Appendix — Southern Pacific Transportation Co. v. Public Utilities Commission

Supreme Court brief1984

Ask Donna

What actually matters in this document.

Text

Office - Supe . i:

PILED

3-985

No. | ALEXANDER 1 STEVAs,

IN THE nt

Supreme Court of the United States

OcTOBER TERM, 1983

SOUTHERN PACIFIC TRANSPORTATION CoO.

Appellant,

Vv.

PuBLIC UTILITIES COMMISSION

OF CALIFORNIA, et al.,

Appellees.

SOUTHERN PACIFIC TRANSPORTATION CO. et al.,

Appellants,

Vv.

PusLic UTILITIES COMMISSION

OF CALIFORNIA, et al.,

Appellees.

On Appeal from the Supreme Court of California

Appendix to Jurisdictional Statement — State Civil Case

THORMUND A. MILLER

JOHN MACDONALD SMITH

(Counsel of Record)

CarROL A. HARRIS

ANN FINGARETTE HASSE

813 Southern Pacific Building

One Market Plaza

San Francisco, California 94105

(415) 541-1756

Attorneys for Appellants

December 13, 1983

TABLE OF CONTENTS

PAGE

Opinions Appealed From

Order Denying Writ of Review, S.F. No. 24525

tas UID Saacheeniesucicadsntpseviidncebiciienecstanicanesnnns la

Order Denying Writ of Review, S.F. No. 24573

CIE OR, OID cttctciesesconsnnccsacstindsececnsssineniocse 2a

Public Utilities Commission

Decision 91847, Case No. 10575, 3 Cal.PUC 2d. 679

I i cas uniiamanaus 3a

Decision 92230, Case No. 10575

(September 30, 1980) ( unreported ) ................006. 66a

Decision 92862, Case No. 10575

(April 7, 1981) (unreported ) ...........cccccccccscrecsereeee 73a

Decision 92863, Case No. 10575, 5 Cal.PUC 2d 773

OR 5 PRRREUIM I Ret LA a ne Da SeenON 82a

Decision 93118, Case No. 10575

(June 16, 1981) (unreported ) ...... cc ecceeeeees 100a

Decision 93211, Case No. 10575

(June 16, 1981) (unreported ) ..............csscccsssereeeees 102a

Decision 82-06-045, Case No. 10575

(June 2, 1982) (unreported ) ............sscccssscccssceseees 11Sa

Decision 82-10-031, Case No. 82-08-01

(October 6, 1982) (unreported ) 00.0.0... cece 125a

Decision 82-10-041, Case No. 82-08-01

( October 8, 1982) (unreported )...........:cccceeeeeeee I3la

Decision 83-02-079, Case No. 82-08-01

( February 17, 1983) (unreported )...................000. 146a

Decision 83-03-027, Case No. 82-08-01

(March 11, 1983) (unreported ) .......... cece ceeeee 1SSa

Interstate Commerce Commission

Ex Parte No. 388, State Intrastate Rail

Authority—P.L. 96-448

Order, November 3, 1980, 45 Fed.Reg. 74571

PI SI Dsccntcccnesecnstsmshesiswansneindecen 178a

Order, 364 ICC 881 (April 17, 1981), 46

Fed.Reg. 23335 ( April 24, 1981)... cece 180a

PAGE

Order, 365 ICC 700 ( May 4, 1982), 47 Fed.Reg.

yoo Tt 8 sh ee 188a

Special Tariff Authority No. 83-1876

COI We, HIIIEE cicesitiiascepesitinetiniiaccdeksneesnduiinnate 190a

Suspension Case No. 70965, California Special Train

Service, Southern Pacific

IOSD CEAUCRENOOE 1, TDG ) qc ccccscesevsecevescsctdeeccesences 192a

Erockedees (Famery 17, -1GGD ) vacsesssusscsvcesccsssssesenseserss 194a

Finance Docket 30123, Southern Pacific Trans-

portation Company Discontinuance of Passenger

Train Service in Ventura and Los Angeles Counties,

California

Decision (December 2, 1983) ( unprinted )............ 197a

Federal Court Proceedings

Texas v. United States, No. A-80-CA-487 (W.D. of

Texas, filed December 20, 1980)

Order ( November 3, 1982 )................cccccceeecesseeseeees 247a

Southern Pacific Transportation Company v. Public

Utilities Commission, No. C-82-3074 MHP

U.S.D.C., N.D. Cal.

EE CF BB icssiiesincnsssinsccpceinnbinnnnniendyiags 250a

Amendment to Order ( August 11, 1982) ............... 257a

Order ( November 4, 1982 ) ..................ccccccesesessseeee 259a

Southern Pacific Transportation Co. v. The Public

Utilities Commission, et al., No. 82-4466, 9th Cir.

Opinion (September 27, 1983) ...........cccccccceeseeeeeeees 26la

Notices of Appeal

Notice of Appeal, S.F. No. 24526...........cccccccssccsscscessseees 272a

Notice of Appeal, S.F. No. 24573...........ccccssscssscssssssseeees 273a

Statutory Provisions

Interstate Commerce Act, including Staggers Rail Act

of 1980, P.L, 96-448, 94 Stat. 1985

ries BNET Scpieensitincatldaniecicinallagatlenieclcptianicaies 274a

BP Th ie Pe BP iccsicneiecnesassectceiiinaedlanninianints 275Sa

FP ise SOO EF B itrisnsiessitbatinhinivestnicatiniiagaialincline 275a

ct de I ig 4 OTE AT EAN 8 ST 276a

PE Bole GE CIE icsintiiccesinecsennncinininepeceninmestiabaeaion 277a

PAGE

Staggers Rail Act of 1980, PL 96-448, 94 Stat. 1895 ,

eae ss etiapbensbinenecensentouios 283a

California Civil Code

a 283a

California Public Utilities Code

a. a ceaeenesincengeennobacens 284a

Coie D Lal ts. sungussnbcsoedeinesevecevtnbuees 284a

A ne EE 286a

Additional Materials

Letter to R. D. Krebs, Southern Pacific Transportation

Company, from Gretchen Dumas, Public Utilities

Commission ( January 6, 1981 )..........cccccccceeceeeeteeees 287a

SUPREME COURT

FILED

AUGUST 18, 1983

LAURENCE P_ GILL.

Clerk

ORDER DENYING WRIT OF REVIEW

S.F. No. 24525

IN THE SUPREME COURT

OF THE STATE OF CALIFORNIA

IN BANK

SOUTHERN PACIFIC TRANSPORATATION

COMPANY, etc.,

Petitioner

Vv.

PuBLic UTILITIES COMMISSION,

etc., et al.,

Respondents;

DEPARTMENT OF TRANSPORTATION, etc.,

Real Party In Interest

Petition for writ of review DENIED.

BIRD

Chief Justice

2a

SUPREME COURT

FILED

SEPTEMBER 14, 1983

LAURENCE P. GILL

CLERK

ORDER DENYING WRIT OF REVIEW

SF No. 24573

IN THE SUPREME COURT

OF THE STATE OF CALIFORNIA

IN BANK

SOUTHERN PACIFIC TRANSPORTATION

COMPANY, et al.

Ve

PuBLIC UTILITIES COMMISSION

Petition for writ of review DENIED.

BirD

Chief Justice

3a

680 Dec. 91847

DECISION NO. 91847. CASE NO. 10575

(June 2. 1980)

Complaint of County of Los Angeles v. SoPac Transp. Co. to operate pamenger train

service between Los Angeles and Oxnard granted.

(1) Onpers oF Commission—CONCLUSIVENESS AND FINALITY. We determined that

SP's argument had no merit and denied its motion on February £7, 1979 in D 90018.

SP did not pursue its right to seek judicial review of this determination and it thereby

became final by operation of law. (PU Code Secs. 1709 and 1756.)

(2] Depicarnon. From the onset of State regulation over railroads as public utilities,

the scope of their dedication has been primarily defined in terms of the rights-of-way

over which they provide railroad service with no distinction made between passenger

and freight service.

{3} Rattroaps. We know of no cases restricting the application of this section [763] to

service presently being provided. The Commission may also, after hearing, order

additions, extensions to, or changes in existing equipment of facilities, “to promote

the security or convenience of its employees or the public, or in any other way to

secure adequate service or facilities, . . .“ (Section 762.)

(4) CERTIFICATES—CONVENIENCE AND NECESSITY—IN CENERAL. The concept of

convenience and necessity is necessarily fluid. The factors which determine

re eget py at ot an ye ge Map wa andes a opera pemeed

Se ee

[5] COmMMISSION—JURISDICTIONAL LIMITATIONS—FEDERAL BOaARDs. We acknow!l-

edge that where a railroad has contracted with Amtrak for the latter to take over

intercity passenger service, the railroad is relieved of its responsibilities under State

law as a common carrier of passengers, but in intercity only (45 U.S.C.A. Section

561 (a) (1)). This does not affect any responsibilities SP may have to provide com-

muter service, nor does it affect the Commission's jurisdiction to determine the

extent of such responsibility.

(6) SERVICE—SERVICE AND FACILITIES REQUIRED. We wish to stress that it is essential

that the Commission staff have full access to public utility property and facilities in

order to conduct the examinations and tests pertaining to the powers afforded the

Commission and its staff in the Public Utilities Act.

Owen L. Gallagher and Douglas Ring, Attorneys at Law, for County of Los Angeles; and

Robert A. Munroe, O. /. Solander, and Robert B. Patterson, Attorneys at Law, for

State of California, Department of Transportation; complainants.

John MacDonald Smith and Carol A. Harris, Attorneys at Law, for Southern Pacific

Transportation Company, defendant.

OO ie katie dies vat mer at A gary ae

Given and Lat J. Celmins, Attorney at Law, for Greyhound Lines, Inc.; intervenors.

K D. Walpert, for Department of Transportation, City of Los ; Dana Reed,

Attorney at Law, for Los Angeles Taxpayers Association; Thomas E- Malley, Attorney

at Law, for Ventura County Bar Association; and Benson T Buck, Attorney at Law,

for General Motors Corporation; interested parties.

Vincent MacKenzie, Attorney at Law, for the Commission staff.

iad

Reasons for Filing Complaint

seeeeeeeee

Supervision "

(3) Growth of Area and Expansion of Conflict Problem

(4) Estimated Costs for Providing Service

(5) SP’s Current Financial Condition

Complainants’ Showing

gvgagsssszaeeeeeeseeseeessssagasagal

ts’ Rebuttal Showing .....................

1. Laurence A. Brophy

2 Donald H. King

3. Donald Church 710

4. William W. Whitehurst, Jr 710

Greyhournd’s Showing... cesses 712

Discussion 713

Jurisdiction 714

Public Con ON NOCORBITY o.occcccccscseccesesseeneeneees 718

Adequacy of Existing Track Facilities................. 718

| ARE 719

Reliability of Service 720

Equipment ........ 721

Locomotives 721

Schedules 721

IN cihitechtersticovestsicenasensernions 722

Station Facilities 722

Home Terminal 722

Equipment Maintenance 723

Supervision 723

Costs . 7%

* Motion to Strike SP’s Surrebuttal Showing 74

SP's for a Protective Order 7%

SP’s Motion for an Environmental Lmpact Report =

™

ain an

682 Sa Dec. 91847

OPINION

By their complaint filed May 18, 1978, the County of Los Angeles

(County) and the State of California Department of Transportation

(Caltrans) request an order of the Commission directing Southern

Pacific Transportation Company (SP) to operate passenger train

service between Los Angeles and Oxnard.

On October 6, 1978 SP filed a motion to dismiss the complaint for lack

of jurisdiction. Following oral argument on November 13, 1978 the

motion was denied by Decision No. 90018 dated February 27, 1979. By

Decision No. 90412 dated June 5, 1979 rehearing on the motion was

denied.

Public hearing on the complaint was held before Administrative Law

Judge Daly at Simi Valley, Los Angeles, and San Francisco and was

submitted on January 22, 1980 upon concurrent briefs, which were filed

on March 12, 1980.

Reasons for Filing Compleint

Los Angeles County Board of Supervisors member Baxter Ward and

Ms. Adriana Gianturco, Director of Caltrans, testified on behalf of

complainants.

Supervisor Ward testified that in June 1974, County allocated

$4,125,000 for developing a pilot commuter rail service in three

corridors: (1) San Fernando Valley, (2) San Bernardino, and (3) Santa

Ana. He further testified that following a meeting with Amtrak's

president, County was advised that Amtrak would provide service only

in the Santa Ana corridor and only upon the condition that service was

extended to San Diego and County purchased the equipment. County

thereupon purchased and refurbished eight passenger cars and The

Atchison, Topeka and Santa Fe Railway Company agreed to operate the

service for Amtrak with Caltrans as the prime contractor. Following a

six-month trial period, Caltrans agreed to undertake full responsibility

for financing the service. This freed the eight rail cars, which were

replaced by Amtrak fleet coaches.

On March 9, 1978 representatives of the County met with SP and

requested that it “haul” the County's railroad cars or initiate the sought

train service. SP refused and the instant complaint followed.

Ms. Gianturco testified that approximately 86 percent of all travel is

by automobile and less than one percent is by train. According to Ms.

Gianturco, the extensive use of the automobile has placed large costs on

the general public in terms of environmental deterioration, traffic

congestion, energy consumption, and the use of large amounts of land

for roads and parking. As a result, Caltrans now has second thoughts

Dec. 91847 6a 683

about the desirability of unrestrained auto use, particularly in urban

areas. The goal of Caltrans is to develop a balanced transportation

system that considers all transportation modes within realistic funding

levels. Caltrans contends that there is an existing need for commuter

rail service between Oxnard and Los Angeles Union Terminal and that

inauguration of such a service would be responsive to the Legislature's

support for alternative rail service as expressed in Chapter 1130,

Statutes of 1975, as amended by Chapter 1067, Statutes of 1977, wherein

it stated:

“It is the policy of the state to encourage rail nger service as

an alternative to the automobile because of such services’ high fuel

efficiency and in order to relieve heavily traveled highways.”

History

On October 29, 1901, the Pacific Electric Railroad System (PE),

consisting of eight interurban street railroads, was organized for the

purpose of providing local and commuter rail service within the Los

Angeles Basin. Mr. Henry E. Huntington, who was the largest single

shareholder, was also a vice president of SP. On September 11, 1911 PE

became a wholly owned subsidiary of SP and was used as a feeder

service to SP’s transcontinental and San Francisco Bay Area trains.

Service by PE from Los Angeles to the San Fernando Valley was

commenced in 1911. By 1937 SP operated five daily passenger trains

between Los Angeles and Oxnard over the Coast Line, three of which

served numerous stations between those points.

The peak of the PE service was between 1923 and 1927 when it

carried as many of 109,185,650 passengers annually and operated over

1,164 miles of track, exclusively in the Los Angeles Basin.

In 1904 SP completed dedication of the final portions of its “Coast

Line” south of Santa Barbara through Oxnard and the Santa Susana

Tunnel to Los Angeles as part of its mainline passenger service. Prior

thereto train service between Los Angeles and Oxnard was serviced via

Saugus over the “Santa Paula Branch” along the Santa Clara River.' SP

had operated various trains in local service between Santa Barbara and

Los Angeles and between Oxnard and Los Angeles over the Santa Paula

Branch until 1934 and through the Santa Susana Tunnel route

subsequently.

With the advent of the freeway system, PE service was gradually

discontinued pursuant to Commission authorization and was

completely discontinued in 1967. By the same token, SP passenger train

service over the Coast Line was in large part discontinued pursuant to

various Commission decisions or tariff filings from 1934 to 1968. The last

trains operated by SP over the Coast Line were the Coast Daylight

‘ See Appendix A

684 7a Dec. 91847

Trains Nos. 98 and 99, which were taken over on May 1, 1971 by Amtrak

pursuant to Section 401 of the Federal Rail Passenger Service Act of

1970.

Proposed Service

In addition to the eight “E] Camino” passenger cars owned by

County, eight additional passenger cars for the second train would be

acquired by Caltrans. Both trains would be operated on weekdays

between Los Angeles and Oxnard in accordance with the following

schedules, each would have a running time of one hour and thirty

minutes:

Tran Train Train Train

axe 300 201 ja3

am am Mile Stanon pm p.m

62 600 «78 Oxnard 6 700

62 609 4166 Camarillo 621 651

60 62 az i Moorpark 610 60

652 6322 a7 5 Santa Susana 558 628

704 6% “55 Chatsworth 546 6.16

710 60 “99 Northndge 5 610

717 657 4550 Panorama $33 60

7% 7104 05 Airport 5.26 5:56

712 710 4716 Burbank 521 551

7% 716 4771 Clencile 514 5“

780 7” 428 Los Angeles 500 5.30

According to a senior marketing consultant for the Division of Mass

Transportation of Caltrans, the running time result in an average speed

of 44 mph based upon the assumption of a 30-second dwell-time at each

station with reasonable assumptions for acceleration and deceleration.

In the event that the proposed running time cannot be met, it is the

intention of complainants to protect the Los Angeles Union Terminal

arrival and departure times.

