Thanks to Vern Glover
Cumbres & Toltec Scenic Railroad Commission Meeting
December 9, 2002 at Chama, NM
Commissioners Sanchez, Swartz and Salisbury were present; Ms. Salisbury presiding.
Ms. Salisbury gave a recap of the season's events ending with the NM Board of Finance emergency loan for Commission operating expenses, and the submission of the EDA grant application for the first year's of locomotive overhaul work. This request totals $1,056,000 from the EDA with matching funds of $264,000 coming equally from the Commission and the Friends of the C&TSRR.
The Commission has hired shop crews and work is proceeding on locomotives at Chama and cars and tenders at Antonito. The Commission is using unspent locomotive funds from previous years. With the number of people on the payroll, these funds will run out in February 2003, at which time the Commission expects to have approval of funding by the EDA or an appropriation from the New Mexico Legislature. Given these approvals, short-term loans would be used to cover any gaps prior to actual receipt of money.
The Centennial Engineering track contract was extended to include planning for the Windy Point roadbed repair, resulting in a planned 30-day period to perform the work. Contract for work has not been let.
Commissioner Swartz summarized the four proposals received for operating the railroad. It was made clear that no award will be made until Governor Richardson takes office and considers the issues. Proposers were these:
A. Robert Keller and Scenic Railways II -- see previous web postings. Keller proposes to operate the railroad with whatever equipment and facilities are available at the start of the season, paying only nominal rent until four locomotives are available. Proposal included marketing plans.
B. Jerry Fisher made a strange proposal to split the railroad and operate only the Chama to Osier territory. He included a great many (irrelevant) statistics comparing the C&TS and the D&S but seemingly little on just what he would do.
C. Railroad Operating Consortium proposal included a request for a $415,000 management fee per year and included an estimate of $668,000 per locomotive for overhaul costs. Their proposal included a 7 percent surcharge on tickets by the operator to go to the towns of Antonito for marketing to supplement the existing lodgers taxes levied in both communities. Unfortunately they used the word "tax" in their proposal, failing to note that the Commission does not have the power to levy taxes. Operating people named in the proposal include Ed McLaughlin, Bob Wright, and Bill Collins, all of whom have already left their mark on the railroad in the recent past.
D. Rio Grande Railway Preservation Corporation offered a turnkey contract plus a proposal for a six-month management contract to run the shops and such during the pre-season. Several points were unclear to the Commission members and the RGRPC representatives were asked to remain after the public meeting to clarify these issues.
In response to a question, Commissioner Swartz indicated that the financial backing of all four proposers was questionable. Swartz also stated that the proposals would be made available to the communities and to Jay Wimer's web site as well.
Reports were received from Terri Shaw regarding the Friends progress. Projects for 2003 have been listed and membership renewals and the volunteer flyer sent out. Membership currently stands at 1943 members, up from 1901 a year ago.
Fund raising for Another Century of Narrow Gauge Steam has risen to $232,000 cash currently and a total of cash and future pledges of $517,000. Friends is researching a direct mail fund raising campaign to supplement member appeals.
A Friends volunteer team will be addressing the graffiti problem at Chama on Dec. 10 with a quick repaint.
Robert Johnson reported on Commission activities. The Commission received the emergency loan from the NM Board of Finance and is operating the shops as previously noted. An appropriation request is being made to the NM Legislature for operating and locomotive overhauls funds as a back up to the EDA grant request. (No mention was made of participation or funding from Colorado at this time.)
The Commission is beginning to prepare some written standards for track maintenance to satisfy an FRA request and setting up a locomotive standards and procedures system as well as a tracking system for locomotive repairs. It was learned that Kim Flowers had the boiler survey records from past years. (FYI, these efforts are the result of the FRA requirements that the owners maintain the records, a task formerly left to the operators of the C&TS to a great extent.)
Mark Yates reported on locomotive work by Commission employees. Inspections of running gear are in progress. 484 drivers will go to Durango for turning of journals, found to be excessively tapered (uneven wear pattern). 488 will receive new driver tires (down 5 inches in diameter) and necessary journal and crankpin work. 487 drivers are being dropped now and will be inspected for turning, journal and crankpin work. Tenders are going to Antonito for overhaul. Cars at Antonito are being inspected. Need for new wheels is expected. FRA locomotive inspectors were in the Chama shop last week, by the way.
The Commission has advertised two job openings -- one for an assistant to the Executive Director at Antonito and one for a project manager to oversee the EDA locomotive overhauls at Chama. See announcements published elsewhere.
The New Mexico Attorney General does not support taking legal action against the Forest Service since the closure order has been rescinded. Discussions have taken place with the Carson N. F. and the Commission is working on a letter agreement to ensure community and railroad involvement in future decisions during extreme fire danger.
A number of public discussions took place. Chama folk brought up marketing issues, during which the Chama Chamber of Commerce offered to prepare advertising and work on behalf of the railroad for only the cost of distribution and media exposure. It was not clear where advertising and marketing funds would come from during this pre-season period.
Jeff Stebbins brought up the need to consider different formats of contracting for operating the railroad and this led to a brief mention of the task force concept put forth by the NM Legislature at earlier Committee hearings.
The Commission went into executive (closed) session to consider the four proposals, asking the RGRPC people to remain to clarify a number of issues in their proposal.
