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HomeMy WebLinkAbout04/12/2016 03 Status of Yakima Valley Trolley SystemBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT Item No. 3. For Meeting of: April 12, 2016 ITEM TITLE: Status of Yakima Valley Trolley System SUBMITTED BY: Sean Hawkins, Economic Development Manager, 575-6274 SUMMARY EXPLANATION: The attached documents, for the April 12, 2016, Study Session with the Yakima City Council, City staff and the Yakima Valley Trolleys, are intended to provide Council and the public a view of the current status of the Yakima Valley Trolley System. The system is owned by the City of Yakima and is operated by the non-profit organization Yakima Valley Trolleys. The documents include a memo overview of the current status of the Yakima Valley Trolley System, an estimate prepared by Yakima Valley Trolleys of restoration costs for the Yakima to Selah line, Income Statements for the last three years from Yakima Valley Trolleys, a statement of repairs performed by the City of Yakima Streets Department from 2015-2016 and a Pro Forma estimate for a fully operating trolley system. ITEM BUDGETED: STRATEGIC PRIORITY: Economic Development APPROVED FOR SUBMITTAL s` Interim City Manager STAFF RECOMMENDATION: BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date 0 Mem- Status of Yakima Valley Trolleys 4/6/2016 0 Estimated Repairs by Street Department 2014-2016 4/6/2016 Type Cor Memo Co\er Memo D Yakima Valley Trdley Income Statements 2013-2015 4/6/2016 Coker Memo O Yakima to Selah Line Restoration Cost Estimate 4/6/2016 Cover Memo D Yakima Valley Trolley Pro Forma Statement 2016 and 4;6/2016 Cover Memo Beyond Memorandum To: Yakima City Council Interim City Manager, Jeff Cutter From: Sean Hawkins, Economic Development Manager Date: April 3, 2016 Subject: Status of Yakima Valley Trolleys The Trolley Today The time may have arrived to decide the fate of the last remaining section of the Yakima Valley Trolley system. While there is general community support for the nostalgic and historical attraction of the Yakima Valley Trolley system, the remaining trolley infrastructure is deteriorating so quickly that a decision must be made to either invest in its upgrade or close down the system. Since 1956, there have been no extensive track upgrades made to the Yakima to Selah line, the only section of track remaining from the original Yakima Valley Transportation Company system. Trolley Car 1776, the main car used today for tours, has had no major repairs or upgrades made to its electric engine system since 1976. Additionally, 6th Avenue from Chestnut Avenue to its northern terminus is in poor shape in part due to the presence of the trolley tracks running down its center and poses liability issues for the City related to damage to vehicles and challenges for businesses who use the road for their operations. Washington Fruit, Quanex and Stewart Subaru are three business who have shared concerns with City officials about doing business along that section of 6th Avenue given its poor condition. The Yakima City Council assisted with some of the maintenance backlog of the Yakima to Selah trolley line by including a $100,000 repair line item in the 2014 City of Yakima budget. As a result of that investment, restroom repair, HVAC upgrades and paint work have taken place in both the Trolley Barn and the museum. The largest improvement, at a cost of $83,000, will be paving the Trolley Barn/museum parking lot and installing new lighting, both of which will be completed this spring. These improvements will exhaust the $100,000 included in the 2014 City Council budget. It is very important to note that we would not be discussing the