second quarter 2012 newsletter for alaska ...2nd qtr 2012 2 president ’s message teams take on...

ALL ABOARDALL ABOARDSECOND QUARTER 2012 NEWSLETTER FOR ALASKA RAILROAD EMPLOYEES

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CROSSINGS:PRESIDENT’S MESSAGE

CROSSINGS:FINANCIAL REPORT

MILEPOSTSSPOTLIGHT AWARDS

WYE OF IT:WIND PROJECTSUPPORT

WYE OF IT:REAL ESTATE POLICY CHANGES

WYE OF IT:TOPS CUSTOMER SERVICE TRAINING

SIGNALS:OPERATION LIFESAVER UPDATE

WYE OF IT:SALCHA STUDENTS AND NRE

LANTERN:STEAM ENGINE 557 UPDATE

INSIDE...CROSSINGS: NEWS YOU CAN USEQAP STARTS KASHWITNA GRAVEL MINING

CROSSINGS: NEWS YOU CAN USE

ARRC PASSES REGULATORY SAFETY AUDITTh e Alaska Railroad passed a critical and com-

prehensive Federal Railroad Administration (FRA) Part 225 — Accident/Incident Reporting Require-ments — Safety Audit in May. Conducted every 2-3 years, this mandatory FRA audit scrutinizes a railroad organization’s record-keeping and reporting for injuries and accidents.

Implementing a new incident-tracking database software program was instrumental in prepar-ing for the audit while completing the migration from a paper to an electronic system. Compliance Suite now serves as the back-bone repository for all

Th e rail segment features a 10,519-foot siding with a 1,000-foot pocket track in the center over which the loading tipple is situated. Th e mainline and both ends of the siding are equipped with cen-tralized traffi c control (CTC) signals (similar to the island at Hurricane) so the dispatcher can permit trains to enter and exit the siding without having

June 12 marked the fi rst gravel train to oper-ate out of the new Kashwitna gravel pit owned by Quality Asphalt Paving (QAP), a long-time resource development customer. With an eye toward mov-ing its gravel mining operations from Pittman about 30 miles north to Kashwitna, QAP has invested millions of dollars over the past year to construct the gravel mine infrastructure, including rail.

incident/accident-related paperwork and can collect and package this data into reports that meet FRA requirements.

According to ARRC Safety Director Mark Mitchell, railroads are not required to have electron-ic safety tracking systems, however, the process of collecting, organizing, sorting and accurately report-ing safety data is very time consuming. “It would be nearly impossible to perform these obligations without the help of an intelligent and sophisticated electronic system that can handle all the aspects of

(See “Kashwitna Gravel” on page 6)

GRAVEL LOADS FOR THE FIRST TIME AT THE KASHWITNA GRAVEL MINE ON JUNE 12. (PHOTO BY DAVID BLAZEJEWSKI)

(See “Safety Audit” on page 12)

18181919

CROSSINGS:TECHNOLOGYTIDBITS

WYE OF IT:OPEN HOUSERECAPS/PHOTOS

ALL ABOARDALL ABOARD

2ND QTR 20122

PRESIDENT’S MESSAGE

TEAMS TAKE ON TOUGH CHALLENGESBy Chris Aadnesen, President & CEO

In recent months Alaska Railroaders have seen (and been part of ) some great teams working on tough challenges… with remarkable results. For example, just to highlight a few:

Inter-organization teamwork to address a national political challenge.

Organizational teamwork to address company-wide fi nance and safety challenges.

Inter-department teamwork aimed at a smooth seasonal transition.

Intra-department teamwork to grow a business segment.

Th e second quarter of 2012 has been consumed with the threat of losing $30+ million annually in Federal Transit Administration (FTA) formula funds. Th e challenge is so great that we reached out to diverse stakeholders inside and outside the railroad. Together, we orchestrated a multi-faceted campaign to engage policymakers on the issue of unfairly eliminating FTA funding that was previ-ously promised by law. Our inter-organizational team includes employees, dozens of Alaska business organizations, local and national union leaders and organizations, the governor and other state admin-istration offi cials, railbelt mayors, local media, our Washington DC consultants, and Alaska’s congres-sional delegation. National decision-makers are beginning to listen, which is critical to a hopeful outcome.

Th e FTA funding threat is compounded by another fi nancial challenge — the loss of opera-tional revenue from the closure of a second Flint Hills Refi nery production unit. In response, we enlisted the entire company to fi nd ways to absorb a $13 million loss in high-margin revenue for 2012 and 2013. Resulting department budget-trimming eff orts will address the shortfall while minimiz-

ing some unavoidable impacts to personnel. And because safety problems cost so dearly in personal injury and company resources, we’ve likewise called for company-wide teamwork to improve safety in everything we do. We’re seeing real progress in the second quarter.

Th e Alaska Railroad’s Transportation, Me-chanical and Maintenance departments have been interdependent for so long and to such a degree that teamwork is second-nature. Flipping the switch from winter to summer operations requires particularly close coordination. Transportation has geared up to add daily passenger and gravel train traffi c. Mechanics are meeting the extra demand for locomotive power, as well as prepping equipment to mow weeds and trim shrubs instead of scrape ice and blow snow. Likewise, Maintenance of Way (MOW) heavy equipment operators are shifting focus to summer track rehabilitation and weed control. And MOW crews are keeping an eye on track trouble spots from seasonal heaving, melting and fl ooding.

Teamwork is evident inside Alaska Railroad departments as well. A good intra-department example is our Business Development group, where co-workers are concentrating on growing passenger revenues through exceptional customer service. Front-line employees continually seek improve-ments that foster repeat customers and word-of-mouth marketing. Th e marketing team is leveraging our Internet presence and generating more buzz through social media. Bookings are nearly 10% higher to date than last year. It’s a great start from a focused team.

Th e importance of teamwork to the Alaska Railroad cannot be overstated. Teamwork sells and serves. Teamwork delivers. Teamwork saves lives, jobs and resources. I am proud to be on this team with you.

CHRIS AADNESEN

BILL SHEFFIELD

The importance of teamwork to the Alaska Railroad cannot be overstated. Teamwork sells and serves. Teamwork delivers. Teamwork saves lives, jobs and resources.

CHRIS AADNESEN


GOVERNOR REAPPOINTS DIRECTOR SHEFFIELD In early April, Governor Sean Parnell reap-

pointed William J. “Bill” Sheffi eld to the Alaska Railroad Corporation (ARRC) seven-person Board of Directors (Board). He fi lls the seat reserved for an individual with experience in railroad management.

Bill Sheffi eld has long been an icon of leader-ship for ARRC, beginning with his term as Alaska’s fi fth governor from 1982 to 1986, during which time the state purchased the Alaska Railroad. First

appointed to the ARRC Board in 1995, Sheffi eld resigned in 1997 to become ARRC’s CEO, a posi-tion he held until 2001. Governor Frank Murkows-ki reappointed Sheffi eld to the ARRC Board in 2004. Since then, Sheffi eld has served in a number of capacities on the Board, including as chair and vice chair. He currently continues in the role of vice chair.”


2ND QTR 20123


CFO: RECAP OF COST-CUTTING MEASURESBy Chief Finance Offi cer/VP Bill O’Leary

Most employees have already seen the follow-ing information via CEO letters and documents emailed and posted on the CEO News intranet page. Th is story is a recap for employees and their families as we move forward with implementing plans to deal with recent and ongoing fi nancial challenges.

Th e more immediate challenge is the Flint Hills Resources (FHR) plan to close one of two remain-ing refi nery towers in July, signifi cantly reducing the volume of petroleum products shipped from North Pole to Anchorage. We forecast a $5 million drop in revenues budgeted for 2012, and a $7 million loss for 2013. Th is bad news hit after one of the worst winters on record upped operating expenses by $3 million over budget and contributed to a dramatic spike in injuries and workers compensation costs.

Th e picture was similar in 2008 when FHR revenue was down $5 million and workers com-pensation was up $1 million. Fortunately, this summer’s resulting cost-cutting measures will have less personnel impacts than steps taken in 2008. A balanced approach involves operating and capital budgets, with some personnel reductions (mostly through vacancies and attrition) and limited train service changes. We began implementing some plan elements in April and will phase the remaining elements throughout the summer and early fall.

Th e following summary primarily addresses the FHR reductions, although we also consider the short-term impacts of uncertain Federal Transit Administration (FTA) funding to 2012.

