November 2013

Board of Directors Briefing Materials

November 25, 2013

NNEPRA Office 75 West Commercial Street Suite 104 Portland, Maine 04101

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FY2014 Action Plan

Northern New England Passenger Rail Authority 75 W. Commercial Street, Portland, ME 04101 207-780-1000

Meet or exceed projected Performance Benchmarks

Exceed 50% total cost recovery

Achieve 90% OTP

Achieve 80% Café Cost Recovery in Café.

Exceed 90% in all CSI categories

Improve Service Efficiency

Begin Brunswick Layover Construction to eliminate deadheads, increase revenue service, eliminate idling

Maximize revenue potential on peak performing trains.

Improve reliability through tie replacement program.

Increase performance of off-peak trains through targeted marketing campaigns.

Improve Passenger Services & Communication Develop PIDS implementation plan

Simplify Group Sales process

Improve station displays

Explore ways to improve bicycle access.

Complete Service Development Plan Review and refine key objectives Finalize infrastructure improvement

plan

Begin MBTA Infrastructure Improvement Project Finalize Scope & Budget

Begin Construction

Maintain Compliance with all Regulations Work to secure a stable and dedicated funding mechanism to sustain Downeaster operations and continued capital investments in the Downeaster Corridor.

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ANNUAL MEETING AGENDA

Monday, November 25, 2013 NNEPRA Office

11:00pm Meeting Called to Order

I. Vote to open Public Session

II. Vote to enter Executive Session

III. Vote to enter Public Session

IV. Minutes from last meeting

V. Downeaster Performance Report

VI. Finance Report

VII. Other Business

VIII. Public Comment

IX. Next Meeting Date: November 25, 2013

X. Vote to enter into Executive Session

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Minutes of the Meeting of the Board of Directors Northern New England Passenger Rail Authority October 16 2013 6:00pm Greater Portland Council of Governments Baxter Boulevard, Portland, Maine Directors in attendance: Mr. Martin Eisenstein, Mr. Dana Connors, Mr. David Bernhardt, Mr. Matt Jacobson and Mr. Ron McKinnon Staff in attendance: Ms. Patricia Quinn, Ms. Marina Douglass, Mr. Brian Beeler, Mr. James Russell, Ms. Natalie Allen, Ms. Angela Smith, and Ms. Theresa Diffin Interested parties: Mr. Christian Smith, MacPage; Mr. Steve Corcoran, Amtrak; Mr. Nathaniel Rosenblatt; Ms. Sue Moreau, MaineDOT; Mr. Wayne Davis, TrainRiders NE; Mr. Jim Oikle, TrainRiders NE; Mr. Bill Lord, TrainRiders NE; Mr. Jeff Reynolds, Brunswick; Mr. Dana Knapp, Concord Coach Lines; Mr. Jonathan Carter, Town of Wells; Mr. Dennis Baily, BWNC Consultant; Mr. Dan Sullivan; and Mr. Robert Morrison, BWNC. Commencement: The meeting was called to order at 6:00 pm Minutes of August 26, 2013 Meeting

Vote to accept minutes as presented by the staff Motion: Mr. Connors Seconded: Mr. Matt Jacobson Accepted: All

FISCAL YEAR 2013 YEAR END REPORT

A. Staff Presentations

NNEPRA staff presented an overview of FY2013 (attached). B. FY2013 Year End Budget Variance Report

Ms. Douglass reported the final FY2013 budget variance.. C. MacDonald Page report of FY2013 NNEPRA Financial Audit

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Ms. Douglass introduced Mr. Christian Smith, an independent auditor from Macpage LLC. Who provided an overview and results of NNEPRA’s recent audit including the financial statements, management letter and compliance report. He stated there were no findings. Vote to accept audit report Motion: Mr. Connors Seconded: Mr. Jacobson Accepted: All

D. 2013 Mitchell Award Presentation to James Oikle

Mr. Eisenstein and Ms. Quinn presented the George Mitchell award to James Oikle. Ms. Quinn announced the NNEPRA annual report for FY 2013 is available.

Fiscal Year 2014 Budget & Outlook

Budget Variance Report

Ms. Douglass reviewed the July 2013 Variance Report and noted that the MaineDOT Commissioner had approved the FY2014 budget.

Ms. Quinn noted that the FY2014 cost agreement with Amtrak has been signed. Vote to accept the FY2014 Budget Motion: Mr. Connors Seconded: Mr. Jacobson Accepted: All

Performance Report First Quarter FY14

Ridership in September 2013 was 48,485 and ticket revenue was $700,691.

To date, October ridership is 2,000 passengers greater than last year.

A new schedule went into effect on October 15, 2013 which is anticipated to resolve conflicts which have had a negative impact on OTP.

