Chapter 4
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4.2 Operation and Maintenance Costs
This section presents an estimate of the operation and maintenance costs for the "starter line" from Greenway Center to East Towne and the "full" commuter rail system.
4.2.1 Starter System Costs
Operations and Maintenance (O & M) costs of the "starter line" rail alternative are estimated at $5.4 million per year. The cost breakdown is presented in Table 4-6.
If two-person train crews are required, the annual expenditure could rise by as much as $0.9 million, to $6.3 million. As noted in the appropriate sections of the text, there are certain other cost adjustments that could be made in the maintenance personnel, tools and materials associated with fare collection maintenance (as well as in other labor and non-labor expense categories), in this event.
If more frequent service is required (a train every 15 minutes rather than every 20 minutes in peak periods, and every 20 minutes rather than half hourly at off-peak times), operating costs would be higher. Specifically, costs that are related to vehicle miles operated, such as fuel consumption, and service-related such as operator costs, would increase by approximately 30 percent. Approximately $3.2 million of the $5.4 million in estimated annual operating and maintenance costs would be impacted by the increased service frequency, resulting in an estimated annual operating cost increase of some $1.0 million, or a total annual O&M cost for the starter line of $6.4 million.
Costs for Fuel
Information from Siemens was used to determine the fuel economy of the "RegioSprinter." This is about 4 miles per gallon, with each trainset being able to operate between 300 and 350 miles between refuelings. Review of the weekday schedule shows that none of the trainsets will accumulate more than 300 miles. Therefore, none of the trainsets would require midday refueling according to this schedule.
For the daily mileage estimated from the weekday schedules developed for the starter system, at 4 miles per gallon, the fuel consumed would approximately 650 gallons per day. Saturday service would consume 390 gallons, and Sundays/Holidays 260 gallons. Therefore, each week 3,900 gallons would be required or 202,800 gallons per year. Current Wisconsin fuel costs are $0.65 per gallon for diesel fuel. Applying this on an annual basis would result in a fuel cost of $131,820.
Vehicle Operator Costs
Based on current typical wage rates for enginemen of $34,000 per year, with a 50% fringe rate, the fully-loaded annual cost per operator would be $51,000. On an hourly basis, this would work out to a fully-loaded rate of $24.52.
Based on the schedules of the preliminary operating plan, 12 operators would be required working on average 9 hours per weekday. Including weekend service, as well as vacation and sick day coverage, a total of 18 operators are required to cover the Dane County starter line service. Using the $24.52 hourly rate (including fringe benefits) results in an annual crew cost of $1.1 million.
Note that the above estimate is based on all train operators working straight work pieces. This means that there are no split or swing (work both rush periods, off during base period) shifts in the above tabulation. Refinement of the operating schedules may allow split/swing shifts to be incorporated, reducing the total annual crew costs.
In the above discussion, on-board staffing requirements are predicated on one-person train operation, which is the design basis for the "RegioSprinter" and the other lightweight DMUs. This presumes that the current law in Wisconsin requiring two-person train crews would be waived in special cases, such as the commuter rail service for Dane County. In the absence of these changes, the requirement to operate the commuter trains with two-person crews could increase the total crew costs by as much as $1 million per year.
Another cost in the transportation staffing is dispatch/operations control. With scheduled train service occurring between 6:00 a.m. and midnight on a daily basis, and with the first and last trains actually starting and ending almost one hour before and after the service hours, 24 hour dispatch coverage is felt to be warranted. During the non-operating hours, the commuter rail dispatcher would deal with any on-line maintenance crews, as well as the yard and freight operations dispatcher.
To provide the 24-hour, seven days per week coverage, five dispatcher positions are required. With vacations and sick leave factored in, 6 positions would be required.
Regional rail dispatchers in Wisconsin are currently paid $35,000 per year. With the 50% fringe, the fully-loaded cost per person becomes $52,500. On an hourly basis, this works out to a fully-loaded rate of $25.24.
For the six dispatch/field supervision positions, the annual cost will be $315,000.
Fare Inspection/Security/Revenue Collection
The proof-of-payment fare collection system will require the use of roving fare inspectors to check fare media validity. With a projected daily ridership of 15,000 and a peak vehicle requirement of 12 cars, it is estimated that three fare inspectors will be required in the peak, with two in the off-peak. Two shift coverage, seven days per week (plus one rush-hour "swing" [a.m. and p.m. peak] weekdays only) is required. This works out to six fare inspector posts. Applying the 1.11 productivity factor, a total of seven positions are required.
