Re: 1203 restoration

The first repair estimates presented to CHS were substantially higher, which CHS rejected due to budgetery concerns. Another proposal was done by SVRR that reduced the scope of the work to keep it within CHS' requested budget. This was not a contracted quote, but a good faith estimate of the expected cost of the work. Unfortunately, due to a variety of reasons I have already stated, the project went far beyond the estimate in order to produce a reasonable overhaul of the 1203 within the resources available. After the last revised estimate and renegotiation (which included SVRR crediting a substantial amount of money from the purchase price towards the overhaul), CHS made it clear that no more money would be put towards the 1203 and they expected it to be completed within the revised estimate.

As part of the original proposal, SVRR will warranty their work for a period of one year. It should be obvious to anyone, that it was in our best interest to do certain upgrades and not take shortcuts while the loco is here, rather than make several trips to work on it 1,000 miles away.

This information is based on my discussions with those involved, documents I have seen, my short time as a board member for SVRR, and my involvement with the overhaul. I don't recall voting on the 1203 project as a board member, since I had to abstain as I did end up working for SVMW on some outside locomotives.