Operating/Service ReductionsWe expect to reduce operating costs by $5.5

million in 2012 through one-time and continuing savings measures:

Train Service: Passenger service levels re-main unchanged until FTA formula funding is clarifi ed. Most freight service will also remain unchanged except, beginning upon the drop in petroleum volumes, we will operate fewer Anchorage-Fairbanks trains that support the FHR and trailer-on-fl at-car (TOFC) business. Th is means longer trains and elimination of one Anchorage and one Fairbanks yard crew. Savings: $1.4 million in 2012 and $2.5 million annually thereafter.

Contracts/Programs: Some initiatives will be deferred and non-essential programs eliminated for 2012. Examples include a Human Resources classifi cation/compensa-tion study, a fl eet management reduction consultant, contract security, brush control

services, elimination of non-committed cash contributions and donations, cancellation of employee holiday parties, etc. Savings: $900,000 in 2012.

Travel/Training budgets: All travel and training budgets are reduced with the fol-lowing controls implemented: Non-critical air travel is eliminated. CEO approval is required for non-train crew air travel. Ap-proved, mission critical out-of-state air travel must be booked with mileage awards. Savings: $91,000 in 2012.

Retiree Medical Contribution: ARRC’s Retiree Medical trust fund was deemed over-funded, enabling reduction to the 2012 con-tribution. Even so, the trust remains 100+% funded. Savings: $1.5 million in 2012.

Fuel Hedge: We placed a new fuel hedge for 1.5 million gallons of Gulf Coast ultra-low sulfur diesel through May 2013.

Position Eliminations52 positions (including train and yard crews

noted above) will be eliminated. At the time of plan implementation, 19 of the 52 positions were staff ed. We anticipate a number of these positions to be abolished upon retirement or other attrition, with less than 10 positions being subject to layoff . Eliminations include 43 represented and nine non-represented and are comprised of a mix of seasonal and year-round and capital and expense funded positions. Savings: $1.6 million in 2012, and $3 million annually thereafter.

Capital Budget ReductionsIn addition to operating budget reductions,

the pending outcome of our federal funds threat is driving immediate changes to the 2012 capital plan. Debt service obligations are $16 million per year which supports $136 million in outstanding bonds secured by FTA formula funds. Given the FTA funding uncertainty, we have deferred/reduced about $16 million in capital spending. Impacts include track rehabilitation (rail, ties and surfacing), Positive Train Control (PTC), Enterprise Resource Planning (ERP) and vehicle replacements, among others.

If the FTA funding issue is resolved positively, some 2012 capital program reductions will be revisited — especially track rehabilitation. If the outcome remains in limbo, we will rework our 2013 capital plan, beginning in August, and will fully review our fi ve-year capital plan once the FTA status is known.

BILL O’LEARY

Employee Holiday Parties Cancelled

This was to have been the year that Alaska Railroad employee holiday parties returned for both adults and children. Despite the best of intentions, funding for parties was eliminated in the recent budget cuts resulting from the Flint Hills Refi nery production reduction.


2ND QTR 20124

MILEPOSTS: AWARDS

TRADE CENTER AK HONORS RAILROADDid you know that ARRC Director of

Supply Management Robert Gonzalez is also the Honorary Vice Consul of Spain for Alaska? Given his international ties, it was fi tting for Gonzalez to accept a World Trade Center Alaska (WTCAK) Certifi cate of Appreciation recognizing the Alaska

Railroad’s long-standing membership in WTCAK (since 1992). Th e certifi cate was presented during the Trade Center’s 25th Anniversary Member Ap-preciation celebration in late April. Th e WTCAK provides members and community partners with in-formation and services to help them grow through international trade and commerce.

LEFT: BOB GONZALEZ ACCEPTS A CERTIFICATE

OF APPRECIATION FROM WORLD TRADE CENTER

ALASKA EXECUTIVE DIRECTOR GREG WOLF.

(PHOTO COURTESY OF THE WORLD TRADE

CENTER ALASKA)

MILEPOSTS: SPOTLIGHT AWARDS

SPOTLIGHT AWARDS IN MAY AND JUNEOnboard Supervisor Zen Armitstead, Transpor-tation & Safety Administrative Assistant Ange-lina Lott, and Receptionist / Operations Clerk Patti Schumacher teamed up to help the Alaska Railroad successfully complete a recent Federal Railroad Administration (FRA) safety audit. While juggling daily administrative tasks during a time of staff fl ux (marriage, emergency leave, etc.), these three ladies learned new safety database software (Compliance Suite), became familiar with incident fi le integrity, and ensured hard copy fi les correlated with electronic fi les, thereby avoiding any data gaps or oversights as mandated by the FRA. Th ey stepped up their eff orts when the FRA unexpect-edly announced that the audit would occur in May instead of August 2012. With exceptional attention to detail and commitment, the threesome not only enabled a successful audit, but also completed a ma-jor transition of safety incident management from paper to electronic tracking and fi ling. Audit success meant avoiding fi nes that would have been levied had ARRC safety fi les not been in order. Transi-tioning to a new electronic system will ultimately help eliminate future mishaps and make the Alaska Railroad a safer place to work.

Accounts Payable & Payroll Assistant Control-ler Michelle Maddox provided timely and skilled execution of a key provision of the newly-ratifi ed United Transportation Union (UTU) contract, which impacts nearly 130 Alaska Railroad employ-ees who were retroactively paid within the stipulated 60-day period. Th anks to her considerable payroll expertise, Maddox processed more than three years of retro payments as negotiated in the contract, completing this hefty task well ahead of schedule. Th is number-crunching feat involved condensing about 290,000 lines of data into a “mere” 60,000 lines, while vetting the data’s accuracy. Maddox tackled the job with the multi-tasking prowess her department has come to rely upon. Even as she processed the special UTU payments, she also

accomplished year-end accounting as the books closed on 2011, on top of regular payroll duties and special duties associated with accounts payable and the ERP implementation project.

Passenger Service Agent Lindsay Kucera stepped up to accomplish critical work typically performed by the Group Desk Coordinator position, which was vacated for a few weeks while awaiting replace-ment. Without pause, she jumped in to help with a positive attitude and willingness to learn a new job. Kucera not only performed the duties of Group Desk Coordinator, but also continued to handle her workload as reservation agent. At this time of year, the Group Desk receives numerous email and phone requests and timely response is important to maintaining solid relationships with group vendors. Th anks to Kucera’s work ethic and demonstrated professionalism, the passenger sales department was able to meet group vendor demands, and in some cases, even exceeded expectations. Such teamwork makes a meaningful diff erence to customer service, department morale and the bottom line.

Conductor / Brakeman Ken Smith developed and off ered practical mechanical and emergency preparedness training to train crew members and other onboard staff . His work with Passenger Maintenance & Support Supervisor Mike Smith established a well-received training program that ex-plains how to adjust railcar heat, unplug toilets and operate bi-level car elevators. Th is long sought-after instruction helps to ensure passenger comfort and safe operations. His work with Passenger Opera-tions Manager Sarah Streiff ert advances emergency preparedness by creating materials and instruction that are more relevant to the issues that onboard staff may encounter in an incident or emergency. Passenger train emergency training is required by the Federal Railroad Administration and Smith’s update to the Alaska Railroad’s training program makes it more pertinent and easy to understand.


2ND QTR 20125

MILEPOSTS

SERVICE AWARDS: APRIL - MAY - JUNE1 Year Stuart Adams. . . . . . . . . . . . . . . . . . . . . . . FacilitiesJeff rey Carlson. . . . . . . . . . . . . . . . . . . . MechanicalAbbie Ebben . . . . . . . . . . . . . . . . . . .Guest ServicesStephen Hupe . . . . . . . . . . . . . . . . . . . . MechanicalScott Jenkins . . . . . . . . . . . . . . . . . . . . . MechanicalTodd Lewellyn. . . . . . . . . . . Technology & TelecomDavid McKinley . . . . . . . . . . . . . . . . . . MechanicalGarrett Olson . . . . . . . . . . . . . . . . . TransportationTodd Robbins . . . . . . . . . . . . . . . . . . .MaintenanceEdgar Romine . . . . . . . . . . . . . . . . . . . . MechanicalJoseph Stam. . . . . . . . . . . . . . . . . . . . . . . . . . SignalTimothy Sullivan. . . . . . . . . . . . . Corporate Aff airsEvan Venechuk . . . . . . . . . . . . . . . . .Guest ServicesJoseph Wasielewski . . . . . . . . . . . . . . .Maintenance