trolley system today without the longtime City partnership with Yakima Valley Trolleys. This volunteer group has given thousands of hours to keep the trolley system alive in the City of Yakima. Potential Revenue from Yakima Valley Trolleys The largest challenge for the trolley system is that normal operations do not produce enough revenue from rider fees to pay off any potential debt that would have to be incurred in order to upgrade trolley infrastructure. Were a decision made to invest resources in order to refurbish the trolley system, it would require a full understanding that the trolley system would become a loss leader for the City. This means that the benefit of having a trolley system in the future in Yakima could produce other benefits for the community, such as tourism, community pride, neighborhood revitalization and historic preservation, but would not generate revenue sufficient to retire any debt issued to fund refurbishment efforts. Attached to this memo are income statements prepared by Yakima Valley Trolleys for the years 2013-2015. While there were operating challenges in each of those years (Davis High School construction, for example), the organization generated between $20,000 and $22,000 in revenue. In each of those years, trolley service was interrupted to Selah and resulted in lower than expected revenues. Also attached is a pro forma prepared by Yakima Valley Trolleys regarding annual operations, which is based on a fully operating line between Yakima and Selah. The projected $39,000 in annual operating income assumes annual ridership of 2,300 people throughout a 26 -week operating season with admission fees set at $12 for adults and $8 for children. Additional revenue could also be generated by hosting trolley charters for groups and conducting private parties in the Trolley Barn. The Yakima Valley Trolley board estimates charters and private parties could add $6,000 in annual income. While the board is considering adding $18,000 in annual expenses to pay the salary of a part-time executive director, the attached pro forma assumes that all staff labor would be provided on a volunteer basis at no cost. Expense to Replace and Update Trolley Line to Selah and Repair Train Cars As previously noted, the only remaining section of track left in the Yakima Valley Trolley system is the line that links Yakima to Selah through Selah Gap. The section of that line that needs to be improved runs 21,000 feet, or nearly four miles in length. Cost estimates to improve that section of track have been prepared by Yakima Valley Trolleys board members, but have not been verified either independently or by City of Yakima engineering staff. If requested by the City Council, the City of Yakima engineering staff could prepare a comprehensive cost estimate regarding replacing the trolley line and repairing two trolley cars. Additionally, City of Yakima engineering staff could prepare a prioritization of repair needs schedule for consideration by the City Council if directed to do so. Yakima Valley Trolleys estimates the cost to repair the entire Selah line at $7,800,402. This would include brand new track infrastructure and a rebuild of the overhead contact system. Construction work and materials specified for infrastructure improvements would result in a railroad line capable of reliable weekly, and possibly daily, operation with regular light maintenance. While repairing the track is a major need, without restoring the two trolley cars, Yakima Valley Trolleys could find itself in a situation of having no cars to run the tracks. Yakima Valley Trolleys is recommending a complete restoration of Car 1776 at an estimated cost of $750,000, including new