This story from the WHITMAN COUNTY GAZETTE 7/12/07 is among several small town newspaper stories that made it to my fax machine this week. Other stories more blunt about the State of Washington wanting to get out of the shortline business.
WHITMAN COUNTY GAZETTE 7/12/07 "Port of Whitman could seek control of overseeing railroads."
Port commissioners said at their regular meeting in Colfax last Thurs. they would be prepared to oversee operations of the Palouse River & Coulee City railroad when, and if, the state decides to hand over the reins.
However, the state legislature was vague in the directing how the state would relieve itself of control of the rails, leaving that transition loaded with stumbling blocks.
"We've got a blank sheet of paper right now" said Port Commissioner Bob Gronholz. "The question is who's going to fill it in, us or the DOT."
Taking the initiative in filling in that paper may be in the port's best interest, agreed Commissioner John Love.
"We've got a whole lot to learn on this governance, but we're in the catbird's seat right now," said Love. "If that's what we're willing to do I'll throw my hat in the ring."
The hope of the port is that ensuring the lines stay viable would help shippers who use those rails stay afloat as well.
"Historically we've been in this for the benefit of the economy of Whitman County," said Gronholz. "It would behoove us to be at the table here."
State officials have said handing the short lines to the port is just one option being considered.
"Well, that's a possibility," said WSDOT Special Initiatives Manager Michael Rowswell. "But, certainly we're exploring all our options to make sure we can come up with the best situation for everyone involved."
With the PCC running through four counties, having one entity rule over a rail in another jurisdiction could cause problems. All of the CW line is currently out of the port's reach and portions of the P&L line run through Spokane County.
"Certainly the Port of Whitman has jurisdiction over all of the PV Hooper and most of the P&L line," said Rowswell. "And definitely all of the shippers on the P&L line."
The state now owns the right-of-way to the lines which are leased to three different operators. The PV-Hooper operation, the former UP lines on the west side of the county, continues to be operated by Watco which holds lease rights until 2019.
The former BNSF line up the east side of the county has been leased to Washington & Idaho Railway. The recently reopened CW line from Cheney to Coulee City has been leased to Eastern Washington Gateway Railroad, a subsidiary of US Rail Partners in Illinois.
Rowswell said the lines could also be split up with local control over each line, but with no port districts in Spokane or Douglas counties, rail districts may need to be formed. Rowswell said that each county may have to form a rail district and work together to govern the lines.
To form a rail district, county commissioners must put the measure to a public hearing and put it on the ballot for voter approval.
If approved, a rail district would have the authority to levy property taxes for funding.
Some funding for upkeep of the line already exists, as the state legislature last session appropriated $7 million to hand down to whatever local entity takes control of the lines for track rehabilitation and upgrades.
That funding would not be allowed to be used for administrative costs, however. Port officials were concerned about incurring the extra expense and drain on staff.
Port officials will meet with WSDOT staff to hammer out such details, but such a meeting likely would not take place until September.
### end of Gazette Story.

MY COMMENTS: This, and the other stories seems to imply that funding for track work won't be awarded until some sort of local government entity is formed to take control---that could take a while!! Other stories indicate the state is eager to switch to local control as soon as possible. Could be a nightmare for operators if they have to deal with several different governmental bodies to run the railroad.