5 Years David Blazejewski . . . . . . . . . . . . . TransportationJoshua Cappel . . . . . . . . . . . . . . . . . . . . MechanicalChristopher Cuff . . . . . . . . . . . . . . . TransportationJustin Earl . . . . . . . . . . . . . . . . . . . . . . MechanicalRichard Eneboe. . . . . . . . . . . . Bridges & BuildingsBrent Ferguson . . . . . . . . . . . . Bridges & BuildingsNicholas Jacobs . . . . . . . . . . . . . . . . . .MaintenanceTimothy Lewandowski . . . . . . . . . . . .MaintenanceTh or Lindstam . . . . . . . . . . . . . . . . . .MaintenanceRoyd Mashaney. . . . . . . . . . . . . . . . . . . . . FacilitiesGrant Ojaniemi. . . . . . . . . . . . . . . . . . . MechanicalChristopher Peterson. . . . . . . . . . . . . . . MechanicalWilliam Sandmeyer. . . . . . . . . . . . . .Guest ServicesBrian Sartor. . . . . . . . . . . . . . . . . . . . .MaintenanceOctavian Tamas. . . . . . . . . . . . . . . . . . . MechanicalDonald Th omas. . . . . . . . . . . . Information ServicesBrian Th ompson . . . . . . . . . . . TelecommunicationsScott Toombs . . . . . . . . . . . . . . . . . . . . MechanicalKenneth Vartan . . . . . . . . . . . . . . . . TransportationRyan Williams. . . . . . . . . . . . . . . . . . . . Mechanical

10 Years Chris Craver . . . . . . . . . . . . . . Bridges & BuildingsRoy Degenstein . . . . . . . . . . . . . . . . TransportationBrandon Frazier. . . . . . . . . . . . . . . . . . . . . . . Signal Troy Gladle . . . . . . . . . . . . . . . . . . . TransportationPaul Green . . . . . . . . . . . . . . . . . . . TransportationBryan Montgomery. . . . . . . . . Bridges & BuildingsMatthew Morrison . . . . . . . . . . . . . . .MaintenanceJohn Traxinger. . . . . . . . . . . . . . . . . TransportationAlon “Keith” Williams. . . . . . . . . . . . . . Mechanical

15 Years Dawn Albright . . . . . . . . . . . . . . . . .Guest ServicesAntonelli Aron . . . . . . . . . . . . . . . . TransportationRoger Brown . . . . . . . . . . . . . . . . . . TransportationChristopher Moore . . . . . . . . . . . . . . .MaintenanceMeili Poleo . . . . . . . . . . . . . . . . . . . . .MaintenanceSteven Sommer . . . . . . . . . . . Bridges and BuildingsJeff rey Sterbenz . . . . . . . . . . . Bridges and BuildingsRichard Teeples . . . . . . . . . . . . . . . . . . . Mechanical

20 Years Ted Ashbridge . . . . . . . . . . . . . . . . . . . . MechanicalJoe Burton. . . . . . . . . . . . . . . . . . . . TransportationStephan Conlan. . . . . . . . . . . . . . . . . . . MechanicalEd Prusak . . . . . . . . . . . . . . . . . . . . . . . MechanicalDon Rabideau. . . . . . . . . . . . . . . . . . .Maintenance

25 Years Seth Branson . . . . . . . . . . . . . . . . . TransportationKeith Burton. . . . . . . . . . . . . . . . . . . .MaintenanceFrancis Rabideau . . . . . . . . . . . . . . . . .Maintenance

30 Years Robert Kooren . . . . . . . . . . . . . . . . . . . Mechanical Rocky Murrill . . . . . . . . . . . . . . . . . . .Maintenance

MILEPOSTS

HOME FRONT: BIRTHS AND RETIREMENTSBirths: New Arrivals

Police & Security Program Manager Katie Breci and husband Stephen welcomed daughter Ellady Sabella on May 5.

Track Repairer Johnny Carter and Stacey wel-comed daughter Charlotte Aideen on May 31.

Maintenance of Way Capital Programs Direc-tor Jason Kerkove and wife Jonquil welcomed son Paxson Louis on May 23.

Conductor/Engineer Ronald Polk and wife Tonya welcomed son Rory Anders on April 8.

Retirements: Fond Farewells Heavy Equipment Mechanic George Naser

retired from the Mechanical Department with more than 20 years of service.

Conductor / Brakeman Rick Rapuzzi retired from the Transportation Department with more than 28 years of service.


2ND QTR 20126 to stop to manually align switches. As one of the longest sidings on the Alaska Railroad, the facility

was built to accommodate the loading of 100-car trains in the future without fouling the mainline; however, current plans call for 86-car trains (4,792 feet long) to continue for the foreseeable future due to the limitations of QAP’s Anchorage processing facility off of C Street.

Th e Alaska Railroad (ARRC) tested distributed power (DP) operation on the QAP gravel train last year, and DP became standard for the 2012 season. DP eliminates delays caused by running locomo-tives from one end of the train to the other because locomotives are already positioned (distributed) at the front and rear of the train. Th is has eliminated traffi c-related delays that were caused when locomo-tives had to cut off one end and run around via the mainline to the opposite end. Th e time to unlink and re-link takes slightly less time (5 minutes) than

(continued from page 1)

KASHWITNA GRAVEL OPERATIONS START ...

HOPPERS ARE LOADED AT KASHWITNA.

(PHOTOS BY DAVE BLAZEJEWSKI)

the runaround process, but the big savings comes from remaining clear of the main track. Now, once the train is clear of the mainline on the loading or unloading track, the dispatcher is free to run other traffi c.

Coupled with ARRC’s operating changes, QAP sped up its operations to load and dump with the train moving at 0.5 mph or faster. Th is equates to a 20% improvement over last year, and a substantial jump from years past. Th ese effi ciencies make the round-trip between the Mat-Su Valley and Anchor-age possible within 12 hours, even though Kashwit-na is 29 miles further than Pittman. A total round-trip is now 174 miles — 58 miles longer than when loading at Pittman (116 miles round-trip).

Of QAP’s 800-acre parcel at Kashwitna, more than half is permitted for gravel mining (all mining is accomplished above the water table). Anticipating an average mining rate of one million tons per year, QAP estimates about 50 years worth of reserves at Kashwitna.

In addition to long-term gravel-hauling business prospects, the Alaska Railroad expects other benefi ts from QAP’s investment. Th e long Kashwitna siding will off er another meet-and-pass location for railroad freight and passenger traffi c. Th e construction of the aforementioned pocket track allows non gravel trains to use the siding. Additionally, when ARRC is required to fulfi ll the federal mandate to implement positive train control (PTC), this siding is equipped with suitable wayside monitoring equipment.

Total projected seasonal volume for 2012 from both primary gravel customers is 2.4 million tons, with QAP and Anchorage Sand & Gravel estimat-ing 1.2 million tons each.

Parks Highway


2ND QTR 20127

WYE OF IT: CUSTOMERS AND COMMUNITIES

RR SUPPORTS AK’S LARGEST WIND PROJECTSince fall 2010, ARRC has been working with

Golden Valley Electric Association (GVEA) to sup-port construction of the largest wind energy project in Alaska. Located north of Healy, the Eva Creek project will erect 12 wind turbines about 15 miles up Ferry Road from the Parks Highway.

Given the site’s remote location, the railroad’s involvement has been essential. Spring/summer access over the Nenana River is limited to a railroad bridge and an attached footbridge. Ferry Road does not cross the river.

Early on the Alaska Railroad provided estimates for effi ciently mobilizing materials and equipment, working with GVEA and the project contractors, including primary contractor Michels Wind Energy and turbine supplier REpower USA Corp. Th e local economic impact is considerable. Alaskan contrac-tors include Brice Construction, Evans, Cruz, Redi Electric, Fairbanks Sand & Gravel, Mappa Test Labs, Restoration Science, JD Steel, along with many equipment rental fi rms like United Rentals, and North Star Cranes. Plus, a 150-person man-camp was constructed on the highway side of Ferry Road to accommodate on-site construction crews.

In the fall of 2011, ARRC began mobilizing civil construction equipment for Brice Construc-tion to improve Ferry Road and construct a large staging and project offi ce area before winter set in. In April, ARRC delivered additional construction equipment used to upgrade the Ferry Ramp area, continue Ferry Road improvements and develop the gravel source. Aside from heavy construction equip-ment, ARRC has been delivering cement, 400 tons of rebar, electrical conduit, fuel, culverts, drill rigs, a rock crusher and screens, a concrete batch plant, huge cranes, dump trucks, scrapers, loaders, and much more. Additional loads will include trans-formers and materials for two buildings.