motors, a new compressor, electrical work, metal underframe refurbishment, new wheels and refurbished wood car body. Additionally, Car 1976 is in need of partial restoration at an estimated cost of $300,000. The work needed for Car 1976 includes repair of underframe motors, compressor repair, electrical work, and complete restoration of the car's seats. The estimated cost to complete all necessary repairs to the Yakima to Selah line and to the two trolley cars is $8,850,402. LOCATION EST+s'-‘• 6e/`+ E RAL_ iFv N n TYPE OF WORK, 6th Ave and Yakima Ave North Saw cut , asphalt removal vactor truck to remove ballast rails resecured, ballast replaced re -pave. 6th Ave_ and Yakima Ave South Saw cut , asphalt removal, 6th Ave and River road vactor truck to remove ballast rails resecured, ballast replaced re -pave. Saw cut asphalt removal, vactor truck to remove ballast rails resecured, ballast replaced re -pave, 6th Ave and Fruitvale Blvd Saw cut asphalt removal, 6th Ave various spots vactor truck to remove ballast rails resecured, ballast replaced re- ave. Guide rail removal, traffic control torch cut or grind rail or remove 3rd and 4th ave and Pine Asphlat patching 6th Ave Pot hole patching between track and around track Over head line repair Traffic control 6th Ave to River road Track cleaning street sweeper Pine street 3rd Ave to 6th Ave Track cleaning street sweeper AIRS 2oi -- 2o�6 Quantity, ESTIMATED COST 1 1 1 5 1 $3,010.17 Total $3,010.17 $3,010.17 $3,010.17 $3,010.17 $3,010:17 $3,010.17 $3,010.17 $1,200.00 On goin0 4 man 0 23.36 hr 3 $1,200.00 4 hrs $373.76 Patch trk $58.00 hr Ca? 4 hrs $232.00 Material $56.00 ton $56.00 Monthly $661.76 X 5 months $3,308.80 X 3 years $9,926.40 4 man @ 23.36 hr @ 4 hrs $373.76 Flag`trk $58.00 hr @ 4 hrs $232.00 $605.76 6 Water Truck $50.00 @ 4 hrs $1,200.00 6 Vac @ $95.00 4hrs $2,280.00 $7,000.00 $1,200.00 $9, 926.40 $1, 817.76 $1,200.00 $2,280.00 $35,464.84 Yakima Valley Trolleys Income Statement For the Twelve Months Ending December 31, 2015 Current Month Current Month This Year Last Year Year to Date ThisYear Page: 1 Year to Date Last Year Revenues Museum Sales Revenue Po, 565.48 $ 615.22 $ 2,336.48 $ 2,479.90 Non -Taxable Sales -Water 0.00 4.00 37.00 50.00 Vending Machine Revenue 0.00 0.00 0.00 8.00 Vending Machine Revenue 0.00 0.00 82.00 0.00 Trolley Rides Revenue 1,367.00 6,114.74 7,576.00 12,666.74 Charter Trolley Revenue 0.00 (9.00) 1,560.00 2,766.00 Event Revenue 0.00 0.00 200.00 538.37 Donations Revenue 672.00 175.35 9,572.06 1,567.61 Endowment Donations 0.00 0.00 0.00 0.00 Revenue -Trolley Advertising 0.00 0.00 0.00 413.76 Membership Dues Revenue 25.00 50.00 1,075.00 1,623.00 Interest Income 82.84 115.65 404.09 459.31 Miscellanous Revenue 0.00 0.00 140.00 0.00 Total Revenues Cost of Sales Total Cost of Sales Gross Profit Expenses Museum Gift Shop Merchandise Museum Operating Supplies Vending Machine Products Trolley Repair & Maint Event Expenses Other Trolley Operations Exp Fund Raiser Event Expenses Truck & Equip. Maint. Track & ROW Maint Bldg & Yard Maint Electricity Exp Natural Gas Expense Water & Sewer Exp Trash Disposal Exp P. 0. Box Rental Postage & Shipping Office & Admin Exp Gov't Fees/Licenses Publicity & Marketing Dues and Memberships Grant & Govt Funding Expenses Insurance Expense480 Legal Fees Accounting/Audit Fees Bank Service Chg Cash Register (Over) Under Credit Card Discount Fees Fageol Twin Coach Total Expenses Net Income 2,712.32 7,065.96 0.00 0.00 2,712.32 22,982.63 22,572.69 0.00 0.00 7,065.96 22,982.63 22,572.69 462.69 0.00 1,995.36 899.90 10.41 62.08 135.57 147.45 0.00 0.00 39.20 38.41 0.00 0.00 759.52 0.00 84.80 243.09 133.89 418.32 0.00 0.00 83.85 134.00 0.00 0.00 0.00 3.24 1,092.58 0.00 3,653.94 1,051.94 0.00 0.00 487.97 476.43 309.34 0.00 514.74 114.99 192.19 195.65 2,775.14 2,184.80 10.60 63.18 541.09 63.18 143.56 0.00 975.62 579.30 10.56 0.00 31.56 36.00 0.00 0.00 62.00 60.00 0.00 0.00 0.00 56.35 92.96 102.08 600.43 498.36 0.00 0.00 10.00 10.00 213.84 10.82 10,790.50 9,403.93 0.00 0.00 530.00 250.00 0.00 0.00 0.00 59.