STATUS REPORT ON

RAILROAD OPERATIONS IN DANE COUNTY

January 31, 1995

I. Private and Public Railroad Operations in Dane County

Rail service in Dane County is currently provided over privately owned rail corridors by two mainline operators (the Soo Line and the Chicago and North Western Transportation Company) and over publicly owned facilities by a shortline operator (the Wisconsin and Calumet Railroad Company). The status of each of these operations is summarized in Table I and illustrated on Maps I and II. Table I also references two abandoned rail corridors that have been purchased by the Department of Natural Resources for use as bike paths. In both instances, the rail corridors have been kept intact for possible future, alternative uses.

During the past seventeen years, four rail transit commissions have been created in southern Wisconsin to: (a) preserve rail service or the potential for rail service, and (b) influence policy relative to the future use of the rail corridors if rail service is discontinued. Three of these are currently active. An underlying premise of these commissions has been the need to promote a systemwide concept of rail service. Member counties throughout southern Wisconsin have worked cooperatively to ensure that rail service does not terminate at county borders but continues to key market endpoints such as Chicago and the Mississippi River at Prairie du Chien.

Rail transit commissions are eligible recipients of grants made through the Wisconsin Department of Transportation (WisDOT) for the purposes of assisting local units of government in preserving rail service. Railroad lands are acquired by the State and leased to the commissions. Grants are made for 80 percent of the cost of acquiring track and for 80 percent of rehabilitation expenses. In the past, the 20 percent local match for capital improvements has been paid by the counties. More recently, the counties have contributed 5 percent, and the shortline operator has, through loans from WisDOT, contributed the remaining 15 percent. This public investment in railroad facilities is protected from deterioration by an agreed upon schedule for meeting general maintenance and major rehabilitation needs over a period of years as funding becomes available.

Dane County is a member of two of the four rail transit commissions serving southern Wisconsin. The County's involvement in each of these commissions and its share of the 20 percent local match for capital improvement costs are discussed below and summarized in Table I.

The South Central Wisconsin Rail Transit Commission (SCWRTC) was created in 1978 when Dane and Green Counties entered into a contract to continue rail service on the branch line running between Madison and Freeport, Illinois. The line was acquired from the Illinois Central Gulf Railroad in 1980, and shortline operations began in February 1981. Some funds for rehabilitation were appropriated when the line was acquired. Due to operator changes, operator financial problems, and WisDOT rules for payment of rehabilitation, needed work on the line was not completed. Recent changes in the rules for payment, the provision of service by a new shortline operator, and continued deterioration of the line during the last seventeen years have made rehabilitation of the line an ongoing need (Table I, Item 1).

On August 27, 1987, the State Commissioner of Transportation ordered the repair and upgrading of nine railroad crossings in the City of Madison. This work was needed to ensure public safety and to provide a reasonably smooth surface for vehicular, bicycle, and pedestrian traffic. Rehabilitation of eleven Madison grade crossings (including the nine crossings specified in the Commissioner's order) was completed in 1989. The Madison Beltline Crossing was rehabbed in 1992.

In 1983, the South Eastern Wisconsin Transportation Corporation financed and built a coal spur to access the University of Wisconsin Heating Plant in Madison and avoid switch charges with the Milwaukee Road at this facility. The spur is located on state land leased to the Commission and on University land. In 1985 the spur was assigned to the First Citizens States Bank of Whitewater. (The bank does not own that portion of the spur constructed on University land.) In 1986 the bank commenced a lawsuit to require the Commission to purchase this spur under the terms of its operating agreement. In August 1990, the Commission paid the bank $2,500 in full settlement of the suit. Remaining funds of $10,556 appropriated for acquisition of the spur were designated for future rehabilitation work.

In 1995 the SCWRTC declared the Madison rail yard east of Park Street excess property and authorized WRRTC to remove it. The rail yard is currently in need of major rehabilitation work. Contingent on acceptance and approval of the University of Wisconsin's share of the project's cost by the UW Board of Regents and the State Building Commission in 1995, the yard will be replaced with a number of side tracks on the WRRTC's rail corridor between Madison and Middleton.