Wind turbine components are coming from Germany, Korea and Arkansas. Each turbine tower comes in three sections, ranging from 71 to 91 feet. Towers and tower components arrived at the Port of Anchorage on May 30. During the last week of June, tower sections were trucked to Healy, where they were loaded onto railcars and transported to the Ferry sid-ing/ramp for the fi nal haul by truck up Ferry Road. Wind turbine blades (3 per tower, for a total of 36) were manufactured in Little Rock, Arkansas, and are being transported by a Union Pacifi c unit train traveling across coun-try to Seattle, where they are rolled onto an Alaska Railroad rail barge. Th e fi rst load of blades arrived by barge in Whittier on June 13. Th ree unit trains will be used to transport all 36 of the 149-foot

blades from Anchorage to Healy. Once there, spe-cial 9-car (6 blade) shuttle trains will work between Healy and Ferry to deliver the turbine blades and components from mid-June through mid-July.

Support for the Eva Creek proj-ect has involved nearly every railroad department — engineering and projects, real estate, legal, accounting, operations, TOFC, transportation, maintenance-of-way, with the bulk of the eff ort by marketing and freight operations. “It has been a tremendous eff ort in support of a great project!” said ARRC Project Manager Lorri Win-chester.

GVEA expects the wind project to be online by October 2012, generating 24 megawatts of electricity. Th e wind farm will help GVEA meet a goal of generating 20% of its power load via renewable resources by 2014.

Once wind farm construction is complete, ARRC will transport all of the equipment back out, keeping freight operations busy until mid-October. Th ereafter, ARRC will support the site with deliver-ies of fuel, parts and other consumable supplies over the life of the project.

BELOW: WIND TURBINE BLADES ARE TRANSPORTED BY TRAIN TO HEALY. THIS TRAIN NEGOTIATES A 12 CURVE AT MP 269. (PHOTO BY CHRISTIAN RYLL)

ABOVE AND RIGHT: WIND TURBINE TOWER SEC-TIONS ARRIVE AT THE PORT OF ANCHORAGE AND ARE LOADED ONTO TRUCKS FOR TRANSPORT TO HEALY. SEE MORE PHOTOS ON THE BACK PAGE. (PHOTOS BY DAVE BLAZEJEWSKI)


2ND QTR 20128


GOVERNOR SIGNS 95-YEAR LEASE BILL


REAL ESTATE POLICY CHANGES REVIEWED

Legislation to extend the maximum Alaska Railroad land lease term from 55 to 95 years became eff ective May 24, 2012. Governor Sean Parnell signed the bill on May 23, during a speech to members of the Kenai and Soldotna chambers of commerce. House Bill 314 was introduced in early February and was sponsored by the House Labor & Commerce Committee chaired by Rep. Kurt Olson (R-Soldotna).

According to bill sponsors, HB 314 allows de-velopers and owners the fl exibility that is necessary in the current real estate market to make long term developments. As such, HB 314 will encourage sizeable investment opportunities that will in turn contribute to economic growth and jobs in Alaska.

During the June 7 Alaska Railroad Board of Directors meeting, the Board considered two real estate-related board rules.

Residential Land UseProposed new Board Rule No. 23 — the ARRC

Transitional Residential Land Use Policy (TRLUP) — would eventually phase out residential use of our track right-of-way (ROW). Th e policy seeks to preserve the ROW for train operations, which are inherently incompatible with home owner uses. Over time, non-permitted uses (lawn, garden, RV storage, etc.) and construction (sheds, driveways, fences, etc.) by adjoining residential property own-ers have occurred within the ROW. Such uses and construction can pose safety risks and could limit the use of the ROW for train operations, a utility corridor and other priority purposes. Th e TRLUP establishes a transitional permit process that allows existing residential structures and uses to remain under permit until property ownership transfers (i.e. the home is sold). As drafted, the rule/policy would require current property owners to obtain a permit and pay an annual permit fee. When current property owners sell their property the permits ex-pire and all structures and uses must be removed at owner expense. Likewise, existing users who fail to obtain a permit must also vacate use within 90 days of being notifi ed by the Real Estate Department. Th e goal is to provide current residential users time to plan.

Dozens of property owners along the ROW pro-vided written and oral comment during the Board meeting. Th e board has asked the ROW Committee

to review comments closely and recommend modi-fi cations to the draft policy, which will be consid-ered by the Board again before the end of the year.

Long-Term Lease PolicyTh e second real-estate policy Board action in-

volves Board Rule No. 11 relating to the Long-Term Lease Policy originally adopted in 1986. Th is policy has been amended several times. Current revisions provide greater negotiation fl exibility through additional rent adjustment mechanisms, variable rental rates, and longer lease terms. Revisions were developed with the input of lease customers and real estate experts who participated on an ARRC Real Estate Advisory Committee. Th e Board adopted the amendments. Specifi c policy changes include:

Rent Adjustment: Added two alternative mecha-nisms to adjust rent to refl ect fair market value (FMV) over time. Mechanisms now include: 1) Existing Standard adjustment determines FMV rent via appraisals at regular intervals (typically 5 years) and includes both maximum “rent cap” and minimum “rent fl oor” provisions; 2) Annual Rent Escalator percentages (fi xed or variable) with periodic “true ups” to FMV by appraisal; and 3) Th e lesser of annual rent escalator percentages or annual change in the Consumer Price Index, with periodic “true ups” to FMV by appraisal.

Rental Rates: Allows rate percentage used to calculate FMV rent to vary during the lease term.

Maximum Term: Increases maximum lease term from 55 to 95 years (as provided by legislation that passed this year). See story below.

GOVERNOR SEAN PARNELL SIGNS HB 314 AS BILL PRO-PONENT REP. KURT OLSON OBSERVES. (PHOTO COURTESY OF KEITH SHOWALTER, OFFICE OF THE GOVERNOR.)


2ND QTR 20129


CORPORATE DONATION POLICY CHANGES


HISTORIC FREIGHT SHED 93% OCCUPIED

On March 29, the Alaska Railroad Board of Directors approved a revision to Board Rule No. 21, which addresses ARRC’s Corporate Donation Policy. Modifi cations refl ect a greater emphasis on in-kind donations, discontinuation of the corpo-rate cash grant program along with the associated Citizens Advisory Board (CAB). Suspended in 2008, the CAB was used to help with decisions on cash grants, which were also suspended due to the economic downturn.

Based on the modifi cations to Board Rule 21, the Corporate Donation Policy document was revised and is posted at www.AlaskaRailroad.com > Community > Charitable Giving. Th e revised Cor-porate Donation Policy document provides guide-lines that pertain to the public and to employees.

While cash donations and sponsorships have been curtailed in light of economic challenges, in-kind donations remain an important part of the railroad’s philanthropic eff orts. ARRC provides rail tickets, posters, prints, pins, used ties, used equipment, facility use, transportation and other in-kind goods and services to hundreds of non-profi t organizations statewide. Many use these to

On June 1, Alaska Railroad employees were invited to stop by the Historic Freight Shed in Anchorage to view 27,000 sq. ft. of offi ce space that was newly-renovated to accommodate the U.S. Forest Service (USFS). Th e USFS recently signed an 8-year lease with two 5-year options to extend.

In late May, the Forest Service began setting up furniture in preparation for about 110 USFS employees to move in June 15. Th is brings Freight

raise funds, increase membership, boost awareness and otherwise benefi t the organization and com-munity. Often in-kind donations generate some mutual benefi t to the railroad, ranging from service trade-outs, to marketing opportunities, to building goodwill among our neighbors.

A good example is the mid-May Great Alaska Seafood Cook-off , which was the product of coordi-nation with the Alaska Seafood Marketing Institute (ASMI), a non-profi t public-private partnership that fosters economic development of Alaska’s seafood industry. Th e inaugural May 14 cook-off was designed to raise industry awareness via a fun culinary competition between well-known chefs who each had one hour to prepare a dish highlight-ing fresh Alaska seafood punctuated by Alaska-grown produce.

Th e event included a scenic chartered train ride along Turnagain Arm, followed by cooking and judging at the Bill Sheffi eld Alaska Railroad Depot at the airport. ARRC off ered a discounted train charter and free use of the depot as a contribution to this premier event.

Shed occupancy to 93%. About 2,600 sq. ft. on the Freight Shed’s west end is still available for lease.

After an extensive renovation, the facility meets Leadership in Energy and Environmental Design (LEED) criteria for its sustainable site development, water savings, energy effi ciency, materials selection, and indoor environmental quality. Th e Historic Freight Shed is the fi rst historic building in Alaska to meet stringent LEED design criteria.

THE USFS MOVES IN TO ITS NEW SPACE IN THE FREIGHT SHED.

MODERN FURNISHINGS BLEND WITH HISTORIC SURROUNDINGS FOR A UNIQUE OFFICE ATMOSPHERE.


