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Canadian Pacific Railway Acquisition of Kansas City Southern Railroad & Pending Merger: Environmental Impact Statement Submittal Leter
City of Dubuque City Council Meeting Action Items # 3. Copyrighted January 3, 2022 ITEM TITLE: Canadian Pacific Railway Acquisition of Kansas City Southern Railroad & Pending Merger: City of Dubuque - Environmental Impact Statement Submittal Letter SUMMARY: City Manager requesting approval of a letter to the federal Surface Transportation Board related to the proposed merger of the Canadian Pacific and Kansas City Southern Railroads. SUGGESTED Suggested Disposition: Receive and File; Approve DISPOSITION: ATTACHMENTS: Description Canadian Pacific Railway Acquisition-MVM Memo Staff Memo STB Letter Schedule Notice of Intent STB Notice Comment Period Extension CP Response to STB Info Request Bettendorf Davenport CA Davenport Mayor Davenport RI C Type City Manager Memo Staff Memo Supporting Documentation Supporting Documentation Supporting Documentation Supporting Documentation Supporting Documentation Supporting Documentation Supporting Documentation Supporting Documentation Supporting Documentation THE C Dubuque DUj!BQTE WAWca 914 Masterpiece on the Mississippi YP pp aoo�•o 13 z0i7*20*�oi9 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Canadian Pacific Railway Acquisition of Kansas City Southern Railroad & Pending Merger City of Dubuque - Environmental Impact Statement Submittal Letter DATE: December 29, 2021 Project Manager Steve Sampson -Brown is transmitting information related to the proposed merger of the Canadian Pacific and Kansas City Southern Railroads. In response to the impacts that this merger will have on Dubuque, city staff have submitted a letter to the federal Surface Transportation Board. I respectfully request Mayor and City Council approval of the letter. k�4 Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Steve Sampson -Brown, Project Manager THE CITYF DUijB- El Masterpiece on the Mississippi Dubuque AII•Anedea M 1IIII®r 2007-2012.2013 2017*2019 TO: Michael C. Van Milligen - City Manager FROM: Steve Sampson Brown - Project Manager SUBJECT: Canadian Pacific Railway Acquisition of Kansas City Southern Railroad & Pending Merger City of Dubuque - Environmental Impact Statement Submittal Letter DATE: December 29, 2021 INTRODUCTION The purpose of this memorandum is to provide information related to the proposed merger of the Canadian Pacific and Kansas City Southern Railroads. In response to the impacts that this merger will have on Dubuque, city staff have submitted the attached letter to the federal Surface Transportation Board. BACKGROUND On October 29, 2021, Canadian Pacific Railway Limited, et al. (CP) and Kansas City Southern et al. (KCS) filed an application with the Surface Transportation Board (STB) seeking authorization for CP to acquire KCS. To thoroughly assess potential environmental impacts that may result from the proposed acquisition, the STB's Office of Environmental Analysis (OEA) is preparing an Environmental Impact Statement (EIS). An EIS is prepared in accordance with the regulations established in the National Environmental Policy Act (NEPA). The NEPA process is intended to identify and assess potential environmental consequences of a proposed activity before a decision on that proposed activity is made. The STB's OAE is responsible for ensuring that the STB complies with NEPA and related federal, state, and local environmental statutes. DISCUSSION CP and KCS's service area covers a vast amount of North America. CP is one of Canada's two major railroads, extending across the country and connecting east and west coast ports. In the U.S., CP connects to Buffalo and Albany, New York and Searsport, Maine. CP also runs south into the U.S. Midwest and connects with KCS in Kansas City, Missouri. KCS is a Class I railroad that extends from Kansas City, Missouri to the Gulf Coast and into Mexico, operating across 10 states in the Midwest and Southeast. CP and KCS provide rail service for a variety of industries, including agriculture and minerals, military, automotive, chemical and petroleum, energy, Page 1 of 5 industrial, and consumer products. The combination of these two railroads would be an `end -to -end' merger because the CP and KCS railroad networks do not overlap. If the railroad merger is approved, the CP's rail network in Iowa that follows the west side of the Mississippi River will become a major connection between CP's large network in Canada and KCS's network in the Gulf Coast and Mexico. The maps below show the track coverage area for both railroads. San Francisco C A N A J F 1. Y Guatemala A—t, Misrr Havana cuea Port-d W �fInC2 Page 2of5 Legend CPRS KCS Rail Lines Segment Data Conceptual Capital Improvemem Locations O Canadian Pacific Rail Lines Kansas City Southern Rail Lines Canadian Pacific Trackage Rights Kansas City Southern Trackage Rights Legend x r CPRS KCS Rail Lines Segment Data Conceptual Capital Improvement Locations O Canadian Pacific Rail Lines Kansas City Southern Rail Lines �.9TR49 Canadian Pacific Trackage Rights I to K°k Kansas Oty Southern Trackage Rights i INDIA u indianapahl Dayton CP has provided estimated counts for the increased train traffic expected to be seen in Dubuque. As a result of the merger, trains traveling through Dubuque will at least double. The following table shows the expected train growth on Dubuque. On any given day in Dubuque, the CP mainline that runs between the Port of Dubuque and Lock and Dam 11 at Eagle Point Park sees approximately 6-9 trains per day. Estimated Current Daily Train Count 6-9 Post -merger Estimated Daily Train Count 12 - 18 The graphic below indicates two locations to the north and south of Dubuque where CP has calculated that the number of Trains Per Day (TPD) in 2027 will average 11.6 trains without the proposed merger happening, and then they have estimated the TPD in 2027 being 18.0 as a result of the merger. The expected growth in TPD CP attributes to the elimination of the boundary between the two railroad companies which will then allow trains to move longer distances without being re -worked in yards. This makes for a more efficient rail network. Because the combined CP/KCS network will be more efficient, it will attract traffic that does not currently move on either railroad. New traffic will include truck -to -rail diversions, diversions from other rail carriers, and new market development opportunities. The 2027 "with merger" TPD number accounts for these traffic changes and takes into account the estimated pre -transaction organic growth in the two separate railroads. Canadian Pacific Acquisition of Kansas City Southern Select a yard, exceeded threshold segment oT capital Improvement area to zoom to that location within the map Select Yard 3ENSEN HEYARU UETROIT CONTAINER TERMINAL SCHILLER PARK YARD 4V1'LIE Select Exceeded Threshold Segment None C-CHIC-01 C-CHIC-02 C-CHIC-03 C-DAVE-01 C-DAVE-02 QZoamto .3 l --- Q 2of2 p SABULAIA- MARQUETTE,IA X SABULA,[A- MARQUETTE,IA MARQUE]TE Subdivision C-MARQ-03 MP Start 0.0 MP End 98.0 D� A-- — — Freeport TPD GTMs 2027 Without Merger 11.56 36.82 dar Rapids 2027 With Merger 17.97 54.90 Transaction Related Growth sterllmg Red background notes exceeded thresholds Green backg round notes thresholds not exceeded Iowa City Trains Per Day (TPD) JD.7 Millions of Annual Grass Tan Miles fGTMsI Select Capital Improvement Area -' None We Page3of5 Gales6uro Proaosed Steos and Schedule of STB's Environment Review Process: • NOI (Notice of Intent) — November 12, 2021 • Scoping — November 2021 — January 2022 • Public Meetings - November 30 - December 9, 2021 • Scoping Comment Period — November 12, 2021 — January 3, 2022 • Final Scope of Study — Winter 2021-2022 • Draft EIS — Spring 2022 • Public Comment Period on Draft EIS including Public Meetings — Spring 2022 • Final EIS — Fall 2022 Board's Decision on Acquisition The attached City letter to the STB identifies local concerns with negative impact that will result from additional train traffic moving through Dubuque. Impacts from additional CP train traffic will cover a distance along the CP mainline tracks of 2.85 miles and then continue along a section of Canadian National Railroad (CN) tracks for a distance of 1.1 miles which CP must utilize to continue its route south along the Mississippi River. The letter to the STB describes potential impacts to: • Water Resources • Historic/Archaeological Resources • Water Supply and Distribution Systems • Environmental Justice • Air Quality • Noise Pollution • Hazardous Or Toxic Substances • Transportation (Streets, Parking and Traffic) • Public Safety • Direct, Indirect, and Cumulative Effects Additional attachments to this memo include relevant STB rulings related to the CP- KCS merger, an initial response from CP to questions posed to them by the STB, and correspondence from the cities of Bettendorf and Davenport to the STB. ACTION TO BE TAKEN This memorandum is being provided for informational purposes only. No action is requested at this time. Page 4of5 SSB/ssb Attachments cc: Cori Burbach — Assistant City Manager Crenna Burmwell — City Attorney Gus Psihoyos - City Engineer Teri Goodman — Director of Strategic Partnerships Barry Lindahl — Senior Counsel F:\Railroads\RR - Canadian Pacific\CP-KSC Merger 12.2021\CP Merger Council Memo 12.28.2021.docx Page 5 of 5 THE CITY OF DUB TE Masterpiece on the Mississippi Surface Transportation Board Docket No. FD 36500 Dubuque City Manager's Office City Hall 811•AnerinCiy 50 W 13r' St Dubuque, IA 52001-4845 Office (563) 589-4110 ®� Fax (563) 589-4149 2007-2012+2013 TTY (563) 690-6678 Z 017 * 2 019 ctymgr@cityofdubuque.org www.cityofdubuque.org December 28, 2021 RE: Canadian Pacific Acquisition of Kansas City Southern Environmental Impact Statement To Whom it May Concern: The City of Dubuque has grave concerns regarding the impact that the proposed merger of the Canadian Pacific (CP) and Kansas City Southern (KCS) Railroads will have in our community. We were informed by Canadian Pacific Representatives at a meeting on November 11, 2021, that as a result of the merger, trains traveling through Dubuque will at least double. Estimated Current Daily Train Count 6-9 Post -merger Estimated Daily Train Count 12 - 18 Dubuque already has challenges with the current nine (9) trains per day. The proposed merger will have real and tangible negative impacts on Dubuque and specifically on the mostly low-income residents who live adjacent to the tracks in the heart of our downtown and the businesses in the same general area. The City has identified the following negative impacts related to the proposed merger: AFFECTED AREA The affected area of the City of Dubuque covers a distance along the CP mainline tracks of 2.85 miles and then continues along a section of Canadian National Railroad (CN) tracks for a distance of 1.1 miles that CP must utilize to continue its route south along the Mississippi River. The affected area includes a mix of industrial, commercial, and residential developments, all located on or immediately adjacent to the CP mainline track, the CP rail yard, and the CN mainline track. WATER RESOURCES The CP mainline rail and rail yard is located within the City's 6.5 square mile Bee Brach Creek Watershed and crosses on top of several major stormwater culverts that convey water either directly to the Mississippi River or to the Bee Branch Creek open channel which directly connects to the Mississippi River. Additional train traffic and rail car loadings will only accelerate the rate of structural fatigue and increase maintenance costs needing be expended to ensure these culverts remain in service so that threats to flooding over 1,100 homes and businesses are avoided. Between 1999-2011, six Presidential Disaster