Because of unsafe operating conditions, the Summit (near Brunsell Lumber in Madison) to Freeport portion of the line was embargoed on December 15, 1993. Rail service will resume as soon as track and bridge problems are corrected. It is anticipated that WICT will list the Madison-Summit segment as a rehabilitation priority for 1996.

The Wisconsin River Rail Transit Commission (WRRTC) was created in 1980 when Dane, Sauk, Iowa, Richland, Crawford, and Grant Counties entered into a contract to continue rail service on the branch line running between Middleton, Prairie du Sac, Prairie du Chien, and Richland Center. The rail line was acquired from the Milwaukee Road in 1982 and operated by a shortline railroad until January 1985 when rail service was discontinued.

The Wisconsin and Calumet Railroad Company (WICT), a wholly owned subsidiary of the Chicago West Pullman Corporation, was then selected by the Commission as a replacement operator. Due to insurance problems, the railroad was not able to obtain trackage rights from the Soo/Milwaukee to operate between Madison and Middleton to access the western end of the line until mid 1986. Regularly scheduled rail service between Middleton-Prairie du Chien began in September 1986. The WICT was purchased by the Wisconsin and Southern Railroad Company in 1992.

In 1982 the Milwaukee Road indicated its intention of abandoning the rest of this rail line between Madison and Janesville, and the WRRTC began to pursue acquisition of the line. This purchase would preserve rail service to McFarland, Stoughton, and Edgerton. Rock and Walworth Counties joined the WRRTC in 1983, and the proposed acquisition was extended to include abandoned Milwaukee Road property between Madison and Fox Lake, Illinois. Walworth County communities would be served with the WRRTC's acquisition of track between Janesville and Walworth and a branch to Elkhorn. Negotiations for acquisition with Chicago Milwaukee Corporation Realty were completed in 1986. Operations between Madison and Janesville began in December 1986. Rail service over the Janesvilleto Fox Lake line could not begin until required insurance became available. Operations on this segment began early in 1989.

In April 1987, the WRRTC assumed authority over the Waukesha-Milton Junction rail line, and WICT began providing service on it. Until 1986, this line was owned by the City of Whitewater and WisDOT. Waukesha County joined the Commission in 1987.

Rehabilitation of portions of the entire WRRTC line was necessary to permit operating speeds of 25 miles per hour. This level of service is required to maintain the viability of the line. Rehabilitation project priorities have been influenced by potential, major economic developments and by changing rail user markets. Rehabilitation was completed between Middleton-Mazomanie-Prairie du Sac in 1988-89 and between Madison-Janesville in 1991. Rehab from the Wisconsin State line to Fox Lake, Illinois, was completed in 1991, and the Janesville-Illinois State line project was completed in 1992. Mazo manie to Prairie du Chien was rehabbed between 1991 and 1993. Bridges on this line segment are scheduled to be completed in April 1994.

WICT purchased the Madison-Middleton line from the SOO line in 1994. Acquisition of this segment helps to preserve the continuity of the entire rail line (Prairie du Chien-Fox Lake, Illinois) and to establish control of the southern Wisconsin rail system. The Madison-Middleton rail corridor is scheduled for rehabilitation in 1995. WisDOT is currently assessing the feasibility of purchasing this corridor.

The future status of other private railroad operations in Dane County is difficult to predict. Abandonments can occur more easily and rapidly under deregulation than in the past. In 1987, the Chicago and North Western abandoned the rail line between Reedsburg and Camp Douglas. Although abandonment of this line does not have a direct economic impact on Dane County, it could signal the first in a series of abandonments including Reedsburg-Madison-Janesville. If this and/or abandonments on other lines were to occur, public acquisition would be considered, and Dane County asked to support these efforts in order to maintain the continuity of the entire system.