2ND QTR 201210


PASSENGER BUSINESS: TEAMWORK SUCCESSBy Susie Kiger, Director, Passenger Sales & Marketing and Bruce LaLonde, Director, Guest Services

Our Passenger Business off ers a bright spot for 2012. It is doing well, in part, because of a strong focus on teamwork and customer service among the Business Development workforce. We need each other to be successful, full-circle.

Future passenger business success lies with customer service. If we want this golden goose to keep laying, we need to remain focused on the cus-tomer. Our company motto — We’re with you all the way — speaks to this focus. We own the trains, we know the product. We take care of our custom-ers, from information discovery to rail vacation conclusion. We off er quality service and a clean, professional presentation from the moment our customers step onboard.

With smart phones and pads and tweets and texts, today’s customer service lives in the “now” and we keep this in mind. Th e world is moving away from traditional marketing with product- or company-based branding, to “experiential” brand-ing. Th e customer experience is what matters. What goes on the Internet stays on the Internet. Our best marketing comes from eff orts to improve service levels, exceed customer expectations and get the customer talking about us in a positive way.

Early season statistics suggest our team is pull-ing together, in the right direction. Consider this: As of May 28, year-to-date (YTD) bookings for the three daily summer trains are tracking above last year. Booked passengers are up 9.5% (up 5,117 passengers) and total revenue is up 11.8% (up $745,378). Revenue for Coastal Classic train is tracking 13.8% above last year (up $181,319) with a 42.4% increase in Adventure Class sales. GoldStar on Coastal Classic is slightly down from last year (-0.8%), likely due to reduced GoldStar capacity on this train. Denali Star sales are up 10.6% (up $463,419); with a 10.1% increase in GoldStar and 11.5% increase in Adventure Class. Glacier Discov-ery sales are up 5% over last year, up $20,760. With new 2012 merchandise stocked on shelves, gift shop sales are tracking up over last year.

Web HighlightsWeb bookings account for 18% of overall sales

and 41% of our direct sales. By the end of May web bookings for the three daily summer trains were $1,243,229 — up 20.9% over 2011. Internet Marketing Analyst Kristi Kendall continues to raise the bar with strategic Internet marketing.

Compared to the same time last year, www.AlaskaRailroad.com activity is up with web

site visits (+12%), Brochure Requests (+13%), and online bookings (+37%). Th is year’s summer Google ad campaign is performing better so far, bringing 13% more visitors to the site. More cus-tomers are clicking our ads after seeing them fewer times, resulting in a smaller per-click ad spending.

Social Media Facebook: We currently average about 50 new

“likes” per week with a fan base that is mostly Alaskan. Our posts average 12,300 people who follow us with a reach of over 50,000 per month.

Twitter: 1,611 followers. Now that tourist season is here, people are using other social media sites like Foursquare and Facebook to “check-in” to our depots and trains — and this gets broadcast on their Twitter feeds, furthering exposure nationwide.

Trip Advisor: Under ANCHORAGE Attrac-tions, the Alaska Railroad Depot is ranked #4 out of 100 attractions and the Aurora Winter Train is ranked #12 out of 100 attractions. Un-der ALASKA Attractions, the Alaska Railroad is ranked #15 out of 502 attractions. Th ese are excellent rankings and help us gauge our service and product as they are experienced by our pas-sengers. On average we have 4-1/2 stars out of 5 on all three listings.

Delivering the ExperienceSuch remarkable and marketable ratings would

not last without consistently delivering the experi-ence. Th e experience often begins with reserva-tions. Th e relatively new Travel Studio reservation software added numerous improvements. From a service standpoint, the windows-based technology greatly simplifi es reservation agent use. Rail, hotel and tour-block inventory are more easily tracked and managed. Search-and-retrieve is possible over multiple reservations and the system can accommo-date multiple seasons for advance booking.

With the summer passenger season in full swing, our onboard staff is busy keeping our passengers happy with top-notch customer care. Onboard Guest Services Supervisors (seven in An-chorage; four in Fairbanks) oversee 10 new and four returning Tour Guides on trains out of Anchorage. Tour Guide training emphasizes teamwork and customer service and this shows as guides return in other capacities. For example this year, six Onboard Supervisors and six Passenger Service Agents are former guides.

SUSIE KIGER

BRUCE LALONDE

(see “Passenger Business” on next page)


2ND QTR 201211

BELOW, LEFT: NINE BRAKEMEN COMPLETED COMPREHENSIVE TRAINING TO BECOME CONDUCTORS IN LATE MARCH. PICTURED, FROM LEFT TO RIGHT: TYLER BOGERT, RYAN DIEHL, TRISTAN MAXWELL, JOE VICKREY, DARREN TOPPIN, CHRIS DOUGHTY, VINCE WOJTUSIK, CHAD TACIA, AND ELIZABETH SMITH.

(PHOTO COURTESY OF BRUCE PRYKE)

PASSENGER BUSINESS TEAMWORK ... (continued from page 10)


TOPS TRAINING ADDS CUSTOMER SERVICE Some 167 train crew members took part in new

customer service instruction as an added segment to the annual Transportation Operators Practice Seminar (TOPS) training provided each spring.

Created by Training & Development Manager Cathy Frost and Guest Services Director Bruce LaLonde, the Customer Service module includes presentations and discussion that allow participants to pose real-life scenarios for service solutions.

“Th e Alaska Railroad is well-known and re-spected for providing great customer service. Th e TOPS Customer Service segment is part of a larger strategy to provide a basic customer service program to everyone who may come in contact with our customers,” said LaLonde. “Th is was introduced to the conductors, not as a program that was needed because of defi ciencies, but to provide them with some additional tools in their customer service tool box. Th is also ensures that our conductors have a base level knowledge of customer service.”

Major segment topics included: 1. customer ser-vice basics (attitude, appearance); 2. communicat-ing (verbal vs. nonverbal); 3. establishing and build-ing positive customer relationships; 4. handling diffi cult customers and people with disabilities; and 5. reviewing already-established customer service goals. Th e initial segment covered these basic topics in 75 minutes.

Th e same training was given to summer hire depot staff from Seward, Talkeetna, Denali, Anchor-age and Fairbanks. Customer service classes in Fair-banks and Anchorage included Baggage Handlers, On-Board Supervisors, Gift Shop Sales Associates, Customer Service Agents, and Tour Guides.

Th e training reinforces the already great custom-er service that the railroad provides, said LaLonde. Plus, it helps to ensure a common level of knowl-edge among all employees and to provide employees with additional skills.

Th e training also includes the idea that we have not only our traditional customers or external customer but everyone at the railroad also has an in-ternal customer (each other) and we need to provide great service to them as well. Plans call for adding customer service modules during TOPS that may focus more on specifi c issues, such as:

appropriate methods of interacting with guests who have a disability (perhaps includ-ing a guest speaker)

dealing with confrontational guests (with role-playing techniques)

diverse customs of guests from diff erent countries (such as the meaning of looking someone directly in the eyes, or why some cultures do not smile, etc).

Robert Russell recently became Onboard Services Manager, replacing Tucker Remley who became Reservations/Ticketing Manager. Th e long-standing rapport between Russell and Remley is building greater behind-the-scenes cohesion within the Guest Services department.

On the front-line, depot staff deliver knowl-edgeable, friendly customer service with each ticket

and gift shop merchandise sale. Baggage handlers are fully engaged in getting the trains out on time. And after trains depart they start preparing for the next day, cleaning the depots and making repairs that ultimately refl ect on our presentation to the customer.

So it goes… the impressed customer shares a most excellent experience, inspiring another cus-tomer to look, book and buy. And, that’s nothing but good for our Railroad team.


2ND QTR 201212

MARK MITCHELL

archiving information and retrieving bits and pieces as required,” he said. “For the audit, Compliance Suite aff orded easy, instant access to all of the infor-mation that FRA inspectors requested, presented in a concise and coherent package of data fi les.”

Mitchell recognized the need to migrate to an electronic system soon after he joined the Alaska Railroad in 2007. With no off -the-shelf products available, a customized fl exible database was needed to handle this type of data tracking and report-ing. Database development began in earnest in 2008 and continued in phases through the fi rst part of 2012. Tedious work by Angela Lott and Patti Schumacher (Corporate Administration) and Zen Armitstead (Passenger Operations) completed the fi nal touches by processing a huge volume of historical data into the database in preparation for the Safety Audit. Th ey sorted fi les, cross-correlated case numbers, scanned a mountain of documents into a PDF format and parked it into the database. With this accomplished, the Safety Department was able to go back and fi ll in critical pieces of infor-mation and quality control each case – No small task, considering about 150 cases occur each year multiplied by three years’ worth of incidents/acci-dents. Corporate Administration Manager Rosezetta Proctor coordinated staffi ng help from Schumacher and Lott, and Bruce Lalonde pitched in to keep Armitstead on task even after she moved back over to Passenger Operations.