Page 1 of 5 Declarations were issued with total damage estimates of $70 million which caused the City to initiate the over $240 million Bee Branch Creek Flood Mitigation Project with much of the flooding being caused by the "dam" created by the railroad tracks. HISTORIC/ARCHAEOLOGICAL RESOURCES The National Mississippi River Museum & Aquarium, a Smithsonian affiliated museum, sits immediately adjacent to the CN mainline tracks that will carry additional CP trains through Dubuque. The museum building complex includes the Dubuque Freight House which was built by the Chicago, Burlington and Northern Railroad (CB&N) in 1901, and was listed on the Nation Register of Historic Places in 1979. The CP mainline tracks also run immediately adjacent to the Crescent Community Healthcare Center which is located inside of the historic Metz Manufacturing Company which was listed on the National Register of Historic Places in 2021. The Crescent Community Health Center provides high -quality, equitable, and affordable medical and dental care with a specific focus on disadvantage residents. On a daily basis impacts from higher train speeds and increased train volumes result in increased ground vibrations which in turn over time leads to structural damage and accelerate the end of service life for adjacent buildings and city infrastructure. WATER SUPPLY AND DISTRIBUTION SYSTEMS The source of potable water in Dubuque is the City of Dubuque's water supply which complies with the Safe Drinking Water Act (SDWA). The city's water is supplied by five shallow and four deep wells producing an average of eight million gallons per day. The system has three elevated storage tanks, three standpipes and one reservoir with a total of 16.2 million gallons of capacity plus 1.7 million gallons of storage in reservoirs at the water treatment plant. All water supplied in the city is treated at our single water treatment plant located at 1902 Hawthorne Street. The main treatment plant building parallels and abuts the CP mainline rail for a distance of 330 feet and is located approximately 30 feet from the nearest mainline rail. A single train derailment accident occurring adjacent to the water plant would instantly cut of drinking water supply to over 60,000 residents, thousands of businesses, two hospitals, nursing homes, and schools result in immediate noncompliance with the Safe Drinking Water Act. ENVIRONMENTAL JUSTICE (Executive Order 12898) The proposed merger would result in disproportionate adverse human health or environmental impacts relative to minority and low-income populations. In March of 2021, Dubuque published the Dubuque Community Equitable Poverty Reduction & Prevention Plan. Eight nationally recognized determinants of poverty were used to measure poverty levels in Dubuque. Of those categories the CP merger will negatively impact Economic Security, Transportation, Affordable & Safe Housing, and Health: Brain and Physical. The CP mainline and CP railyard are immediately adjacent to Dubuque's two most economically disadvantaged census tracts, Tracts 1 and 5. Additional train traffic within these census tracts will make attracting new business growth and jobs more difficult; travel to jobs, healthcare, education, and having access to food more difficult; negatively impact housing prices; and increase resident's stress levels due to the increased use of train horns, including throughout the night, at the numerous adjacent rail crossings and within the rail yard itself. AIR QUALITY Air quality data for Dubuque is obtained from the Potosi, Wisconsin air quality monitor. In the years 2006 — 2010, air quality levels for our area were measured above the PM 2.5 annual design value, also known as "non -attainment". In response to rising PM 2.5 levels, a regional Page 2of5 task force was established to work with the City of Dubuque, the Dubuque Metropolitan Planning Organization, Greater Dubuque Development Corporation and the private sector. The task force implemented programs between 2008 to 2019 to reduce emissions in the region. The programs were divided into four categories: Transportation which includes all modes; Water Treatment; Public Outreach; and Private Sector Improvements. As a result of the local partnerships and after tens of millions of dollars were invested, the PM 2.5 levels dropped from an annual high of 12.3 in 2006-2008 to currently below 8.0 MG/M3. The CP mainline and CP railyard are located in the heart of the former "non -attainment" area covering downtown Dubuque and immediately adjacent to our two most disadvantaged census tracts. Diesel locomotive trains are a known large source of PM 2.5 emissions, and the increased train traffic will create real and adverse public health effects to Dubuque residents. NOISE POLLUTION Local ambient noise levels will increase as a result of increased train traffic. The existing rail traffic occurs at all hours of the day and night. CP controls 11 crossings (9 at grade) in Dubuque and must travel over two (2) additional CN at grade crossings. Increased train traffic and the sounding of train horns at all at -grade crossings and within the CP rail yard will cause negative health effects to adjacent residents. As a result of existing train traffic, city staff have received multiple requests from residents to do something about the use of train horns. In response, the Dubuque City Council has authorized funding to complete the initial phase of a Quiet Zone study within the northern half of downtown Dubuque. HAZARDOUS OR TOXIC SUBSTANCES Trains on an almost daily basis travel through Dubuque carrying hazardous materials that can be recognize by reading their hazardous materials placards. Frequently carried hazardous or toxic substances through Dubuque include ammonia, ethanol, and highly explosive light petroleum products. On any given day, one can observe on the railroad tracks running through downtown Dubuque broken or missing fish plate bolts, railroad spikes missing from tie plates, sleepers that have heaved out of position, and contaminated ballast that allows excessive vertical movement of the steel rail when trains pass over them. The suspect overall condition of the railroad tracks throughout Dubuque in combination with higher train counts of trains carrying hazardous or toxic substances increases risks of a catastrophic event to unacceptable levels. TRANSPORTATION (Streets, Parking and Traffic) The CP and CN mainline rail tracks bisect Dubuque's downtown area. Access to areas on both sides of the tracks are critical to maintaining Dubuque as a viable, livable, and equitable place to live, work, and play. CP and CN have a long and sordid history over many decades of blocking key east —west road crossings in the heart of downtown Dubuque. There are regular occurrences when not just moving trains block tracks for minutes, but when parked trains block road crossings for hours. When a crossing is blocked, critical emergency services are stopped without advanced notice, residents' access to employment, healthcare, and recreational amenities are interrupted, and many of the employers in the greater downtown area incur additional costs related to interruptions to the supply chain. Dubuque has invested over $150 million in the 1-mile long Bee Branch Greenway to alleviate flooding impacts and create a linear park, over $100 million has been invested in the Historic Millwork District through public private partnerships and over $500 million in public private partnerships has been invested in the Port of Dubuque. All three of these areas either cross Page 3of5 or abut the CP mainline track through Dubuque. Increased blocking of at grade crossings used to access these areas will cause substantial negative impacts to the Dubuque tourism industry, commercial businesses, and residents. PUBLIC SAFETY The increase in train traffic without constructing new overpasses will severely impact the response of ambulance, fire, and police services. DIRECT, INDIRECT, AND CUMULATIVE EFFECTS Cumulative impacts result from the incremental impacts of a proposed action when added to other past, present, and reasonably foreseeable future actions (40 Code of Federal Regulations [CFR] Section 1508.7). Indirect impacts are those that are caused by a proposed action, but that may occur later in time or farther removed in distance, relative to the primary impacts of the proposed action (40 CFR Section 1508.7). The primary negative effects to Dubuque as a result of the proposed Canadian Pacific acquisition of and merger with Kansas City Southern would be a permanent decrease in the quality of life for its residents, and create negative economic impacts to the Dubuque travel and tourism industry and downtown commercial and industrial businesses. Overall, the proposed merger combined with past, present and foreseeable impacts, will result in a significant cumulative impact. MITIGATION To preserve the future integrity of critical regional infrastructure, recreational amenities, and residents' quality of life in Dubuque, the City is only supportive of the proposed merger between the Canadian Pacific and Kansas City Southern Railroads under the following conditions: 1. Canadian Pacific funds and constructs an overpass at 14th Street following the City of Dubuque's existing preliminary concept plan. 2. Canadian Pacific funds and constructs a Quiet Zone throughout the community. 3. Canadian Pacific creates an impact barrier between the railroad tracks and the limits of railroad right-of-way to protect the city water plant. 4. Canadian Pacific commits to installing Centralized Traffic Control (CTC) advanced technology to minimize the blocking of crossings as it manages its shared track arrangement with Canadian National. 5. Canadian Pacific identifies a location outside of Dubuque where it will stop and queue trains when there is a need to stop a train for anything other than an emergency situation, in order to minimize blocked train crossings in Dubuque's urban area. 6. Posted train speeds are lowered to 20 miles per hour throughout Dubuque's urban area to mitigate ground vibrations. Page 4of5 7. Canadian Pacific funds and constructs an over or underpass at the Jones Street crossing which design will be subject to the review and approval of the City of Dubuque. 8. Canadian Pacific funds and constructs a pedestrian separated grade crossing at a location to be selected by the City of Dubuque. 