This estimate assumes the fare inspectors are paid the same rate as the train operators, i.e., each inspector would cost $51,000 (fully-loaded). Therefore, the total annual cost for fare inspectors would be $357,000.
If two-person train crews are required (as discussed in the preceding section of this analysis); it could be that the second person would handle all fare transactions. In this instance, the expenditure for fare inspectors might be eliminated in entirety.
Security of the physical plant is also important, particularly when staff coverage is low at a facility. In the case of the maintenance and storage facility (MSF), the required security can be provided by closed-circuit television, an intercom system and a remote-control gate. The train dispatchers would observe the closed circuit television (CCTV), use the intercom as required, and control the operation of the gate. In this way, no additional staffing is required. The capital cost of the aforementioned equipment is covered in the MSF allocation.
Staff is also required to empty ticket vending machine vaults of cash, particularly at the ends of each peak period. If a three-person crew (using a vault truck) consisting of a driver, guard and revenue collector is used, working a swing shift on weekdays only, and a fully-loaded, annual cost of $45,000 is used for these positions, the total annual cost will be $135,000.
No weekend or holiday vault emptying would be performed. An alarm system on the machines, as well as the use of tamper-proof hardware and equipment will provide a sufficient level of security and revenue protection.
As noted above, if two-person crews are required on all trains, the need for a revenue collection crew might be superseded.
Vehicle Maintenance Costs
The "RegioSprinter" and other similar, light weight, low-floor DMUs are physically very much like a modern light rail car. While the traction motor maintenance on the light rail car is not identical to the maintenance required on the DMU's engine and drivetrain, the relative requirements are similar enough to allow us to use light rail maintenance costs and experience to approximate what will be required for the DMU.
A recent survey of DMU manufacturers indicates that about $41,100 worth of parts per car should be allowed on an annual basis. FTA Section 15 data was used to determine that the average light rail vehicle requires around 1800 maintenance hours per year, and that the average cost per maintenance hour is on the order of $33. Therefore, the total cost for maintenance hours per car would be approximately $59,400 annually.
FTA data was also used to determine that approximately 810 hours of maintenance support staff per light rail vehicle are required on average, and that each of these hours has an average cost of $15. Therefore, the total annual cost for maintenance support hours is around $12,150.
Consequently, the estimated annual maintenance cost per vehicle would be on the order of $113,000. With a fleet of 14 cars required for the starter line service, this yields a total annual vehicle maintenance expense of approximately $1.6 million.
Plant/Facilities Maintenance Costs
Initial estimates for the staffing required in this cost category were provided by one of Wisconsin's larger regional railroads, which has extensive physical plant in and around Dane County. The staffing estimate for all categories of plant/facilities maintenance (track, signal, communications, buildings and grounds, fare collection equipment, etc.) would entail between 12 and 20 persons. This level of staffing was felt to be high for the 14.1 route-mile starter line.
Providing two-person crews in each of the functional areas listed above would require 10 persons. Current average salaries for comparable plant/facilities maintenance personnel in Wisconsin are approximately $22 per hour. On an annual basis, this is $45,760. Loading in the 50% fringe rate, the escalated cost per person becomes $68,640. With a staff of 10, the fully-loaded cost would be $686,000.
Applying a 0.5% general and administrative cost allowance, and a 2% overtime allowance, the annual escalated cost total becomes $740,000.
Managerial Staffing
Regardless of who operates the commuter rail system, there will be a need to have managers which are primarily focused on the commuter rail operation, as well as to oversee the operations and maintenance contract, and other specialty subcontractors. In addition, there are service planning functions, which a regional freight rail carrier does not normally have to deal with. While these service planning functions could also be contracted out (to Madison Metro, for example), the costs for performing these activities are included here, in order to be complete and conservative.
A commuter rail operations manager is required. In order to attract someone of the proper caliber and experience to this position, a fully-loaded (including 37% fringe, similar to Madison Metro's rate) cost of $106,850 is recommended (by comparison, the Madison Metro General Manager's position would cost approximately $114,250).
Contract administration responsibilities could be extensive if many services are contracted. At its most simplistic, the commuter rail agency could have a single contract with a regional railroad, which would then be responsible for all subcontract relationships. The fully-loaded cost for the Contract Administrator is recommended to be $83,000.
An operations planner/scheduler is required for the commuter rail operation. While these functions could also be handled by contract (as described above), a fully-loaded cost of $76,400 (approximately equal to the cost of a Madison Metro Transit Scheduler Planner) is recommended.
Office assistance is also required for the managerial function. The fully-loaded cost for the Office Assistant is recommended to be $43,600 (again, approximately equal to the cost of an Office Assistant at Madison Metro).