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 350.00 0.00 0.00 0.00 0.00 0.00 (39.08) (28.89) (390.98) (36.22) 21.47 105.95 374.43 645.65 (1,859.50) 0.00 0.00 0.00 746.42 753.96 24,453.83 17,095.77 1,965.90 $ 6,312.00 $ (1,471.20) $ For Management Purposes Only 5,476.92 Revenues Museum Sales Revenue Non -Taxable Sales -Water Vending Machine Revenue Trolley Rides Revenue Charter Trolley Revenue Event Revenue Donations Revenue Endowment Donations Revenue -Trolley Advertising Membership Dues Revenue Interest Income Total Revenues Cost of Sales Total Cost of Sales Gross Profit Yakima Valley Trolleys Income Statement For the Twelve Months Ending December 31, 2014 Current Month This Year Page: 1 Current Month Year to Date Year to Date Last Year This Year Last Year * 615.22 $ 255.43 $ 2,479.90 $ 1,718.42 4.00 0.00 50.00 7.50 0.00 0.00 8.00 0.00 6,114.74 1,706.00 12,666.74 12,987.00 (9.00) 0.00 2,766.00 528.00 0.00 0.00 538.37 770.00 175.35 100.78 1,567.61 682.23 0.00 0.00 0.00 1,916.50 0.00 0.00 413.76 0.00 50.00 50.00 1,623.00 1,275.00 115.65 461.66 459.31 466.05 7,065.96 2,573.87 22,572.69 20,350.70 0.00 0.00 0.00 0.00 7,065.96 2,573.87 22,572.69 20,350.70 Expenses Museum Gift Shop Merchandise 0.00 811.70 899.90 1,190.07 Museum Operating Supplies 62.08 11.84 147.45 171.66 Vending Machine Products 0.00 0.00 38.41 0.00 Trolley Repair & Maint 0.00 0.00 0.00 115.55 Event Expenses 243.09 113.36 418.32 221.04 Other Trolley Operations Exp 0.00 48.48 134.00 1,421.72 Fund Raiser Event Expenses 0.00 0.00 3.24 378.91 Truck & Equip. Maint. 0.00 0.00 1,051.94 1,058.84 Track & ROW Maint 0.00 0.00 476.43 0.00 Bldg & Yard Maint 0.00 10.26 114.99 1,011.38 Electricity Exp 195.65 159.27 2,184.80 1,813.65 Natural Gas Expense 63.18 0.00 63.18 0.00 Water & Sewer Exp 0.00 129.39 579.30 344.78 Trash Disposal Exp 0.00 8.32 36.00 36.69 P. 0. Box Rental 0.00 0.00 60.00 58.00 Postage & Shipping 0.00 9.20 56.35 9.20 Office & Admin Exp 102.08 0.00 498.36 207.46 Gov't Fees/Licenses 0.00 0.00 10.00 0.00 Publicity & Marketing 10.82 3,400.20 9,403.93 10,069.11 Dues and Memberships 0.00 0.00 250.00 0.00 Grant & Govt Funding Expenses 0.00 72.92 59.74 72.92 Insurance Expense480 0.00 0.00 0.00 0.00 Legal Fees 0.00 0.00 0.00 1,052.50 Bank Service Chg 0.00 0.00 0.00 0.00 Cash Register (Over) Under (28.89) (40.77) (36.22) (40.77) Credit Card Discount Fees 105.95 118.95 645.65 234.01 Total Expenses 753.96 4,853.12 17,095.77 19,426.72 Net Income 6,312.00 (2,279.25) $ 5,476.92 $ 923.98 For Management Purposes Only Yakima Valley Trolleys Income Statement For the Twelve Months Ending December 31, 2013 * Current Month Year to Date Revenues Museum Sales Revenue $ 255A3 9.92 $ 1,718A2 8A4 Non -Taxable Saks -Water 0.00 0.00 7.50 0.04 Trolley Rides Revenue 1,706.00 66.28 12,987.00 63.82 Charter Trolley Revenue 0.00 0.00 528.00 2.59 Event Revenue 0.00 0.00 770.00 3.78 Donations Revenue 100.78 3.92 682.23 3.35 Endowment Donations 0.00 0.00 1,916.50 9.42 Membership Dues Revenue 50.00 1.94 1,275.00 6.27 Interest Income 461.66 17.94 466.05 2.29 Total Revenues Cost of Sales Total Cost of Sales Gross Profit Expenses Museum Gift Shop Merchandise Museum Operating Supplies Trolley Repair & Maint Event Expenses Other Trolley Operations Exp Fund Raiser Event Expenses Truck & Equip. Maint Track & ROW Maint Bldg & Yard Maint Electricity Exp Water & Sewer,Exp Trash Disposal