9. The safety conditions of the railroad's infrastructure be examined and evaluated by the appropriate federal regulators, and the necessary corrective actions be imposed. The City of Dubuque requests that Canadian Pacific must be held accountable to protect communities along their tracks from substantial harm, by mitigating the environmental impacts listed above, through methods including but not limited to separated grade crossings, restricted speeds, and upgraded tracks, crossings, and safety features. The City also requests that a member of the Surface Transportation Board visit Dubuque in person prior to a decision on this merger to view first-hand how the merger will have a disastrous impact on this community. In closing, the City of Dubuque asks for balance among the interests of the railroad, industry, and the citizens and businesses of Dubuque, recognizing that the railroad and communities must co -exist and work together. Sincerely, 1.t� k�41e,3,� Michael C. Van Milligen City Manager CC' U.S. Senator Charles E. Grassley U.S. Senator Joni Ernst U.S. Congresswoman Ashley Hinson U.S. Department of Transportation Secretary Pete Buttigieg Governor Kim Reynolds Iowa Department of Transportation Director Scott Marler Iowa State Senator Pam Jochum Iowa State Senator Carrie Koelker Iowa State Representative Shannon Lundgren Iowa State Representative Charles Isenhart Iowa State Representative Lindsay James President & CEO Dubuque Area Chamber of Commerce Molly Grover President & CEO Greater Dubuque Development Corporation Rick Dickinson City Attorney Crenna Brumwell Assistant City Manager Cori Burbach Director of Strategic Partnerships Teri Goodmann City Engineer Gus Psihoyos Project Manager Steve Sampson Brown Page 5 of 5 50974 SERVICE DATE — NOVEMBER 2, 2021 EB SURFACE TRANSPORTATION BOARD DECISION Docket No. FD 36500 CANADIAN PACIFIC RAILWAY LIMITED; CANADIAN PACIFIC RAILWAY COMPANY; SOO LINE RAILROAD COMPANY; CENTRAL MAINE & QUEBEC RAILWAY US INC.; DAKOTA, MINNESOTA & EASTERN RAILROAD CORPORATION; AND DELAWARE & HUDSON RAILWAY COMPANY, INC. CONTROL KANSAS CITY SOUTHERN; THE KANSAS CITY SOUTHERN RAILWAY COMPANY; GATEWAY EASTERN RAILWAY COMPANY; AND THE TEXAS MEXICAN RAILWAY COMPANY AGENCY: Surface Transportation Board. ACTION: Decision No. 9 in Docket No. FD 36500; Notice of Proposed Procedural Schedule and Request for Comments. SUMMARY: The Surface Transportation Board (Board) invites public comments on a proposed procedural schedule for this proceeding. On September 15, 2021, Canadian Pacific Railway Limited (Canadian Pacific), Canadian Pacific Railway Company, and their U.S. rail carrier subsidiaries, Soo Line Railroad Company, Central Maine & Quebec Railway US Inc., Dakota, Minnesota & Eastern Railroad Corporation, and Delaware & Hudson Railway Company, Inc. (collectively, CP) and Kansas City Southern and its U.S. rail carrier subsidiaries, The Kansas City Southern Railway Company (KCSR), Gateway Eastern Railway Company, and The Texas Mexican Railway Company (collectively, KCS) (CP and KCS collectively, Applicants) filed an amended notice of intent to file an application seeking authority for the acquisition of control by Canadian Pacific, through its indirect, wholly owned subsidiary Cygnus Merger Sub 2 Corporation, of Kansas City Southern, and through it, of KCSR and its railroad affiliates, and for the resulting common control by Canadian Pacific of its U.S. railroad subsidiaries, and KCSR and its railroad affiliates. DATES: Written comments on the Board's proposed procedural schedule are due by November 12, 2021. ADDRESSES: Any filing submitted in this proceeding should be filed with the Board via e-filing on the Board's website. In addition, one copy of each filing must be sent (and may be sent by e-mail only if service by e-mail is acceptable to the recipient) to each of the following: (1) Secretary of Transportation, 1200 New Jersey Avenue, S.E., Washington, DC 20590; (2) Attorney General of the United States, c/o Assistant Attorney General, Antitrust Division, Room 3109, Department of Justice, Washington, DC 20530; (3) CP's representative, David L. Docket No. FD 36500 Meyer, Law Office of David L. Meyer, 1105 S Street, N.W., Washington, DC 20009; (4) KCS's representative, William A. Mullins, Baker & Miller PLLC, Suite 300, 2401 Pennsylvania Avenue, N.W., Washington, DC 20037; (5) any other person designated as a Parry of Record on the service list; and (6) the administrative law judge assigned in this proceeding, the Hon. Thomas McCarthy, 1331 Pennsylvania Avenue, N.W., Washington, DC 20004-1710, and at ctolbert@fmshrc.gov and zbyers@fmshrc.gov. FOR FURTHER INFORMATION CONTACT: Valerie Quinn at (202) 245-0283. Assistance for the hearing impaired is available through the Federal Relay Service at (800) 877-8339. SUPPLEMENTARY INFORMATION: On March 22, 2021, concurrently filed with their original notice of intent to file an application, CP and KCS jointly fled a petition to establish a procedural schedule. Applicants' proposed procedural schedule provides for a 10-month period between the date an application is fled and the date on which the Board would issue its final decision on the merits. (Pet. 1.)1 Applicants request that the Board adopt their proposed procedural schedule so that the "substantial benefits" of the proposed transaction would not be "unnecessarily delayed," and assert that their proposal, which is based on the procedural schedule adopted in Canadian National Railway—ControlIllinois Central Corp., Docket No. FD 33556, is appropriate, given the similarities between the two transactions.2 (Pet. 1-2.) Given the high level of interest in this proceeding, as well as the complexity and magnitude of issues that may potentially arise, the Board proposes modifications to the schedule proposed by Applicants to ensure sufficient time for the submission and review of evidence and arguments, as well as for the careful consideration of the merits of the proposed transaction. Specifically, for deadlines pertaining to responsive applications, the Board proposes to conform to the time frames set forth in 49 U.S.C. § 11325 and 49 C.F.R. § 1180.4 (2000). The Board also proposes more time for the filing of a rebuttal in support of, and responses to comments on, the primary application, as well as more time for responses to any responsive applications. Additionally, the Board's proposed schedule provides that any necessary public hearing or oral argument would be held on a date to be determined later in the proceeding. ' In Applicants' amended notice, they express their continued "desire that the Board adopt a schedule for its review of the proposed transaction of ten months or less." (Amended Notice 3.) On April 1, 2021, The Freight Rail Customer Alliance, National Coal Transportation Alliance, and Private Railcar Food and Beverage Association, Inc. (collectively, Shipper Associations), submitted a letter asserting that the transaction in Docket No. FD 33556 does not serve as a good benchmark, given the larger size and value of the Applicants' proposed transaction. (Shipper Associations Comment 4.) 2 Docket No. FD 36500 Therefore, the Board proposes the following procedural schedule:3 F Primary application and any related application(s) filed. F+30 Board notice of acceptance of primary application and any related application(s) to be published in the Federal Register. _ F+45 Notices of intent to participate due. F+60 Proposed Safety Integration Plan (SIP) due.4 F+75 Descriptions of anticipated responsive, including inconsistent, applications due. Petitions for waiver or clarification with respect to such applications due. F+90 Comments (including from the U.S. Department of Justice (DOJ) and U.S. Department of Transportation (DOT), if any), protests, requests for conditions, and any other evidence and argument in opposition to the primary application or any related application(s) due. F+115 Responsive environmental information and environmental verified statements for responsive, including inconsistent, applicants due. F+120 Responsive, including inconsistent, applications due. F+145 Responses to comments (including those of DOJ and DOT, if any), protests, requests for conditions, and other opposition due. Rebuttal in support of the primary application and any related application(s) due. F+150 Notice of acceptance of responsive, including inconsistent, applications, if any, published in the Federal Register. F+175 Responses to responsive, including inconsistent, applications due. F+205 Rebuttals in support of responsive, including inconsistent, applications due. F+245 Final briefs dues ' "F" designates the filing date of the application, and "F+n" means "n" days following that date. Applicants filed their application on October 29, 2021. 4 Preparation of a SIP is required under 49 C.F.R. § 1106.4. ' The Board will also provide page limits for final briefs in a later decision after the record has been more fully developed. Docket No. FD 36500 TBD Public hearing (if necessary).6 (Close of the record.) TBD Service date of final decision.' The Board invites all interested persons to submit written comments on the procedural schedule proposed here. Comments must be filed by November 12, 2021. The dates proposed in this decision are subject to change depending on the comments received or other circumstances. The Board also notes that it may grant requests to extend the filing deadlines set in the procedural schedule for good cause. See 49 C.F.R. § 1104.7(b). The Board's Office of Environmental Analysis will review the information that it has requested from Applicants needed to initiate the environmental review of the proposed transaction. The Board will address environmental review issues in a subsequent decision. Decided: November 1, 2021. By the Board, Board Members Begeman, Fuchs, Oberman, Primus, and Schultz. ° The Board will decide whether to conduct a public hearing in a later decision after the record has been more fully developed. See 49 U.S.C. § 11324(a) ("The Board shall hold a public hearing unless the Board determines that a public hearing is not necessary in the public interest."). I Applicants' proposed schedule includes a date for the issuance of the Board's final decision. The Board will issue its final decision in accordance with 49 U.S.C. § 11325(b)(3) (requiring a final decision to be issued within 90 days of the close of the evidentiary record). E 50990 SERVICE DATE NOVEMBER 12, 2021 OEA SURFACE TRANSPORTATION BOARD DECISION Docket No. FD 36500 CANADIAN PACIFIC RAILWAY LIMITED; CANADIAN PACIFIC RAILWAY COMPANY; SOO LINE RAILROAD COMPANY; CENTRAL MAINE & QUEBEC RAILWAY US INC.; DAKOTA, MINNESOTA & EASTERN RAILROAD CORPORATION; AND DELAWARE & HUDSON RAILWAY COMPANY, INC. —CONTROL KANSAS CITY SOUTHERN; THE KANSAS CITY SOUTHERN RAILWAY COMPANY; GATEWAY EASTERN RAILWAY COMPANY; AND THE TEXAS MEXICAN RAILWAY COMPANY AGENCY: Surface Transportation Board ACTION: Notice of Intent to Prepare an Environmental Impact Statement (EIS); Notice of Initiation of the Scoping Process; Request for Comments on Scope of the EIS; and Notice of Public Scoping Meetings. SUMMARY: On October 29, 2021, Canadian Pacific Railway Limited, Canadian Pacific Railway Company, and their U.S. rail carrier subsidiaries Soo Line Railroad Company; Central Maine & Quebec Railway U.S. Inc.; Dakota, Minnesota & Eastern Railroad Corporation; and Delaware & Hudson Railway Company, Inc. (collectively, CP) and Kansas City Southern, The Kansas City Southern Railway Company, Gateway Eastern Railway Company, and The Texas Mexican Railway Company (collectively, KCS) filed an application with the Surface Transportation Board (Board) seeking the Board's approval of the acquisition of control by CP of KCS. The proposed acquisition has the potential to result in significant environmental impacts; therefore, the Board's Office of Environmental Analysis (OEA) has determined that the preparation of an Environmental Impact Statement (EIS) is appropriate pursuant to the National Environmental Policy Act (NEPA). The purpose of this Notice is to inform stakeholders including members of the public; tribes; federal, state, and local agencies; and environmental groups —interested in or potentially affected by potential environmental impacts related to the proposed acquisition. OEA will hold online public scoping meetings as part of the NEPA process. Oral and written comments submitted during scoping will assist OEA in defining the range of alternatives and potential impacts to be considered in the EIS. Public scoping meeting dates are provided below. DATES: Comments on the scope of the EIS are due by December 17, 2021. OEA will hold six online public scoping meetings on the following dates (times in Central Standard Time). Docket No. FD 36500 • Tuesday, November 30, 2021, 6-8 p.m. • Wednesday, December 1, 2021, 2-4 p.m. • Thursday, December 2, 2021, 6-8 p.m. • Tuesday, December 7, 6-8 p.m. • Wednesday, December 8, 2021, 2-4 p.m. • Thursday, December 9, 2021, 6-8 p.m. Information on how to attend and participate in an online public scoping meeting, including how to register in advance, is available on the Board -sponsored project website at www.CP- KCSMer_gerEIS.com. ADDRESSES: Interested parties are encouraged to file