With fewer riders, less revenue and higher operating costs anticipated in 2010, the South Shore commuter line will be looking at a fare hike and possible service reduction in next year’s third quarter.

A staged fare increase similar to the one implemented in 2006/2007 is being evaluated. Each department also is being reviewed to evaluate cost-cutting strategies including reductions in force.

That was the news delivered to the Northern Indiana Commuter Transportation District board of directors Friday by NICTD general manager Gerald Hanas.

NICTD, a public agency, owns and operates the South Shore between South Bend and downtown Chicago. Through October 3,267,628 passengers have ridden NICTD trains or 8.2 percent fewer than 2008.

Taking effect yesterday, in addition to a new weekend schedule, was restoration of full fares for adults riding weekend/holiday trains. Promotional price cuts had been in effect since 2003. Hanas said it’s hoped the fare adjustment will offset passenger revenue losses down about 4.5 percent year-to-date.

Also affecting the 2010 budget, explained Hanas, is an unexpected $750,000 annual increase, an 18 percent jump, in the union employee health-care premiums NICTD pays through a railroad consortium managed by United Healthcare.

Hanas said the premium hike coupled with a drop in state sales-tax collections that benefit NICTD, a 20-percent dip in contractual rental payments from SouthShore Freight and an increase for power costs to use Metra Electric’s trackage in Illinois will present challenges as other similar railroads are experiencing in the current economy.

Next year’s South Shore operating plan anticipates gross operating expenses of approximately $38.4 million but farebox receipts of $18.8 million or a budgeted 49 percent farebox recovery ratio. The operating loss will be offset by $39.2 million in projected additional revenue from state, federal and other sources.

Despite the budget constraints, Hanas said NICTD will continue to pursue its aggressive asset modernization program because it helps lower maintenance costs and improve reliability.

Rush hour on-time performance has improved from 84.9 percent last year to 90.6 percent in 2009, according to NICTD, and off-peak performance improved from 70.8 percent to 84.6 percent this year.

Hanas said NICTD was able to accelerate its ongoing $120 million upgrade of signal and overhead catenary systems started five years ago because of targeted federal earmarks. Since Aug. 29, 5.5 miles of overhead catenary that provides traction power were replaced and 4 miles of auxilliary feeder cable.

“As these earmarks are diminishing and going away, we have scarcer capital resources,” Hanas advised.

Planned for 2010 are construction of a $15 million dedicated South Shore track at the Kensington bypass in Illinois, a chronic bottleneck; delivery of new ticket vending machines; and construction in Porter County of Phase 2 of the catenary upgrades, which will require six weekend service outages. Five occurred this year.

Vote to approve the 2010 business plan was unanimous with LaPorte County Councilman Mark Yagelski and Porter County Commissioner John Evans absent.

In other business, Al Piening of Beverly Shores told the NICTD board that new double-decker train cars put in service earlier this year are less accessible for handicapped riders than the older-model cars; he also said the external, hand-operated wheelchair lifts used at some NICTD stations are not as good as the lifts Metra uses and he questioned why NICTD removed its lift from the Beverly Shores station.

Board chairman St. Joseph County Councilman Mark Catanzarite said he finds it hard to believe NICTD’s new trains don’t comply with the Americans With Disabilities Act. Hanas said an engineering review will be ordered but the manufacturer asserts ADA compliance.

Catanzarite said NICTD’s goal is to install high-level platforms for walk-on boarding at the remaining stations, like Dune Park north of Chesterton, that do not have them.

Parsons said the ADA allows the South Shore to identify “key stations” that are accessible, and NICTD’s compliance has been reviewed and meets requirements.

From the audience passenger Bernie Holicky of Chesterton said the wheelchair lift rolled out when needed at Dune Park seems to work effectively.

In this sluggish economy NICTD marketing director John Parsons said people are not using trains for shopping and entertainment trips into Chicago as much as they have in the past.

Last year 4,000 fewer shoppers than in 2006 took trains into the Windy City the day after Thanksgiving, known as Black Friday when merchants hope to pull their sales out of the red.

A regular weekday schedule will be operating this Friday while trains will follow a holiday schedule on Thanksgiving Day.

Average 2009 weekend/off-peak ridership is down 11.7 percent through October although that figure includes four weekend construction outages, during which only half the usual number of passengers were carried, and periodic busing of passengers this fall between South Bend and Michigan City for bridge reconstruction.

Catanzarite and others bid farewell to outgoing board members whose seats were eliminated in legislation during the previous Indiana General Asssembly. Catanzarite said it’s hoped future legislation will restore the appointments, which had limited voting power.

Retiring are Governor’s appointment David Wickland and Richard Vulpitta representing commuters. Also eliminated is the seat representing NICTD employees, which was already vacant due to the retirement of conductor Dennis Burke.

NICTD covers St. Joseph, LaPorte, Porter and Lake counties and two elected officials from each are named by them to the NICTD board.

Posted 11/23/2009