In an eff ort to control costs by consolidating travel, FRA had moved up the Safety Audit date from August to May 2012, which would coincide

with the scheduled Drug and Alcohol Audit at ARRC. With just three weeks instead of three months to complete the data transfer, Mitchell, Lott, Schumacher and Armitstead worked long hours and set aside other priorities to focus on this mission.

Prior to implementing Compliance Suite, ARRC lacked a consistent mechanism for tracking hard copy incident/accident fi les and ensuring they were complete. In addition to eff ectively collecting and tracking the data, the software helps to detect trends, allowing for improvements and adjustments to improve safety in the future.

Moving forward, the Safety Department in-tends to off er additional guidance and training to managers as they use the system to report incidents/injuries when they occur. It is important for ARRC personnel to complete all the case management requirements in order to learn lessons and avoid a repeat.

Managers are getting more familiar with the expectations of using Compliance Suite, said Mitchell. In fact many managers company-wide are receiving the incident/accident report notifi cations generated by Compliance Suite. “Historically, we embraced the notion that safety belongs only to the big four departments: Mechanical, Transportation, Engineering, Information Technology. Th at is a false notion. ALL managers need to understand the details of when ARRC employees get hurt or ARRC equipment/property gets damages. Safety belongs to ALL of the departments and one of the main ways to raise this awareness is to communicate these events as they occur,” said Mitchell.

SAFETY AUDIT ...


MARKETING MOMENT: 2 NEW COMMERCIALS ARRC’s Passenger Marketing and Sales team

announces the launch of two new Alaska Railroad commercials beginning the fi rst week in July. Th e focusing is on local Alaska and Anchorage markets.

Th e fi rst commercial promotes the Spencer Whistle Stop, which features existing rafting and canoeing trips with Chugach Adventure Guides and ranger hikes with the Forest Service. Th is year three new tours were added, including a longer guided hike, glacier trekking and ice climbing operated by Ascending Path based in Girdwood. For more information on these tours, visit the TRAVEL tab on www.AlaskaRailroad.com.

Th e second commercial promotes the Alaska resident 20-percent-off discount. Passenger Market-ing has learned through customer feedback that many local Alaskans don’t realize ARRC off ers a

special resident rate. With raised awareness (through this TV commercial, a Facebook ad and local print ads), we are confi dent we’ll get more Alaskans to ride the train. Th e Alaskan locals and their visiting friends and family are an important segment of our ridership and typically have more fl exible schedules.

Finally, be sure to visit www.TripAdvisor.com to read customer reviews on the Alaska Railroad. Marketing created a pass-along card asking passen-gers to write reviews on this popular travel website and there has been remarkable response. Since the start of summer service, 27 new reviews have been posted on both the Alaska Railroad and Alaska Rail-road Depot listings. Th is is tremendous response, so bask in the glow of a job well done, Railroaders!!

Questions? Call Marketing Communications Manager Ruth Rosewarne Kimerer at 265-2543.

RUTH KIMERER

(continued from page 1)


2ND QTR 201213

SIGNALS: SPOTLIGHT ON SAFTEY AND SECURITY

OPERATION LIFESAVER UPDATE & MATERIALSRecently a great grandmother wrote to thank

a railroad employee from the Lower 48 for taking time to share a safety message and some Operation Lifesaver (OL) materials with her 2-year-old great grandson, Jayden. While walking to the library, she heard the train crossing signal and hurried to the crossing to show Jayden, but before they arrived the signal was off . Much to Jayden’s delight, a railroad employee working on the signal re-activated the lights and bells and took the opportunity to discuss trains and safety. Th e railroad worker also went to his truck and came back with a bag of OL materi-als including coloring books, bookmarks, rulers and more, all of which included safety information about trains, tracks, signals, etc. What fun for a kid!

Th is anecdote illustrates the tremendous impact of engaging one-on-one with young people in a by-chance meeting,” said OL State Coordina-tor Dwight West. “You don’t have to be an OL presenter to carry the message of rail safety to the public, you just have to care,” said West. “In a child’s eyes, railroad employees are right up there with a fi reman, policeman and pilots — someone they dream about being one day. When we take the time out of our day to talk to a child, it carries a lasting impression.”

Alaska Railroad em-ployees can share similar experiences if they have the materials available to them. To that end, West is making OL materials available to interested em-ployees who may encoun-ter young people through the course of their daily activities.

National OL Update

Traditionally the federal Department of Transportation (DOT) has awarded Operation Lifesaver a grant large enough to fund the national OL offi ce and its activities. Th e DOT pulled funding this year, leaving the national of-fi ce without resources to continue its eff orts. Th e national offi ce is looking to Class 1 railroads for support. With this change, OL may revamp how presenters are obtained and trained, and presenta-

tion materials may be enhanced to streamline the message and maintain consistency.

Th e presenter training program is currently on hold while the national offi ce reorganizes. In June 2012, state coordinators, the board of directors and the national offi ce will meet in Denver to convene a working session to discuss the reorganization. West will report on the status and future of Operation Lifesaver as soon as information becomes available.

Th e impact to Alaska Operation Lifesaver (AK-OL) will be minimal in terms of funding. Alaska OL receives a portion of a grant from the Federal Railroad Administration funding that is earmarked specifi cally for supporting public safety presenta-tions, and AK-OL uses the funds to off set the cost of materials handed out during presentations, open houses and community events. Th e remainder of AK-OL support comes solely from the Alaska Railroad, which provides administrative support, presenter travel and training cost reimbursement, funding for presentation materials, offi ce space and equipment, training materials and resources for volunteer presenters.

For more information or to request OL materi-als, contact West at (907) 529-9417 or email to [email protected].

A VARIETY OF OPERATION LIFESAVER MATERIALS ARE AVAILABLE AS GIVEAWAYS TO HELP RAILROADERS EDUCATE CHILDREN ON TRAIN SAFETY.

DWIGHT WEST


2ND QTR 2012


BRIDGE PROJECT ENGAGES SALCHA STUDENTS 14 On Friday, May 11, the entire 91-student body of Salcha Elementary School arrived by school bus and quickly swarmed along the banks of Piledriver Slough, a small Salcha-area waterway running roughly parallel to the Tanana River. It looked like a fresh-aired fi eld trip for antsy children nearing the end of the school year. In reality, the delighted squeals, curious questions and furious note-taking will play a part in the Alaska Railroad’s project to build a bridge over the Tanana River and to build a levee to keep the river on course near Salcha. Th is is Phase One of the Northern Rail Extension (NRE).

While primarily groundwater-fed, Piledriver Slough periodically fi lls with Tanana River fl ood waters during spring break-up and other high-water events. Th at won’t happen once the completed levee closes the slough’s mouth to the river. Th e Alaska Department of Fish & Game (ADFG) wants to monitor the levee’s impact to fi sh in the slough.

Th e impact boils down to beavers. Th ese busy critters build dams along the dozen or so study miles of the meandering slough. Seasonal fl ooding typically destroys some of the beaver dams, thereby facilitating water fl ow and presumably fi sh passage. If dams are no longer broken up by a spring fl ush, will the fi sh still be able to move upstream to spawn in the slough? Th at’s what ADFG wants to know.

On May 11, the children were on their fi rst as-signment as part of an ADFG-blessed partner-ship between the Alaska Railroad, the Tanana Valley Watershed As-sociation (TVWA) and Salcha School. Th e alliance was formed to carry out a 10-year bea-ver dam mitigation measure noted by the NRE Envi-ronmental Impact Statement (EIS) and included in the ADFG permit required to proceed with levee con-struction.

Here’s how the partnership works: For the next

decade, at least twice a year, students (kindergarten through 6th grade) will visit the slough — just after spring break-up (before school adjourns) and just before freeze-up (after school convenes) — and pos-sibly during summer school camp in June. Students will assess the slough habitat, test water quality (sediment) and observe, identify and count fi sh. To assist with the fi eld assignments, the NRE project equipped each child with a kit including water-proof paper and fi eld notebooks. Th e U.S. Fish & Wildlife Service has supplied educational materials, including fi sh viewfi nders, minnow-traps, and tech-nical expertise for fi sh identifi cation guides.

On the day prior to the fi eld assignment, TVWA fi eld technicians locate beaver dams and set baited minnow traps to catch and count young fi sh. As fi sh and habitat are observed, c Based on data, TVWA may recommend beaver dam removal as needed. According to TVWA Executive Director Jewelz Nutter, the association’s activity alone satis-fi es the ADFG permit conditions.