The proposed zone fares are as follows:

90-RAide

Between (Day) “Family” Sungle Fide

Los Angeles Ticket One-was

And Commutation @-Day Limit Fare

Red Clendale

Zone | Burbank Airport 3 75 140 16

Creen

Zone 2 Panorama Bo 7790 1.70

Orange

Zone 3 Northndge 45 00 314 210

Blue

Zone 4 Chatsworth 50 60 %6 60 255

Yellow Sante Susans

Zone 5 (Sirni Valley) 5625 rie 300

Brown

Zone 6 Moorpark @ & 606 jw

Dec. 91847 8a 685

It is estimated that less than 20 percent of the tickets sold would be

one-way tickets. Monthly tickets would be sold at both the Los Angeles

and Oxnard stations and vending machines would be used at

intermediate stations. Tickets would also be sold on the trains and could

be purchased by mail or at banks as well as at places of employment.

Complainants presented evidence supporting a significant current

demand for the proposed passenger service. This demand was based on

complainants’ forecast of ridership, future anticipated problems and

costs related to fuel, the success of the current rail passenger service

between Los Angeles and San Diego, and current State and local

planning policies directing and urging rail transit service. Complainants

estimate that between 1,100 and 1,400 riders would use the proposed

commuter service daily in each direction if two trains are operated. The

estimate is based upon the regional travel computerized model

developed by the Los Angeles Regional Transportation Study

(LARTS), which was used for projecting transit ridership for the

Southern California Association of Governments’ (SCAG) regional

transportation plan.

The model projected potential demand of 1,825 riders for a 24-hour

home-to-work transit service. The projection was reduced to reflect the

service of two trains operating at a 30-minute interval. This was done

by assuring that the proposed service would attract 60 percent to 75

percent of the peak-hour patronage for each station served.

Cost end Subsidization of Proposed Service

Senate Bill 620, which was approved by the Governor of California

on June 28, 1979, provides a total of $36 million to be allocated over a

three-year period for the payment of actual and reasonable deficits

resulting from rail passenger service within the State. Of this amount

$21 million may be used to meet operating expenses and $15 million

may be used for capital improvements.

The chief of the Division of Mass Transportation for Caltrans

estimates that the first year costs for operating the proposed service

would be $3.54 million and $5.25 million for the three years covered by

the legislation.

A breakdown of his estimates is as follows:

FIRST-YEAR COSTS

IEEE wristesesssasineccesvecioasecervesaveivsntecosonsésshsses ssapiesqnbnstnsesbesesebosecssedbenseetooinesensaneetes 44 million *

rs £00 million

Less income from fares... sinsieidedeienigtoniesinivisindenin — 60 milbon

DOE cccceenncninnsinnicersnemnsennnie scvcssanbovceensegesasenniensesesccesenenssenies $2.94 milbon

SECOND-YEAR COSTS

RNINIUTIGIIT »<cascesssovesoseventsenssnsscoseneesuneeeneneunsscnuessatsstissonsennes 8.4 million

IIE ssssessssscocesenrscosssssevepevevesennneccneceenvevnrnnutesnstovvesabinescsanssshessneinscansesservsssnnetoendeneesin 200 milbon

STINE -ssxsscsaisdoteeignesithacopecnsmensnnentinatvsnse veveinessbeesvetetaunbtinsdpacesvestennubniaanenenstesnesitanstts $2.4 million

BN any GNU cscssonscssnvcopnsiniioesenintescouevetninnnstionssoveeneounsdetninsstonanéensenentednnianineenienees —.18 million **

Lew income from fares ... - " — @ million

Total ..... $1.66 milbon

* Cost for one train. No cost included for the cost of County passenger cars

+* Estimated federal funds thet the service would qualify for under Section 5 of the Urban Mass

Transportation Act of 1964, as amended.

Caltrans’ estimate of capital costs gave no consideration to extensions

of sidings, improvement of switches, dispatching, signalized traffic

control, nor additional traffic.

Of the 11 stations to be served, only the Los Angeles, Oxnard, and

Glendale stations are presently in use as passenger stations. The

remaining eight stations would have to be provided with platforms and

parking lot facilities.

The cost of constructing a platform, parking facilities for one-half of

the patrons expected to board, and installing of automatic ticket

machines at each station is as follows:

Burbank . $164,800

Airport ....... 140,900

Panorama City 178,000

Northndge ... 182,500

inaiaal 138,300

Santa Susana an 166,000

Moorpark ... 130,000

Camarillo . Ssssssi iacouncatiiestnsslabeisienaadenmaeuelilceciaaiatasesiiaacdadiabt dec babappidasiptapenenseavisiieasveedniad 130,000

RSI TORS teccaeen eet. ENE rae een CO vods eo REDE eR Te oe 1,300,000

No cost was provided for the acquisition of property because all

proposed sites are on public or SP property. Shelters were excluded

because Caltrans estimated that each shelter would cost $68,000. No

provision was made for restrooms, fencing, or lighting at the parking

lots; however, lighting would be provided at all station platforms.

Public Witnesses

A total of 96 individuals expressed support for the proposed service,

16 under oath and the rest in the form of statements of position.

Included were a number of public officials as well as representatives of

public and private agencies.*

* Geen ben Seen 0) Sete Olen (e) ae Se ee oe

!

|

|

ie

!

i

‘ansportation

Commuter Rail Service; (p) Sensor Cinzens—Simi Valley, and (q) Citizens for Rail California

Dec. 91847 10a 687

The majority are residents of Simi Valley, a few reside in Camarillo,

Claremont, and Moorpark. In general, they indicated that they would

use the proposed service to and from work in the Los Angeles area

primarily because of the high cost of gasoline and to avoid those

problems experienced during gas shortages. Others indicated that rail

service offered a more convenient and comfortable mode of travel than

the freeway and that use of the trains would help to reduce smog.

Many of those who attended the hearings work for Lockheed in

Burbank and several were concerned because the schedules as

proposed would arrive too late for employees who must be at their jobs

by 7:00 a.m.

Representatives of public agencies also emphasized the

environmental impact that rail passenger service would have in

reducing the use of the private automobile. They pointed out the need

to reduce traffic congestion in the densely populated southern

California area as well as the pressing need to conserve energy.

A representative of Southern California Rapid Transit District

(RTD) testified that RTD does not have enough equipment to meet the

demands for local metropolitan bus service, much less the number and

type of buses that would be required to provide extended service to and

from points in Ventura County; however, he stated that the district

would be ready, willing, and able to provide bus service that would

interface with the proposed rail service at the Los Angeles Union

Terminal station.

Testifying in opposition to the proposed service were representatives

of General Motors Corporation (General Motors), Weyerhaeuser

Company, Anheuser-Busch Inc., and Northridge Company. All

expressed concern that the proposed passenger service would interrupt

and delay rail freight shipments moving to and from their respective

plants.

General Motors operates an assembly plant at Van Nuys, which is

equipped with 10 industrial tracks used for the purpose of receiving rail

cars via SP consisting of components shipped from eastern points. The

plant, which was built in 1946, has grown to the point where it presently

employs 5,500 individuals and is capable of producing 1,080 cars a day.

The general manager of the plant testified that SP acts as an extension

of the production line and any delay in the delivery of freight cars could

adversely affect production.

Anheuser-Busch Inc. also operates a plant in Van Nuys that has 1,000

employees and is served by SP. In addition to inbound rail shipments

and approximately 40 outbound rail shipments, the plant also receives

one switch movement a day. A proposed expansion program, which is

688 lla Dec. 91847

scheduled for completion in 1981, will result in an additional 1,000

employes and tripled capacity.

The assistant traffic manager for Anheuser-Busch Inc. testified that

any delay in the switch movement would result in higher labor costs.

The manager of Weyerhaeuser Company, which is located at

Sepulveda in the San Fernando Valley, testified that the company

receives 60 to 70 rail car shipments per month of lumber and plywood

via SP as well as two switch movements a day, and if the mid-day switch

is late for any reason, it would have an adverse effect on production and

would result in additional overtime to unload the cars.

The president of Northridge Lumber Company, a retail lumberyard

located at Northridge, testified that SP provides a switch service at

approximately 2:00 p.m. daily and any delay to the switch would result

in overtime because it takes two hours to unload and his crew works

from 7:00 a.m. to 4:00 p.m.

Defendant's Showing

SP contends that, if authorized, the rail commuter service would

seriously interfere with and disrupt its freight operations. Defendant

also contends that a dependable rail commuter service cannot be

provided between Los Angeles and Oxnard.

The proposed operation falls within SP’s Santa Barbara subdivision

which extends from Los Angeles to San Luis Obispo. The track facilities

between Los Angeles and Oxnard, a distance of 66.1 miles, consist of

double tracks from 11.2 miles between Los Angeles and Burbank

Junction and single tracks for 54.9 miles between Burbank Junction and

Oxnard. The tracks, both double and single, are protected by automatic

block signals which warn of tne presence of a train ahead but do not

instruct the engineer. Trains meet and pass according to timetable

schedules, rule book, and train orders issued by the dispatcher. In

contrast to other subdivisions where Central Traffic Control (CTC) has

been installed and communications are almost instantaneous,

operations over the proposed tracks are less flexible because of the

lag-time between the dispatcher's train movement decision and its

execution by the train crew. The basic points at which trains can be

contacted are:

Los Angeles Yard 4.3 miles

Burbank Junction 11.2 miles

Gemco 18.4 miles

Oxnard 66.1 miles

The Los Angeles Union Pacific Station (LAUPT) is a train order

station for Amtrak and does not issue orders to the Santa Barbara

7

Dec. 91847 12a 689

subdivision. Los Angeles Yard is a train order station for freight

operating to and from Taylor Yard. Gemco is used only for trains or

engines originating or terminating at Gemco and is not staffed to

handle train orders for through trains. At the present time the only

points that could be used for providing train orders along the single

track would be Burbank Junction and Oxnard. Side track facilities that

are available for the purpose of meets and passes on the single-track

segment between these points are located at the following locations:

Miles Station Capecity

REE IRE SR ee neers ores cooee Chatsworth 5.544 feet

68........ siniapicensintahninrmianiiencsiitin Moorpark 4,056 feet

ea eee ere eke Lemme Camarillo 7,108 feet

Another siding is located at Hewitt 15.5 miles from Los Angeles, but

it has been taken out of use as a siding and is presently used as a makeup

track in connection with operations at Gemco.

Amtrak trains range up to 200 feet, local haulers and switchers 200

feet to 6,000 feet, and freight trains from 8,000 feet to 10,000 feet.

According to defendant, the effective lengths of track for

Chatsworth, Santa Susana, and Moorpark are substantially reduced

because said rail facilities are intersected by busy public streets and

roads. This requires trains to be cut so that the intersections are not

blocked.

When a siding is not long enough to accommodate a train, “saw-by”

and “back-saw” activities are then employed. A “saw-by” requires the

inferior train to pull into the siding leaving its rear cars on the main

tracks, while the superior train moves along the main tracks up to the

rear cars. The inferior then pulls the rear car clear allowing the superior

train to bass. A “back-saw” results from one train overtaking another on

a single track and requires the inferior train to pull through the siding

until the rear cars clear the main tracks. After the superior train clears

one end of the siding, the inferior train backs up until the head end is

in the siding allowing the superior train to proceed. Such movements

can take from 10 to 45 minutes to complete, but apparently are not too

frequently used on this segment of track. During the month of June

1979 no “back-saw” movements were employed and “saw-by” activities

were used on only four occasions.

(1) interference Study

To determine the extent of possible conflicts SP conducted an

interference study covering the period July 1, 1978 to and including

June 30, 1979. (Exhibits 46 and 47.) The study was prepared by

the commuter schedules over train operations

actually conducted between Los Angeles and Oxnard during that

690 13a Dec. 91847

Before considering the interference problems or the feasibility of the

proposed operation, it is necessary to have some understanding of the

Gemco and Taylor Yards and the part they play in SP's overall

operation in serving the area between Los Angeles and Oxnard.

Gemco

Gemco is the heart of SP’s freight operations serving the San

Fernando and Simi valleys. Freight cars are brought to Gemco from

Toylor Yard by trains known as the Chatsworth Haulers. Upon arrival

at Gemco the cars are switched for delivery to local industries by

industrial switchers.

The yard consists of nine yard tracks, which are supported by a drill

track and two ladder tracks. Track 109 with a length of 4,300 feet is the

longest in the yard. The west end of the yard adjoins a drill track known

as Budweiser Extension.

The major movement into Gemco consists of freight cars loaded with

auto parts for General Motors. On the return trip to Taylor Yard the

haulers take empty auto parts cars destined to eastern suppliers,

multilevel rail carloads of new automobiles, and carloads of general

commodities loaded by local industries for out-of-state distribution.

The 12:30 a.m. hauler leaves Taylor Yard between 2:00 a.m. and 4:00

a.m. and arrives at Gemco between 3:00 a.m. and 5:00 a.m. It then

occupies the main track for approximately 90 minutes in order to switch

out the train. About 9:00 a.m. it departs Gemco for the return to Taylor

Yard with a consist of empty auto parts cars.

The 10-00 a.m. hauler departs Taylor Yard at approximately 1:30 p.m.

and arrives at Gerco between 2:30 p.m. and 3:00 p.m. Again, switching

operations take about 90 minutes. In preparation for its return the

hauler begins to build its train of tri-level cars loaded with new

automobiles at approximately 6:00 p.m., which would be after the east

commuter train had passed. Because of the length of such trains, this

activity is done on the main track.

An extra Chatsworth Hauler operates five days a week to handle

loaded auto parts from the east and its on-duty time is dependent upon

the arrival time of an inbound auto parts train at Los Angeles. There

are occasions when it is necessary to operate as many as four or five

extra haulers a day in order to bring urgently needed loaded auto parts

cars (hot cars) to Cemco and their arrival at Gemco could be any time

during the night or day.

Teyter Verd

Taylor is the principal freight yard for general commodity traffic

serving the Los Angeles area and is located west of SP's main line

between Los Angeles and Burbank Junction. Five major arteres of SP's

operations in the Los Angeles Basin converge on the yard, i.e, the Santa

Barbara Subdivision, the Bakersfield /Mojave Subdivision, the Colton

Subdivsions (Alhambra Line and State Street Line), and the Los

Angeles Terminal District.

Dec. 91847 l4a 61

Trains are received in “A" yard, inspected and then brought over the

“hump” and allowed to roll down to a series of classification tracks,

where outbound trains are made up.

The yard contains engine repair and servicing facilities, car shops, car

repair facilities, scales, load-shifting tracks, and cleaning tracks

On those occasions when the yard's capacity has been reached, tracks

not normally used for the receipt of inbound trains are used by trains

that are waiting to be yarded. The main tracks are also used for the

purpose of making up of trains.

All movements into, out of, and within the yard are subject to the

control of the yardmaster who may hold them out or within the yard

to facilitate operations. A dispatcher is, therefore, unable to exercise

complete control over the times that freight and passenger trains leave

the yard.

Enlarging the capacity of the Taylor Yard's existing bypass tracks

poses a problem because the yard extends up to the river. SP extimates

that it would cost approximately $43,379,000 to construct a bypass track

on a cantilever structure that would extend out over the river for a

distance of 4,000 feet.

With existing facilities SP contends that all through freight trains and

many Los Angeles Basin locals could possibly conflict with the

commuter trains.

The current schedule for trains arriving and departing Taylor Yard

is as follows:

|

Time

BSMFF @a00 LABRT 000)

BSMFZ aa00 LAEVY Q@00

CULAP 800 LAEST 0400

AVLAT 800 LAEVE 0400

CILAY B00 LABKY O00

OALAY 1290 LADAT 0890

BSMFY 1300 LARIP oss

WCLAY 1300 LAOAF 0600

BRLAT 1348 0690

RUCITY 1400 LAAUT 700

RVLAY 1400 LAPXT e000

OALAT 1300 AMTRAK @13 1015

OAEPY 1890 LAWCY 1290

WCOAY 1700 LAESH \3Jon

EULAY 176 LAOAY 1400

PrTcty 1@00 LAPKY 1400

AMTRAK @12 1600 RUCTY 1490

yd 200 LASSH ao

Y 100 OaEPY 1700

WCLAZ 00 wooay 170

HOLAT m0 LAwcy 160

MBSMF 00 1900

APLAA mse Lawcz goon

Pir)

mw

200

692 15a Dec. 91847

Amtrek Trains

The afternoon commuter trains would conflict with the Amtrak

Coast Starlight train which is due in Los Angeles at 6:55 p.m. Although

the actual performance of the Coast Starlight train is unpredictable on

a daily basis, it is scheduled to leave Oxnard at 5:11 p.m. and is due at

Burbank Junction and double track facilities at 6:17 p.m. The commuter

trains would leave Los Angeles at 5:00 p.m. and 5:30 p.m. and are due

at Burbank Junction at 5:21 p.m. and 5:51. If on schedule, the commuter

trains and the Coast Starlight would meet on the single track. The last

point that the dispatcher could control the commuter trains would be

Burbank Junction. Based upon past operations of the southbound

Amtrak train, the dispatcher would probably allow timetable meets to

take place.

Chateworth Haulers

According to SP, the Chatworth Haulers would have the following

number of delays if the commuter trains had operated during the 149

service days covered by the period from January through July 1979:

Delays Attributable to

oe i

1979

JONUATY 6.0.6.0 66 a7 7 10

February ...... 61 3s é 7

March .......... 4 v7 13 8

| a Aa m2 . 14

MBY orrccceesnes t) +] 8 12

JUNE oooocccseees 87 s 8 14

Total ... ene oor 51 TS

industriel and Plant Switchers

Five regular plant switchers are used to serve General Motors and

SP’s subsidiary Pacific Motor Trucking Company at Gemco. Also,

operating out of Gemco are four regular industrial switchers that serve

industries within the Gemco area. Two additional industrial switchers,

operating out of Taylor Yard, are used to serve industries in the

Glendale and Burbank areas.