their scoping comments electronically through the Board -sponsored project website at www.CP-KCSMergerEIS.com or through the Board's website at www.stb.gov by clicking on the "File an Environmental Comment" link. Please refer to Docket No. FD 36500 in all correspondence, including E-filings, addressed to the Board. Scoping comments submitted by mail should be addressed to: Joshua Wayland, Surface Transportation Board, c/o VHB, Attention: Environmental Filing, Docket No. FD 36500, 940 Main Campus Dr., Suite 500, Raleigh, NC 27606. FOR FURTHER INFORMATION CONTACT: Joshua Wayland, Office of Environmental Analysis, Surface Transportation Board, c/o VHB, 940 Main Campus Dr., Suite 500, Raleigh, NC 27606, or call OEA's toll -free number for the project at 1-888-319-2337. Assistance for the hearing impaired is available through the Federal Information Relay Service at 1-800-877-8339. The website for the Board is https://www.stb.gov. For further information about the Board's environmental review process and the EIS, you may also visit the Board -sponsored project website at www.CP-KCSMerizerEIS.com. SUPPLEMENTARY INFORMATION: Background On October 29, 2021, CP and KCS (collectively, the Applicants) filed an application with the Board under 49 U.S.C. §§ 11323-25 seeking its approval of the acquisition of control of KCS by CP. CP and KCS are two of the seven Class I railroads in the United States, which are the largest railroads defined as having annual revenue greater than $250 million. CP is one of Canada's two major railroads, extending across the country and connecting east and west coast ports. In the U.S., CP connects to Buffalo and Albany, New York and Searsport, Maine. CP also runs south into the U.S. Midwest and connects with KCS in Kansas City, Missouri. KCS is a Class I railroad that extends from Kansas City, Missouri to the Gulf Coast and into Mexico, operating across 10 states in the Midwest and Southeast. CP and KCS provide rail service for a variety of industries, including agriculture, minerals, military, automotive, chemical and petroleum, energy, industrial, and consumer products. CP and KCS are the two smallest Class I railroads, and the combined railroad would be the smallest Class I railroad by revenue. At the request of OEA, the Applicants have submitted information needed by OEA to initiate an environmental review of the proposed acquisition. Based on the information provided by the 2 Docket No. FD 36500 Applicants, OEA has determined that the proposed acquisition has the potential to result in significant environmental impacts and that the preparation of an EIS is appropriate. Summary of the Board's Review Processes for this Proceeding The Board will review the proposed transaction through two parallel but distinct processes: (1) the transportation -related process that examines the competitive, transportation, and economic implications of the proposed acquisition on the national rail system, and (2) the environmental process conducted by OEA that assesses the potential environmental effects of the proposed acquisition on the human and natural environment through preparation of an EIS. Interested persons and entities may participate in either process or both. If interested persons or entities are primarily interested in potential environmental impacts on communities, such as noise, vibration, air emissions, grade crossing safety and delay, emergency vehicle access, and other similar environmental issues, the appropriate forum is OEA's environmental review process. The statute setting forth the procedures for Board review of acquisitions at 49 U.S.C. § 11325 and the Board's implementing regulations at 49 CFR § 1180.4 (2000) require that the Board complete its review within approximately 15 months after the application is accepted for a "major" transaction such as this, and OEA must complete the environmental process before the Board issues a final decision. Environmental Review Process The NEPA process is intended to assist the Board and the public in identifying and assessing the potential environmental consequences of a proposed action before a decision on that proposal is made. OEA is responsible for ensuring that the Board complies with NEPA (42 U.S.C. §§ 4321-4370m-12) and related environmental statutes, including Section 106 of the National Historic Preservation Act (54 U.S.C. § 306108) and Section 7 of the Endangered Species Act (16 U.S.C. § 1536). Purpose and Need The proposed transaction involves an application for Board authority under 49 U.S.C. §§ 11323-25 for CP to acquire KCS. The proposed transaction is not a federal government - proposed or sponsored project. Thus, the project's purpose and need should be informed by both the private applicant's goals and the Board's enabling statute —the Interstate Commerce Act as amended by the ICC Termination Act, Pub. L. No. 104-188, 109 Stat. 803 (1996). See Alaska Survival v. STB, 705 F.3d 1073, 1084-85 (9th Cir. 2013). According to the Applicants, the purpose of the proposed acquisition is to combine America's two smallest but fastest -growing Class I railroads to build a more efficient and more competitive rail network. The Applicants state that the proposed acquisition would further the need for expanded and more capable and efficient transportation infrastructure while simultaneously advancing the interests of current and future customers in more reliable and economical rail transportation options serving important North -South trade flows. The Applicants also state that the proposed acquisition would generate environmental benefits by reducing truck transportation on highways in North America by more than 60,000 trucks Docket No. FD 36500 annually, resulting in less congestion, less maintenance, and improved safety on those roads, as well as less noise pollution in the places where those trucks would have driven, and lowered air emissions, including greenhouse gas emissions. Under the Interstate Commerce Act, as amended, the Board "shall approve and authorize a transaction" such as this when, after considering several factors, "it finds the transaction is consistent with the public interest." 49 U.S.C. § 11324 (b) & (c). Proposed Action and Alternatives The Proposed Action in this proceeding is the Applicants' proposed acquisition of KCS by CP. The combination of these two railroads would be an `end -to -end' merger because the CP and KCS railroad networks do not overlap. The proposed acquisition would result in changes in rail traffic on portions of the combined rail network. Rail traffic would increase on certain rail line segments and would decrease on others. The largest change would occur on the CP mainline between Sabula, Iowa and Kansas City, Missouri, which would experience an increase in rail traffic of approximately 14.4 additional trains per day, on average. Increases in activities at rail yards and intermodal facilities would also occur. In addition, the Applicants propose to make certain capital improvements within the existing rail right-of-way, including adding approximately four miles of double track on the KCS Pittsburg Subdivision, adding approximately five miles of facility working track adjacent to the International Freight Gateway intermodal terminal near Kansas City, and adding or extending 24 passing sidings along the combined network. The Applicants do not propose to construct any new rail lines subject to Board licensing or to abandon any rail lines as part of the proposed acquisition. The alternative to the Proposed Action is the No -Action Alternative, which would occur if the Board were to deny the proposed acquisition. Under the No -Action Alternative, CP would not acquire KCS. Scoping The first stage of the environmental review process is scoping. Scoping is an open process for determining the range of issues that should be examined and assessed in the EIS. In addition to announcing that the Board will prepare an EIS for this proceeding, this Notice also requests comments on the scope of the EIS and presents the schedule of public scoping meetings. With this notice, OEA is soliciting written comments on the scope, alternatives, and issues to be analyzed in the EIS. After the close of the comment period on the scope of the EIS on December 17, 2021, OEA will review all comments received and issue a final scope of study for the EIS. OEA anticipates issuing the final scope of study in early 2022. Draft EIS Following the issuance of the final scope, OEA will prepare a Draft EIS for the proposed acquisition. The Draft EIS will identify and analyze alternatives, including the Proposed Action and the No -Action Alternative, and will address potential impacts on the environment as well as issues and concerns identified during the scoping process. The Draft EIS will focus on (1) potential impacts from changes in rail operations along rail line segments and at rail yards that 4 Docket No. FD 36500 would experience increases in rail traffic as a result of the proposed acquisition that would exceed OEA's thresholds for environmental review at 49 C.F.R. § 1105.7(e), (2) potential impacts related to changes in vehicular traffic on roadways and at facilities as a result of the proposed acquisition that would exceed OEA's thresholds for analysis, and (3) potential impacts that could result from making capital improvements within the rail right-of-way as part of the proposed acquisition. The scope of the issues that will be analyzed in the Draft EIS may include potential impacts related to: • Freight rail capacity and safety; • Passenger rail capacity and safety; • Grade crossing safety and delay; • Motor vehicle traffic and roadway systems; • Land use; • Air quality; • Noise; • Biological resources; • Water resources; • Hazardous waste sites; • Cultural resources; • Environmental justice; and • Cumulative impacts. The thresholds for assessing environmental impacts from increased rail traffic on rail lines in railroad acquisition proceedings are an increase in rail traffic of at least 100 percent (measured in gross ton miles annually) or an increase of at least eight trains per day. For air quality impacts, rail lines located in areas classified as being in nonattainment under the Clean Air Act (42 U.S.C. §§ 7401-7671q) are also assessed if they would experience an increase in rail traffic of at least 50 percent (measured in gross ton miles annually) or an increase of at least three trains per day. Based on the information provided by the Applicants to date, OEA has identified rail lines in Illinois, Iowa, Missouri, Kansas, Oklahoma, Arkansas, Louisiana, and Texas that would experience increases in rail traffic that would exceed the analysis thresholds as a result of the proposed acquisition. In addition to assessing the environmental impacts of the proposed acquisition, the Draft EIS will also set forth OEA's preliminary recommendations for environmental mitigation measures. OEA anticipates issuing the Draft EIS in the spring of 2022. Final EIS Upon its completion, the Draft EIS will be made available for public and agency review and comment for 45 days. OEA will then prepare and issue a Final EIS that will address the comments on the Draft EIS from the public; and federal, state and local agencies; and other interested parties and will set forth OEA's final recommended environmental mitigation. Then. Docket No. FD 36500 in reaching its decision in this case, the Board will consider the Draft EIS, the Final EIS, public comments, and any final environmental mitigation proposed by OEA. OEA anticipates issuing the Final EIS in the fall of 2022. Public Scoping Meetings As noted above, scoping is the first stage of the environmental review process. OEA will hold online public scoping meetings at the dates and times listed below. All times are listed in Central Standard Time. There is no need to attend