Exp P. 0. Box Rental Postage & Shipping Office & Admin Exp Publicity & Marketing Grant & Govt Funding Expenses Insurance Expense480 Legal Fees Bank Service Chg Cash Register (Over) Under Credit Card Discount Fees Total Expenses 2,573.87 100.00 20,350.70 100.00 0.00 0.00 0.00 0.00 2,573.87 100.00 0 811.70 31.54 11.84 0.46 0.00 0.00 113.36 4.40 48.48 1.88 0.00 0.00 0.00 0.00 0.00 0.00 10.26 0.40 159.27 6.19 129.39 5.03 8.32 0.32 0.00 0.00 9.20 0.36 0.00 0.00 3,400.20 132.10 72.92 2.83 0.00 (100 0.00 0.00 0.00 (40:77) (1 .18) 118.95 4.62 4,853.12 20,350.70 100.00 1,190.07 5.85 171.66 0.84 115.55 0.57 221.04 1.09 1,421.72 6.99 378.91 1.86 1,058.84 5.20 • 0.00 0.00 1,011.38 4.97 1,813.65 8.91 344.78 1.69 36.69 0.18 58.00 0.29 9.20 0.05 207.46 1.02 10,069.11 49.48 72.92 0.36 0.00 0.00 1,052.50 5.17 0.00 0.00 (40.77) ' (0.20) 234.01 1.15 188.55 19,426.72 95.46 Net Income (2,279.25) (88.55) $ 923.98 4.54 Page: 1 YVT Selah Line Restoration Proposed Assumptions: Total length of line to be restored 21,000 feet (3.97 miles) This is the "DO IT RIGHT THE FIRST TIME" option. 1. Construction work and materials specified for infrastructure improvements will result in a railroad line that is capable of reliable weekly and up to daily operation with regular light maintenance and a useable, trouble free lifespan of 50 years, including all heavy cross -traffic intersections. This will reflect the quality of original 1913 construction and subsequent rebuilds performed by YVT and Union Pacific and will not require any extraordinary capital expense unless an unforseen natural disaster occurs, i.e. 500 yr flood, earthquake, Mt. Rainier eruption etc... 2. Motive power restoration will reflect what is necessary to maintain "reilable" service without interruption due to most maintenance issues involving trolley car electro -mechanical systems and structure. An assumed active service life of 30 years of regular 2 days a week use is assumed for the primary car (1776), and occasional use of the secondary car (1976). Type Cost Per Unit Units # of Units Paved Track: New hardwood 8.5 x 8 x 8 foot ties at 3rd Ave., 5th Ave., Walnut St., Yakima Ave., MLK, Lincoln Ave., Fruitvale Blvd., and River Rd. north to end of street running track. Hardwood ties will span all cross -lanes plus a 50 foot approach on either side of each intersection. Hardwood ties to be used on 140ft radius at 6th and Pine St. New Pine, Fir, or equivalent 8 x 8 x 8 foot ties on all tangent track and turnouts under pavement excluding areas designated for Hardwood tie construction Relay condition 65Ib ASCE steel 33 foot jointed rail to be used throughout construction of all YVT track. Dual upright guard rail with cross bolted web spacers to be used in all paved locations. 5/8" x 6" standard spikes $ 90.00 $ 60.00 $ 375.00 $ 65.00 Per Tie Per Tie Per Ton Per 100Ib Keg 1,100 6,100 455 420 $ 99,000.00 $ 366,000.00 $ 170,625.00 $ 27,300.00 Tie Plates, to be used under all paved track Rail Bonds, welded across each joint of each outside rail Rail joint bars, bolts, nuts, washers. 2 joint bars, 4 bolts, 4 washers, 4 nuts per joint Ballast, crushed rock Paving Finish, crushed rock, asphalt Labor contract: Permitting, Engineering, Mobilization, demo, hauling, disposal, site management, construction, signage, traffic control, finishing 6.50� 18.00 27.00 $ 1.10 Per Tie Each Per Joint Per Sq. Foot Per Track Foot 650 650 90,000 10,500� 108,000.00 4,225.00 � 162,000.00 99,000.00 2,837,5000O Ernbeded Turnouts: ' Refurbish ng turnoutsnew mechanism, new rail, welded up points and frogs 15,000.00 Each 7 105,000.00 Ballasted Track: regular exposed trackwork not embedded in street. New Treated Pine, Fir, or equivalent 8 x 8 x 8 foot or equivalent ties on all track 60.00 Per Tie � ' �� 7,200 432,000.00 Reuse most of existing rail. Selective rail replacement of existing rail with Relay condition 65Ib ASCE steel 33 foot jointed rail to be used. Primary contact rails only, no guard rails. 