Operating out of Gemco are: the Van Nuys Local, the 8:00 a.m.

Industrial Switcher, the Northridge Local, and the Vega Switcher.

Operating out of Taylor Yard are the Glendale Switcher and the

Burbank Switcher.

Dec. 91847 16a 693

Ven Nuys Locel

The Van Nuys Local leaves Gemco at 8:30 a.m. and returns at 5:00

p.m. It serve Adolph Food Products, Aetna Lumber, American Forest

Products, Apollo Tire Co., Georgia-Pacific, Gold Key Furniture,

Hendricks Builders Supplies, Hull Lumber Co., MacKay Lumber Co.,

Neiman-Reed Lumber Co., North Hollywood Glass, Oroweat Baking

Co., Tarzana Lumber Co., Terry Building Center, and team tracks at

North Hollywood, Van Nuys, Encino, Tarzana, and Canoga Park.

If the Chatsworth Hauler is delayed as a result of a meet with one of

the morning commuter trains, then such customers as Adolph Food

Products, Aetna Lumber, American Forest Products, Georgia-Pacific,

Corp., Oroweat Baking Co., and Tarzana Lumber would lose 24 hours

transit time on inbound traffic because of their cars would not make

connection with the Van Nuys Local.

630 a.m. Industrie! Switcher

This switcher usually takes about an hour and a half to line up its work

and is ready to go out on the main track at 8:30 a.m. after Amtrak goes

by. It serves Anheuser-Busch, Bell Brand Foods, Chandler Lumber,

Continental Can, Joseph Schlitz, Safeway Stores, McMahans

Warehouse, Department of Water & Power, East Valley Distributors,

Weyerhaeuser, and the team tracks at Raymer.

It normally switches Weyerhaeuser in Sepulveda at 11:00 a.m.;

Safeway, Bell Brand, and Continental Can at approximately 11:15 a.m.;

East Valley Distributors (Coors) at approximately 11:30 a.m., and

Anheuser-Busch at 11:45 a.m. to 12:00 noon. Because of coordinated

activities relating to supervision, loading and unloading crews, and

connecting tracks, these customers depend upon timely switches. Any

delay to the Chatsworth Hauler could delay their switches.

Northridge Locel

The Northridge Local goes on duty at 9:10 a.m. and serves Andrew

Lumber, Joseph Schlitz Container Division, Morse Electric Products,

Waadt “ppliance, Serv-a-Portion, Sears Roebuck, Rekir Laboratories.

Levitz Furniture, A. M. Lewis, Frye Copying System, Northridge

Lumber, Far West Plywood, Terry Building Center, Scipter Mfg., Simi

694 17a Dec. 91847

Valley Lumber, Southern Standard, and the team tracks at Northridge,

Chatsworth, Santa Susana, and Simi.

The cars for the Northridge Local are switched out by the 8:30 a.m.

Industrial Switcher at Gemco. If they cannot be switched out because

of a delay to the Chatsworth Hauler, the departure of the Northridge

Local from Gemco would also be delayed.

Vege Switcher

The Vega Switcher goes on duty at 6:30 p.m. serving Bestway

Distributors, Joseph Schlitz, Neckerson Lumber, Frontier Building

Supply, Container Service, Forest Plywood, Purified Down, Mullen

Lumber, Bohemian Distributors, J. J. Newberry, Wates Lumber, and

the team track at Hewitt.

Glendele Switcher

The Glendale Switcher goes on duty at Taylor Yard at 3:59 p.m. and

departs between 4:30 p.m. and 5:00 p.m. to serve Van De Kamps

Bakeries, Freight Distributors Corp., Glendale Depot Team Track,

West Glendale Team Track, Transco Envelope Co., Empire Tire Co.,

Pride Products, Rail Chemical Co., and the Burbank team track.

One of its customers, Freight Distributors, has to have all freight cars

removed before 6:00 p.m. so that the company’s own trucks can be

loaded with the freight that had just been delivered.

Van De Kamps Bakeries also requires an early switch so that its own

trucks can be spotted and loaded for distribution of its products.

Burbenk Switcher

The Burank Switcher commences at 11:59 p.m. and covers the same

district as the Glendale Switcher carrying new inbound cars to various

customers. At about 6:00 a.m. this switcher reverses directions and

serves Burbank Lumber, Swaner Lumber, Dietel Lumber, Terminal

Refrigeration, Borman Steel, Andrew Jergens Co., American Can Co.,

Economy Packaging, Levitz Furniture, Glass Insulators Co., Jack Isbell

Co., Glendale Ready Mix Co., Ceuch Products, Ralph's Grocery,

Sanetek Products, and Interpace, Inc.

If this switcher is held at Burbank for the morning commuter trains,

all switching on the return trip to Taylor Yard would be delayed

accordingly.

According to SP’s interference study, train and switcher movements

would have experienced the following delays for the period January

through July 1979 if the commute trains had been operating:

No Yeah — em

Delays veragr

19 313 lo

9 ig7 2

> i t) 2

» Rs) 14

21 Ad 2)

15 313 2)

: 3 oi 13

2 1,023 aa

2 389 iT)

9 145 16

5 170 u

4 1% 49

1 17 17

é 107 18

i 8 6

7 0 7

3S 2,98) 4

21 266 13

14 369 2A

» 1249 42

i 0

4 x” 15

8 106 13

13 178 14

2 P~) 13

esmessnecaneces 2 306 ll

semmneninnncinni @ 1,715 2

6 305 »

1 2 i

10 177 18

honseudessnene 9 1% 17

ieipetaiohiensaeese 2 2 il

2 6 KX}

13 4% an

Me 2517 “7

9 600 La

a 2.988 64

19 1,042 )

EE 1 a a

1 106 106

1 6 %6

2) 866 4

2 n 19

alee 8 154 19

2 | 16

ejuiesiniasneneennees 3 i 7

ienetnonne 2 3S + a]

asain 2 au is

WAP: 19 473 b

eesegenecens 3 132 “

WCERY ... - 1,708 eX)

Lo 0 en i7 716 2

, | a 216 %

The APLAA (auto parts train), which originates in East St. Louis, is

handled on an expedited basis and in reality is part of the General

Motors Assembly operation. General Motors has limited storage at the

plant and any delay of this train could result in a shutdown.

606 19a Dec. 91847

The LABRT departs Taylor Yard at 12:01 a.m. daily except Saturday

carrying new automobiles as well as other highway competitive traffic

for points in the Pacific Northwest. To protect the scheduled departure,

the new automobiles from General Motors should leave Gernco by 8:00

p.m. and arrive at Taylor Yard no later than 9:00 p.m. for transfer,

blocking, mechanical inspeciion, and train makeup. It takes an hour and

a half to make up the Chatsworth Hauler on the main track, and this

could not be commenced until the second commuter train had passed

Gemco about 6:00 p.m. If Amtrak #13 were running late, the makeup

of the hauler would be further delayed, and it is quite possible that the

new automobiles could miss the 9:00 p.m. deadline.

The highest priority coastline freight train is the LAOAF, comprised

primarily of Bay Area trailer-on-flat car and container-on-flat car

merchandise and auto parts. This train is scheduled out of Taylor Yard

at 6:00 a.m. If held until 8:00 a.m. to avoid conflict with the commuter

trains, it would risk poor meets with the Amtrak train which would

further delay its arrival in the Bay Area.

The LAOAF makes two important connections at San Jose. The first

is the Permanent Local, which is scheduled out of San Jose at 12:30 a.m.

carrying freight forwarder traffic which must be spotted at the freight

forwarders in San Francisco by 2:00 a.m. The second is with the SJOAH,

which leaves San Jose by 1:00 a.m. carrying automobile parts to

assembly plants in Warm Springs and Milpitas.

In addition, the LAOAF handles time-sensitive traffic to the Port of

Oakland that must be placed prior to 7:00 a.m. According to SP, it is

presently working close to the limit in making scheduled connections

and delivery times, and any further delay to the performance of the

LAOAF would assertedly have extremely serious consequences.

The OALAT carries high priority trailer-on-flat car, container-on-flat

car, and automobile traffic from the Bay Area to Los Angeles. It is

scheduled to connect with expedited trains scheduled to depart Los

Angeles between 4:00 a.m. and 6:30 a.m. with automobiles and other

high priority traffic for St. Louis, Dallas, Houston, New Orleans, and

connecting railroads at these points. It must arrive at Taylor Yard by

6:00 p.m. so that cars destined for eastern cities and southern cities can

be switched out and blocked, mechanically inspected, and placed in the

proper connecting schedule such as LAEST, LAHOT, LAAVT, and

LAPXT. If the OALAT is delayed, its traffic will miss the expedited

trains from Los Angeles, which cannot be held because they carry other

high priority traffic.

The OAWCY carries traffic for City of Industry and connecting

schedules at West Colton. It must arrive at City of Industry before 8:00

Dec. 91847 20a 697

p.m. so that cars destined to the Buena Park and Anaheim areas can be

humped and switched to connecting local services. Traffic on the

OAWCY destined to eastern and southern points must arrive at West

Colton before 10:00 p.m. to make necessary connecting schedules.

The OALAY carries general freight from Oakland to points in Los

Angeles Basin. Cars on this train are transferred to satellite yards which

cover the various industrial areas surrounding Taylor Yard. They must

be transferred by 12:00 midnight in order to be placed on local

switchers that will be going out on the day shift.

Another expedited train is the ECWJS which seasonally carries sugar

beets from the Imperial Valley to the sugar beet factory at Betteravia

near Guadalupe. Sugar beets have little or no storage life and must be

handled promptly.

The LAWJ trains operate along the coastline serving customers at

outlying points. SP claims that it has received complaints from

customers located between San Luis Obispo and Burbank Junction

concerning service by this train and is trying to improve its

performance. Additional delays will aggravate the problem.

WCERY trains carry traffic for points on the Northwestern Pacific

Railroad. Interference with these trains could result in service delay to

such points as San Rafael, Santa Rosa, and Ukiah.

(2) Reliability of Proposed Service

SP contends that the proposed commuter service would be

extremely unreliable because of the inherent problems relating to the

nature of the track facilities, the type of equipment to be used, the lack

of station facilities, and complainants’ failure to adequately plan for the

sale and collection of tickets as well as the personnel necessary to

conduct the overall operation.

Schedules

A study prepared on behalf of SP by Reimer Associates concluded

that the public need and support for the rail commuter service should

be substantiated before commencement and that an alternative

analysis should be made.

According to the SP study, an additional 24 minutes should be added

to the schedule because of the nine commuter stops and the amount of

dwell-time that would be related to each stop.

SP argues that if the public witnesses had been told that the running

time would be closer to one hour and 54 minutes, without any conflict

delays, the enthusiasm voiced would have been markedly dampened.

The modified schedule, taking into account acceleration and

deceleration factors and statior « ‘ell-time, is as follows:

e201 osm e300 CP

Leave Leave Ste mon Arnve Arnve

500 pm 5pm Los Angeves 71Dam 7390am

&17 57 Glendale 712 732

5.26 5.56 Burbank 7% 72

5.33 60 Airport 656 7.16

54 €13 Panorama 66 706

55) 621 Northridge 638 638

5.58 62 Chatsworth 631 65)

615 68 Stens-Santa Susana 614 6H

629 630 6-00 6.20

64 714 Camarillo 545 605

654 p.m. 724 p.m. Omard 5.3% am 5:56 a.m.

Arrive Arrive (66.1 miles) Leave Leave

Because of possible freight and Amtrak conflicts, the study concluded

that the modified schedule could be prolonged another 45 minutes

resulting in an overall running time of two hours and 39 minutes.

SP contends that the longer running time would substantially reduce

complainants’ estimated patronage because the LARTS estimates

assume a high quality rail service that is reliable and dependable day

in and day out. Erratic performance, serious delays, and unavailability

of back-up transportation would, according to SP, be intolerable to

prospective commuters.

SP further contends that complainants’ patronage estimates are

overstated by at least one-half because complainants erroneously

assumed that peak hour service could be provided at all points on the

line. It claims that complainants designed the proposed schedules to

accommodate patrons working in the Los Angeles central business

district and failed to consider the commuter requirements of those

working in the areas of intermediate stations. According to the SP study

only 516 of potential riders as identified by the LARTS model would

work in the downtown Los Angeles area.

Equipment

The basic difference between complainants’ proposed schedule and

the modified schedule set forth in the SP study is in station dwell-time

or the time allowed for the purpose of picking up and discharging

passengers. The proposed schedule allows for a 30-second dwell-time

and the SP study concludes that a 3-minute dwell-time will be necessary

at each intermediate station.

According to SP the major factor contributing to the longer

dwell-time is attributable to the type of equipment to be used. Although

the second train has not as yet been acquired, the E] Camino set consists

of cars built in the 1940's for long-distance passenger service having

conventional narrow doors of the era. Modern commutation equipment

Dec. 91847 22a 699

has not only wide doors, but also low-slung steps so that passengers can

step directly onto the platform. Although the modern commutation car

is used chiefly in most rail commutation service, the E] Camino type is

still used to a limited extent in commuter service on the San Francisco

Peninsula and in the Chicago area.

SP claims that each doorway on the E] Camino train would require

a train employee to raise the vestibule trap, lower the swinging stair,

and position a step-box on the platform. If three train employees are

used as proposed by complainants, then only three doors will be

opened; and with passengers getting on single file, the traffic flow will

be reduced, resulting in a longer dwell-time. All eight of the E] Camino

cars are Waukesha-equipped. SP claims that repair parts for Waukesha

units are no longer available.

Fare System

The proposed fare system appears to be modeled after SP’s San

Francisco Peninsula commuter operation, but SP contends that the El

Camino train is not compatible with the inspection and collection

system used on the peninsula. Because five of the eight cars are medium

density intercity coaches with reclining seats, two are buffet lounge

cars, and one is a vista-dome observation car, SP claims they would not

facilitate an expeditious inspection of passes or fare cards nor the

punching of tickets. This would require a system of holders for

multiple-ride tickets, passes, and fare cards to be installed at a uniform

height so that the fare collector could move quickly throughout the car.

Under the proposed plan, 20 percent, or approximately 140

passengers, would purchase their tickets from the conductor on the

train. This, SP contends, is unrealistic because it would take anywhere

from 70 to 140 minutes of the conductor's time because each cash fare

delays the conductor or helper conductor from 30 seconds to one

minute.

Except for the terminal stations, all intermediate stations would be

unattended and tickets would be sold by way of automatic ticketing

machines, which SP believes is not feasible because the machines do not

have a high reliability factor. Based upon an earlier review of available

automatic ticketing machines for possible use at peninsula

commutation stations, SP was led to conclude that the automatic

ticketing machine would require frequent service, frequent collection

of funds, and a human agent nearby to adjust patron complaints,

retrieve torn bills or bent coins, and post the “out-of-order” signs when

necessary.

23—42159

700 23a Dec. 91847

Station Facilities

All SP station operations between Los Angeles and Oxnard have been

discontinued pursuant to Commission procedure or as a result of service

instituted by Amtrak. All station facilities at Los Angeles, Glendale, and

Oxnard are operated by Amtrak personnel.

Although complainants propose to enter a contractual arrangement

with Amtrak to provide station facilities and services, including the sale

of tickets, at Los Angeles, Glendale, and Oxnard, SP is of the opinion

that the proposal to construct platforms equipped only with lights at all

other intermediate stops is too bare-boned and lacks the amenities that

should be provided to passengers waiting for the trains.

According to SP, the proposal contains nothing for the passengers’

comfort and convenience, such as shelters, waiting rooms, toilets, and

drinking fountains. No provision is made for lighting and security for

cars left in the parking lots. Nor does complainants’ proposal make any

provision for police protection against pickpockets, offensive

panhandlers, aggressive inebriates, bullying, and violence.

SP points out that complainants’ proposal is further deficient because

the stations will be unattended and no provision has been made for

informing waiting passengers when a train is running late or when a

train can be expected. Provision would also have to be made for

providing the public with information as to schedules, rates, fares, and

lost property.

SP further points out that complainants failed to take into

consideration that many of the old station properties, as well as

properties designated by complainants as possible parking areas, are

presently under lease to tenants who have made substantial alterations

and improvements at their own expence.

Locomotives

In their proposal complainants envisioned the use of three

locomotives in the range of 2,500 to 3,000 horsepower. Based upon its

experience in pulling the Amtrak Coast Starlight, which has equipment

similar to the E) Camino train, SP believes that at least six horsepower

per ton is needed to operate at maximum speeds required by the

schedule. SP contends that a large locomotive would be required to pull

the one percent grade leaving Simi Valley and also to provide the

necessary acceleration after leaving stations and restricted curves. SP

believes that even a 3,000 horsepower locomotive would fall short of

maximum and that a 3,600 horsepower unit would be required.

SP also believes that four locomotives would be required rather than

three. Although a third locomotive at Oxnard would provide a backup

Dec. 91847 24a 701

if the regular locomotive could not start in the morning, it would not

provide a solution to a problem of breakdown en route or a failure on

the return from Los Angeles in the evening.