more than one online meeting, but all are welcome to attend as many meetings as desired. • Tuesday, November 30, 2021, 6-8 p.m. • Wednesday, December 1, 2021, 2-4 p.m. • Thursday, December 2, 2021, 6-8 p.m. • Tuesday, December 7, 6-8 p.m. • Wednesday, December 8, 2021, 2-4 p.m. • Thursday, December 9, 2021, 6-8 p.m. The online public scoping meetings will include a brief presentation by OEA, followed by an opportunity for interested individuals to make oral comments. Participants who have registered in advance will be called upon first to deliver their oral comments and will be given three minutes in which to do so. If time permits, participants who did not register in advance will be given the opportunity to make oral comments. A court reporter will record the oral comments, and OEA staff will be available to listen and make notes of comments. For information on how to attend an online public scoping meeting, including how to register in advance, please visit the Public Involvement page on the Board -sponsored project website (www.CP-KCSMergerEIS.com). Although individuals who would like to make oral comments are encouraged to register in advance, registration is not required to attend the public scoping meetings. OEA will consider all comments equally no matter how comments are received, and it is not necessary to attend an online public scoping meeting to provide scoping comments, as OEA will also be accepting written comments during the comment period, which ends on December 17, 2021. Submitting Written Comments on the Scope of the EIS Interested parties are encouraged to file their scoping comments electronically through the Board -sponsored project website at www.CP-KCSMergerEIS.com. Written comments can also be submitted electronically on the Board's website, www.stb.gov, by clicking on the "E- FILING" link. Please refer to Docket No. FD 36500 in all correspondence, including E-filings, addressed to the Board. Scoping comments submitted by mail should be addressed to Joshua Wayland, Surface Transportation Board, c/o VHB, 940 Main Campus Dr. Suite 500, Raleigh, NC 27606, Attention: Environmental Filing, Docket No. FD 36500. Following these directions will help ensure that your comments are considered in the environmental review process for this proposed acquisition. 0 Docket No. FD 36500 All comments submitted during scoping will be made available to the public on the Board -sponsored project website and the Board's website. OEA will add commenters' names to its email distribution list to announce the availability of the final scope of the EIS, the Draft EIS, and the Final EIS, which will be posted on the Board's website and the Board -sponsored project website. Commenters without email addresses will receive notifications by U.S. mail if accurate mailing addresses are provided, as needed. All Board decisions, orders, and notices in this proceeding will also be available on the Board's website at www.stb.gov under "E-Library," and "Decisions & Notices" or "Filings." For further information about the Board's environmental review process and the EIS, you may also visit the Board -sponsored project website at www.CP-KCSMcrgerElS.com. By the Board, Danielle Gosselin, Acting Director, Office of Environmental Analysis. 7 51072 SERVICE DATE — DECEMBER 17, 2021 OEA SURFACE TRANSPORTATION BOARD NOTICE Docket No. FD 36500 CANADIAN PACIFIC RAILWAY LIMITED; CANADIAN PACIFIC RAILWAY COMPANY; SOO LINE RAILROAD COMPANY; CENTRAL MAINE & QUEBEC RAILWAY US INC.; DAKOTA, MINNESOTA & EASTERN RAILROAD CORPORATION; AND DELAWARE & HUDSON RAILWAY COMPANY, INC. —CONTROL KANSAS CITY SOUTHERN; THE KANSAS CITY SOUTHERN RAILWAY COMPANY; GATEWAY EASTERN RAILWAY COMPANY; AND THE TEXAS MEXICAN RAILWAY COMPANY Decided: December 17, 2021 Notice of Extension of Scoping Comment Period The Surface Transportation Board's (Board) Office of Environmental Analysis (OEA) issued a Notice of Intent (NOI) to prepare an Environmental Impact Statement (EIS) in the above -captioned proceeding on November 12, 2021 and published it in the Federal Register on the same day. In the NOI, OEA invited public comments on the scope of the EIS by December 17, 2021. OEA has received requests for an extension of the scoping comment period and is issuing this Notice to advise the public and all interested parties that the comment period will be extended until January 3, 2022. No further extensions of time will be granted. OEA will issue a Final Scope of Study for the EIS after the close of the scoping comment period. Scoping comments may be submitted electronically on the Board -sponsored project website at www.CP-KCSMergerEIS.com or the Board's website at www.stb.gov by clicking on the "E-FILING" link. Please refer to Docket No. FD 36500 in all correspondence, including e- filings, addressed to the Board. Any comments previously submitted need not be resubmitted. Scoping comments are now due by January 3, 2022. For additional information about the Board's environmental review process for this proposed acquisition please visit the Board -sponsored project website at www.CP- KCSMergerEIS.com. By the Board, Danielle Gosselin, Acting Director, Office of Environmental Analysis. VENABLELLP October 28, 2021 Danielle Gosselin Acting Director Office of Environmental Analysis Surface Transportation Board 395 E Street, SW Washington, DC 20423 600 MASSACHUSETTS AVE., NW WASHINGTON, dC 20001 T 202.344.4000 F 202.344.8300 www.Venable.com Kathryn K. Floyd T 202.344.4696 KKFloyd@Venable.com Re: Docket No. FD 36500, Response to Information Request No. 1 Dear Ms. Gosselin: On behalf of our client, Canadian Pacific Railway Limited ("CP"), I'm writing to respond to the Office of Environmental Analysis's Information Request No. 1. The substantive answers to OEA's requests appear in the accompanying maps and tables. This letter supplements those maps and tables by explaining how they were prepared. CP developed all of these filings in cooperation with its co -applicant, Kansas City Southern. REQUEST A The proposed Transaction is an end -to -end combination of two rail systems: CP and KCS. Request A asks about places on the combined CP/KCS network where "transaction -related traffic" would exceed the Board's thresholds for environmental review. See 49 C.F.R. § 1105.7(e). OEA specified that CP and KCS should calculate this traffic for a date "five years after" the proposed Transaction is approved. CP and KCS anticipate Board approval in 2022, so they are projecting traffic for 2027. Calculating transaction -related traffic in 2027 requires an estimate of the 2027 traffic baseline. To that end, CP and KCS added a projection of organic growth not related to the Transaction to the current traffic on their separate networks. See Verified Statement of Raymond A. Elphick (to be filed with CP and KCS's Application). That number appears on each of the accompanying maps and tables as 2027 baseline traffic. Danielle Gosselin October 28, 2021 Page 2 To predict how a combined CP/KCS network would affect traffic levels, CP and KCS conducted several analyses of the impacts of the Transaction on traffic levels on the combined system and used those traffic forecasts to build an Operating Plan that would handle the post -Transaction traffic as compared to the separate operations of CP and KCS pre -Transaction. Those analyses set 2019—the last pre -pandemic year —as a starting point. From there, CP and KCS looked at how their combined network would handle transaction -related traffic growth. Eliminating the boundary between the two systems allows trains to move longer distances without being re -worked in yards. This makes for a more efficient network. See Elphick V.S. Because the combined CP/KCS network will be more efficient, it will attract traffic that does not currently move on either carrier. That includes truck -to -rail diversions, diversions from other rail carriers, and new market development opportunities. The "Growth Plan" operating plan accounts for these traffic changes and also takes account of organic growth in the pre -Transaction traffic bases of the two separate railroads. See Elphick V.S. The accompanying maps and tables show these numbers as 2027 post -transaction traffic. Subtracting the 2027 baseline traffic from the 2027 post -transaction traffic gives the transaction -related traffic that Request A asks for. Those numbers also appear on the maps and tables. CP and KCS used the transaction -related traffic numbers to answer Request A's specific questions. Overview Map The first map that responds to Request A is an overview of the combined CP/KCS network. This map identifies areas where projected 2027 traffic increases exceed the Board's thresholds for environmental review. The overview map recognizes that the Board's thresholds for environmental review depend on local conditions under the Clean Air Act. Where pollutants regulated by the Clean Air Act meet standards, the Board's thresholds are higher. Those places are called "attainment areas." Where pollutants exceed standards, the Board's thresholds are lower. Those places are called "nonattainment areas." Nonattainment area boundaries also appear on the overview map. An inset on the overview map details an area in Kansas City known as Knoche Yard (pronounced "ken-O-kee" by locals). Today Kansas City (and specifically Danielle Gosselin October 28, 2021 Page 3 Knoche Yard) is the only place where CP's and KCS's systems meet. That is why the proposed Transaction is an end -to -end combination: Combining CP's and KCS's systems will create one continuous, efficient network. The overview map also shows other carriers' lines where CP or KCS move freight via trackage rights. Because neither CP nor KCS owns the lines used for such trackage rights movements, they have limited information about the other traffic those lines carry. As specified in the accompanying master segment table, CP and KCS do not know the total volumes of traffic on those lines or, in some cases, how CP/KCS traffic will be routed over those lines. A.1- Attainment Areas Request A.1 asks about rail line segments in attainment areas where Transaction - related traffic would be a 100% increase in gross ton miles or add 8 new trains per day. CP and KCS are providing 10 maps to show the 22 segments that exceed the attainment area thresholds. (Some maps show multiple segments.) The labels on these maps show: (1) 2027 baseline traffic; (2) 2027 post -transaction traffic; and (3) 2027 transaction -related traffic. Red highlights identify where the transaction - related traffic exceeds applicable thresholds. More information, including 2019 baseline traffic, appears in the master segment table. A.2 - Nonattainment Areas Request A.2 asks about rail line segments in nonattainment areas where transaction -related traffic increases would be a 50% increase in gross ton miles or add 3 new trains per day. CP and KCS are providing 8 maps to show the 13 segments that exceed the nonattainment area thresholds. Again, inset labels show: (1) 2027 baseline traffic; (2) 2027 post -transaction traffic; and (3) 2027 transaction -related traffic. Red highlighting shows which thresholds are exceeded. The 2019 baseline traffic and other information appears in the master segment table. A.3 - Rail Yards The Board's rules also set attainment and nonattainment environmental review thresholds for rail yards. Request A.3 asks about rail yards where transaction- Danielle Gosselin October 28, 2021 Page 4 related carload activity will increase by 100% (in attainment areas) or 20% (in nonattainment areas). CP and KCS are again using three numbers to calculate transaction -related growth. First, they provide a 2027 baseline for carload activity at each yard. This baseline includes organic growth but excludes any effects from the proposed Transaction. Next, they estimate 2027 