You want background information on Metro North and Connecticut's role in Metro North's operations.

SUMMARY

Metro North runs the New Haven line commuter service under a joint service agreement with Connecticut and New York. The service encompasses main line service between New Haven and Greenwich (and on to Grand Central Terminal), and branch line service to New Canaan, Danbury, and Waterbury. The parties representing each state are Connecticut Department of Transportation (DOT) and Metropolitan Transportation Authority (MTA).

Under the agreement, Metro North has complete responsibility for railroad operations, including operating trains and maintaining tracks, trains, and equipment. Metro North can amend service schedules or consists (daily makeup of trains, track assignments, etc.) for the main line service with DOT and MTA's prior consent. It can make temporary changes unilaterally. Either DOT or MTA can propose fare revisions, but both must approve them before Metro North can implement them. DOT, with certain limitations, can change branch line service, consists, or fares unilaterally. Metro North can adjust branch line schedules by up to five minutes to synchronize them with main line schedules.

DOT has the right to review and approve Metro North's annual budget for its Connecticut operations and must approve beforehand certain Metro North operational decisions such as changes in schedules or train makeup. DOT may have a representative present at labor negotiations, and it has access to various types of information relevant to Metro North's Connecticut operations.

METRO NORTH COMMUTER RAILROAD COMPANY

Metro North runs the New Haven line commuter service under a joint service agreement with Connecticut DOT and MTA of New York. The railroad is a subsidiary of MTA, a quasi-independent transit agency, and Metro North is, in effect, a contractor that runs the service under the joint agreement. DOT entered into the agreement with MTA to operate the New Haven Line of Metro North in 1983. (Metro North also runs MTA commuter service on the Harlem and Hudson lines.)

The agreement, which was slightly modified in 1985 and 1997 arbitration proceedings, gives Metro North "responsibility for the day-to-day operation of the service...." It defines the "service" as "all activities and functions including maintenance and operations associated with the trains scheduled in the Service Schedule... each such train being made up according to the Service consists set forth in [the agreement]...."

Metro North can amend the main line service schedules or consists "subject to the prior consent of MTA and DOT." It can make temporary changes to them unilaterally. DOT can change branch line service, consists, or fares on its own with certain limitations. It must notify MTA and Metro North of any proposed amendment to branch line service at least 60 days before the date on which it anticipates that notice of the amendment is to be made public (or longer if required by union contracts). Metro North can adjust branch line schedules by up to five minutes to synchronize them with main line schedules.

SERVICE MEETINGS

Either DOT or Metro North can request that a "service meeting" be held at a mutually agreeable time and place. Such meetings can be held no more than once a month on two weeks' advance notice. Specific items can be placed on the agenda through one week's advance written notice.

Both DOT and Metro North can propose and veto suggested schedule changes. DOT can make its position known on other issues when Metro North's annual budget is approved in December. The 1985 "Amended and Restated Service Agreement" between DOT and MTA gives the state the right to refuse to pay any budget MTA approves above the previous year's budget adjusted for inflation and certain other costs. The state has never exercised this option.

DOT INVOLVEMENT IN FINANCIAL MATTERS

Until 1983, DOT and MTA split the deficit incurred operating the commuter service equally. The cost sharing arrangement dates back to an informal 1965 agreement that was subsequently formalized through a 1970 interstate compact. In 1982, MTA refused to pay its 50% and wanted Connecticut to pay two-thirds of the service deficit. Under the current agreement, Connecticut pays 65% of the main line service deficit and 100% of the branch line deficit. Connecticut pays 63% of the cost of nonfixed capital assets, such as rail rolling stock, used for main line service and 100% of the costs of branch line improvements. Each state pays the entire cost of improvements to fixed assets on the portion of the line within its borders.

DOT has the right to review Metro North's annual proposed budget for the New Haven line. It has the right to accept or reject the budget and may request expenditure reductions in specified areas. Metro North must make the reductions, tell DOT how it will make them, and how they will affect service. The budget review process follows a specific schedule that provides DOT approximately two months for review.

In other non-budget areas, DOT has access to Metro North and MTA personnel, records, reports, studies, and any other information on New Haven line operations and financing, based on agreed-upon procedures. But DOT cannot get actual personnel records of individual Metro North or MTA employees, only the general results of any disciplinary hearings. Also, DOT has full rights of consultation in all stages of labor negotiations involving Metro North, including the right to a representative at all bargaining sessions. If Connecticut shows that Metro North agreed to a labor contract modification for the benefit of another MTA operating agency, the state is entitled to a proportional annual credit to be enforced through federal court action.

Additional information on MTA is available at www.mta.nyc.ny.us/.

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