Another problem which SP calls attention to is the fact that the E]

Camino cars require a steam line for heating purposes and for hot water

in the lavatories. At one time this was provided by steam locomotives.

With the advent of the electric diesel locomotives an auxiliary steam

generator was installed in each locomotive. With normal retirements

and rebuilding programs, the steam-generator-equipped units have

virtually all been removed from SP’s service, with the exception of units

which are assigned to the San Francisco Peninsula commutation fleet.

Because of the heavy demands on its own operations, SP claims that

it cannot lease any of its own locomotives. As of August 31, 1979, it

assertedly was leasing 141 units from other railroads.

Home Terminal

SP believes that Oxnard would probably be the home terminal for the

commuter trains. If so, SP claims that it not only has no track facilities

to accommodate the trains overnight, but it has no extra board at

Oxnard. If a crew member calls in sick, his replacement would have to

come from the Los Angeles extra board. Because a reasonable time to

report is provided after a call has been received, a last-minute sick call

or layoff would assertedly cause a delay to the train.

Equipment Maintenence

At one time SP had an extensive passenger coach yard in Los Angeles

where periodic heavy repairs were made and it maintained a large

force for the purpose of sweeping and vacuuming the interior of cars,

dusting, washing windows, mopping floor, cleaning lavatories,

restocking paper towels, and washing the exterior of cars. ©

All of the repair facilities have since been dismantled and the

maintenance forces have since been disbanded. According to SP it has

no such forces at Los Angeles nor at Oxnard.

Supervision

The commutation service and al! supporting services would have to

be coordinated and supervised. SP claims that it has no passenger

service supervisors in the Los Angeles area.

(3) Growth of Aree and Expansion pf Conflict Problem

The Los Angeles sales distri er testified that during the past

30 years he had seen a growth and development of

manufacturing, merchandising, and service industries along the

right-of-way from Los Angeles and extending through the San

702 25a Dec. 91847

Fernando Valley to Ventura County. With the growth of industry there

was a corresponding development of new homes.

According to the witness, SP’s traffic volume for the years 1974

through 1979 also experienced a substantial growth which he expected

would continue in the foreseeable future. With increases in carload

business, he testified, there has been a constant service problem

because of the physical limitations of the railroad plant. Because a

number of industries on the coastline receive a switch every working

day and plan their operations around the rail deliveries, a delay of even

one or two hours in switching would, according to the witness, lead to

a flood of customer complaints.

The witness expressed the opinion that freight service demands on

the railroad will increase and the proposed commuter trains would

seriously impair SP’s efforts to provide efficient rail transportation

which is vitally needed to meet the requirements of existing timetables

and the future economic needs of the area.

(4) Estimated Costs for Providing Service

A transportation analyst in the Bureau of Transportation Research of

SP prepared an estimate of costs for operating the proposed service

including an estimate for interference with SP’s freight trains, but

excluding locomotive and car costs, and it is as follows:

Estimated Costs

Interference ~ $243,961

Supervision and support 107,484

Station forces 341,916

insurance $00,000

Property rents 900,000

Breakdowns 4.417

Banking

Crew expense 1,050,873

Uniformae..........

Locker rooms 1,000

Deadhead bodiging ...........:0...:00: sess $,080

TROOTRIICI a canscceseecovereessnvnsennssocsenrenseocrorcereeeseeeeeseeensnenvannanseeneccesees 1357

Train and engine crew expense 630,461

training expense a

crew training expense

Fringe benefit expense, replecement employees 107,614

Extra board costs 313%

Police and security 557 250

Patrotman positions 313,399

Police and security to guard train et Oxnard 3 920

Estimated annual fuel consumption would be 216,734 gallons.

The estimate is based upon long-run variable costs and makes no

provision for maintenance of ways, because of incomplete data. No

allowance was made for a possible Caltrans subsidy.

Dec. 91847 26a 703

The interference cost of $243,961 was based upon SP’s interference

study, which showed that January through July 1979, 55 through trains

would experience 23,975 train minutes of delay waiting for the

commuter trains, or 685 hours per year, on an annualized basis. It also

indicated that there would be 28,814 minutes of delay to 19 identified

local and yard engine movements, or approximately 823 hours 15

minutes on an annualized basis. The estimated cost per minute is as

follows:

Through Train Component Cost per Minute

Locomotive ownership cost $.000293 /h.p. minute

Car uwnership cost 0361 /car minute

Caboose ownership cost 218/cab. minute

Local Train Delay Costs

Locomotive ownership cost $.000293 /h.p. minute

Car ownership cost 0061 /car minute

Caboose ownership cost 0218/cab. minute

Labor cost 1.0482 / minute

Delay costs made no attempt to measure traffic losses that would

result from missed connections.

The estimated cost of $500,000 for insurance was based upon a

quotation given by the London brokerage firm of Cedrick, Forbes,

Beard & Paine, which gave a range of $435,000 to $535,000 on a $1.5

million deductible.

SP’s present coverage, including its San Francisco commuter

operation, provides for a $5 million deductible and covers up to $46

million per occurrence. The premium is $3.5 million annually. It is

possible that complainants could be added to the existing policy at a cost

less than $500,000 annually, but SP contends that it would be better to

have a lower deductible on a new operation where no past experience

is available for the purpose of comparing prior commuter operations on

the same tracks.

The $200,000 cost for property rents covers incomes that SP would

lose on that property upon which proposed stations, platforms, and

parking lots would be located and which is presently under lease to

others or being held for future commercial lease.

(8) SP’s Current Finenciel Condition

SP contends that it cannot afford to provide the proposed service

because of its poor financial condition. It claims that its financial

condition at the end of 1978 was weaker than it was in 1969 and,

although 1979 showed improved financial results, they are still,

assertedly, below a satisfactory level. According to SP’s manager of

financial services in its Treasury Department, the company’s financial

deterioration during the past ten years has resulted from an erosion of

704 27a Dec. 91847

earnings accompanied by increasing capital requirements. Inflation, he

testified, has had an impact not only with respect to higher wages,

material, fuel, and equipment costs, but through increased interest

rates on borrowed money. According to the witness, SP’s rate of return

has been inadequate over the past ten years and will continue to be

below its cost of borrowing. SP, he testified, cannot afford to see its line

capacity reduced with a resulting loss of future freight profits.

The witness further testified that SP is presently experiencing

difficulty in raising new capital at reasonable rates because of

inadequate earnings; over the last ten years SP had to raise $826 million

through the issue of debt securities and approximately $230 million of

new debt will be issued to finance its 1979 capital program; SP’s rate of

return during the past ten years has fluctuated at depressed levels; in

1978 the rate of return was 1.62 percent and during the best year it was

only 3.22 percent, with an average of 2.36 percent; and before SP would

inaugurate any new service, including the proposed commuter service,

the new service would have to make a contribution to the company’s

financial standing.

SP also introduced as an exhibit “Result of California Intrastate

Freight Traffic’. Exhibit 85 was prepared and introduced in an

unrelated proceeding to show that a general freight increase, as applied

for, would result in an increase in revenues that was not unreasonably

high. The exhibit claims that SP’s California freight operations were

earning less than a break-even amount.

Complainants’ Rebuttal Showing

In rebuttal to SP’s presentation, complainants introduced the

testimony of four witnesses. Their testimony is summarized as follows:

1. Laurence A. Brophy

Mr. Brophy is presently employed by A. T. Kearney, Inc., a

management consultant firm located in Chicago, Illinois. For

twenty-five years he was associated with the Illinois Central and

the Elgin Joliet and Eastern ne, in various capacities

including Assistant Trainmaster, rainmaster, Assistant

Superintendent and Superintendent. For a period of time he was

r nsible for the operational supervision of yard switch engines

and industrial switch engines working inside a large stee] plant, U.

S. Steel South Works in Chicago, Illinois. He was also

vice-president and chief operatin cer of the Chicago Railroad

Terminal Information System, which was founded in 1972 by the

24 railroads of Chicago for the purpose oo all carriers

with freight train and car movement information within the

Chicago rail terminal.

He testified that after reviewing the testimony of SP witnesses and

inspecting the proposed facilities he concluded that:

Dec. 91847 28a 705

(1) Two additional trains would not adversely affect operations at

Taylor Yard and within the Los Angeles Terminal.

(2) The proposed commuter trains would not represent a

tential congestion problem between LAU Dayton

aly Los Angeles Transportation Center, and Mission

ower.

(3) The proposed commuter trains would not interfere with

operations at Gemco.

With =e to specific operations Mr. Brophy made the following

observations:

(a) Taylor Yard

Operations at Taylor Yard are controlled by the Dayton

Avenue interlocking station operator. Crossover tracks into A

we from the west to the east main are also controlled by the

ayton Avenue tower and switches from the eastward main

to the lead as well as switches to tracks in A and C yards are

controlled by the main line tower. There was little or no delay

to er trains entering A yard or departing C yard because

most of these switches are electronically controlled.

Trains were frequently left on the westward main for train

crew oer even though yard tracks were available for such

purposes. practice reduces yard operation flexibility. The

main tracks should be _ clear at all times. If for any reason

a train is on the westward main, two yard tracks immediately

adjacent to the eastward main can be used to run westward

trains around the blocking train.

Checked Assistant General Yard Master's turnover at Taylor

Yard to determine the number of Coast and Valley Division

trains sapeens west (north) from C yard during the week of

July 1979. Out of 37 trains 21 experienced terminal delay.

(Terminal delay occurs when a train does not leave the yard

within 75 minutes from the time the crew is called.) Checked

to determine the method used to call trains and the time

when trains —— Trains frequently didn’t depart until

two hours after being called. This is because SP does not yard

trains properly and fails to use its yard facilities as dictated by

operating conditions. The flexibility of yard operations is

greatly —— by the practice of main lining trains instead

of yarding :

The main line tracks and the auxiliary tracks in A and C yards

between the west and east end of La ed Yard are under the

direct control of operators and switchtenders, which should,

and does, expedite ger, freight trains, and light engines

over this portion of the terminal tracks.

The pectiom of trains being held out on the main tracks is one

of SP's making and would not be attributable to the operation

of the proposed commuter trains.

706

(b) Operations Between Dayton Tower, Los Angeles

(c)

(d)

ransportation Center, Mission Tower, and LAUPT

Train movements to and from Dayton Tower and Los Angeles

Transportation Center are controlled at the west end by

Dayton Tower and at the east end by Mission Tower

Movements into and out of LAUPT are controlled by Mission

Tower. Although the traffic was heavy, no unusual delays

were noted. The movements to and from Taylor Yard by the

Alhambra Switcher, Torrance Switcher, City of Industr

Assignment, Junction Hauler, the Yard Hauler, and the U

Hauler would not be affected by the addition of two passenger

trains in the morning and afternoon hours. These yard

transfer movements are controlled between Dayton and

Mission Towers.

During June 4, 1979, and June 8, 1979, there were 54 train and

light engine movements between Dayton and Mission Towers

between the hours of 5:30 and 7:30 a.m., and 4:30 and 6:00 oo

Only eight movements could have possibly been delayed by

operation of the commuter trains.

SP's problem in this area is one of coordination. The

scheduling of two first-class trains will force a certain amount

of discipline in the matter in which SP conducts its freight

train operations.

Burbank Switcher

Industries located between Taylor Yard and Burbank

Junction, which are served by the Burbank Switcher, would

not be adversely affected by the operation of the proposed

commuter trains. There are ten different locations on the

double track segment in which the Burbank Switcher can

clear for other trains and still do its job. It will not be delayed

for an hour each day as SP claims. A review of the Burbank

Junction Station records for the first, week of June 1979

indicates that Burbank Switcher had returned each day to

Taylor Yard in time for the same engine to be used on the

midnight Burbank Switcher assignment. The records also

indicate that during the same period the Burbank Switcher

spent from 22 minutes to two hours daily at Burbank.

Gemco Yard

Gemco has a total of 31,309 feet of track room, which is

equivalent to approximately 150-89 feet 9 inch auto rack

freight cars and over 300-32 feet 6 inch box cars. Auto rack and

x cars constitute the major types of og ye used

at Gemco. During the month of June 1979 (Saturdays and

Sundays excepted) the consist of inbound trains averaged 131

cars with an average train — of 9,976 feet. The dail

average of cars outbound, excluding the automobiles, was |

with an average train length of 13,036 feet There is sufficient

yard room to accommodate the freight cars originating at and

destined to Gemco.

Dec. 91847 30a 707

_—

(e

(f)

The yard tracks are presently underutilized because cars from

Taylor Yard are usually yarded on Track 109, which is the

longest track in the Gemco facility. Track 109 and its

— (Budweiser Lead) can hold 10,000 feet of train

ength.

SP presently pulls cars from the Gemco Yard and makes up

trains on the main line. These trains could be made up on

Track 109 and the Budweiser Lead, thereby leaving the main

line clear.

A check of train movements for the month of June 1979

indicates that there were 94 inbound trains and 7 of them

would have been using the railroad during the commuter

hours. During the same period there were 109 trains

departing Gemco. Only 8 would have had any possible

conflict with the commuter trains.

SP's Gemco Yard records indicate that during the month of

June 1979 not one of the regular Chatsworth haulers nor any

of the extra Chatsworth haulers carrying automobiles

departed Gemco before 8:00 p.m.

Based upon a review of SP records and personal observations

the commuter trains would not have delayed freight train

movements, nor would they have delayed tn t trains

moving in and out of Gemco, nor would they have interfered

with the make up automobile trains if they were made upon

Track 109 and the Budweiser Lead.

Empty auto parts cars are taken from Gemco and placed on

the Hewitt siding and the engine returns to co. A

subsequent movement of empties are taken from Gemco to

Hewitt where they are connected with the first consist and al

are then hauled to Taylor Yard. This not only results in double

handling, but it ties up the Hewitt siding for 12 to 14 hours

daily. It places a restriction upon the dispatcher because the

siding could be used for the meeting and passing of trains.

“Hot” Auto Parts Cars For Gemco

Observed movements of extra Chatsworth assignment from

Taylor Yard to Gemco, but they moved during time periods

when the commuter trains would not be operating.

“Hot” cars are those that have been delayed somewhere on

the SP system and must be expedited. A search of SP's records

indicated that such movements were not frequent. Gemco is

only seven miles from Burbank Junction, the start of the

double track segment. Any “hot” car movement conflicting

with the commuter trains would result in only minimal delay

because of the short distance involved.

Yard Operations at Gemco

Yard operations at Gemco primarily consist of switching for

the General Motors plant. There is a considerble amount of

“slack time” or “spot time”. (The engine remains stationary

708

3la Dec. 91847

for more than two hours.) There is plenty of time to switch and

line up cars that are to be set in auto Tracks 5, 6, 7, and

8. There is also time to classify the loaded automobile cars off

Tracks 1, 2, 3, and 4.

The yard provides a great deal of flexibility, which if properly

used would eliminate the need for tying up the Hewitt siding

and —_— eliminate the need ioe tae up trains on the

main line.

Siding Capacity Between Burbank Junction and Omard

During June 1979, 50 freight trains operated between Burbank

Junction and Oxnard and only 8 of them would not have fit in

the Leg at Camarillo, Moorpark, Santa Susana, Chatsworth,

or Hewitt.

To ascribe the possibility of delays to eastern bound trains to

the operation of the’commuter trains is without merit. Such

—— are occurring at the present time and are attributable

to SP’s operating personnel. The introduction of the proposed

commuter trains would impose a discipline in SP's practice of

calling and operation of freight trains and thereby minimize

any possible delay to passenger or freight trains.

2. Donald H. King

Mr. King retired as Regional Vice President of the Burlington

Northern Railroad (BN) on December 1, 1977. At the time of his

retirement he was in charge of the Chicago Region, which

included 4,400 miles of track with approximately 9 a

He was in —- of all commuter trains operating beteen Chicago

and Aurora, a distance of 38 miles, and all freight movements. In

addition, 4 Amtrak trains operated daily within the region. The

region also included an important classification freight yard

located at Cicero, which is approximately 28 miles east of Aurora.

He made an inspection of the E] Camino car, the terminals at Los

Angeles and Oxnard, and the proposed intermediate station sites.

As a result thereof he is of the opinion that the proposed service

is feasible. Mr. King's observations and opinions are as follows:

(a) Equipment

The eight E] Camino cars are in excellent condition and there

is no reason why they cannot be operated successfully in

commuter service. Railroads have used conventional coaches

with single vestibule openings in commuter service for over

50 years; however, BN now uses gallery-t coaches with

double vestibule doors that are automatically controlled.

Because of California's favorable weather conditions there

would be no heating problems if the locomotives could not

rovide steam for heating the cars and hot water for the

avatories.

He believes that the installation of ticket holders or chips in

the El Camino cars would facilitate the collection of tickets.

° Dec. 91847 32a 709

(b)

(c)

(d)

(e)

Home Terminal

Believes that the home terminal should be Los Angeles,

because it is an existing source of supply for crews. Crews

could make the run to Oxnard, lay over and return to Los

Angeles in the morning. Although this would require meals

and lodging at Oxnard, it would eliminate the need for an

extra board for enginemen and firemen at Oxnard. In the case

of illness a yo: — ‘ae from . switch engine

assignment at Oxnar eles, or if necessary a

supervising officer could be used.

