FOR RELEASE:
Monday, November 27, 2006
GOVERNORS OWENS AND RICHARDSON RESTRUCTURE
CUMBRES & TOLTEC SCENIC RAILROAD COMMISSION
DENVER - Governor Bill Owens and New Mexico Governor Bill Richardson have agreed to a reorganization of the Cumbres and Toltec Scenic Railroad Commission. The agreement will provide the railroad, jointly owed by the two states, with the necessary tools to succeed in a competitive industry and preserve the long-term viability of the railway.
"After careful consideration, Governor Richardson and I have determined that our states must take action to preserve the future of this historic railroad," Owens said. "This restructuring will build on recent successes and is aimed toward financial self-sufficiency for the Cumbres and Toltec."
Built in 1880, the railway covers a 64-mile stretch between Antonito, Colorado and Chama, New Mexico. The steam-era railroad system is the longest and highest narrow gauge railroad in North America and is designated as a National Historic Site.
The states of Colorado and New Mexico assumed joint ownership of the Cumbres & Toltec Scenic Railroad ("C&TSR") in 1974. The Cumbres & Toltec Scenic Railroad Commission, an interstate agency authorized by a federal compact, manages the railroad for the states. The Commission is comprised of two commissioners from each state, appointed by and serving at the pleasure of their respective governor.
Following a year-long study by each state, the governors concluded that sustained success for the railroad required Commission responsibilities and expertise to be redefined. The study found that the restructuring is necessary in order to bring a higher level of professional oversight experience to the business operation, to eliminate unnecessary inefficiencies that have plagued the railroad, and to ensure that the railroad has the necessary resources.
The study was validated this season as the professional experience of the C&TS Management Corporation helped bring about a 20 percent increase in ridership. The management company undertook an unprecedented program of track maintenance and upgrades. The restructuring of the Commission, as recommended by the study, will help assure the continuation of such improvements in the future.
A Memorandum of Understanding (MOU) initiated by Owens and Richardson requires all future commissioners to have at least five years of experience in a substantial oversight role over a major business enterprise. This prerequisite was deemed necessary to ensure that the railroad has experienced business managers who can capitalize on the recent success of the railroad and eliminate inefficiencies within the railroad's current management structure.
Currently, the Commission manages the day-to-day operations of the railroad with a full staff while the management company maintains its own, separate staff. The new operating agreement states that the Commission will serve an oversight role, similar to a board of directors, while leaving day-to-day operation to a management company. This move will improve overall efficiency and eliminate duplication of effort.
The MOU also stipulates that the states will make available to the Commission appropriate expertise and resources. Each state will assign a liaison from its economic development office to work with the Commission on marketing and promoting the railroad. In addition, each state's department of transportation will be available to assist, as deemed necessary by the Commission.
In line with the MOU, the current Commissioners from each state have been replaced with new appointees reflecting the new requirements for those positions. In Colorado, Governor Owens appointed Lon Carpenter and Peter Foster, both with the requisite experience in a "substantial oversight role over a major business enterprise."
Lon Carpenter of Grand Junction is executive vice president of American National Bank and has served on numerous corporate and non-profit boards. Peter Foster of Durango is a professional engineer and manages the Durango office of Wright Water Engineers, Inc. He has served as project manager for major water rights projects for over a decade and also serves as the Governor's appointee on the Southern Ute Colorado Environmental Commission.
"The Cumbres and Toltec Scenic Railroad has been an important part of our state for more than 125 years," concluded the Governor. "Lon and Peter have the type and breadth of experience necessary to engineer this historic railroad toward another century of success."
Colorado's outgoing commissioners are Carol Salisbury of Fort Collins and Wayne Quinlan of Antonito. "Carol and Wayne have faithfully served the State of Colorado on this Commission," Owens stated. "While this restructuring requires a new set of qualifications, I appreciate their commitment to the railroad and to the citizens of this state."