A receptionist/clerk is also required for the commuter rail office. Using Madison Metro's current cost information for a Transit Receptionist, this position would cost $38,400.
With a publicly-supported operation, there is also a need for capital programming/grants administration. However, this may not be a full-time position. Depending on the relationship to Madison Metro, the two agencies could work out a time-sharing/cost-sharing agreement for this function. In the absence of such an agreement, the need to provide a full-time capital programmer/grants administrator would cost the commuter rail operation approximately $68,200, fully-loaded.
Similarly, timely provision of accurate transit information is crucial to the success of any transit service. It is assumed that the commuter rail operation and Madison Metro could work out an arrangement whereby Madison Metro's transit information center is also used to provide commuter rail information. Providing one additional information specialist, at the current Madison Metro costs, would cost the commuter rail agency $35,400.
Again, the exact staffing details are highly dependent on the contractual responsibilities and relationships which govern the provision of commuter rail service in Dane County. For the above staffing plan, the total annual cost would be on the order of $452,000.
Note that the extent to which the commuter rail system is affiliated with an existing operation, such as Madison Metro, could also dramatically affect the managerial and administrative staffing requirements. Continuing with the conservative approach followed in this cost estimate, the above estimate is predicated on the two operations being largely independent entities.
Non-Labor Costs
In the case of transportation, fare inspection/security/revenue collection and plant maintenance, no costs for materials and tools have been included. The vehicle maintenance activities already include these expenses. In the transportation category, these expenditures will include miscellaneous supplies and services. For plant maintenance activities, these costs include:
- materials and tools associated with the routine inspection, maintenance and repair of the track
- an annual rail grinding contract;
- an annual rail ultrasonic inspection contract;
- repair or replacement of grade crossing surfaces, ballast cleaning, out-of-face renewal, etc.;
- materials and tools associated with the routine inspection, maintenance and repair of signal and communications equipment;
- materials and tools required for the routine inspection, maintenance and repair of ticket vending equipment;
- materials and tools associated with the routine inspection, maintenance and repair of buildings and grounds;
- materials, parts and tools required for the routine inspection, maintenance and repair of maintenance shop equipment;
- contract maintenance of specialized shop equipment, including the calibration and certification of shop equipment;
- miscellaneous supplies and services associated with the management and administration of the plant maintenance activity;
- miscellaneous supplies and services associated with the managerial staff for the commuter rail operation.
There are other system-wide costs which fall into the non-labor cost category, including:
- supplies and services required for fare inspection, revenue collection and security functions;
- light, heat, power and water associated with the operation of stations, maintenance and control facilities;
- telephone service for the operations, maintenance, administrative and management functions;
- trash removal and waste disposal services (including proper disposal of contaminants).
The basis for the determination of these costs (and the resultant cost) is presented in Table 4-7.
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Therefore, the total, annual non-labor cost is estimated to be $580,500.
Costs associated with the maintenance of fare collection equipment might be reduced in the event that two-person crews are required on all trains, and that the second crew member is engaged in fare collection activities. However, the car may then have a simple fare register, or the crew member may have a portable fare register and rove the vehicle, so there is still some expense associated with the maintenance of this equipment.
In closing this section, note that many of the above costs could be allocated either as direct agency expenses, or as contract costs. For example, the original equipment manufacturer of the fare collection equipment could provide maintenance services on a contract basis. Determination of how these responsibilities would be handled would be made in a later phase of the project. The costs included above are conservative, in order to allow for flexibility in decision-making.
4.2.2 "Full" System Costs
Table 4-8 summarizes annual O & M costs for the "Full" system rail alternative.
If two-person train crews are required, the annual expenditure could rise by as much as $1 million, to $12.2 million. As noted in the appropriate sections of the text, there are certain other cost adjustments that could be made in the maintenance personnel, tools and materials associated with fare collection maintenance (as well as in other departments/job classifications), in this event.
Costs for Fuel
Using the fuel efficiency described previously in this chapter and a review of the full-build weekday schedule, the fuel consumed would be approximately 1,900 gallons per day. Saturday service would consume 1150 gallons, and Sundays/Holidays 800 gallons.
Therefore, each week 11,450 gallons would be required, or 595,400 gallons per year. Current costs of $0.65 per gallon for diesel fuel are being paid in Wisconsin. Applying this on an annual basis would result in a cost for fuel of $387,000.
Vehicle Operator Costs
Based on the preliminary schedules for the full-build system, 26 operators would be required each weekday, working on average 9 hours per day. Including weekend service, sick leave and vacation coverage, a total of 38 operators are estimated to be required for the Dane County commuter rail service. Using the $24.52 hourly wage rate (including fringe), an annual crew cost of $2.3 million is estimated.