Cleaning and Handling

There appears to be sufficient space for storing the trains

overnight on a house track next to SP’s station at Oxnard or

they could be stored on the nearby Ventura Railroad.

The cleaning at Oxnard would be minimal and would not

require the services of more than one person to do a fast

— of floors and to pick up debris. More extensive cleaning

could be done at Los Angeles.

Ticketing

BN's experience on the sale of tickets has been:

(1) 50 percent purchased at station.

(2) 40 percent purchased by mail.

(3) 7 percent cash fares, sold on train.

Daily cash sales on the BN totaled 3,200 for 72 trains or 56 cash

sales per train. Using the same ratio the proposed trains would

average approximately 21 cash fares per train, which can be

handled with minimum difficulty. In any event the crew can

always be increased to meet any lem, whether it be

passenger loading or collecting tickets or fares.

Passenger Loading

As the pattern of passenger boarding and unboarding

develops management will determine the most efficient way

of accommodating them by way of spotting cars at the

platform stations and the number of coaches to be opened.

The BN No. 244 departs Aurora at 8:05 a.m. and stops at 20

intermediate stations before arriving at Chicago at 9:18 a.m.,

a distance of 38 miles. The dwell-time averages less than one

minute per station. By prespotting cars at each station a

minimum of coaches would have to be opened.

Crews could advise passengers what coaches to use to detrain.

The E] Camino train is ane Sonpees with a public address

system, which could be to direct passengers to the

proper cars.

In any event commuter ers soon learn where cars will

be spotted and what doors be opened.

Station Facilities

BN has 26 stations on its commuter line, 13 of which are

and 13 are unmanned. Shelters are provided at most

710

33a Dec. 91847

stations, but of a windbreak type. There is no public address

system at any of them. Most commuters wait in their cars and

arrive at the platform just before train time. Very few use the

stations or shelters. With California's nice weather, standing

on the platform would be no problem. No toilet facilities are

available at unmanned stations. The BN operates through

ted areas, which are serviced with adequate street

ts. The proposed area is quite similar.

BN does not provide parking on its property, except at

Aurora. This can be provided by local authorities.

3. Donald Church

Mr. Church is Chief of Special Services Division of Los Angeles

County, Chief Administration Office.

Mr. Church testified that E] Camino cars were purchased by the

County of Los roy for $200,000; that each car had traveled

approximately 40; miles at the time of acquisition; that

pursuant to public bid the El] Camino cars were complete!

refurbished according to the specifications set forth in Exhibit 98,

and that the E] Camino train is in a good and operable condition.

William W. Whitehurst, Jr.

Mr. Whitehurst is Executive Vice-President of L. E. Peabody &

Associate, Inc., economic consultants, Landover, Maryland.

When the Railroad Revitalization and Regulatory Reform Act of

1976 was passed the Rail Services Planning Office (RSPO), which

was required under the Act to issue standards for the

determination of subsidies necessary for the continuation of rail

commuter passenger service, commissioned the firm of L. E.

Peabody & Associates, Inc. to make a study.

The firm also assisted in developing and sap soe Sed costing

concepts and methodology by which the New Jersey Department

of Transportation reimbursed various railroads for operating rail

passenger service in New Jersey.

Mr. Whitehurst gave an historical account of the development of

subsidy agreements between railroads and commuter authorities,

= problems relating thereto and the methods explored to resolve

them.

In general, the major items of revenue are solely related to either

nger or freight service and pose no serious problem;

owever, problems do arise in apportioning railroad costs for

activities which are common to h freight and passenger

services.

Items such as train and engine crew wages, fuel, maintenance, and

servicing of equipment can usually be determined and will be

essentially the same under any reasonable analytical approach, but

items such as Maintenance of Ways costs and neral and

Administrative expenses can vary widely.

Dec. 91847 34a 711

One approach is to determine costs on an avoidable basis by

determining which costs would no longer exist or be reduced in

the absence of a given service.

In each instance the railroad and public agencies had to deal with

various components of cost including:

(a) Operating expenses chargeable to passenger service;

(b) Return on investment far rolling stock and fixed facilities;

(c) Responsibility for liability;

(d) Impact on other rail operations.

Amtrak operates over the lines of various railroads which are part

of the Amtrak system under a basic agreement and amendments

thereto. The basic agreement was entered into on April 16, 1971,

iy 4 oe perenne of — om ptr Ba solely

or the t e er ce plus av e costs

reasonably and nececsielly incurred.

In the case of insurance, Amtrak indemnifies the railroad from

liability for Amtrak employees, ngers, rolling stock, other

property, and Amtrak train accidents at highway crossings. The

railroad indemnifies Amtrak for railroad employees equipment,

and property. In consideration Amtrak pays the railroad $0.0367

per Amtrak train-mile.

None of the Amtrak agreements include provision for payment of

claims arising from interference with freight operations.

The RSPO commuter standards (49 CFR 1127) provide for an

interpretation of the standards by the filing of a written petition.

The RSPO standards rely primarily on a Facilities Utilization Plan

and a Manpower Utilization Plan for determining costs chargeable

to a commuter service. The facilities plan iden and itemizes

the road and ae properties used in the commuter service

and also identifies the road properties that are avoidable upon

discontinuance of the commuter service. The manpower plan

identifies the railroad forces used in providing the service. The

methodology for tomar the variable portion of common

costs is also provided.

In determining a return on investment for stock and fixed

facilities, the RSPO standards identify and establish values for

avoidable properties. The total value is Crrecsninies Sy Sens the

net’ book value as of April 1976, plus a value of additions and

betterments for the commuter service, less the accrued

depreciation from that date and all cost of modifying the

—— seeperty so that noncommuter operations can be

continued. Property owned by public bodies is not included. RSPO

commuter standards provide for 7.5 percent per annum as a

reasonable return.

In eee case - liability me wah qny = merely ancieene ee the

su zer i ge e for any loss, e, Or perso ury

resulting from the commuter service, but does not at ae

such costs should be determined.

712 35a Dec. 91847

Greyhound’s Showing

The purpose of Greyhound’s presentation was to urge Caltrans to

consider and implement a balanced transportation policy with due

consideration of the inherent transportation advantages of all modes.

According to Greyhound’s Director of Operations, Programs,

Greyhound is ready and willing to make an offer for a purchase service

contract to Los Angeles County and Caltrans for a commuter bus

service between Oxnard and Los Angeles.

According to the Greyhound witness, the United States’ intercity bus

industry is the largest and possibly the best public bus transportation

system in the world; it is the most energy-efficient, least polluting, and

most cost-effective; because of its flexibility, routing and capacity can

be changed with minimal investment and equipment; and Greyhound

has the range of resources to provide reliable and high-quality service

between Oxnard and Los Angeles.

Pursuant to a written agreement, similar to one that Greyhound has

with SamTrans in San Mateo County, Greyhound would provide the

equipment, drivers, vehicle maintenance, and management that is

required to operate the service.

The points to be served and the equipment to be provided based

upon the LARTS ridership projections are as follows:

Stanon Projecton Required Bus

Oxnard 173 4 it]

Camarillo ...... ” 2 ef

Moorpark .... 101 3 14)

Sante Susana (Sim: Valley) em 5 25

Chatsworth . 14 2 =

Northndge Le) 2 4

Panorama 2 l a

Burbank Airport 167 os 186

Burbank 70 1 “7

Clendale 0 - -

mes Angees a a. _

1,064 Pz) 1,126

The travel time in the morning would be 1'4 hours from Oxnard to

Los Angeles and the evening travel time would be a maximum of 2

hours

Greyhound estimates the annual cost to provide the service would be

$63,657 per bus or a total of $1,528,000 annually for 24 buses. Deducting

an estimated revenue of $600,000 the annual subsidy as of the time of

hearing would be approximately $928,000, which according to

Greyhound, would be substantially less than Caltrans would have to pay

to subsidize the rail commuter service as proposed. Based upon an

Dec. 91847 36a 713

inflation factor of 15 percent per year the projected cost would be

$1,757,000 with a net cost of $1,157,000, which Greyhound claims

compares favorably with Caltrans’ estimate of $1,844,000 and SP's

estimate of $2,400,000 for annual operating cost. In addition to the

financial savings, Greyhound also points to the substantial fuel savings

that could be realized by using buses rather than rail service.

Greyhound estimates that the buses would use only 85,584 gallons of

fuel annually as opposed to the 217,000 gallons of diesel fuel that SP

estimated would be required to operate the locomotives.

George Woodman Hilton, professor of economics at the University of

California at Los Angeles, who appeared on behalf of SP, cited

authorities supporting Greyhound’s position that buses can move

people more cheaply than rail systems because operation of lighter

vehicles require smaller fuel and labor inputs. According to the

professor, the proposed rail service might take 900 cars off the highways

daily, but this, he concluded, would only shorten the peak commuter

period. He testified that people evaluate the convenience of an

automobile in a fashion that can be quantified and believes that the

expenditure on freeways could better be used by stretching out the

commuter period by variable user charges. The professor claims that

this would alleviate congestion moving in and out of metropolitan areas

and could be accomplished by the installation of a technologically

available metering process, which would require a highway user to pay

a higher fee during the rush hours.

Discussion

Just as southern California generally has experienced a phenomenal

growth in population and industrial development over the past thirty

years so too has the area along the proposed rail route between Los

Angeles and Oxnard. With the advent of freeways, two-car garages, and

cheap gasoline the automobile has become the workingman''s first love

in the field of transportation. Resulting freeway congestion, pollution,

rece: ‘ fuel shortages, and skyrocketing gasoline prices have slowly, but

surel /, turned that beautiful romance into a nightmare. This unhappy

transformation was strongly evidenced by the large number of public

witnesses, as well as public officials, who appeared in support of the

proposed commuter service.

With hindsight one can only wish that the “Big Red Cars” were still

in operation in Southern California, but they are a thing of the past and

the only solution to the problem is that suggested by Professor Spencer

Crump, who testified that the same imagination that was used 75 years

ago to build the Pacific Electric system should be used to build a new

transit system for the Los Angeles area in the 1980's.

714 37a Dec. 91847

In the meantime, alternate modes of public transportation are

necessary, particularly to meet the needs and requirements of

commuters between home and work. Unfortunately, this Commission

cannot conduct the type of study that was suggested for assessing

alternatives that a community might consider prior to filing an

application for funds with the federal government.’ Nor can we decide

whether a county, a transit district, or Caltrans should enter into a

purchase service contract with Greyhound or with Mr. Nathaniel

Walter Anderson, Sr., General Manager of GLH Tours, Inc., who

testified that his minority-owned charter-party carrier company would

be willing to provide a commuter service between Los Angeles and

Oxnard if subsidized.

Greyhound may be in earnest in seeking to operate buses in this

corridor under a subsidy similar to that offered to S.P. However, at the

present time Greyhound is not authorized to serve all of the points

along the proposed route. If Greyhound had filed an unconditional

request for such certificated authority as a passenger stage corporation

we could have considered the merits of both bus and rail services in

detail before reaching a final decision. Since that is not the case, the only

things we must decide are: (1) whether we have jurisdiction to require

SP to provide the proposed commuter service; (2) whether the

proposed commuter service is required by public convenience and

necessity; and (3) whether a rail service would be feasible under

existing conditions.

Jurisdiction

{1} SP has maintained throughout this proceeding that we have no

jurisdiction to grant the relief sought by this complaint. This argument

was first formally presented in a motion to dismiss the proceeding,

which SP filed on October 6, 1978. We determined that SP’s argument

had no merit and denied its motion on February 27, 1979, in Decision

No. 90018. SP did not pursue its right to seek judicial review of this

determination and it thereby became final by operation of law. (Public

Utilities Code Sections 1709 and 1756.)

However, SP reiterates its argument herein on the grounds that a

jurisdictional challenge can be raised at any time; moreover, one of SP's

witnesses claims that SP has subsequently developed additional facts

supporting its position. SP’s primary contentions are that it is not a

common carrier of passengers in the southern California area and that

it has never dedicated its facilities to the provision of commutation

service on the line in question; therefore, the Commission lacks

* According to Asustant Director and Transportation Policy spect with the Senate Office of Re

search of the California State Senate, Senate Bill No 630 require an alternative analyss

before funds can be issued and none was ever intended

Dec. 91847 38a 715

jurisdiction to order it to provide such service. While we disagree with

these arguments, we will address the issue again herein for the purposes

of clarifying the rationale underlying our assertion of jurisdiction.

First, under its own certificate of incorporation on file with this

Commission, there can be no doubt that SP is a common carrier of both

passengers and freight in the State as a whole. That certificate states

that the nature of SP’s business and the objects and purposes thereof,

are to:

“. . . doa general transportation business; to transport, carry, haul,

dictriouns, deliver and Roadie pemengeee, freight, baggage, mail,

express, goods, wares, merchandise and other property of every

kind oo nature by railroad, steamship, airplane, truck, bus,

pipeline, and other means of transportation or by any thereof . . .”

Section 2169 of the Civil Code sets forth SP’s common carrier

responsibilities:

“{A common carrier such as SP] must, if able to do so, accept and

carry what is offered to him, at a reasonable time and place, of a

kind that he undertakes or is accustomed to carry.”

In the course of this proceeding, County and Caltrans have offered

evidence concerning the public's need for passenger service along SP’'s

monopoly rail corridor and the abilty of such agencies to provide the

necessary train equipment and to reimburse SP for expenses incurred

in running the trains. Moreover, much evidence has been presented

concerning the degree to which SP’s present freight operations would

or would not be impeded if SP began hauling County's trains. Under

these circumstances, we believe we have the authority to examine

whether or not under Section 2169 of the Civil Code SP has a duty to

accept County's proposal.

Secondly, we do not dispute the basic principle that dedication is a

necessary element in this case. However, we disagree with SP's

argument that the requisite dedication is not present.

{2) From the onset of State regulation over railroads as public

utilities, the scope of their dedication has been primarily defined in

terms of the rights-of-way over which they provide railroad service with

no distinction made between passenger and freight service. Moreover,

the record is clear that not only does SP still use the Los Angeles-Oxnard

right-of-way and attendant structures and facilities for freight service,

it formerly used that right-of-way to operate both local and long-haul

passenger trains. While it received Commission authorization to

discontinue certain trains‘* and was relieved from the operation of

others by the federal Amtrak legislation, we do not consider this to be

* Pubhe Utilities Code Section 7532, which the Commission discretion to discontinue certain

specific lines, says nothing about abandonment of service, nor do any of the Commis-

mon's decisions authonzing SP to discontinue certain lines

716 39a Dec. 91847

tantamount to authorizing abandonment of its dedication to provide

passenger service along this route should we determine that public

convenience and necessity so require.

Concerning local service along the coast route, historical records

indicated that SP as of March 20, 1904 completed the final link in what

was termed the “Coast Line” by construction of the track, ties, ballast,

and attendant structures on its right-of-way south of Santa Barbara

through Oxnard . nd the Santa Susana Tunnel to Los Angeles. Local

passenger service between Oxnard and Los Angeles was begun

sometime thereafter. In 1934 the Commission permitted SP to

discontinue local train service operating between Oxnard and Los

Angeles via Saugus over the Santa Paula Branch. The order granting

discontinuance specifically reserved to the Commission the right to

“revoke the authority” to discontinue and “the right to make such

further orders, relative to the matter, as to [sic] it may seem right and

proper ... if in its judgment, public convenience and necessity demand

such action.” (Decision No. 27612, Application No. 19352 (1934) 39 CRC

873 (unpublished); see Appendix B.) In this “reservation” the

Commission clearly indicated its intent to authorize discontinuance

only for that period of time in the fuiure that public convenience and

necessity so permitted. If in the future public convenience and

necessity required passenger service, restoration would be ordered. We

have not found any record of SP’s having appealed this decision.

Coupled with the authority cited below, this decision fully affords the

Commission the right and obligation to consider the question of

whether public convenience and necessity presently require the

reinstitution of local, i.e., commute, passenger train service between

Los Angles and Oxnard.

It cannot reasonably be disputed that the Commission has the

responsibility of ensuring that SP is properly carrying out it: public

utility * and common carrier duties. Section 761 provides in reievant

pert thet whenever the Commission, after a hearing:

. finds that the . . . service of any public utili is] inadequate,

or insufficient, deo comaniodien tel 40 weed er bare oo

fix the ... service... to be. . . employed. The commission ae aati

preveribe rules for the performance any service ..., and, on

r demand and tender of rates, such public utility ‘shall |

r such service within the time and upon the conditions

Fender § in such rules.”

Section 763 further provides that when the Commission, after a

heering:

, finds that any railroad corporation . . . does not run a sufficient

number of trains or cars, .. . reasonably to accommodate the traffic,

* See Sections 211 (a), 216(e), and 41

Dec. 91847 40a 717

nger or freight, rted 8 ad owe for

fo it, poe order drecang sich

to it, .. . the commission may mak

co oration to et = — of i its tains or Cars or .

e any other order that it determines to reeasnably noseenery

to accommodate and transport the traffic, passenger or freight,

transported or offered for transportation.”

[3] We know of no cases restricting the application of this section to

service presently being provided. The Commission may also, after

hearing, order additions, extensions to, or changes in existing

equipment or facilities, “to promote the security or convenience of its

employees or the public, or in any other way to secure adequate service

or facilities, .. .” (Section 762.) In City of Oakland (1935) 39 CRC 308,

the Commission held that it had jurisdiction under the predecessor of

this section to consider a request for reinstatement of electric railway

service that had been discontinued pursuant to Commission

authorization.