post -transaction carload activity at each yard. Finally, they compare the percentage difference between those numbers to the Board's rail yard thresholds. CP and KCS have identified 4 yards that exceed the Board's thresholds, all of which are in nonattainment areas. For each of these yards, CP and KCS are providing a map that shows the yard's location. Labels show average 2027 carload activity with and without the proposed Transaction. If the percentage increase exceeds the relevant thresholds, it is highlighted in red. REQUEST B Request B asks about "transaction -related rail line construction." The proposed Transaction is the combination of CP's and KCS's networks. Because those networks already connect at Kansas City, the Transaction does not require any construction. As discussed in the capital improvements section of the Operating Plan, CP and KCS do expect that increased traffic on the combined CP/KCS network will require construction in the form of new and extended sidings. In addition, CP and KCS have identified the need for an approximately 4-mile section of double track on the KCS Pittsburg Subdivision and the creation of an approximately 5-mile long facility working track adjacent to the International Freight Gateway intermodal terminal. Because this work is planned within existing rights of way, it does not qualify as jurisdictional rail line construction. The Operating Plan also describes capital spending for Centralized Traffic Control signal systems, which is likewise not rail line construction. CP and KCS are providing typical drawings for track construction projects on their respective systems. CP and KCS do not have site -specific construction or engineering plans for the capital investments identified in the Operating Plan. Detailed, site -specific plans are not normally developed until the months leading up to the construction activity. Danielle Gosselin October 28, 2021 Page 5 In response to Request B, CP and KCS used their Operating Plan and a list of potential network improvements to identify 26 locations where additional double - track, facility working track, new sidings, or siding extensions would be needed. CP and KCS are providing 26 maps that show those 26 areas of construction. REQUEST C Request C asks for maps showing transaction -related rail line abandonments. CP and KCS will not abandon any rail lines because of the Transaction. REQUEST D Request D asks for maps showing "the number of passenger trains per day" on segments where transaction -related traffic will exceed the Board's environmental review thresholds. For context, CP and KCS are providing an overview map that shows all passenger routes on their combined network. That map highlights where passenger routes overlap with segments that exceed the Board's environmental review thresholds. CP and KCS are also providing more granular maps of passenger traffic on the 4 subdivisions where at least one segment exceeds the Board's environmental review thresholds. Labels on those maps list pre -pandemic passenger train counts between specific stations within the subdivision. The labels also say how many of those trains are inter -city passenger trains and how many are commuter trains. REQUEST E Request E asks about new passenger train movements on rail lines associated with the proposed Transaction. There are no such movements. REQUEST F Request F asks about "any hazardous materials that would be moved" on the combined CP/KCS network. The request also asks CP and KCS to identify in general terms "the other commodities that would move with any transaction -related traffic." The master segment table shows all hazardous material movements on the combined CP-KCS network. Those hazardous materials would be a small portion of Danielle Gosselin October 28, 2021 Page 6 the carloads on the combined network. Like the other tables that CP and KCS are providing, these tables show 2019 traffic, 2027 baseline traffic, and 2027 post - transaction traffic. CP and KCS are also providing 68 maps that show the movement of hazardous materials on 68 rail segments. These maps show segments where either: total merger -related traffic increases exceeded the Board's environmental review thresholds; merger -related hazardous materials traffic increases by 1000 or more cars per year; or merger -related hazardous materials traffic increases by between 100 and 999 cars per year and that traffic represents more than a 5% increase in hazardous materials traffic. Labels on the maps contextualize these movements by showing both the total carloads moving on the segment and the changes that the proposed Transaction would cause. REQUEST G Request G asks for more information about the rail segments where the Board's environmental review thresholds are exceeded. G.1— Land Use Request G.1 asks CP and KCS to "characterize adjacent land uses" in places where transaction -related traffic exceeds the Board's environmental review thresholds. Given the unmanageable number of maps it would take to display these land uses, CP and KCS are instead providing GIS layers that can be used to create an interactive map. OEA can navigate that map as needed. The GIS layers are being provided in kmz (Google Earth) and shape files. G.2 — Grade Crossings Request G.2 asks for "numbers, locations, and mileposts of existing and proposed at - grade crossings" for segments that exceed the Board's thresholds. CP and KCS are providing a spreadsheet that lists all registered grade crossings on those segments known to FRA, including public and private roads, farm crossings and pedestrian crossings. They are not proposing any new at -grade crossings for those segments. Danielle Gosselin October 28, 2021 Page 7 G.3 - Quiet Zones Request G.3 asks about "existing quiet zones" where transaction -related traffic exceeds the Board's thresholds. CP and KCS cross-referenced public FRA data with their timetables to create maps that show these quiet zones. Each of these 13 quiet zones appears on its own map, highlighted in blue. Thank you for your guidance in preparing these responses. We hope that this information allows OEA to start the environmental review process for our proposed Transaction. Please don't hesitate to contact me if you have any questions. Sincerely, ��r ��_/ Kathryn K. Floyd cc: Sean Cline Glen Wilson Joe Van Humbeck David Meyer Jeffrey Songer Kayden Howard William Mullins Erin Glavich Joshua Wayland Victoria Rutson David Navecky Alan Summerville Bettendolifi 1609 State Street • Bettendorf, Iowa 52722-4937 563 344-4000 December 16, 2021 Joshua Wayland Surface Transportation Board, c/o VHB Attention: Environmental Filing, Docket No. FD 36500 940 Main Campus Dr., Suite 500 Raleigh, NC 27606 Re: Canadian Pacific/Kansas City Southern Merger Proposal; FD 36500; EIS Scoping Dear Mr. Wayland: The City of Bettendorf, Iowa ("Bettendorf') is one of the fastest growing cities in the State of Iowa, with a 2020 population of nearly 40,000. Bettendorf is part of the Quad -Cities region, a metropolitan area with a population of approximately 475,000, and is located on the Mississippi River. Bettendorf is predominantly a residential city, with a vibrant and developing downtown area, strong commercial businesses, critical industrial businesses (most of which are primarily located adjacent to the Mississippi River), and a burgeoning sports tourism industry. The Canadian Pacific ("CP") mainline follows the Mississippi. River for the entire southern portion of our city'. Bettendorf has serious concerns about the proposed merger between CP and Kansas City Southern (the "Transaction") and the impact the Transaction will have on our city. We respectfully request that the issues set forth in this letter, and all aspects of the Transaction, are considered in the scoping of the EIS and ultimately in the substance of the EIS. We recognize the complexity of the proposed Transaction and we appreciate the significant amount of work facing the Surface Transportation Board ("STB") in analyzing the potential impact on all communities and constituencies affected by the Transaction. However, there are certain unique aspects of Bettendorf that should be highlighted at the outset. First, Bettendorf appears to be one of the most significantly impacted cities. The proposed Transaction will result in more than a 300% increase in freight rail traffic in Bettendorf. See Appendix A to Volume 2, p. 2-363 (Trains Per Day by Subdivision), to CP/KCS Merger Application, filed October 29, 2021. Assuming seven (7) minutes for an 8500 foot train to clear, the city will go from approximately 49 minutes of through rail traffic to over 2 % hours of through rail traffic every day. This does not account for the trackage rights granted to other companies on the CP line. This additional rail traffic will directly affect homeowners that live near the tracks, commercial business, industrial businesses, and people living in or traveling to the Quad -Cities to enjoy our riverfront. Additionally, the CP line in Bettendorf is located directly adjacent to the Mississippi River. This results in the complete separation of certain land on the river side of the tracks while the freight trains traverse the tracks, or during the numerous instances of trains sitting stationary on the tracks. Many residents, ' Note that Bettendorf is located on an approximately 40 mile stretch of the Mississippi River that flows east/west. STB Docket No. FD 36500 -- Page 1 businesses, and public recreation amenities on the river side of the tracks have only one ingress/egress point, and the tripling of rail traffic will significantly impact these areas. In fact, Bettendorf has only one (1) grade -separated crossing over the CP line, located at George Theunen Drive in our downtown. The proximity to the Mississippi River increases environmental risks and damage in the event a derailment occurs. Finally, Bettendorf has significantly invested in its riverfront, and has plans to do more. The riverfront has been a target area that our City Council has identified in its annual goals for many years. They have invested heavily in this goal, and have expressed resolve to continue to do so. Cutting off certain portions of the riverfront with such a significant increase in rail traffic has the potential to be detrimental to economic development of these areas. SAFETY The proposed Transaction presents several significant safety concerns. To assist in assessing the safety issues in Bettendorf, we attach maps identifying the at -grade crossings in the city. Please note the following issues: 1. Police, Fire, Emergency Medical Services. The impact to public safety as a result of delay in police, fire, and EMS is a critical concern. Potential delays in police, fire, and EMS response times are present at each crossing set forth on the attached maps, and as articulated above, the potential issue is magnified by the fact that accessing the land on the river side of the tracks is difficult or impossible from the river. To address the access issue for these services, we suggest consideration of one or more vehicle overpasses and pedestrian overpasses. Particular public safety concern exists for the following: a. 31St Street, 33`d Street and 35th Street crossings — Businesses accessed from these crossings handle hazardous materials, including a large fuel tank farm, a chemical distributor, and two (2) steel casting companies. These crossings are frequently blocked with stopped trains, causing back up onto State Street. b. 62"d Street crossing — This location experiences long delays, including long stoppages. We have anecdotal evidence of employees of businesses located in this area climbing through stopped trains to get to work. c. 12th Street and 131h Street crossings — Several commercial businesses are located on the river side of the CP line accessed from these crossings. Additionally, these crossings provide access to Leach Park and the Leach Park boat ramp. 2. Pedestrian impact. The CP tracks are adjacent to a very popular recreational trail along the Mississippi River. The tripling of rail traffic will pose additional risk, both in terms of people crossing the tracks to get to the trail and in receiving EMS services if injured. The 13th Street crossing poses a high risk. This is the main access point to Leach Park and the Leach Park boat ramp. Additionally, with the recent completion of the 1-74 bridge project, the largest infrastructure project in the State's history, Bettendorf is constructing a 5-acre urban park that is bisected by the CP line. The urban park will provide access (via a ramp near Grant Street or a new elevator closer to the Mississippi River) to a pedestrian trail over the Mississippi River (attached to the new bridge). The elevator gives those with disabilities convenient access to the pedestrian trail. Parking for the urban park will be at Leach Park or a city -owned parking lot west of the bridge. The urban park and a one -of -a -kind pedestrian trail over the Mississippi River is expected to be a large tourist attraction. We request a thorough review of this area and the safety issues that will arise with a tripling of rail traffic. STB Docket No. FD 36500 — Page 2 Further, it should be noted that the intersection of the American Discovery Trail and the Mississippi River Trail in Bettendorf is an important tourism attraction and the safety of the users of these trails should be evaluated. A pedestrian walkway over the CP tracks should be considered for the 12' Street/131h Street area (a vehicle overpass at this location is likely difficult from an engineering standpoint). 