In June 1984, the Dane County Board of Supervisors adopted Resolution 69, Sub. 1, to establish a control account (Dane County Rail Corridor Studies and Negotiations) with funds to be used for Dane County to pursue the acquisition and land banking of the remaining privately owned railroad property in Dane County from the Milwaukee Road and Chicago and North Western.

In October 1994, the Dane County Board of Supervisors adopted Resolution 125, Sub. 1, creating the Dane County Committee to Evaluate Commuter Rail Implementation. The committee is currently being formed. It will represent a variety of perspectives that would be directly affected by commuter rail.

Public investment in railroad facilities throughout the system has been and will continue to be protected from deterioration by an agreed upon schedule for meeting general maintenance and major rehabilitation needs over a period of years. The shortline operator is responsible for maintaining rehabilitated lines at the level to which they have been upgraded.

TABLE I

Status of Rail Corridors in Dane County
and Anticipated Dane County Share of the 20 Percent Local Match of
Rail Transit Commission Capital Improvement Costs

Status Dane County 20%

Maroon text: Line/Segment

Black text: Status January 1995

Blue text: Dane County 20% - Local Match

SHORTLINE RAILROAD OPERATIONS

1. Madison-Freeport*

Publicly owned rail line acquired from the Illinois Central Gulf Railroad in 1980 (operated by the Wisconsin & Calumet RR). Eleven rail grade crossings in Madison were rehabilitated in 1989. Madison beltline crossing rehabbed in 1992. Madison rail yard declared excess property in 1995. Tentatively scheduled for removal in 1995.
Rehabilitation
Madison-Monroe: $74,880 previously appropriated Monroe-Freeport: $69,080 appropriated in 1988 for 50% of track repair in Illinois.

*Note: Appropriated funds for rehabilitation of the Madison-Freeport line have been transferred by Dane County to meet ongoing local match requirements for rehabilitation on the WRRTC line.

2. University Coal Spur Madison.

Built by South Eastern Wisconsin Transportation Corporation in 1983; currently owned by SCWRTC.
Acquisition
$13,056 previously appropriated. Acquired by SCWRTC from First Citizens State Bank of Whitewater in 1990 for $2,500. Remaining funds of $10,556 were designated Madison-Freeport rehabilitation.

3. Madison-Middleton

Purchased from the SOO line by the Wisconsin & Southern Railroad Company in 1994. Currently being considered for purchase by WisDOT. Scheduled for rehabilitation in 1995.
Acquisition and
Rehabilitation
$48,900 for acquisition previously appropriated. Scheduled for rehabilitation in 1995.

4. Middleton-Prairie du Chien

Publicly owned rail line acquired from the Milwaukee Road in 1982 (operated by the Wisconsin & Calumet RR). Middleton-Mazomanie-Prairie du Sac segments and Sauk City Bridge were rehabilitated in 1988-90. Mazomanie-Prairie du Chien was rehabbed between 1991-1994.
Rehabilitation
Middleton-Mazomanie-Prairie du Sac: $935,808 previously appropriated; $1,688 from accrued interest was used for additional Sauk City Bridge work in 1990.

5. Madison-Janesville-Fox Lake, Illinois

Publicly owned rail line acquired from the Chicago Milwaukee Corporation in 1986. Madison-Janesville-Fox Lake operated by Wisconsin & Calumet RR. Operations on the Janesville-Fox Lake-Chicago line began in March 1989. Madison-Janesville and Wisconsin State line-Fox Lake, Illinois, were rehabbed in 1991. The Janesville-Illinois State line project was completed early in 1992.
Rehabilitation
Monona Towers-Edgerton: $577,500 previously appropriated; $1,441 previously appropriated for Phase I start-up rehabilitation on the Janesville-Fox Lake, IL, segment; $5,000 from accrued interest was used to rehab the Rock River Bridge in 1990.

6. Waukesha-Milton Junction
Publicly owned rail line acquired from the City of Whitewater in 1986. Operated by Wisconsin & Calumet RR since April 1987. Some crossings were rehabbed in 1991.
Rehabilitation to be completed between 1993-1994. No additional requests for funding are anticipated.