[4] We consider the above authority to be fully consistent with our

position that public convenience and necessity cannot reasonably be

measured for all time on the basis of conditions existing in 1904, 1934,

or 1965. The concept of public convenience and necessity is necessarily

fluid. The factors which determine the level of service and the

equipment adequate to serve the public will necessarily differ as

populations grow or diminish and as other forms of transportation

become more or less dominant. It is our opinion that if the right-of-way

in question remains intact, if service similar to that proposed was once

offered, and if no abandonment of either the right-of-way or of the duty

to provide service along it has been authorized, SP’s obligation to

render both common carrier freight and passenger service remains and

the Commission has the authority to reconsider whether or not public

convenience and necessity require changes to present service.

{5} We do not consider the Amtrak legislation to be relevant to the

question of the scope of SP’s dedication under State law. Until October

of 1978, that statute involved exclusively what is termed “intercity” rail

passenger service.* The distinction between “intercity” and

“commuter” services is germane to the scope of federal jurisdiction, but

not to the issue of SP’s dedication under State law. We acknowledge

that where a railroad has contracted with Amtrak for the latter to take

over intercity passenger service, the railroad is relieved of its

responsibilities under State law as a common carrier of passengers, but

in intercity service only (45 U.S.C.A. § 561 (a) (1)). This does not affect

any responsibilities SP may have to provide commuter service, nor does

it affect the Commission's jurisdiction to determine the extent of such

responsibilities.

* in October 1978 an amendment to the statute gave states the option of requesting thet Amtrak ran

commuter trains pursuant to contract, as long as the state would pay a certain percentage of the

operating costs. (45 USCA §563(d).)

718 4la Dec. 91847

Public Convenience and Necessity

We are convinced that the extensive use of the private automobile

has placed large costs on the general public in terms of traffic

congestion, environmental deterioration, energy consumption, the use

of land required for roads and parking, and other socio-economic

impacts. The Legislature has clearly announced its policy and intent to

develop and encourage a balanced transportation system within

realistic funding levels. Congress and the President support expanded

rail transit. The transportation officials and regional planning agencies

support the need to encourage and begin rail passenger service in this

corridor. Caltrans’ estimates of 1,100 to 1,400 passengers per day for the

proposed tfain service, based on the regional transportation studies and

plans, appear reasonable, if not conservative, measured against the

success of other local passenger service in southern California and on

the San Francisco Peninsula. Increased gasoline costs and potential fuel

supply difficulties are also important elements in our decision that

public convenience and necessity require this service to be instituted.

Several passenger stations remain along the route and other points to

be served can be accommodated by platforms and parking lot facilities.

A sizable number of public witnesses support and urge the proposed

service. We also believe that the support for this service from the local

public officials, bodies, and organizations is an important element in our

determination that the public convenience and necessity require this

train service.

Adequacy of Existing Track Facilities

The single track segment of track between Burbank Junction and

Oxnard does pose certain operational problems, but they are the same

problems that railroads in the United States have dealt with for many

years.

From Chatsworth south there are numerous support sidings on either

side of the tracks that could be used if clear. Santa Susana with a length

of 7,108 feet is obviously a dispatcher's best siding. Camarillo, Moorpark,

and Chatsworth range from 4,056 feet to 5,544 feet. Although SP made

frequent reference to the long freight train, a review of train activities

during the month of June 1979, which SP indicated was an active and

representative month, discloses that no freight trains were operated in

excess of 7,108 feet and only eight exceeded 6,000 feet.

The movements of trains could be further facilitated if the Hewitt

siding were returned to operation and if Chatsworth and Santa Susana

were made train order stations. Another factor that would facilitate the

Dec. 91847 42a 719

movement of trains would be the more extensive use of radio for giving

train orders. SP claims that use of its radio raises certain labor-related

cost problems when a train conductor performs the function of a train

order operator. The important thing should be the movement of the

trains and in a subsidized operation such as this, the additional cost for

use of the radio should be the concern of Caltrans and not SP’s.

Train Conflicts

SP’s interference study was prepared by Michael R. Chavez, who is

employed as Train Dispatcher, Los Angeles Division. He has worked as

coast dispatcher on both day and night shifts, dispatching trains

between Los Angeles, Burbank Junction, Oxnard, Santa Barbara, and

San Luis Obispo and also serves as Relief Chief Train Dispatcher. Mr.

Chavez was instructed to superimpose the schedules of the proposed

commuter trains over the rail operations actually conducted between

Oxnard and Los Angeles during the period covered by the study, noting

the delays that would have been incurred had those trains been

operating. He was not authorized to reschedule or redispatch trains to

avoid conflicts, but was told to designate all train operations within the

period of 5:00 a.m. to 7:30 a.m. and 4:00 p.m. to 7:00 p.m. as conflicts

attributable to the commuter trains. Mr. Chavez admitted that if SP

were ordered to operate the commuter trains they would be meshed

with the freight operations so as to reduce the possibility of delays as

much as possible. As a consequence SP’s interference study does not

provide a true picture of what its coast line operations would be like if

the commuter trains were authorized and it is of little or no value for

the purposes of this proceeding.

If SP were so concerned about the potential of train interference it

had the best possible source available to demonstrate the realities of the

problem. If a study had been made of the actual operations of the

Amtrak Coast Daylight Trains Nos. 12 and 13 for a one-year or six-month

period we would have had before us far more helpful information in

determining the merits of SP’s contention. The Amtrak trains not only

operate between the same points daily, but they are first-class trains

that raise the same operational problems for SP that the commuter

trains would raise. They operate over the same single track segment

and past the same Gemco and Taylor yards. They have the same

potential for conflict with the Chatsworth haulers, the “hot-cars”, the

eastern and north-western trains, and the various switchers and locals.

If the study had been prepared, actual conflicts could have been

tabulated and evaluated. From the very fact that such a study was not

prepared we can only assume that SP, by appropriate dispatching, has

720 43a Dec. 91847

operated the Amtrak trains over its coast line routes without any

significant problem of conflicts with other trains.

The morning commuter trains would post no problem for the

morning Amtrak train leaving Los Angeles, but if on schedule the

evening Amtrak train would meet the commuter trainy on the single

track. SP'’s contract with Amtrak rovides that the trains will be

considered “on-time” if the performance between Portland and Los

Angeles is within 14 minutes of the schedule time. Since its new

agreement was entered into in July 1977, SP has complied 75.4 percent

of the time.

In the preparation of its interference study SP held the commuter

trains in a siding to allow the Amtrak train to proceed claiming that it

is a common railroad operational practice in the case of first-class trains

to give priority to long-distance passenger trains over local passenger

trains. Rule S-72 of the Operating Department Handbook provides that

westward trains (in this case the commuter trains) are superior to trains

of the same class if operating in the opposite direction. But, regardess

of which train is given priority it is important to note that Mr. Chavez

was of the opinion that it may be possible to arrange for a scheduled

meet between the first commuter train and the Amtrak train at

Chatsworth and if a siding is available a scheduled meet between the

second train at Gemco.

The potential conflicts with the Chatsworth haulers appear to result

more from the hour and a half that each handler spends on the main

track at Gemco making up or switching out cars. We do not believe that

this practice lends itself to an efficient operation, particularly if yard

facilities for such purposes are available.

We are also of the opinion that there is merit in Mr. Brophy’s

observation that the inauguration of the commuter service would

impose a discipline that would have a beneficial effect upon SP’s overall

coast line operation. It was not so long ago that SP operated a number

of passenger trains and a vast number of freight trains over these same

tracks with efficiency and a high standard for “on-time” performance.

Reliability of Service

A major portion of SP’s presentation was introduced for the purpose

of pinpointing deficiencies in the proposed commuter service. This

included a detailed analysis of schedules, equipment, fares, station

facilities, locomotives, home terminal, equipment maintenance,

repairs, and supervision. The slightest operational problem was

highlighted and magnified. A close review of this evidence discloses

that it is primarily directed towards the quality of the proposed service

Dec. 91847 44a 721

rather than its feasibility. Admittedly, the quality of a service can have

a material effect upon patronage, but in the final analysis public

acceptance or rejection can be determined only after a reasonable

period of time has been allowed for necessary adjustments to be made

by both the railroad and the commuting public.

Equipment

The Ei Camino cars have been completely reconditioned and

refurbished. For all practical purposes their condition is the same as

when they were first placed into service. By way of design they may not

lend themselves to the high capacity nor expeditious means of loading

and unloading passengers as the more modern type of commuter rail

cars, but they would afford passengers a very comfortable means of

commuting between home and work.

Locomotives

If the success of the proposed service requires the operation of four

3,600 horsepower locomotives then it will be SP's responsibility to see

that they are made available. Whether the locomotives are equipped

with steam generators is not essential. Stearn-heated cars and hot water

in the lavatories during certain periods of the winter months would be

desirable, but not absolutely necessary.

Schedules

The estimated range of 1,100 to 1,400 potential patrons appears to be

reasonable. Although SP questioned the reliability of the LARTS trip

estimates because of the assertedly erroneous assumptions as to train

schedules, headway, and performance, it did not question the accuracy

or methodology of the study. In fact, the SP study adopted for its

purposes the LARTS forecast of 1,825 passengers on a 24-hour basis.

Although a longer schedule could reduce the estimated patronage the

feasibility of the proposed schedules can only be determined from

actual operations.

Whether it takes 30 seconds or three minutes at each station to load

and unload passengers remains to be seen. To achieve the 30-second

dwell-time it may be necessary to use a larger train crew so that more

doors can be opened, or it may be accomplished by opening fewer doors

and spotting cars at station platforms. As in all new operations, there

undoubtedly will be a number of procedural and operational problems

that will have to be tried and tested before the best methods are finally

adopted. Hopefully, the testing period will be of short duration.

722 45a Dec. 91847

Ticket Sales

By an arrangement with Amtrak, tickets will be sold at the Los

Angeles, Glendale, and Oxnard stations, Except for the occasional rider

it is safe to assume that most passengers will purchase the discount

tickets and it is further safe to assume that most of the commuter

passengers will purchase their tickets by mail or at one of the attended

stations.

A problem could arise for the commuter who has not had an

opportunity to purchase a ticket by mail, and boards and unboards at

unattended stations. The effectiveness of automatic ticket machines is

questionable because of problems relating to breakdowns and change.

Under the present proposal the alternative for the commuter would be

to purchase one-way tickets on the train until a discount ticket could

be acquired by mail.

The sale of cash fares by conductors presents no problem that cannot

be solved by adding conductor-helpers to the crew as needed. If the

number of cash fares should exceed the 20 estimated for each train, the

helpers could be used not only for the sale and collection of tickets, but

also to open additional doors at intermediate stations.

Station Facilities

An adequately lighted station platform and an easily accessible

parking area should be sufficient to meet the needs of most commuters.

The convenience of an enclosed station equipped with restroom

facilities would be desirable but is not necessary. As a practical matter

most commuters drive, or are driven to the station and remain in their

cars until their train arrives. If any time is spent waiting un the station

platform it is usually minirnal and on most occasions a pleasant

experience, particularly in Southern California with its favorable

weather.

Police protection can be provided by local authorities and if the

support for the proposed service is evidenced by local governmental

authorities is any criterion, security should be no problem.

Home Terminal

Establishment of a home terminal is strictly an operational matter

with which SP is fully familiar. On the surface it would appear that Los

Angeles would be the logical choice because it would alleviate the need

for establishing an extra board for enginemen and trainmen at Oxnard.

The only additional costs would be for meals and lodging for crews

laying over at Oxnard and replacements could be made from switch

engine assignments at Oxnard or by supervising personnel. In any

event, we feel sure that SP’s decision will be operationally practical and

cost-efficient.

Dec. 91847 46a 723

Equipment Maintenance

SP may have substantially reduced its passenger maintenance

facilities and personnel with the inauguration of the Amtrak service but

it did not completely eliminate them. Pursuant to a contract with

Amtrak the Southwest Limited trains which operate between New

Orleans and Los Angeles and the Coast Daylight trains, are presently

serviced by Amtrak at Los Angeles. Before leaving Los Angeles the

trains receive a turn-around inspection and cleaning. All heavy

maintenance and repair work for these same trains is done at SP’s

Oakland facilities, which are equipped with a drop-pit, Joyce electric

jacks, and elevator tracks that are used for minute inspections.

There is no reason why a similar arrangement cannot be made for the

r’ aning and repair of the proposed commuter trains. Except for

ye ding up discarded papers and debris at Oxnard, the major

inspection, cleaning, and maintenance could be done at Los Angeles,

while heavy repairs could be done at SP’s Oakland facilities.

Supervision

Whether the successful operation of the commuter trains requires

someone to supervise and coordinate the proposed service is an

operational matter that can best be answered by SP. It would appear,

however, that if necessary it could be performed by the same person

or persons who performs these functions in SP's operation of the

Amtrak trains.

Costs

There is no dispute that the proposed commuter service, i!

authorized, would be operated at a deficit. Since state subsidy funds are

available there is no merit to SP’s contention that the proposed service

would constitute a financial burden. The only question is how the

deficit is to be calculated. This can best be decided by SP, Caltrans, and

County after a period of negotiations. We believe that a period of six

months should be sufficient for such purposes. If not, additional time

will be provided. During this period a subsidy account should lx

established and payments made as necessary to inaugurate anc

maintain service. Adjustments can be made after an agreement h.::

been reached and actual costs are known.

We are of the opinion that SP should be compensated for those costs

that are a direct result of the commuiter service in addition to common

costs as well as fixed costs that are a direct result of such service. The

parties should use an avoidable or incremental cost methodology in

Socniatae cnn ef esemans eet ailiaibes

T2A 47a Dec. 91847

During the period of negotiations we do not believe that any

allowance should be made for costs attributable to the interference

with freight trains. It is possible that a more disciplined effort will be

made to coordinate the movements of the commuter and freight trains

if there is no monetary cushion to soften the effects of conflicts to

freight trains. By the same token this period of service will provide a

more accurate account of the coordinated operations as well as a basis

upon which such costs can be determined and paid if justified.

With respect to insurance we believe that until a claims history can

be developed a new policy with a $1.5 million deductible would be

prudent. At « future date it may be advisable and more economical to

have Caltrans and County added to SP’s system policy.

In addition to costs we believe that SP is also entitled to a reasonable

rate of return. This should satisfy SP’s requirement that a new service

must have a contributing effect on its financial standing. We are of the

opinion that a 7% percent return would not only be reasonable, but,

according to figures presented in this proceeding, exceed SP’s rate of

return on net investment in transportation property for the past ten

years.

Finally, while Caltrans does appear willing and able to reimburse SP

for all reasonable deficits resulting from the operation of this needed

service, it may be the case that SP will incur certain expenses that are

not anticipated by the parties during negotiations. Should this

circumstance arise, we will require that subsequent recognition be

given to such expenses and that reimbursement be made. However,

because of the sound overall financial health of SP, as well as its holding

company, Southern Pacific Company, we believe SP is fully capable of

absorbing a reasonable portion of such unanticipated expenses, if for

some justifiable reason they should remain unreimbursed or if

reimbursement is delayed.

SP should also be paid a reasonable rental for any of its properties

used for parking or station platform purposes.

Compleinents’ Motion to Strike SP’s Surrebutta! Showing

In accordance with Rule 57 of the Commission's Rules of Practice and

Procedure the complainants were entitled to open and close. In this

however, the ALJ in the exercise of his discretionary

authority (Rule 63) agreed to a surrebuttal presentation on the part of

SP and upon completion of complainants’ rebuttal presentation on

December 5, 1979, continued the matter for a four-day presentation by

SP commencing January 22, 1980.

Dec. 91847 48a 725

In conformity with the established hearing procedure SP served

copies of prepared testimony and related exhibits upon all parties ten

days prior to the January 22 hearing. In addition, Greyhound Lines, Inc.

and General Motors Corporation also served copies of prepared

surrebuttal testimony and related exhibits on all parties, even though

no provision had been extended to either party to make a surrebuttal

presentation.

In reply to complainants’ rebuttal presentation, which covered a

period of two and a half days and called for the testimony of four

witnesses, SP proposed to call eleven witnesses. The testimony of

several of SP's surrebuttal witnesses would have covered as many as

forty or fifty pages of prepared testimony. If taken with the testimony

and exhibits that Greyhound and General Motors proposed to

introduce, the total time that would have been necessary to complete

the surrebuttal showing would have required an additional two or three

weeks of hearing.

On January 21, 1980, complainants filed a motion requesting that all

surrebuttal exhibits be set aside and te matter taken under submission.

On January 22, 1980, following argument on the motion the ALJ

sustained the motion.

On January 31, 1980, February 11, 1980, and March 6, 1980, General

Motors, Greyhound, and SP, respectively, filed petitions to set aside

submission for the purpose of receiving surrebuttal exhibits.

The petitions will be denied. No authority was ever extended to

either Greyhound or General Motors to make a surrebuttal

presentation. A review of SP's exhibits indicates that a substantial

portion of its surrebuttal presentation would have been repetitious,

argumentative, and rehabilitative of SP’s case in chief.