3. Potential derailments. The Quad -Cities area has had two derailments since 2020. One near Warren Street in Davenport, Iowa on December 7, 2021, and another near Jones Street in LeClaire, Iowa on January 3, 2020. We request a full evaluation of CP's track system in Bettendorf, recommended improvements, and a schedule of such improvements. 4. Hazardous material safety. We request that a full evaluation of movement of hazardous materials, and a specific analysis of the unique characteristics of Bettendorf, including proximity to single-family and multi -family residential developments and the proximity to the Mississippi River. 5. Barge/Train collisions. We are aware of communication between our local Emergency Planning Council and the U.S. Coast Guard regarding certain collisions or near collisions between barges parked against the Mississippi River bank and trains on the CP line. We request that this issue be evaluated in the EIS. 6. River rescue considerations. Bettendorf is located on Navigation Pool 15 of the Mississippi River (between Lock and Dam 14 and Lock and Dam 15). This is a high use area of the river from both a barge perspective and pleasure craft use perspective. The Bettendorf Fire Department operates one (1) river rescue boat and two (2) swiftwater rescue boats. Access to the Leach Park boat ramp for launching of the city's river rescue apparatus should be evaluated, and safety issues considered. NOISE AND VIBRATION We receive frequent questions and complaints regarding noise and vibration resulting from rail traffic on the CP mainline. We request that the EIS fully analyze the impact on residents living near the CP line. This includes, but is not limited to, residents along River Drive, multi -family residents in downtown Bettendorf, guests at hotels near the CP line (the Isle Casino is particularly close to the tracks), and residents on Elm Street, Fenno Road, River Bend Road, Marigil Lane, Schutter Lane, and Harbor Drive. Quiet zones should be considered for the most -affected areas. LAND USE AND ECONOMIC DEVELOPMENT As described above, all land on the south side of the CP tracks (i.e., between the tracks and the Mississippi River) is impacted by a 300% increase of rail traffic. Bettendorf has only one (1) grade - separated crossing and it will be significantly more difficult to access the riverside property. We request a full analysis of the land use impact and recommend evaluation of the provision of additional grade - separated crossings, both vehicle and pedestrian. We are particularly concerned about the impact on parcels immediately east and west of the Isle Hotel. With the completion of the 1-74 Bridge, city staff has been in negotiations with the property owner of STB Docket No. FD 36500 — Page 3 said parcels, for a 40-acre commercial project to completely revitalize the riverfront. This increased rail traffic will have a significant negative impact on the negotiations. Additionally, the parcel due west of the new 1-74 bridge is contemplated for an entertainment district. The proposed Transaction would materially impact such project. WATER RESOURCES Note that the Iowa American Water plant is located on East River Drive in Davenport, Iowa. This critical infrastructure is immediately adjacent to the CP line. The impact of increased rail traffic should be evaluated in connection with the delivery of services by Iowa American Water Company and the protection and safety of this infrastructure. We appreciate the opportunity to provide comment on the scoping of the draft EIS. Please note that the City of Bettendorf, Iowa is signatory to a joint letter to the STB requesting additional time to comment on EIS scoping. The issues set forth in this letter are not all-inclusive, as the Transaction has the potential to impact the City of Bettendorf, its residents, businesses, and visitors, in many ways not identified in this letter. The City of Bettendorf reserves the right to supplement this letter in the event additional public comment time is granted. If there are any questions regarding the issues set forth in this letter, please do not hesitate to contact me. Sincerely, Robert S. Gallagher Mayor, City of Bettendorf 563-344-4005 bgal_l_agher@bettendorf.org Attachments STB Docket No. FD 36500 — Page 4 1V City of Bettendorf At -Grade Railroad Crossings - Map 1/3 Q 1 Inch = 1,250 Feet Betteri O ! Equipment Type and Name Feet a premier city 0 487.5 975 1,950 2,925 Wd_n�'.+ Iv! ;,TgTEf 23rd Street 12th Street Gf'L�ER � Isle Parkway, I5E P#4Vr' 13th Street�}� � *r ettendorf----1 r f ------ - �] Anfmu10W"Jr1%Wd r -Tasr - tsdand Arty id' Moline, © OpenStreetMap (and) I contributors, CC -BY -SA 33rd 35th Street 31st Street Street &MR-MV-01- fi 42nd Street 110 -42nd Street Arconic Trunk Linel Crossing Equipment • sign Osign w/ stop sign Osign w/ lights ® sign w/ lights and stop arm City Boundary Railroads City of Bettendorf At -Grade Railroad Crossings - Map 2/3 IN Bettendo& 1 Inch = 1,250 Feet Equipment Type and Name Feet 0 487.5 975 1,950 2,925 �Tz Shoreline rw Drive V,- 'V MQLKNIK Shoreline Drive Olympic Steel Trunk Linelp bIW6,2nd Street ourt F _4-4 i Fenno Road Valley Drive W. (Riverside ' w_ } MEC Access)` ' rf ValleyDrive � ` E. (Riverside y ` 30 MEC Access)-. +* E h',1o�ti�K+ F�7.1 Crossing Equipment • sign Osign w/ stop sign Osign w/ lights ® sign w/ lights and stop arm - r City Boundary -+ Railroads 1 _ � �f S � l '� y �!' �• +. '{` � y11�#r 1, F ,,r r �' _ 'L 4. +t.• - i* ,,tom IIW. Pr 314 AL ' .49 T H E C I T Y OF 11-00 �Ao I MO DAVENPORT ,�// I OwA I USA DATE: December 13, 2021 TO: Joshua Wayland, Surface Transportation Board, c/o VHB FROM: Corri Spiegel, City Administrator RE: Submission for Docket No. FD 36500 Canadian Pacific Railway Limited, Control of Kansas City Southern The City of Davenport is located in eastern Iowa, approximately half -way between Chicago, Illinois and Des Moines, Iowa. It is the third largest city in the state with a population of nearly 103,000 and the largest member of the Quad Cities, a bi-state regional metropolitan area that incorporates multiple municipalities in Iowa and Illinois with an approximate population of 475,000. If the proposed merger occurs, documents show that the amount of trains going through the City on a daily basis are anticipated to triple. As shown on the proposed maps, this increased volume will be sent through a single track that is adjacent to critical regional infrastructure and heavily utilized public event spaces. The information provided as part of the Public Scoping Meetings do not currently indicate any planned capital improvements for this region. This substantial increase in traffic will result in more frequent traffic delays, more frequent maintenance requirements, an increase in train switching, and increased likelihood of accidental derailment or contamination events. The City has several concerns with the proposed merger which are outlined below. ACCESS TO CRITICAL REGIONAL INFRASTRUCTURE The cities of Davenport, Bettendorf, Riverdale, and Panorama Park share ownership of one of the largest wastewater treatment plants in the state of Iowa. This critical facility serves a population of over 140,000 residents, 48 large-scale industrial sites, 6,105 commercial properties, and 47,455 homes. It is located adjacent to Canadian Pacific's switch yard, with two at -grade access points. Currently, it is common for rail cars to block the entrance to this facility, leaving City staff unable to enter or exit this critical asset. Current code states that the crossings can only be blocked for ten minutes, but City staff frequently experience blockages closer to an hour due to switching activities. The proposed merger will certainly exacerbate this ongoing issue. In addition, in the event of an emergency at this critical facility, first responders would be unable to gain immediate access to address the situation. The map below visualizes how access can easily be cut off by current Canadian Pacific infrastructure. Additionally, Iowa American Water's treatment facility sits on the eastern end of the City. This private utility is the only provider of clean drinking water for six cities and Scott County. Canadian Pacific's main line bisects this treatment facility, and they also operate a spur line that borders the northern edge of the plant. Access to their full site is key, as well as protection against potential derailment, spills, or any other emergency situations. THE CITY OF �: ii DAVENPORT I O W A I U S A Water Pollution Control Plant (WPCP) ® At -Grade At -Grade Railroad Crossings Crossing C� GQ h WPC«P Fire Dept. At -Grade, River Access Crossing �� Compost ® Faci I ity 280 1 66 a a boo '•_ Map 7 / Hindered Access to Water Pollution Control Plant Both of these facilities are operated on a 24 hour, 7 days a week basis and are identified as critical facilities for the entire region. For this purpose, these facilities must be readily accessible and have protections against possible emergency situations in the event of a train derailment. It is anticipated that the probability of which will likely increase due to the rise in usage. In addition, the Davenport Fire Department is a primary responder for river rescue events. There are three critical access points for river rescue boat deployment that fall south of the tracks at Marquette Street, Credit Island and South Concord. Different access points are used based on the weather, type of event, and location of event and must be readily accessible. Increased traffic will lead to increased response times to river response events. NOISE POLLUTION Canadian Pacific's track runs very close to a number of City neighborhoods and two thriving business districts. One of these neighborhoods exists within the City's growing downtown area. When comparing the 2010 and 2020 census, this particular area grew over 22% over the ten year period. At this time, quiet zones do not exist within this stretch which has 10 at -grade public crossings and 3 private ones. Currently, noise pollution is an ongoing issue; the City often receives complaints