Far exceeding permit requirements, the school’s involvement is the brain child of NRE Project Man-ager and Community Liaison Mark Peterburs with enthusiastic support from Salcha School Principal Annie Keep-Barnes. She values the opportunity to introduce and boost youth interest in fact-based hands-on science as it pertains to their world.

“We have added a lot to the learning experience. Literacy is a big part of the program. Our classes have spent time preparing by reading about the animals and fi sh we’ll see along the river,” said Kin-dergarten/First Grade Teacher Tori Brannen, who has lived along the Tanana River her entire life. “It is exciting and rewarding to share my experiences with the river and to get these kids excited about science. We can use our local knowledge — such as fl ood history and beaver dam locations — and it’s very personal to these kids.”

Indeed, 3rd grader Mason Wolverton pointed to his back yard just meters away, noting that he would make his scientifi c observations close to home. “I especially like all the questions because I can fi gure out what lives here and what doesn’t live here. I can discover something. Some day I’d like to be an explorer and discover new plants and stuff and then give them to scientists to study more.”

BELOW, LEFT: SALCHA TEACHER TORI BRANNEN

ENCOURAGES STUDENTS TO BE MORE OBSERVANT OF

THEIR SURROUNDINGS.

BELOW, RIGHT: SALCHA SCHOOL 3RD GRADE

STUDENT MASON WOLVERTON JOTS DOWN

HIS OBSERVATIONS OF THE SLOUGH.

BELOW, BOTTOM: A STUDENT TAKES NOTES AT ONE OF SEVERAL SITES

WHERE BEAVERS HAVE BUILT DAMS ALONG

PILEDRIVER SLOUGH.

(PHOTOS BY STEPHENIE WHEELER)

It is exciting and rewarding to share my experiences with the river and to get these kids excited about science. — SALCHA SCHOOL TEACHER TORI BRANNEN


2ND QTR 201215


REAL ESTATE SURVEY OFFERS INSIGHT Results are tallied from 74 external customers

who responded to the ARRC Real Estate Customer Service Survey conducted earlier this year. Overall, 72% were very or somewhat satisfi ed with the Real Estate Department; 18% were neutral and 10% were dissatisfi ed. Four of fi ve (80%) were satisfi ed with department personnel courtesy. Th e “fair terms of lease” section generated the most negative re-sponses with nearly one-third (32.4%) dissatisfi ed.

Priorities for investing limited resources into ARRC real estate were: 1) water and sewer; 2) gen-eral beautifi cation; 3) street lights; and 4) sidewalks.

Tenants prefer communication via email, fol-lowed by phone calls and then newsletters. Ten-ants suggested communications could improve by expanding mailing/emailing lists (16%), more town hall meetings (14%), more newsletters (11%); and committee participation (6%). Additional com-ments varied, as illustrated by these examples:

“… over the years, I have seen the railroad become much more responsive to our specifi c needs.”

“Th e process for appraisals and appeals is fl awed. Every tenant does not wear the same shoe size. When harm is done to a tenant there should be better recourse.

“We are very happy with our relationship with ARRC, but I would like the state of the economy to be considered in lease fees and rental rates.”

“Make property available to tenants for pur-chase.”

“ARRC spends a ton of money developing its property in Anchorage and not a dime in Fair-banks.”


SCHOOL PARTNERSHIP NEEDS VOLUNTEERS


ALASKA RAILROAD LOGO IN TEXAS?!

Four Alaska Railroad employees stepped up to judge the 2012 Government Hill Elementary School science fair on April 18. Veteran 2011 volunteers Stephenie Wheeler and Sandy Holmes returned to help judge in the morning, while new science fair volunteers Jeremiah Osborne and Mary Lee helped in the afternoon.

As a business partner, the Alaska Railroad sup-ports a number of activities at the school, including recruiting volunteers for the science fair, providing a word announcer and prizes at the annual spelling bee, and hosting the annual back-to-school picnic. Th is year’s picnic is scheduled 5 - 7 p.m. on Mon-day, August 20. Employees interested in assisting

A previous Alaska Railroad passenger emailed a remarkable observation regarding the Alaska Rail-road Corporation (ARRC) logo... in Texas!

Former Sitka resident Steven Hinshaw noted that his wife had recently joined the U.S. Air Force prompting a family move to Texas. While travel-ing around San Antonio, specifi cally within the Alamo Heights suburb, Hinshaw kept seeing what he thought was the Alaska Railroad logo. On closer look, he realized the suspect logo really belonged to

with the picnic should contact picnic coordinator Wheeler at 265-2671.

the Alamo Heights Independent School District — shockingly similar to ARRC’s logo.

“I fi nd it auspicious that my children’s new school district logo will remind us of our home in Alaska and our adventures on the Alaska Railroad!” he said. Check out the school district’s web site: http://www.ahisd.net/.

RAILROAD VOLUNTEER SANDY HOLMES HELPS OUT IN THE MORNING AS A JUDGE FOR THE GOVERNMENT HILL ELEMENTARY SCHOOL SCIENCE PROJECT FAIR.

(PHOTO BY STEPHENIE WHEELER)


2ND QTR 201216

LANTERN: RAILROAD HISTORY

PROGRESS ON ENGINE #557 RESTORATION

In early January 2012, the Alaska Railroad welcomed home Steam Engine 557, a tangible piece of history that last served along our tracks 50 years ago. Jim and Vic Jansen spent $250,000 to pur-chase the 557 from a scrap dealer in Washington, and then they donated the locomotive to ARRC with the caveat that it be restored and put back into service.

Project supporters from the railroad and com-munity have been working to establish the orga-nizational infrastructure needed to raise funds and oversee restoration. Progress has been made thanks to a new connection with the Alaska Commu-nity Foundation (ACF), which oversees and has helped establish nearly 300 funds and endowments that support a variety of philanthropic endeavors benefi tting Alaska. ACF has agreed to establish and administer a new fund to support the Restoration of

Steam Engine 557 project. A newly formed Alaska non-profi t corporation — Engine 557 Restoration Company — will coordinate the project, to include fund-raising, hiring subcontractors, recruiting vol-unteers and overseeing the restoration work. ARRC will provide a work area and support services.

ARRC CEO Chris Aadnesen and retired local businessman Patrick Durand are working to popu-late the non-profi t board of directors and volunteer organization. Interim board members include ARRC Finance VP Bill O’Leary, ARRC Corporate Aff airs VP Wendy Lindskoog and ACF President/CEO Candace Winkler.

Expected to require at least 15 months to complete, the restoration project is estimated to cost $600,000 to $700,000. Major costs include initial tooling, asbestos removal and abatement, replacing galvanized steel cladding, new insulation, boiler and

tubing replacement and repair, gear inspec-tion and repair, painting and positive train control electronics. An application was sub-mitted to the Rasmuson Foundation request-ing a 50% match of up to $350,000. In-kind and cash contributions are being sought from a variety of donors, foundations and commu-nity sources, as well as smaller donations from railroad fans. Stay tuned...

RIGHT: STEAM ENGINE NO. 557 IS ON DISPLAY

DURING THE ANCHORAGE OPEN HOUSE MAY 5,

DRAWING ATTENTION AND ADMIRATION FOR A TAN-GIBLE PIECE OF HISTORY.

BELOW: A MINIATURE REPLICA OF ENGINE 557

AND ITS TENDER CAR (USED TO CARRY THE

LOCOMOTIVE’S FUEL — COAL OR OIL).



2ND QTR 201217


ADOT/PF TO UPDATE ALASKA RAIL PLAN

SIDINGS: EMPLOYEE HAPPENINGS

CHAIN GANG RE-FORMS FOR SUMMER

For the fi rst time in more than two decades, the State of Alaska is pursuing an update to the State Rail Plan, which was originally drafted in 1985 following the state’s purchase of the Alaska Railroad from the federal government. Last updated and amended in 1990, the current state rail plan is outdated and lacks contemporary vision.

Th e federal Passenger Rail Investment and Improvement Act of 2008 is prompting states na-tionwide to update respective state rail plans or risk losing federal funding eligibility. Rail assets covered in the Alaska State Rail Plan (ASRP) include the state-owned Alaska Railroad (ARRC) and the White Pass & Yukon Route, a privately-owned company located out of Skagway in southeast Alaska.

Th e Alaska Department of Transportation & Public Facilities (ADOT/PF) is the lead agency, and as such recently issued a request for proposals from contractors interested in developing a comprehen-sive statewide freight and passenger rail plan. Th e contract should be awarded this summer.

An updated rail plan will allow more fl exibility in applying for a variety of federal grant programs that require it. Equally important is defi ning a vision for rail assets now and in the future. It will become part of the State Intermodal Long-Range Transportation Plan, which has lacked a rail com-ponent in the past, said ARRC Strategic Planning Director Bruce Carr.