We find no abuse of discretion on the part of the ALJ in sustaining

the motion and we affirm his decision. All parties were afforded a full

opportunity to be heard.

SP’s Motion for e Protective Order

During the course of hearing, by letter dated October 25, 1979, staff

counsel requested that the ALJ direct SP to provide a guided Hy-Rail

inspection of SP’s railroad properties between the Los Angeles station

and Montebello, commencing at 9:30 a.m., Tuesday, November 6, 1979,

for the purpose of transporting staff members on the requested

inspection tour

(6) The tour was never provided because SP claimed that the ruling

was not received by SP’s counsel until 12:00 p.m., November 6, 1979. On

November 9, 1979 SP filed a motion for a protective order that it not

726 49a Dec. 91847

be required to provide the Commission staff and staff counsel with the

requested inspection. Because the staff never renewed its request, the

issue is now moot; and the motion will be denied. However, SP is placed

upon notice that had such a tour been necessary for the staff to have

a better understanding of SP operations and had the staff pursued its

request for a tour the motion for a protective order would have been

denied on the merits. SP’s motion appears to be inconsistent when one

considers that it was SP which raised the issue relating to the adequacy

of its track facilities. More importantly, we wish to stress that it is

essential that the Commission staff have full access to public utility

property and facilities in order to conduct examinations and tests

pertaining to the powers afforded the Commission and its staff in the

Public Utilities Act. Public Utilities Code Section 771, as well as other

sections, provides that authority. SP will not be permitted to frustrate

our staff's exercise of the Commission's powers and functions by

suggesting that the proposed inspection was not legitimate. We expect

SP to recognize and cooperate with our staff's reasonable requests for

inspection and examination of common carrier properties devoted to

public utility purposes.

SPs Motion for an Environmental impect Report

On August 8, 1979 SP filed a motion pursuant to Rule 17.1 of the

Commission's Rules of Practice and Procedure requesting an order of

the Commission directing complainants to either submit a negative

declaration or an environmental data statement in compliance with the

California Environmental Quality Act (CEQA).

Senaté Bill 849, Chapter 791 of the Statutes of 1978 (Pub. Resources

Code Section 2108.5) provided for the following exemption from

CEQA:

“A project for the installation or increase of passenger or commuter

service on rail lines in use, including modernization of existi

stations and parking facilities, shall be exempt from this decision.

Although the exemption applies only to existing stations and parking

facilities the type of construction proposed by Caltrans (i.e., open

platforms and paved parking areas) is categorically exempt from the

Environmental Impact Report requirements of CEQA.

“(C) Class 3 Exemptions

“3. Accessory (appurtenant) structures to utility structures

carports, patios and fences.” (Rule

17.1 (h) ( » (35 '

The motion will be denied.

=

Dec. 91847 50a 727

Findings of Fect

1. SP completed construction of the final portion of its main line over

its right-of-way known as the “Coast Line” between Santa Barbara and

Los Angeles, through Oxnard and the Santa Susana Tunnel, in 1904,

which right-of-way, with attendant trackage structures and facilities,

continues to be used for common carrier purposes.

2. SP has never been authorized to abandon its “Coast Line”

right-of-way between Los Angeles and Oxnard by the ICC or by this

Commission.

3. SP has operated various trains over the years since 1904 which

provided local passenger train service between Oxnard and Los

Angeles over the Santa Paula line until 1934, as well as through the

Santa Susana Tunnel until at least 1937.

4. The Commission in 1934 in Decision No. 27612 permitted

discontinuance of certain local train service between Oxnard and Los

Angeles, but reserved the right to revoke the authority to discontinue

such service if public convenience and necessity so demanded, and said

decision and order was not appealed by SP.

5. SP has never been authorized by the ICC or this Commission to

abandon or discontinue all passenger train service in the State.

6. SP refused a formal request to haul certain passenger cars owned

by County between Los Angeles and Oxnard.

7. Extensive use of the private automobile has helped to cause traffic

congestion, environmental deterioration, energy consumption, and the

use of land for roads and parking, as well as other detrimental

socio-economic impacts.

8. A policy of the State Legislature, as well as that of the U.S.

Congress and the President, is to encourage and develop a balanced

transportation system, including expanded rail transit service.

9. Regional and local governmental officials and planning agencies

support and encourage commuter rail service in the corridor between

Los Angeles and Oxnard.

10. A significant segment of the public witnesses supports commuter

rail passenger service between Los Angeles and Oxnard.

11. It is reasonable to expect that from 1,100 to 1,400, or morc.

passengers per day will use the proposed commuter train service.

12. We find that based on the evidence adduced on this record,

public convenience and necessity require that SP commence passenger

train service between LAUPT and Oxnard consisting of two trains daily,

each way, between 6:00-8:00 a.m. and between 4:00-6:00 p.m., with

intermediate stops at stations or platforms at Camarillo, Moorpark,

Santa Susana (Simi Valley), Chatsworth, Northridge, Panorama.

Airport, Burbank, and Clendale.

728 Sla Dec. 91847

13. SP’s overall financial condition, as well as that of its holding

company, will enable it to bear anv reasonable expenses of the service

not fully reimbursed by Caltrans.

14. The complainants and SP should engage in negotiations leading

to an agreement to render the service ordered herein.

15. SP can accommodate its existing freight service offered along the

coast line between Oxnard and Los Angeles with the proposed

commuter trains with minimal impact with the adoption of reasonable

measures by SP to eliminate conflicts and impose greater discipline in

its overall coast line operation.

16. A major portion of the SP coastline track facilities between Los

Angeles and Oxnard is single track with side tracks at four locations.

The movement of trains, including the commuter trains, could be

greatly facilitated if the Hewitt siding were returned to operation and

Chatsworth and Santa Susana were made train order stations. The use

of radio for the purpose of issuing train orders would also be a factor in

facilitating the movement of trains over the single-track segment.

17. SP’s interference study does not accurately reflect the train

conflicts that would result if the proposed commuter service was

authorized because the study was prepared by superimposing the

commuter operation over past freight operations without any attempt

to avoid conflicts by redispatching trains. A more accurate and helpful

study would have been an account of the conflicts resulting from the

operation of the Amtrak Coast Daylight trains, which also operate daily

over the same track facilities.

18. SP’s Gerco and Taylor yards pose a potential problem for

conflicts with the proposed commuter trains, but a major contributing

factor is SP’s practice of making up trains on the main tracks adjacent

to both yards. Better utilization of yard facilities, more efficient yard

operations, and a stricter discipline in the calling and operation of

freight trains would minimize possible delays to passenger and freight

trains because of conflicts.

19. The proposed rail commuter service is feasible. Initially certain

operational problems will be experienced but these can and should be

resolved following a reasonable period for operational and public

adjustment.

20. It will be the responsibility of SP to provide adequate

locomotives. If it is necessary to use four 3,600 horsepower locomotives

to assure a dependable on-time service and an adequate source of

backup power, then this requirement will have to be met if public use

and confidence are to be established and maintained.

21. To achieve and maintain a 30-second station dwell-time may

require a larger train crew in order that more train doors can be opened

for the loading and unloading passengers. As an alternative cars may be

strategically spotted along the platform and fewer opened, but this is

a procedure. that could be tried during the period of adjustment.

22. Discount tickets may be purchased at the Los Angeles, Glendale,

and Oxnard stations; they may also be purchased by mail, and one-way

tickets may be purchased from the train conductor. This should provide

a reasonable opportunity for all who are interested in using the

proposed service. The proposed use of automatic ticket machines at

unattended stations may pose some probiems, but if so the other

methods of purchasing tickets should be sufficient.

23. Adequately lighted station platforms with access to parking areas

will meet the needs of most commuters. Construction of enclosed

shelters equipped with restroom facilities is not necessary.

24. Selection of a home terminal for the proposed commuter trains

is an operational matter that will have to be determined in accordance

with practical and economic considerations.

25. Complainants have eight passenger cars available for service,

which have been reconstructed and refurbished. They are in excellent

condition and are more than adequate for use in the proposed service.

Complainants will provide eight additional passenger cars to make up

the consist of the second train and they will be made available prior to

the commencement of service. )

26. All heavy maintenance and repair of the passenger cars will be

the responsibility of complainants. Heavy repairs and major cleaning

can be performed pursuant to an agreement with Amtrak.

27. All light cleaning and running repairs of the passenger cars will

be the responsibility of SP and can be performed by SP personne! at its

Los Angeles facilities.

28. Operating deficits resulting from the service are to be subsidized

by state funds pursuant to an agreement to be negotiated by the parties.

The agreement sliould compensate SP for direct out-of-pocket costs.

During the course of negotiations consideration should be given to the

RSPO Commuter Standards, which provide a reasonable method for

determining direct, indirect, and common costs. A period of six months

would be required to negotiate such an agreement. In the event the

parties desire this Commission's assistance by way of interpretation it

will be available.

29. Pending final agreement between the parties a subsidy account

in the amount of $1.3 million should be established for the purpose of

inaugurating the proposed service and for construction by SP of station

730 53a Dec. 91847

platforms and parking facilities in accordance with plans and

specifications to be prepared by CalTrans and filed with this

Commission for its approval.

30. No allowance should be made for costs attributable to the

interference with SP’s freight trains.

31. Until a reasonable claims history can be developed a new

insurance policy with a $1.5 million deductible should be obtained to

cover the proposed service.

32. In addition to meeting deficit costs, the subsidy should provide SP

with a 7% percent rate of return, which we find to be just and

reasonable.

33. Certain SP properties, upon which station platforms and parking

areas would be installed, are presently subject to written leases

containing 30-day cancellation clauses. SP should be paid a reasonable

rental for any properties that are used for such purposes.

Conclusions of Lew

1. SP is a common carrier of freight and passengers between Los

Angeles and Oxnard and subject to the jurisdiction of this Commission.

2. SP completed legal dedication of its right-of-way with attendant

structures and facilities to common carrier purposes between Oxnard

and Los Angeles following completion of said construction in 1904.

3. SP is a common carrier of passengers and freight over its dedicated

rights-of-way. The obligation remains for SP to render that service

which the Commission finds is required by public convenience and

necessity.

4. The authority granted SP to discontinue certain local passenger

trains in service between Los Angeles and Oxnard was not an

irrevocable grant of the right to cease all passenger train service

thereafter nor was such authority to discontinue specific trains an

acknowledgment that SP had “retracted” its dedication to passenger

service.

5. If the Commission subsequent to discontinuance of certain train

service finds that public convenience and necessity require

reinstitution of passenger train service along a railroad's right-of-way

dedicated to common carrier service, it may order that train service be

operated. ‘

6. The passage of the National Rail Passenger Service Act of 1970 did

not authorize SP to refuse to render commuter passenger train service

thereafter.

7. Civil Code Section 2169 sets forth, in part, SP’s common carrier

Dec. 91847 54a 731

8. Public Utilities Code Sections 761 through 763 provide additional

statutory authority for the Commission to consider the merits of

County's and CalTrans’ complaint

9. Pursuant to the conditional grant of authority to discontinue

passenger train service in Decision No. 27612, the right to revoke such

authority if public convenience and necessity so require remains with

the Commission. SP’s failure to seek review of said decision renders the

matter final on the merits.

10. The evidence in this public record indicates that public

convenience and necessity require that SP commence operation of rail

passenger service between Los Angeles and Oxnard as proposed by

complainants.

11. We affirm the conclusion reached in Decision No. 90018 that SP

is acommon carrier of freight and passengers between Los Angeles and

Oxnard and subject to the jurisdiction of this Commission. A copy of

Decision No. 90018 is attached hereto as Exhibit A.

12. This Commission has no statutory or constitutional authority to

determine how subsidy funds available under Senate Bill 620 should be

distributed or apportioned.

13. Inauguration of a rail commuter service between Los Angeles

and Oxnard requires no alternative analysis study nor environmental

impact report. Construction of station platforms and parking lot

facilities is exempt from the provisions of CEQA.

14. SP should be required to operate the proposed commuter trains

in accordance with the requirements of the ensuing order.

ORDER

IT IS ORDERED that:

1. Within thirty days after the effective date hereof, the State of

California Department of Transportation (CalTrans) shall submit to

Southern Pacific Transportation Company (SP) and file with this

and parking facilities.

2. Within ninety days after receipt of the plans and specifications

provided for in Ordering Paragraph 1 hereof, SP shall construct the

platforms and parking facilities in accordance with said plans and

specifications and shall, upon ten days’ notice to the Commission and

the public, commence operations of two commuter passenger trains

between Los Angeles and Oxnard with intermediate stops at Camariilo,

Moorpark, Sante Susana (Simi Valley), Chatsworth, Northridge,

Panorama, Airport, Burbank, and Glendale. Said service shall be

24—42159

732 55a Dec. 91847

provided subject to the condition that CalTrans shall subsidize deficits

resulting from such operation.

3. SP shall operate the rail service provided for in Ordering

Paragraph 2 hereof between the hours of 6:00 a.m. and 8:00 a.m. and

between 4:00 p.m. and 6:00 p.m. daily, Monday through Friday, holidays

excepted.

4. Within thirty days prior to the commencement of service by SP,

complainants shall establish to the Commission's satisfaction that:

(a) Two consists of eight rail passenger cars each are available and

ready to be used in service.

(b) Arrangements have been made for the maintenance of rail

cars and for the sale of tickets.

(c) An escrow account has been established containing ts of

$1.3 million for the purpose of constructing station platforms

and parking facilities and a deposit of at least one-half of the

estimated cost of first-year operations as set forth in Exhibit 9.

5. Within one hundred eighty days after the effective date hereof SP,

CalTrans, and the County of Los Angeles shall negotiate and submit to

this Commission for its approval an agreement relating to the

equipment and facilities to be used in providing said commuter service

and the method to be applied in subsidizing deficits that may result

therefrom.

6. During the period of negotiations funds deposited in the escrow

account provided for in Ordering Paragraph 4(c) hereof, shall be used

for the purpose of inaugurating and maintaining the commuter service.

When an agreement has been reached and actual costs have been

determined adjustments will be made accordingly.

7. Within sixty days after the effective date hereof, and on not less

than ten days’ notice to the Commission and to the public, SP shall

amend its tariffs and timetables on file with the Commission to reflect

the service herein authorized and ordered.

8. The petition for a proposed report as well as the motions to set

aside submission for the receiving of surrebuttal evidence and the

motion for a protective order that a “Hy-Rail” tour need not be

provided are denied.

9. All objections, motions, and petitions filed in this proceeding and

not specifically ruled upon are denied.

The effective date of this order shall be thirty days after the date

hereof.

Dec. 91847 S6a 733

Dated June 3, 1980, at San Francisco, California.

JOHN E. BRYSON

President

VERNON L. STURGEON

RICHARD D. GRAVELLE

LEONARD M. GRIMES JR.

Commissioners

Commissioner Claire T. Dedrick, io

ily absent, did not participate in the di tion

this proceeding.

EXHIBIT A

Owen L. Gallagher and Douglas , Attorneys at Law, for County of Los Angeles; and

Robert A. Munroe and O / , Attorneys at Law, for State Department of

Transportation; complainants.

Charles W. Burkett and Carol A. Harris, Attorneys at Law, for Southern Pacific Transpor-

tation Company, defendant.

D.H. Brey, for Brotherhood of Locomotive Engineers; James P._ Jones, for United Trans-

portation Union, California Legislative Board; and Eugene C Given, for Greyhound

Lines, Inc.; intervenors.

William J] Jennings, Attorney at Law, and Richard C Collins, for the Commission staff.

ORDER DENYING MOTION TO DISMISS

By this complaint filed May 18, 1978, County of Los Angeles and State

of California Department of Transportation request an order of the

Commission directing Southern Pacific Transportation Company (SP)

to operate passenger train service between Los Angeles and Oxnard.

On October 6, 1978, SP filed a motion requesting that the

complainant be dismissed for lack of jurisdiction to grant the relief

sought.

Oral argument on the motion was heard before Administrative Law

Judge Daly on November 13, 1978, at San Francisco at which time and

place the motion was taken under submission.

Based upon the following jurisdictional facts, which were introduced

as Exhibits 1 and 2, SP contends that the Commission is without

jurisdiction to require SP to provide a passenger commute service on

its Coast Route between Oxnard and Los Angeles:

Exhibit 1

C. H. Howard fies

Southern Fn bere ve = pegred

Assistant General t

and, Pasenger agent and Asan ‘afc ‘Manage, tn te

TH 57a Dec. 91847

California er operations on SP Coast Route between

Oxnard onl py involved intercity trains, and commute

passenger trains were never operated between said points. With

the passage of the Rail Passenger Service Act of 1970, SP entered

into contracts with the National Rail Passenger Corporations

(Amtrak). As of that time SP’s er trains in California were

intercity passenger trains with the ex of its peninsula

commute trains which operate between Francisco and San

sae Exhibit A, attached to Exhibit 1, is a copy of SP’s “Cancellation

upplement” issued March 22, 1971, canceling its local

interdivision, and joint r tariffs pursuant to the Rail

Passenger Service Act of 1970. All local, interdivision, and joint

California intrastate tariffs issued by SP as shown in Exhibit A were

canceled effective May 1, marta or» eeceeapetion in joint tariffs

issued by the a Passenger Association, the

tion,

Railroad Passenger Association was canceled effective September

1, 1971, for intrastate passenger traffic. By order served April 12,

1972, the Interstate Commerce Commission ordered that all joint

re ip tariffs in which SP icipated and all individually

passen tariffs of SP rela to passenger service

terminated un sey deny ag ay wats aba pg eT ice Act

of 1970 be stricken from its files. As of May 1, 1971, SP has not

furnished any rail service between Oxnard and Los Angeles or on

any line in Los Angeles wp ee Area. Amtrak presently

operates “The Coast Starlij‘ht” over SP’s Coast Route main

line to and from Los Angeles Union Passenger Terminal with stops

at Oxnard and Gl e. SP has leased to Amtrak its former

passenger-related space at all three stations.