from residents, businesses, and hotel visitors for repeated horn use due to the number of active crossings. With the planned increase in train usage, these noise levels will have a large effect on existing residents along this corridor and could hinder future growth within these districts. ACCESS TO COMMUNITY & REGIONAL ASSETS The City owns several buildings, properties, and parks directly next to Canadian Pacific's track; these assets are known collectively as our Riverfront, due to being located adjacent to the Mississippi River. This Riverfront space is used by the community for regional recreational, shopping, sporting, and musical events. One of the key buildings that is south of CID infrastructure is a City -owned baseball stadium that houses a High -A minor league baseball team associated with the Kansas City Royals. In 2013, the stadium was voted the best minor league ball park in the United States; in its last full-time season, it had nearly 250,000 guests. In addition, vehicular traffic is required to drive over an at -grade crossing to gain access to a municipal auxiliary facility that houses critical fueling infrastructure, storage facilities for City operations, and an asphalt plant. Lastly, a boating club and several small businesses that rent space from the City are impacted by this track. Within this stretch of riverfront, which the Canadian Pacific track cuts in two, the public has access to six public parks, the aforementioned baseball stadium, an indoor multi -sports facility, farmers market, multiple buildings with restaurants, and a boating facility. Listed below are just three examples of public parks located directly south of these tracks. The only access point to these amenities is at a track crossing. River Heritage Park is the site where two major Mississippi River cruise ships will be docking in 2022. These dockings will occur multiple times a week which will bring thousands of visitors to the City of Davenport. Another public venue, LeClaire Park is the site of major musical events and a historical bandshell (see Image 1). Lastly, at another park, Main Street Landing, the City is in the process of creating a $6.0 million regional play destination, which is part of a master plan that has been decades in the making. During 2021, in the midst of a pandemic, this stretch of space held 135 individual events that collectively had an attendance of over 410,000 visitors. EILOCUST STY�� - DAVENPORT ,,��. Riverf — _ At-Graderont • ._. Crossings I Marquette - - • Mound StreetE 12iH ST _ _ m c L- z in .: "O - r m E 11TH ST ti Q' Z L1J 0 Q - Q i. Q v m-X i O X -- x If W 4TH ST - E 4TH 5T W 3RD ST E 3RD ST Xw/ I W 2ND 5T E 2ND ST Jp .«jy ® At Grade RIVER DR _ Crossings w OIL _ A ! City Building Fire Dock k i� Q - -,,, — ❑ City Parks IN 0 1,000 2.000 3,1100 4100 5,000 Feet W E l�,,ryj r c ♦ -'� 0 05 1 Miles g Ti— A f• EIf 1F itt5 TAR "i r1y��',r��.~� Map 2 / At -Grade Crossings on Public Spaces As very briefly described, this stretch is the gathering place for Davenport's community. The City is deeply concerned that the proposed increased train traffic that occurs within a fewfeet of manyof these eventswill turn thisvibrant, community gathering space into something that is unsafe, less attractive, and frequently inaccessible. Image 1 / Musical Event at LeClaire Park. CP's track is 725 feet away from this park. CONCLUSION While the City of Davenport supports commerce and decreased emissions efforts, this merger will have economic, livelihood, and potential safety consequences to our communitythat need to be adequately addressed ahead of any merger approval. This project will clearly affect how our community utilizes these spaces now and in the future. Partial mitigation of these issues can occur, and the City believes it is imperative that Canadian Pacific works to assist in ensuring Davenport remains a thriving community. THE CITY O F 4 0 00DAVENPORT ,A// 1OwA I USA DATE: December 14, 2021 TO: Joshua Wayland, Surface Transportation Board, c/o VHB FROM: Davenport City Council & Mayor RE: Submission for Docket No. FD 36S00 Canadian Pacific Railway Limited, Control of Kansas City Southern As the elected body of the City of Davenport, Iowa, we have grave concerns of the impact the proposed merger of Canadian Pacific and Kansas City Southern will have on our community. This mergerwill triple the number of trains going through the City on a daily basis, which will cause irreparable harm to critical regional infrastructure, neighborhoods adjacent to the rail line and cultural amenities such as our downtown and riverfront. While we understand the benefits of the proposed merger for Canadian Pacific and Kansas City Southern, a blind eye cannot be turned to the very real and detrimental impacts that will result from this merger. The Davenport City Council and Mayor firmly believe these issues must be addressed by Canadian Pacific prior to any approval. Regional wastewater treatment and potable water treatment facilities are operated on a 24 hour, 7 days a week basis and are identified as critical facilities for the entire region. Both assets are directly impacted by traffic from Canadian Pacific and for this purpose, these facilities must be readily accessible and have protections against possible emergency situations in the event of a train derailment. It is anticipated that the probability of which will likely increase due to the rise in usage. Approving this merger without requiring Canadian Pacific to make improvements to access points to this critical infrastructure would show a flagrant disregard that Canadian Pacific has for the safety of our community. At this time, quiet zones do not exist within the City even though there are 10 at -grade public crossings and 3 private ones. Within this area is multiple residential neighborhoods, a downtown area that is being revitalized thanks to over $S00 million in private and public investment, and a public -owned riverfront with parks that serve as the gathering place of our region. The City is currently in the process of initiating over $10 million in improvements to the riverfront. These improvements are a result of decades long planning that is finally being realized and this proposed merger will devastate the progress that has been made to date and severely hamper our community's ability for future progress to the best cultural amenity our community has to offer. To preserve the future integrity to critical regional infrastructure and cultural amenities in Davenport, the City is requesting that should the proposed merger be approved through the Surface Transportation Board, that Canadian Pacific and Kansas City Southern be required to cover all of the cost associated with necessary improvements to mitigate the impacts of this increased rail traffic through access improvements to critical infrastructure assets and cultural amenities along our riverfront as well as quiet zones on the 13 crossings adjacent to residential neighborhoods and the downtown district. We also request that a member of the Surface Transportation Board visit Davenport in person prior to a decision on this merger being made to view first-hand how it will have a disastrous impact on this community. Respectfully, eikeatson Kyle Gripp Mayor At -Large Maria D i c do v► v_A*v Rick Dunn Maria Dickmann 1st Ward 2"d Ward g ymond Ambrose Matt Dorhmann 4tn Ward 511 Ward Derek Cornette 7tn Ward Marion � 3rd Ward 13e.Vv Jo+i ge w BenJobgen bin Ward DAVENPORT r r FZ0V E Ft F=FZONT ■ M PROVE M ENT C O M M■ S S 0 O N Submission for Docket FD36500 - Canadian Pacific Railway Limited, Control of Kansas City Southern The City of Davenport is situated along the Mississippi River and has nine miles of riverfront that include ten public railroad crossings and three private railroad crossings. There are several concerns we share with the City for the proposed merger of Canadian Pacific and Kansas City Southern outlined here. Critical Utility Infrastructure The Water Pollution Control plant that serves the cities of Davenport, Bettendorf, Riverdale and Panorama Park is situated adjacent to the rail switch yard. It is common for our city staff to be stuck either going into work or leaving work now, and this will exacerbate the situation. In addition, should there be an emergency at this facility, emergency vehicles would be unable to access gain immediate access. Iowa American Water is the clean water service provider for our region and the treatments facility is both north and south of the tracks with similar access concerns. While both facilities are 24 x 7 operations, these are pieces of critical infrastructure for our community and need to be readily accessible. In addition, the increased rail traffic poses concern for increased chances of water contamination in the event of an incident. Downtown Neighborhood Downtown Davenport now has 1,600 rental units (thousands of residents) making this an integral neighborhood for our community. Many of these apartment complexes, as well as hundreds of hotel rooms, are close enough to the tracks to experience the noise pollution. The City of Davenport does not currently have any quiet zones and already receives complaints from residents and visitors during the repeat horn blowing through the seven public crossings that are adjacent to this neighborhood. Our downtown is a key economic driver with plans for continued growth, and we are concerned this increase in traffic will stall growth. Downtown and Riverfront Facilities/Track Adjacent There are several city owned facilities directly adjacent to the railroad tracks that are key assets for the City. One example is the Freight House, which houses multiple restaurants and public amenities, including the Freight House Farmer's Market, which attracts thousands of visitors each year. Another is Modern Woodman Park baseball field, which hosts the Minor League team for the Houston Astros and experiences over 250,000 guests per year. The auxiliary facility for the Public Works center has critical fueling infrastructure, storage facilities and an asphalt plant. The fire department has a fire boat house that is docked south of the tracks between Gaines St. and Marquette St. for emergency river incident response. The Lindsay Park Yacht Club and several other small businesses are also south of the tracks. All of these facilities are impacted currently by rail traffic. There is also park land south of the tracks that is frequently used for large events and host an additional estimated 400,000 guests per year. One of these parks in 2022, River Heritage Park, will become the new home for two riverboat docks - Viking Cruises and American Cruise Lines. These cruise ships are anticipated to bring in several thousand passengers to the region for day tours. The train traffic will inhibit frequency of access for these passengers to the local destinations and ships. The city is concerned that this event -centered community space will no longer be attractive with loud, frequent trains and difficult access. General Concerns It is estimated that the City of Davenport will experience triple the train traffic at the conclusion of the merger. This volume will be sent through a single track that is adjacent to critical infrastructure and public event space. The maps attached to the project do not indicate any planned capital improvements for our region. An increase in traffic will result in more frequent traffic delays, more frequent maintenance requirements, an increase in train switching, and increase likelihood of accidental events. While the Riverfront Improvement Commission and the City of Davenport support commerce and decreased emissions efforts, this merger would have economic, livelihood, and potential safety consequences to our community that need to be adequately addressed ahead of any merger approval.