In researching my Salida book several years ago, I made acquaintance with George Headington, who was the last mechanical foreman in Salida before the shops closed in 1957. He spent the remainder of his career in Grand Junction and retired there. He passed away a few years ago.
Anyway, he related to me that the theory of "trading" K-37's at Salida for K-36's just before the Valley Line was removed was two-fold. First, as noted earlier in this thread, the K-37's could pull slightly more than the K-36's, and the drilling boom was beginning over Cumbres. Secondly, according to Mr. Headington, the K-37's were much more "temperamental" and subject to more mechanical problems. Thus, they wanted them accessible to the more extensive (and by this time likely more permanent) shops in Alamosa.
Interestingly, the 489 was the last locomotive overhauled in Salida, and used may parts from the then recently scrapped 485 (which fell into the turntable pit).