Exhibit 2

A. M. Cole

Special Assistant to the Superintendent of the Operating Division,

Los Angeles Division

Was employed by Pacific Electric, a wholly owned subsidiary of SP,

which operated an electric interurban railroad service for the

commutation of passengers and some freight in the Los Angeles

basin from 1911 until its merger into SP in 1965. Pacific Electric

never furnished i er commutation services between Los

Angeles and G e or over the rail lines of Southern

SP argues that when it canceled its tariffs and discontinued all

passenger operations in Los Angeles and Ventura Counties, it was no

longer a common carrier of passengers in that area, and the

Commission lacks jurisdiction to compel it to provide service as

requested in the complaint.

SP takes the position that, although it is a common carrier of freight

between Los Angeles and Oxnard, it no longer is a common carrier of

Dec. 91847 58a 735

passengers between said points; and in the absence of a finding of

rededication, the Commission cannot require SP to provide the service

requested.

Exhibits 1 and 2 clearly establish that SP was engaged in the

transportation of persons and property within the meaning of Article

XII, Section 3 of the California Constitution and Section 211 (a) of the

California Public Utilities Code between Los Angeles and Oxnard until

1971. When SP entered into contracts with Amtrak, it assertedly was

relieved of all of its responsibilities as a common carrier of passengers

by rail in intercity rail passenger service under Part 1 of the Interstate

Commerce Act or any state or other law relating to the provisions of

intercity passenger service. Although it emphasizes the fact that its

passenger service between Angeles and Oxnard was intercity as

opposed to commute, it provided no statutory or case authority for the

distinction insofar as dedication is concerned.

SP also failed to cite any authority from this Commission to abandon

its responsibility and obligation to provide passenger service between

Oxnard and Los Angeles, and such prior authorization is required.

(Marin Co. Elec. Rwys. (1914) 4 CRC 503; Key System Transit Co.

(1924) 25 CRC 363; and Lennon et al. v Bayside Lumber Co. (1916) 10

CRC 116.) In the latter decision the Commission specifically held that:

“If defendant was a common carrier, it could not y escape its

obligations to the public by the simple expedient prj ros its line

of railroad and part of its equipment. Furthermore, defendant, if

it was © CONDE cartier, Could Het couse Gnerations 0a Sach cartier

unless the Railroad Commission's consent had first been secured.

No application for such consent was ever made by defendant.”

Applications for the discontinuance of specific trains operating

between San Francisco and Los Angeles over the Coast Route were

granted, but the last train that SP operated over its Coast Route

between said points was “The Coast Daylight” and it was discontinued

on May 1, 1971, by a tariff filing, as evidenced by Exhibit A attached to

Exhibit 1. No application was ever filed with this Commission

requesting authority to abandon passenger service.

We are not prepared to say whether the Rail Passenger Service Act

of 1970 constitutes a preemption by the federal government of the

Commission's jurisdiction to regulate intrastaste rai] passenger service

because of the recent amendment to the California Constitution

(Article 3, Section 3'), which states that a state agency has no power to

'"(1) See 33 An admin:stratve agency. including an edmmunistrative agency created by the Consti-

tuhon or an wutetve stetute. has no power

“(a) To declare 2 stetute unenforceable. or refuse to enforce a statute. on the basis of its bring

unconshtutonal uniew an appellete court has made « determination that such statute is unconst:

“(2) To declare « statute unconstitutional.

“(3) To declare » astute unentorcesble or to retuer t enforce s tstute on the bens thet lederal

736 59a Dec. 91847

declare a statute unenforceable or to refuse to enforce a statute on the

basis of preemption by a federal law unless such a determination has

been made by an appellate court.

We are unaware of any appellate court determination of this issue

and will therefore pursue our constitutional and statutory authority

with respect to the regulation of intrastate rail passenger service.

For the above-discussed reasons, the motion to dismiss for lack of

jurisdiction will be denied.

IT IS ORDERED that the motion of Southern Pacific Transportation

Company to dismiss the complaint filed in this proceeding for lack of

jurisdiction is denied.

The effective date of this order shall be thirty days after the date

hereof.

Dated at San Francisco, California, this 27th day of February, 1979.

JOHN E. BRYSON

VERNON L. STURGEON

LEONARD M. GRIMES JR.

Commissioners

law or federal regulations prohibit the enforcement of such statute unless an appellate court has

made a determination that the enforcement of such statute is prohibited by federal law or federal

regulation ~

Dec. 91847 60a 737

APPENDIX A°*

Map A

Rell Trackege Routes

Los Angeles-Santa Berbera

SANTA SALEAEA

VESTULA

Sealawe

Oswasy (Ja daue

‘ Cutten

a "leon yads

|

! OS Ameti@:

COAST masa liad

Los Angeles—Santa Barbara:

103.2 miles via Coast Main Line

110.2 miles via Santa Paula Branch

* Source: Exhibit 106

738 6la Dec. 91847

APPENDIX B

R. S. Myers and E J. Foulds, by R. S. Myers, for Applicant.

Don R. Holt, Chief Deputy District Attorney of Ventura County, for Ventura County,

Protestant.

F. Mark Durley, for Ventura County Chamber of Commerce, Protestant

Jack C. Miller, for Oxnard Chamber of Commerce.

R. H. Blanchard, City Attorney, for the City of Santa Paula.

Harry See, for Brotherhood of Reilroad Trainmen.

W. H. Glover, for Ventura County Chamber of Commerce, Protestant

M. H. Cobb, for the City of Fillmore, Protestant.

F. M. Erskine, for Fillmore Chamber of Commerce, Protestant.

G. A. Koechig, for Santa Paula Chamber of Commerce, Protestant

Fred Pidduck, for Law and Utilities Committee, Ventura Farm Bureau

BY THE COMMISSION:

OPINION

In this proceeding, Southern Pacific Company seeks authority to

discontinue the operation of its passenger trains numbered 351-352 and

353-354 between Los Angeles and Oxnard. These trains are operated

over applicant's main line between Los Angeles and Saugus, over its

so-called Santa Paula Branch between Saugus and Montalvo and over

its main line between Montalvo and Oxnard.

Public hearings were conducted in this matter by Examiner Gorman

at Santa Paula on April 5th and September 19th and at Los Angeles on

October 19th, 1954, on the latter date the matter having been duly

submitted.

Applicant seeks authority to discontinue the operation of passenger

train service between Los Angeles and Oxnard via the Santa Paula

Branch and alleges that such authority is sought on account of the fact

that the revenue derived from such passenger service is insu‘ficient to

meet the out-of-pocket cost of operation; that the financial condition of

the company has made it imperative that all reasonable economies be

effected; that other passenger common carrier service is being afforded

the territory; and that the discontinuance of said service will not

constitute an unreasonable inconvenience to the travelling public.

Passenger service, consisting of one round trip daily, is now provided

by applicant's motor trains, designated as trains Nos. 351-352 and

353-354, between Los Angeles and Oxnard, a distance of 83.2 miles.

Exhibit No. 4 shows the direct service expense and revenue per

annum, applicable to operation of the trains involved herein, which are

as follows:

Dec. 91847 62a 739

Total Out-of-Pocket Expense. ”m sacnenescbcoebeetaatein lation 819.291 31.769

Out-of-pocket Loss in Operation .... a 17 839

The actual out-of- lta cost of operating said passenger service for

1933 was considerably higher than shown above, since during a part of

that period distillate was used as fuel previous to the introduction of the

butane gas, which substantially reduced the fuel cost and, in addition,

steam trains were used when the motor cars were out of service for

repairs. The out-of-pocket cost of operation, as set forth above, is 31.76

cents per car mile; however, the total cost of operation was

approximately 52 cents per car mile.

A traffic check (Exhibit No. 9), taken on said trains during the period

April Ist, 1933 to March 3lst, 1934, shows an average of approximately

eight passengers per trip.

Pacific Greyhound Lines, Inc. operates a passenger motor coach

service between Los Angeles and Ventura, which practically parallels

the route of the rail service proposed to be abandoned and serves all

the communities of any consequence now being served by said rail line.

A comparison of the rail schedule of trains Nos. 351-352 and 353-354

with that of the Pacific Greyhound is as follows:

Train 331-358 Te mie Grerhound _

jenture

Lv. Oxnard. 6G AM 7:15AM 420 P.M

Lv Senta Paule................. 7:18 7:43

Lv. Fillmore 7:3 60 &10

As. Los Angeles ........ 935 10-40 7:30

Train 253~35¢ ;

Lv. Los Angeles ................ 728 P.M. P.M.

Lv Seugus 619 910

ERI RTES. 007 957 7:40

NE EEO TEE eee. CP [te]

Ar. Oxnard ...... 953 (Ventura) 1100 900

740 63a Dec. 91847

The above tabulation shows that the scheduled time for the bus

service is more or less comparable with the rail service. It may be noted

that the running time for the rail service between Los Angeles and

Santa Paula is two hours and seventeen minutes, while the running time

for the bus service between the same points varies from two hours and

forty minutes to three hours and seven minutes. At the present time the

busses operating through the Santa Paula Valley require a transfer to

main line busses at Saugus, involving a layover at said point of from

three to thirty-eight minutes.

A witness for Pacific Greyhound testified that during the past few

months passenger traffic has shown a substantial increase; that it was

hoped that business would continue to increase sufficiently to warrant

the operation of through motor coach service between Los Angeles and

Oxnard via Santa Paula, as was formerly operated; ard that his company

is equipped to handle any increased business which may result from the

discontinuance of the train service involved herein.

The bus schedules through the Santa Paula Valley are so arranged

that practically direct connections are made with both northbound and

southbound Southern Pacific main line trains at Ventura or Oxnard.

A representative of Railway Express Agency, Inc. testified that in the

event the train service involved herein is abandoned, his company

would provide at least an equivalent service at rates identical with

existing rates.

Resolutions filed by the Ventura County Chamber of Commerce and

Santa Paula Chamber of Commerce protested the granting of this

application, on the grounds that the discontinuance of passenger train

service through the Santa Paula Valley would result in delay to express

and mail service and remove the station of Santa Paula from the

passenger railroad time-tables, thereby breaking rail passenger contact

with other communites. The protestants who appeared at the hearing

presented no evidence in support of the allegation that public

convenience and necessity justified the continued operation of said

passenger train service.

Protestants also averred that the earnings of the passenger service on

the Santa Paula Branch should not be considered independently of the

freight earnings (both intra and interstate), derived from the

operations of said branch line. This information was introduced in

evidence by applicant; however, it does not appear necessary to set

forth same, inasmuch as the Commission held in a previous case

(Decision No. 28474, dated October 30th, 1933, on Application No.

19000), that the freight earnings were not the determining factor in

deciding whether or not passenger service should be continued, as it

Dec. 91847 64a 741

did not appear to be in the public interest to require passenger trai: s

to be operated over a line where a substantial out-of-pocket loss is

incurred, which must be borne by the carrier or made up through other

forms of revenue, if the public can be provided with reasonably

adequate and efficient service by other means of transportation.

This application does not in any way involve freight operation or

agency service.

After carefully considering the record in this proceeding, it is

concluded that this application should be granted. This conciusion is

supported by the fact that existing bus lines are able to take care of

passengers and baggage and an equivalent express service will be

provided. This substitute service, under prevailing conditions, will be

reasonably adequate to meet public convenienve and necessity.

ORDER

Public hearings having been held in the above entitled proceeding

and the matter being now under submission and ready for decision;

IT IS HEREBY ORDERED that Southern Pacific Company be and

it is hereby authorized to discontinue operation of its passenger trains

numbered 351-352 and 353-354 between Los Angeles and Oxnard via

its so-called Santa Paula Branch, subject, however, to the following

conditions:

(1) The public shall be given not less than ten (10) days’ advance

notice of the proposed discontinuance of passenger service, by

ting notices in all passenger trains rated over the Santa

aula Branch and at all prey oa affected.

(2) Applicant shall advise this Commission, in writing, within

thirty (30) days thereafter, of the discontinuance of the

passenger service authorized herein.

(3) The authorization herein granted shall lapse and become void

if not exercised within one é 1) year from the date hereof,

unless further time is granted by subsequent order.

(4) Applicant shall make any necessary changes in its tariffs and

station lists on not less than five (5) days’ notice to the

Commission and the public.

(5) The Commission reserves the right to make such further

orders, relative to this matter, as to it may seem right and

roper and to revoke the authority granted herein if, in its

lament, public convenience and necessity demand such

action.

For all other purposes, the effective date of this order shall be twenty

(20) days from the date hereof.

742 65a Dec. 91848

Dated at San Francisco, California, this 22nd day of December, 1934.

LEON O. WHITSELL

W. J. CaRR

M. B. HARRIS

WALLACE L. WARE

FRANK R. DEVLIN

Commissioners

Certified as a True Copy

Asst. Secretary, Railroad Commission

State of California

C.10575 L/saw

Decision No. 92230

"September 3, 1980

BEFORE THE PUBLIC UTILITIES COMMISSION OF

THE STATE OF CALIFORNIA

COUNTY OF LOS ANGELES, STATE

OF CALIFORNIA,

Complainants,

Vv. > Case No. 10575

SOUTHERN PACIFIC TRANSPORATION

COMPANY, a corporation

Defendant.

4

ORDER MODIFYING DECISION NO. 91847,

GRANTING LIMITED REHEARING TO DEFENDANT

AND DENYING REHEARING TO INTERVENOR

A petition for rehearing of Decision No. 91847 has been

filed by Southern Pacific Transportation Company. The Coun-

ty of Los Angeles and the State of California have filed their

Opposition to the petition for rehearing. A petition for rehear-

ing has also been filed by Greyhound Lines, Inc. We have

carefully considered all the allegations of error contained in

SP’s petition for rehearing and are of the opinion that good

cause for granting a limited rehearing of Decision No. 91847 on

the terms specified herein has been shown. We have carefully

considered all the allegations of error contained in Greyhound’s

petition for rehearing and are of the opinion that good cause for

granting rehearing has not been shown. However, we shall

modify our discussion, Findings of Fact and Conclusions of

Law to reflect the further study which has been given to this

matter upon consideration of the petitions for rehearing.

Therefore,

It Is HEREBY ORDERED that proceedings in Case No. 10575

shall be reopened for the following purposes:

67a

1. Exhibits 114, 115, 116, 117, 118 and 126 shall be

admitted into evidence. Complainants shall have the right

to cross-examine the witnesses whose prepared testimony

is contained therein. Pursuant to Rule 57 of the Commis-

sion’s Rules of Procedure, Complainants shall also have

the right to close the proceedings through presentation of a

sur-surrebuttal case. No further exhibits or witnesses shall

be submitted or tendered by Defendant.

2. Complainants are hereby directed to present

substantial evidence of a reasonable solution to the prob-

lem of delays incurred by the afternoon commuter trains

due to the arrival of the Amtrak “Coast Starlight.” Such

evidence may but need not necessarily consist of an

agreement with Amtrak for rescheduling the Amtrak train

to avoid delays to the afternoon commuter trains.

3. Complainants are hereby directed to present

evidence of an agreement with Amtrak regarding servicing

and maintenance of the passenger cars.

4. Defendant is hereby put on notice that the

Commission stands unimpressed with its insistent efforts to

magnify minor operational problems into insurmountable

obstacles. The Administrative Law Judge shall have

discretion to limit proceedings regarding Exhibits 114-118

and 126 to such major issues of service feasibility as he

finds consistent with fairness to all parties.

5. We have carefully reexamined each and every

exhibit (nos. 111-126) offered by Greyhound and SP as

part of SP’s surrebuttal presentation. In view of the

modification of Decision No. 91847 which follows, Exhib-

its 111 and 112 shall not be admitted into evidence.

Exhibits 113 and 119-125 shall not be admitted into

evidence, as they are argumentive, repetitive and merely

cumulative of SP’s case in chief and Exhibits 114-118 and

126. Except as specifically granted herein, the petitions to

set aside submission are denied.

It Is FurTHeR OrpereD that Decision No. 91847 is

modified as specified herein:

68a

1. The discussion appearing in the last paragraph of

page 49 and continuing thorugh page 50 and footnote 3

are deleted. In their place are substituted the following

eight paragraphs:

“In the meantime, alternate modes of public

transportation are necessary, particularly to meet the

needs and requirements of commuters between home

and work. We do not have the statutory or con-

stitutional authority to determine how subsidy funds

available under Senate Bill 620 should be distributed

or apportioned. We do not have the authority to

decide whether a county, a transit district, or Caltrans

should enter into a purchase service contract with

Greyhound or with Mr. Nathanael Walter Anderson,

Sr., General Manager of GLH Tours, Inc., who testi-

fied

This text is long and has been trimmed here. Open the source document for the complete record.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.