PRIVATE RAILROAD OPERATIONS

7. Madison-Portage

Privately owned and operated by the Soo Line.
Note: Items 7-13: No county capital improvement costs are anticipated. Unex pected abandonment of any of these lines could result in the need for public acquisition and subsequent rehabilitation expenditures.

8. Madison-Sun Prairie-Watertown

Privately owned and operated by the Soo Line.

9. Madison-Cottage Grove
Privately owned and operated by the Chicago and North Western Transportation Company. Bike path constructed adjacent to track in Madison between Marquette St. and Dempsey Road.

10. Reedsburg-Baraboo-Madison-Janesville
Privately owned and operated by the Chicago and North Western Transportation Company.

11. Cottage Grove-Waukesha

Publicly owned corridor (DNR) acquired from the Chicago and North Western Transportation Company and used as a bike path.

RAILROAD CORRIDORS USED FOR ALTERNATIVE PURPOSES

12. Fitchburg-Dodgeville

Publicly owned corridor (DNR) acquired from the Chicago and North Western Transportation Company and used as a bike path.
Note: Items 7-13: No county capital improvement costs are anticipated. Unex pected abandonment of any of these lines could result in the need for public acquisition and subsequent rehabilitation expenditures.

13. Madison

City of Madison acquired abandoned Soo Line Corridor between Hancock and Marquette Streets and Johnson and Ingersoll Streets in 1991.

II. Shortline Railroad Operations in Dane County

The South Central Wisconsin & Wisconsin River Rail Transit Commissions have long-term operating contracts with the Wisconsin and Calumet Railroad Company (WICT). WICT currently operates over 335 miles of rail corridor in southern Wisconsin. In August 1992, WICT was purchased by the Wisconsin & Southern Railroad Company (WSOR) from Chicago West Pullman Corporation (CWP). WSOR also operates over 147 miles of rail corridor serving Winnebago, Fond du Lac, Green Lake, Columbia, Dodge, Washington, Waukesha, and Milwaukee Counties.

Traffic Volumes

The following traffic volumes are for the WICT system line segments including Prairie du Chien-Madison-Janesville-Fox Lake, Illinois; Madison-Monroe-Freeport, illinois; and Monroe-Janesville. Major commodities moved include lumber, fertilizer, grain, and sand.

            TABLE II
              WICT Traffic Volumes
            1990-1994

Year Carloadings

1994	10,001
1993	7,277
1992	8,496
1991	8,503
1990	6,755


   

III. Funding Public Rail Corridor Operations in Dane County

Disposition of Prior Dane County Contributions to the SCWRTC and WRRTC

Between 1978 and 1995, Dane County contributed a total of $96,709 in administrative fees and $196,672 in capital project costs for preservation of rail service on the SCWRTC line between Madison and Freeport, Illinois. An annual breakdown of funds appropriated and the current status of individual capital projects budgeted are presented in Table III.

According to its operating contract with the SCWRTC, WICT is to contribute an annual rental fee of $12,000 for use of the track on this line. The operator has also agreed to pay 2% of gross operating revenues for all gross operating revenues in any one year in excess of $600,000 gross operating revenue--provided that such payment does not exceed 100% of the operator's federal pre-tax income based on a mileage prorate.

Between 1980 and 1995, Dane County contributed a total of $61,512 in administrative fees and $1,651,365 in capital project costs for preservation of rail service on the WRRTC line between Prairie du Chien-Middleton-Madison-Janesville-Fox Lake, Illinois. An annual breakdown of funds appropriated and the current status of individual capital projects budgeted are presented in Table IV.

According to its operating contract with the WRRTC, WICT is to pay the commission $10 per loaded railroad car on the system to cover track rental charges.