Similar to the assumptions for the "starter" system, the above estimate is based on all train operators working straight work pieces. This means that there are no split or swing (work both rush periods, off in the base period) shifts in the above tabulation. Refinement of the operating schedules may allow split/swing shifts to be incorporated, reducing the total annual crew costs.
Further, on-board staffing requirements are predicated on one-person train operation, which is the design basis for the "RegioSprinter" and the other lightweight DMUs. This presumes that the current law in Wisconsin requiring two-person train crews would be waived in special cases, such as the commuter rail service for Dane County. In the absence of these changes, the requirement to operate the commuter trains with two-person crews could increase the total crew costs by as much as $1 million per year.
Another cost in the transportation staffing is dispatch/operations control. With scheduled train service occurring between 6:00 a.m. and midnight on a daily basis, and with the first and last trains actually starting and ending almost one hour before and after the service hours, 24 hour dispatch coverage is felt to be warranted. During the non-operating hours, the dispatcher would deal with any on-line maintenance crews, as well as the operations of vehicles in and around the yard, and with the freight service dispatcher.
Five positions are required to provide the 24-hour, seven days per week coverage. With vacations and sick leave factored in, 6 positions would be required.
Regional rail dispatchers in Wisconsin are currently paid $35,000 per year. With the 50% fringe, the fully-loaded cost per person becomes $52,500. On an hourly basis, this works out to a fully-loaded rate of $25.24.
Given the intensity of train operations on the Isthmus in the peak period, and with trains turning-back at intermediate locations, it is felt necessary to have a field supervisor to assist in operations control. This person would be radio-equipped, and could "rove" the Isthmus, assisting train operators in trouble-shooting, as well as working with dispatch and the train operators to ensure regularity of service. In peak seasons (when sporting events are occurring at Kohl Center/Camp Randall stadium), this post would also be required to cover evening hours (for event-break staging), as well as to provide weekend special-event coverage. Two additional positions are required over and above the six dispatcher positions. For the eight dispatch/field supervision positions, the annual cost will be $420,000.
Fare Inspection/Security/Revenue Collection
The proof-of-payment fare collection system will require the use of roving fare inspectors to check fare media validity. With a projected daily ridership of 26,000 and a peak vehicle requirement of 26 cars, it is estimated that three fare inspectors will be required weekdays, with two each on Saturdays, Sundays and Holidays. Two shift coverage, seven days per week requires a total of eight fare inspector posts.
For the purposes of this estimate, if we assume the fare inspectors are paid the same rate as the train operators, each inspector would cost $51,000 (fully-loaded). Therefore, the total annual cost for fare inspectors would be $408,000.
If two-person train crews are required (as discussed in the preceding section of this analysis); it could be that the second person would handle all fare transactions. In this instance, the expenditure for fare inspectors might be eliminated in entirety.
Security of the physical plant is also important, particularly when staff coverage is low at a facility. In the case of the maintenance and storage facility (MSF), the required security can be provided by closed-circuit television, an intercom system and a remote-control gate. The train dispatchers would observe the CCTV, use the intercom as required, and control the operation of the gate. In this way, no additional staffing is required. The capital cost of the aforementioned equipment is included in the MSF allocation.
Staff is also required to empty ticket vending machine vaults of cash, particularly at the ends of each peak period. If a three-person crew (using a vault truck) consisting of a driver, guard and revenue collector is used, working a swing shift on weekdays only, and a fully-loaded annual cost of $45,000 is used for these positions, the total annual cost will be $135,000.
No weekend or holiday vault emptying would be performed. An alarm system on the machines, as well as the use of tamper-proof hardware and equipment, will provide a sufficient level of security and revenue protection.
As noted above, if two-person crews are required on all trains, the need for a revenue collection crew might be superseded.
Vehicle Maintenance Costs
The estimated annual maintenance cost per vehicle would be on the order of $113,000. With a fleet of 30 cars required for the full-build system, this yields a total annual vehicle maintenance expense of approximately $3.4 million.
Plant/Facilities Maintenance Costs
Initial estimates for the staffing required in this cost category were provided by one of Wisconsin's larger regional railroads, which has extensive physical plant in and around Dane County. The staffing estimate for all categories of plant/facilities maintenance (track, signal, communications, buildings and grounds, fare collection equipment, etc.) would entail between 12 and 20 persons. In estimating the costs for the "starter line", a plant maintenance staff of 10 was required. This provided two-person coverage in each of the five functional areas listed above.
