provided the city with a $130,000 grant matched by $95,270 in work already performed by the City to install 1,600 ties from MP 50.3 to MP 51, MP 52.3 to MP 55.5, MP 57.5 to MP 58, and at the Leesburg Siding and associated surfacing where the ties were installed.
Current Situation: Traffic on the Greenfield Line has dropped off in recent years. In 2004, the line generated 867 carloads of traffic and in 2005 traffic volumes rose to 922. However in 2006 traffic dropped to 621 cars. In 2007 traffic totaled 552 cars and in 2008 traffic totaled 542 cars. With the recession in 2008, and the mothballing of Johnson Controls, traffic dropped to 394 cars in 2009. For 2010, the line generated 336 cars in the first 10 months of the year.
The City is responsible for rail line maintenance using the railroad fund to perform necessary tasks. The downturn in railroad traffic has made this job much tougher. The City is working with the I&ORY to develop ways to cut maintenance costs.
The condition of the Greenfield Line is generally good with track speeds generally at 25 MPH.
PROJECT DESCRIPTION: The proposed project consists of bridge work at bridges with a repair priority of “2,” which are the most needed repairs to the bridges on the line, and various track rehabilitation items required for safe service and to prevent further deterioration. Current immediate repairs consist of replacing lookout platforms and bridge ties, replacing a riser block, raising the approaches to four bridges (both sides) and replacing or removing walkways on the bridges, and repairing washouts, and replacing ballast on the track itself. The total work estimate is presented below:
Greenfield to Midland City Bridge Rehabilitation Costs
Item Unit Cost Total Cost
MP 68 to 72, Repair Wash Outs, add 1,000 Tons/Ballast $20,000
($10/ton ballast, $10/ton install)
Raise Bridge Approaches (#65.2, 65.93, 67.65 & 69.4) $20,000
($2/foot)
#65.93 Replace 4 Lookout Platforms $19,000
#67.65 Replace Lookout Platforms $19,000
#67.65 Replace 1/3 bridge ties $45,000
#67.65 Replace Riser Block – Pier 1 $45,000
#74.30 Remove walkway/Install 4 Lookouts $24,000
#74.51 Replace or remove walkway $8,000
Johnson Controls #3 Replace missing walkway planks $16,000
Mobilization and Material Freight $26,600
Total $242,600
Should this work be completed and funds be remaining, the additional work to be funded is outlined below:
Item Unit Cost Total Cost
#67.65 Replace remaining 2/3 bridge ties $90,000
MP 68 to 72, Clean Ditches $30,000
The City will let competitive bids for the track work. The I&ORY will inspect the project work. The City will be responsible for continued maintenance of the track.
WHY ORDC FUNDING IS NEEDED: The economics of the line preclude private financing for all the capital needs on the line.
PROJECT BENEFITS:
- Necessary to re-open Johnson Controls’ Greenfield plant, creating 130 new jobs.
- Required for future re-activation of second production line in 2011, creating another 80 jobs.
- Brings an additional 70-75 yearly carloads initially and 145 yearly carloads over the long-term.
- Other businesses in the area depend upon the continued viability of the rail-dependent shippers on the Greenfield Line.
SPECIAL CONTINGENCIES: ORDC’s Secretary-Treasurer will decide whether to take project funding from GRF funds, or from funds returned to ORDC from the salvaging of track that had been acquired with federal funds.
OTHER CONTRIBUTIONS: The City of Greenfield will provide up to $58,000 of the funding.
AMENDED PROJECT BRIEFING UPDATE: CITY OF GREENFIELD,
MIDLAND CITY TO GREENFIELD LINE BRIDGE REHABILITATION
May 5, 2011
Project Costs Project Benefits
ORDC Grant $235,000 Maximizes ORDC’s funding
ORDC EOY cleanout up to $35,000 See Attached Briefing
City of Greenfield up to $58,000
up to $328,000
INTRODUCTION: At the January 20, 2011 Commission Meeting, ORDC Commissioners through Resolution 11-03 approved a grant of $230,000 to the City of Greenfield for the repair of bridges along the Greenfield Line to ensure it is ready to accommodate Johnson Control traffic when it reopens its Greenfield plant in late Spring. ORDC Staff recommends that ORDC Commissioners approve an amendment to Resolution 11-03 that would increase ORDC funding for this project and expand the scope of work. The City of Greenfield requested that the scope be augmented to include work beyond the bridge repairs initially identified.
ORDC Staff is working on the final accounting of funds for FY 2011 to pay for any and all administrative and project expenses remaining in this fiscal year which ends on June 30, 2011. ORDC staff recommends approval of up to $35,000 of ORDC General Revenue Funds, which will be the result of end of year (EOY) “account sweeping” be applied to the Greenfield Line Bridge Rehabilitation project. These funds are currently estimated to be approximately $32,000, but this number may increase to up to $35,000, or decrease, including the potential that $0 may be available.
SITUATION: Every year, ORDC staff sweeps all General Revenue Fund (GRF) accounts to ensure the maximum amount of GRF funding possible is spent on track rehabilitation and economic development projects. ORDC staff requests Commissioners’ approval to use the Greenfield Bridge Rehabilitation project to help sweep accounts. Whatever is left in GRF accounts would be applied toward the additional work outlined below. ORDC expects that the ORDC contribution will be approximately $32,000 but it may be more or less than this figure, including the potential that there will be no funds remaining. Attached as “Exhibit A” to this amended briefing is the original briefing.
AMENDED Greenfield to Midland City Bridge Rehabilitation Scope of Work*
Item Estimated Costs
MP 68 to 72, Repair Wash Outs, up to 1,000 Tons/Ballast $25,000
MP 67 to 74, Repair Wash Outs/Ditching, 1,000 tons Riprap $42,000
Raise Bridge Approaches (# 65.93, 67.65 & 69.4 & JC#3) $15,000
#65.93 Replace or Repair 4 Lookout Platforms $8,000
#67.65 Replace or Repair Lookout Platforms $4,000
#67.65 Replace 204 (i.e. all) bridge ties $102,000
#67.65 Replace or Repair Riser Block – Pier 1 $20,000
#74.30 Remove walkway/Install 4 Lookouts $15,000
#74.51 Replace or remove walkway $2,000
Johnson Controls #3 Remove Walkway $3,500
#65.93 Replace Bridge Timbers as Needed $20,000
#74.30 Replace Bridge Timbers as Needed $20,000
Additional Ditching (& clean ditches/culverts) as Needed $15,000
Tie Replacement as Needed $15,000
Other Track and Bridge Work As Needed $10,000
Bid Bond $4,500
Mobilization and Material Freight $7,000
Total $328,000
*Amended items and costs italicized; original work items and costs not italicized
Actual work performed will be prioritized by ORDC, Greenfield, and I&ORY consultation and concurrence.
Figure 5 Map arrows indicate City of Greenfield-owned rail line