5/8" x 6" standard spikes Tie Plates, to be used under all track. Reuse most of existing tie plates with Rail Bonds, welded across each joint of each outside rail. Add protection with guarding or substance to prevent stealing and reselling copper bonding. Reuse all Rail joint bars, bolts, nuts, washers. 2 joint bars, 4 bolts, 4 washers, 4 nuts per joint, selective replacement of existing joint bars and hardware. Concrete driveway work at Jeld Wen, approx 30 yds. Of concrete, demo, prep, forms, rebar, pour, and finishing Private driveway wood plank crossings, approximately 265 track feet of crossings between Jeld Wen and Gordon Rd. Treated 4 x 12 construction Asphalt drive way and street crossings, Gordon Rd. to Southern Ave. Ballast, crushed rock Retaining Wall Work, Selah gap Bridge/Culvert work, as needed Labor contract: Permitting, Engineering, Mobilization, demo, hauling, disposal, site management, construction, signage, traffic control, finishing 375.00 $ 65.00 15.00 $ 6.50 14.00 8,500.00:.. 12.75 $ 27.00 40,000.00 Per Ton Per 100lb Keg Per Tie Each Per Joint Total Lineal Foot Square Feet Per Ton Feet Total Per Track Foot 45 420 100 650 35 1 1,060 16,875.00 27, 300.00 $ 1,500.00 $ 4,225.00 $ 490.00 2,800 10,000 600 1 10,500 8,500.00 13,515.00 $ 3,080.00 $ 270,000.00 $ 600,000.00 $ 40,000.00 $ 1,417,500.00 Overhead Contact System (OCS): Poles- wood, installed, replace as needed Guy wire, suspension, fittings, installation. Where OCS is missing Guy wire, suspension, fittings, realignment, standard height 19 feet. Where OCS still exists $ 1,000.00 $ 65,000.00 $ 35,000.00 Each Per Mile Per Mile 357 1.98 1.98 $ 357,000.00 $ 128,700.00 69,300.00 Substation, Booster Station & Wire (OCS) Security System Work: Remote Substation, pad, building, rectifier, transformers, control system OCS Wire Security System Wire Security System installation $ 75,000.00 $ 30,000.00 $ 15,000.00 Total Total Total 1 1 1 75,000.00 $ 30,000.00 15,000.00 Project Overhead and Management: Engineering cost (5%) Project Management and Oversight (5%) Contingency (10%) Per Project of total Total Cost of Part A: $ 325,016.75 325,016.75 650,033.50 7,800,402.00 7.80 Million Total Project Cost Part A Oporto Cars 1776 & 1976 Complete Restoration car 1776- Motors, compressor, electrical, metal underframe, wheels, wood car body Partial Restoration of Car 1976 to include: Complete underframe motors, compressor, electrical. Partial body and cosmetic wood; complete seat restoration. 750,000.00 $ 300,000.00 Each Each 1 1 750,000.00 300,000.00 0 ta:° . o Ma Cos 1.05 Million Total Project Cost Part A 8.85 Million Total Project Cost ,42.0 YAKIMA VALLEY TROLLEYS - PROFORMA OF TYPICAL ANNUAL OPERATIONS 2016 FORWARD: ASSUMPTIONS: 1 26 WEEKENDS OPERATING PLUS HALLOWE-EN AND TW( 2 TWO CHARTER EVENTS EACH MO ONTH INCLUDINE 3 LINE OPEN TO SELAH AT ALL TIMES 4 NO MAJOR REPAIRS OR OVERHAULS 5 EXECUTIVE DIRECTOR REMAINS ON AT $18M PER ANNU INCOME: Trolley Ride Revenues 23,000 Charters/Events 6,000 Museum Merchandise Sales 5,000 Donations 2,500 Membership Dues 1,500 Interest and Other Revenues 1,000 TOTAL REVENUES 39,000 EXPENSES: Gift Shop Merchandise 3,000 Museum Operating Supplies 500 Trolley and Equipment R&M 3,000 Track and ROW Maint. 1,500 Electricity 3,000 Water & Sewer 1,200 Natural Gas 800 Office and Administration* 20,000 Publicity and Marketing 6,000 All Other Expenses 1,500 TOTAL EXPENSES 30,500 NET OPERATING INCOME *Includes Executive Director 8,500