Staffing requirements for the full-build system, have been based on two shift coverage, five days per week, by a two-person crew in each of the five functional areas. On Saturdays, Sundays and Holidays single-shift coverage by a two-person crew in each of the five areas would be provided. This works out to a total of 20 posts. Multiplying this total by the 1.11 productivity factor, a total of 22 plant maintenance positions is required.
Current average salaries for comparable plant/facilities maintenance personnel in Wisconsin are approximately $22 per hour. On an annual basis, this is $45,760. Loading in the 50% fringe rate, the escalated cost per person becomes $68,640. With a staff of 22, the fully-loaded cost would be $1.5 million.
Applying a 0.5% general and administrative cost allowance, and a 2% overtime allowance, the annual escalated cost total becomes $1.6 million.
Managerial Staffing
Even if the Dane County commuter rail system is one which is largely operated by contract (for example, with a regional railroad handling operations and maintenance responsibilities), there will still be a need to have managers which are primarily focused on the commuter rail operation, as well as to oversee the contract with the operations and maintenance contract, and other specialty subcontractors. In addition, there are service planning functions, which a regional freight rail carrier does not normally have to deal with. While these service planning functions could also be contracted out (to Madison Metro, for example), the costs for performing these activities are included here, in order to be complete and conservative.
A commuter rail operations manager is required. In order to attract someone of the proper caliber and experience to this position, a fully-loaded (including 37% fringe, similar to Madison Metro's rate) cost of $106,850 is recommended (by comparison, the Madison Metro General Manager's position would cost approximately $114,250).
Contract administration responsibilities could be extensive, depending on the extent to which the commuter rail system contracts-out services. At its most simplistic, the commuter rail agency could have a single contract with a regional railroad, which would then be responsible for all subcontract relationships. The fully-loaded cost for the Contract Administrator is recommended to be $83,000.
An operations planner/scheduler is required for the commuter rail operation. While these functions could also be handled by contract (as described above), a fully-loaded cost of $76,400 (approximately equal to the cost of a Madison Metro Transit Scheduler Planner) is recommended.
Office assistance is also required for the managerial function. The fully-loaded cost for the Office Assistant is recommended to be $43,600 (again, approximately equal to the cost of an Office Assistant at Madison Metro).
A receptionist/clerk is also required for the commuter rail office. Using Madison Metro's current cost information for a Transit Receptionist, this position would cost $38,400.
With a publicly supported operation, such as the Dane County commuter rail is envisioned to be, there is also a need for capital programming/grants administration. However, there may not be a full-time need for this position. Depending on the relationship to Madison Metro, the two agencies could work out a time-sharing/cost-sharing agreement for this function. In the absence of such an agreement, the need to provide a full-time capital programmer/grants administrator would cost the commuter rail operation approximately $68,200, fully-loaded.
Similarly, timely provision of accurate transit information is crucial to the success of any transit service. It is assumed that the commuter rail operation and Madison Metro could work out an arrangement whereby Madison Metro's transit information center is also used to provide commuter rail information. Providing one additional information specialist, at the current Madison Metro costs, would cost the commuter rail agency $35,400.
Again, the exact staffing details are highly dependent on the contractual responsibilities and relationships which govern the provision of commuter rail service in Dane County. For the above staffing plan, the total annual cost would be on the order of $452,000.
Note that the extent to which the commuter rail system is affiliated with an existing operation, such as Madison Metro, could also dramatically affect the managerial and administrative staffing requirements. Continuing with the conservative approach followed in this cost estimate, the above estimate is predicated on the two operations being largely independent entities.
Non-Labor Costs
In the case of transportation, fare inspection/security/revenue collection and plant maintenance, no costs for materials and tools have been included (Siemens'/PB's data for vehicle maintenance activities already includes these expenses). In the transportation category, these expenditures will include miscellaneous supplies and services. For plant maintenance activities and system-wide cost, non-labor costs include various items. The basis for the determination of these costs (and the resultant cost) is presented in Table 4-9.
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Therefore, the total, annual non-labor cost is estimated to be $2.046 million.
Costs associated with the maintenance of fare collection equipment might be reduced in the event that two-person crews are required on all trains, and that the second crew member is engaged in fare collection activities. However, the car may then have a simple fare register, or the crew member may have a portable fare register and rove the vehicle, so there is still some expense associated with the maintenance of this equipment.
In closing this section, note that many of the above costs could be allocated either as direct agency expenses, or as contract costs. For example, the original equipment manufacturer of the fare collection equipment could provide maintenance services on a contract basis. Determination of how these responsibilities would be handled would be made in a later phase of the project. The costs included above are conservative, in order to allow for flexibility in decision-making.