The Public Comment period on the Brunswick Layover Environmental Assessment document closed on October 13. . A public hearing was held in Brunswick on September 26, 2013. . NNEPRA will review and work with the Federal Railroad Administration to review and respond to comments.

OTHER BUSINESS

Mr. Eisenstein stated the Board will plan to have a workshop regarding longer term plans.

Public Comment

Mr. Sleeper asked how Downeaster ridership would be impacted as a result of Amtrak changing they way they report ridership numbers. Ms. Quinn noted that because, beginning in October 2013, Amtrak will report ridership based on actual e-Ticketing

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counts, and will no longer allocate riders. NNEPRA has tracked actual passenger counts for several years and anticipates that reported ridership will be approximately 12-15% less than previous Amtrak numbers, but that staff will carefully monitor and compare that data.

Mr. Morrison asked if New Hampshire provides any of the Downeaster’s operating funds. Mr. Eisenstein stated they have participated in capital improvements but has not contributed to the operation of the Downeaster. The New Hampshire municipalities do take care of the costs of the platforms (including insurance) and their stations. Massachusetts does not contribute but does not charge access fees to their line.

Vote to Adjourn: 7:35pm NEXT MEETING: November 25, 2013 Vote to go into executive session 7:35pm

Per 1 MRS Section 405(6)(E) to consult with counsel Per 1 MRS Section 405(6)(C) and to discuss the use of NNEPRA’s property

Motion to enter Executive Session 7:40pm

Motion: Mr. Jacobson Seconded: Mr. Connors Accepted: All

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VARIANCE REPORT - October 2013

Current

Month

Actual

Current

Month

Budget

Current

Month

Variance

Year to Date

Actual

Year to Date

Budget

Year to Date

Variance

Year to

Date

Percent

Revenues

Operating Revenue

Amtrak Ticket Revenue 683,818 608,484 75,334 3,164,059 2,999,018 165,041 6%

Food Service Revenue 49,843 45,050 4,792 251,917 237,745 14,172 6%

Advertising Revenue 2,536 0 2,536 11,156 7,500 3,656 49%

Parking Lot Revenue 43,616 43,440 176 139,718 140,800 (1,082) -1%

Interest on Accounts 192 236 (43) 769 942 (173) -18%

Other Revenue 4,162 4,162 0 16,647 16,647 0 0%

Total Operating Revenues 784,167 701,372 82,796 3,584,266 3,402,653 181,614 5%

Expenses

Wages and Benefits

Permanent Full-Time 27,704 27,704 0 111,778 111,778 (0) (0)

Benefits 12,125 12,125 0 49,636 49,636 (0) (0)

Total Wages and Benefits 39,830 39,830 0 161,414 161,415 (0) 0%

Administration

Office Expenses 10,184 9,682 502 42,046 44,930 (2,884) -6%

Professional Services 4,832 6,038 (1,206) 18,876 24,656 (5,780) -23%

Insurance 2,281 2,245 36 9,327 8,980 347 4%

Board Operations 951 1,083 (132) 3,961 4,331 (370) -9%

Total Administration Expenses 18,248 19,048 (800) 74,210 82,897 (8,687) -10%

Train Operations

Amtrak Operations 887,036 883,333 3,703 3,373,580 3,370,333 3,247 0%

Train Fuel Cost 280,000 314,000 (34,000) 1,103,685 1,256,000 (152,315) -12%

PanAm 106,399 106,295 104 411,211 425,179 (13,967) -3%

Other Train Operations 3,183 3,125 58 16,652 12,500 4,152 33%

Insurance 1,160 1,160 0 4,640 4,640 0 0%

Layover Facility 8,003 11,443 (3,440) 36,803 45,921 (9,119) -20%

Capital Maintenance 0 0 0 0 0 0 0%

Total Train Operations 1,285,781 1,319,355 (33,575) 4,946,571 5,114,573 (168,002) -3%

Station Operations

Portland Station 37,100 37,100 0 122,563 125,685 (3,122) -2%

Platform Ins 10,685 10,697 (12) 42,751 42,788 (37) 0%

Station Platform Leases 0 0 0 31,009 31,742 (733) -2%

Other Station Improvements 75 817 (742) 75 3,267 (3,192) 100%

Total Station Operations 47,860 48,614 (754) 196,399 203,482 (7,083) -3%

Food Service

Regular 63,719 58,566 5,154 287,750 309,069 (21,319) -7%

Total Food Service 63,719 58,566 5,154 287,750 309,069 (21,319) -7%

Marketing 26,094 26,094 0 103,665 103,662 3 0%

Total Marketing 26,094 26,094 0 103,665 103,662 3 0%

Total Expenses 1,481,531 1,511,506 (29,975) 5,770,008 5,975,097 (205,089) -3%

Additional Funding Required 697,364 810,134 (112,770) 2,185,742 2,572,444 (386,703) -15%