More than three dozen railroaders have joined the Chain Gang, an ARRC employee group com-mitted to riding bikes to work during the summer months. Similar to the past few years, the Alaska Chapter of the American Institute of Architects and Bicycle Commuters of Anchorage have organized a Summer Bike Commute Challenge that off ers a friendly competition among businesses. Th e compe-tition runs May 21 to August 17. Th e Municipality of Anchorage also sponsored a Bike-to-Work May 18 to kick off the pedal-powered commuter season. ARRC sponsors both eff orts with round-trip rail tickets for prizes.

2012 Chain Gang members this year include: Michael Alfaro, Barbara Amy, Dennis Bouwens, Tom Brooks*, Regan Brudie*, Steve Conlon, Erin Cork, Chris-topher Cuff , Lane Davis, Jason Dennis, Greg Goemer*, Tracy Grant*, Jeanette Greenbaum*, David Haag, Emily Hoff man*, Edie House*, Matt Kelzenberg*, Susie Kiger*, James Kubitz*, Shawnessy Leon, Brian Lindamood, Wen-dy Lindskoog*, William Nye*, Bill O’Leary*, Jeremiah

In general, the ASRP will convey the state’s recorded vision for rail assets within Alaska. Specifi -cally, the plan should include:

inventory of rail systems and rail lines in use and not in service

a statement of state rail passenger service, including minimum service levels

a general analysis of rail transportation, economic and environmental impacts

a long-range investment strategy encompass-ing current and future rail infrastructure

public fi nancing issues for rail service rail infrastructure issues identifi ed by

stakeholders intermodal rail connections publicly-funded projects to improve rail

safety and security performance evaluation of passenger rail

service compiled studies/reports and funding related

to HSR development

ADOT/PF expects the process to take about 18 months and will include public comment from across the state, including and beyond the Alaska Railroad railbelt.

Osborne*, Eileen Reilly, Joshua Robinson, Jeff Rognes*, Carol Schlitte, Maura Shea*, TJ Sheffi eld, Jim Steele #2, Ben Swanson, Crystal Wilson*, Lorri Winchester*, Derek Winchester, Don Worthley*, and Matt Yanney* (* indi-cates the 20 who rode on Bike-to-Work Day May 18).

BRUCE CARR

FEARLESS CHAIN GANG BIKERS ON MAY 18:

BACK ROW: EMILY HOFFMAN, JEFF ROGNES, MAURA SHEA, TRACY GRANT, CHRYSTAL WILSON, LORRI WINCHESTER, AND MATT YANNEY.

FRONT: ERIN CORK, DON WORTHLEY, REGAN BRUDIE, WENDY LINDSKOOG, JEANETTE GREENBAUM, JIM KUBITZ, EDIE HOUSE AND SUSIE KIGER.


2ND QTR 201218


TECHNOLOGY TIDBITS: AN UPDATE System Switch

Earlier this year, the Alaska Railroad switched from the Novell network platform to Microsoft Active Directory, to include replacement of Novell servers with new Windows servers. “We are excited to put this older technology to bed and pave the way for future projects using current, mainstream technology,” said Information Technology (IT) Director Todd Lewellyn.

Th e fi rst new technology project came in May, when ARRC transitioned from older Novell Group-Wise email/calendar software to the web-based Microsoft Outlook. “Outlook Web Access (OWA) off ers much better email access for employees in the fi eld and at home,” said Lewellyn. More than 100 Railroaders took advantage of Outlook training prior to the switch in late May. In line with any ma-jor software transition, the IT Department is busy tweaking the system to work optimally with older computer equipment and legacy software programs.

Lewellyn notes there were several drivers for changing to new operating and email systems. First, our version of Novell was old and not well sup-ported. Secondly, Microsoft Exchange / Outlook are the industry standard for corporate email systems. Finally, the new Enterprise Resource Planning (ERP) system would not work with GroupWise, and since the ERP uses email for most notifi cation functions, it was imperative to have a compatible email system in place.

Th e IT Department is working toward an eventual personal computer system upgrade from Windows XP to Windows 7. Th is will take some time, said Lewellyn, explaining that many old railroad legacy applications simply won’t work with

Windows 7. Th is obstacle will be resolved in part as new ERP software replaces legacy applications.

Historic Depot Wi-Fi AccessTh e Alaska Railroad’s Technology Department

has been working with Internet provider GCI to establish wireless Internet service for use by guests as they wait in the Anchorage Historic Depot lobby area. Th e service has been installed and is now available, allowing passengers to use laptops, smart phones, iPads and other tablets to access the Internet and e-mail. Wi-Fi devices employed within the lobby area should see the “AK RR Guest” wireless network. According to Network Infrastruc-ture Manager Wes Saunders, a password or other authentication is not required to connect. Users can simply select “AK RR Guest” as the network and select the connect option.

ERP Story CorrectionIn the 1st Quarter edition of All Aboard, the

ERP story inadvertently omitted the title of ERP project team member Michelle Maddox. She is the Assistant Controller, Accounts Payable and Payroll.

THANKS TO THE ARRC INFORMATION

TECHNOLOGY DEPARTMENT, THE

ANCHORAGE HISTORIC DEPOT NOW FEATURES WIRESLESS INTERNET

SERVICE FOR USE BY GUESTS WITH WI-FI

DEVICES.

(PHOTO BY STEPHENIE WHEELER)

We are excited to put this older technology to bed and pave the way for future projects using current, mainstream technology. — IT DIRECTOR TODD LEWELLYN


2ND QTR 2012


OPEN HOUSES DRAW 5,000+ RESIDENTS 19Th e May 5 open house in Anchorage drew an estimated 3,500 people, based in part on nearly 2,500 riders on the free passenger trains. As soon as the Railroad Days event began at 11 a.m. the line for free train rides was already about a 1,000-strong and stayed that way for the duration. Th e May 12 open house in Fairbanks competed with several other com-munity events, including a military parade 10 a.m. to Noon and a military picnic Noon to 2 p.m. ARRC switched the open house times (originally 10 a.m. to 2 p.m.) to Noon - 4 p.m. to avoid a direct confl ict with the parade. Even so, the crowd was light with about 1,350 people on the free train rides and an estimated 1,500 people attending overall.

1 GOVERNMENT HILL ELEMENTARY PTA OF-FERS REFRESHMENTS.

2 VETERAN TATTOO VOL-UNTEER PAT KOSLOVICH.

3 PASSENGERS AFTER A FREE RIDE IN FAIRBANKS.

4 DALE WADE GETS INTO HIS VOLUNTEER ROLE.

5 FREE RIDE HELPERS, L-R: JEANETTE GREEN-BAUM, KAREN LEIS AND EDIE HOUSE.

6 FAIRBANKS TICKET AGENT LORAINE NAVAR-RO HELPS A CUSTOMER.

7 CLINT JONES AND CHRISTOPHER MOORE ANSWER MOW QUES-TIONS IN FAIRBANKS.

8 SMOKEY THE BEAR OFFERS A HIGH FIVE IN ANCHORAGE.


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SECOND QUARTER 2012

ALL ABOARDALL ABOARDNEWSLETTER FOR ALASKA RAILROAD EMPLOYEES

Alaska Railroad Corporation

P.O. Box 107500

Anchorage, AK 99510-7500

www.AlaskaRailroad.com

Printed on recycled paper

Member &Suppporter

PRSRT STDU.S. POSTAGE

PAIDANCHORAGE, AKPERMIT NO. 845

GREAT SHOT! PHOTOS ON THE RAILEMPLOYEE PHOTO SUBMISSIONS ELIGIBLE FOR $200 DRAWING; SEEKING PHOTOS FOR 2012!

Photos here were taken by Transpor-tation Superintendent David Blazejewski, who captured the June 22 movement of 149-foot long wind turbine blades that are part of the Eva Creek wind enery project (see story page 7).

Alaska Railroad employees are en-couraged to submit railroad images for inclusion in the All Aboard newsletter by emailing photo fi les to Stephenie Wheeler at [email protected]. At year’s end employees who submitted a photo will be entered into a drawing to receive $200 in gift certifi cates. If you have questions, contact Wheeler at (907) 265-2671.

ABOVE: BLADES THAT HAD ARRIVED BY BARGE IN WHITTIER ARE PREPPED FOR THE RAIL TREK NORTH. BELOW: TWO 149-FOOT BLADES CAN FIT ONTO THREE FLAT CARS FOR TRANSPORT.

second quarter 2012 newsletter for alaska ...2nd qtr 2012 2 president ’s message teams take on...

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