TABLE III
1978-1995 Dane County Contributions to the
South Central Wisconsin Rail Transit Commission

¹ Dollar amounts represent expenditures. Includes staff work, attorney fees, and per diems.
² Dollar amounts are assigned to the year in which they were appropriated. Expenditures are indicated in the project status notes below.
³ Acquisition completed 1980.
⁴ Acquisition settlement in 1990 for $2,500. Remaining funds of $10,556 to be used for rehabilitation of the Madison-Freeport line.
⁵ Since requesting this local match, a number of other rail segments have been designated higher priority projects because of their increased traffic potentials, overall economic development opportunities, and/or public safety considerations. As a result, rehabilitation of this line has been delayed. In 1987 the State Transportation Commissioner ordered rail grade crossing rehab work in the City of Madison. Eleven crossings were repaired in 1989.
⁶ By Dane County Board Resolution 6/1/89, $69,080 was transferred from Rehabilitation: Monroe-Freeport to a new account, Rehabilitation: Madison-Summit Rail Crossing to cover grade crossing repairs in the City of Madison.
⁷ $5,375 transferred from Rehabilitation: Monroe-Madison to Rehabilitation: Madison Beltline Rail Crossing.
⁸ $853 transferred from Rehabilitation: Madison-Summit Rail Crossing to Rehabilitation: Madison-Beltline Rail Crossing.
⁹ In 1995 Dane County transferred $59,205 from SCWRTC acct. 8640-8194, "Mad/Summit Rail," and $5,181 from SCWRTC acct. 8640-8178, "Rehab/Monroe-Madison," to WRRTC to provide part of WRRTC's 5% local match for rehabbing the Madison-Middleton line segment.

The Madison-Freeport line rehabilitation project will be rescheduled for completion within the next five years. Additional funds will need to be appropriated for this project.

TABLE IV
1980-1995 Dane County Contributions to the
Wisconsin River Rail Transit Commission

¹ Dollar amounts represent expenditures. Includes staff work, attorney fees, and per diems.
² Dollar amounts are assigned to the year in which they were appropriated. Expenditures are indicated in the project status notes below.
³ Acquisition completed in 1986. Funds were appropriated under the Madison/Janesville Rail Acquisition Account. $24,614 in unused funds were transferred to the Middleton-Mazomanie rehabilitation account in 1986.
⁴ Acquisition completed in 1982. 1988 expenditure of $32,145 represents bankruptcy settlement reimbursement to the shortline operator for advancement of Dane County's 20% local match for track acquisition. The remaining $70,077 was transferred to the Middleton-Mazomanie rehab account and used for rehabilitation of the line.
⁵ Negotiations for acquisition are proceeding slowly.
⁶ The Middleton-Mazomanie and Mazomanie-Sauk City projects were bid jointly. Initial bids received all exceeded the original project estimates and available local match. The project was modified, extended from Sauk City to Prairie du Sac, and rebid. Because of this delay, construction began late in the season in 1988 and was completed in 1989.
⁷ Projects completed in 1989.
⁸ Projects completed in 1990.
⁹ Funds taken from accrued interest on prior Dane County appropriations.
1990 appropriation of $14,372 was not used.
¹⁰ $6,000 transferred from Rehabilitation: Middleton-Mazomanie to Rehabilitation: Mazomanie-Prairie du Chien.
¹¹ $2,300 transferred from Rehabilitation: Mazomanie-Prairie du Chien to Rehabilitation: Middleton-Mazomanie.
¹² $1,760 transferred from Rehabilitation: Middleton-Mazomanie to Rehabilitation: Waukesha-Milton Junction.
¹³ Madison-Middleton Rehab Project estimated total cost of $2.7 million. WisDOT (80%), WSOR (15%), and WRRTC (5%). WRRTC 5% = $135,000; $43,000 of this is a new appropriation; $11,578 from WRRTC acct. 8565-8205, "Rehab/Middleton-Mazo;" $16,036 from WRRTC revenue acct. 8565, "Miscellaneous;" $59,205 from SCWRTC acct. 8640-8194, "Mad/Summit Rail;" and$5,181 from SCWRTC acct. 8640-8178, "Rehab/Monroe-Madison."