2009/08/03 Railway Commission Meeting Results

The notes were taken at the August 3rd meeting of the Nevada Commission for the Reconstruction of the Virginia & Truckee Railway.  These notes are indexed to the corresponding agenda item by number.

1.  Called to order at 1503.  Larry McPherson, Ron Allen, Bob Crowell, John Flanagan, Dwight Millard were present.  Bonnie Weber and John Tyson arrived late.

2.  Agenda approved.

3.  Public Comment.  Mr. Kim Fegert, President of the Gold Hill Historical Society noted that the Society contributed 415 large lag screws at a value of $9.00 each to the construction at the East Gate Siding.

4.  Minutes of July 10th, approved.

5.  Minutes of July 15th, approved.

6.  Audit services contract was previously approved, so this item was removed from the agenda.

7.  Treasurer's Report.  Due to fiscal year roll-over, the data necessary to construct the report were not available.

8.  $905,561.80 in previously-paid bills were ratified.

9.  Counsel's Report.

• No new right of way acquisition activity in process due to lack of funding. 
• Counsel is working on contracts and insurance issues in support of Railfest.

10.  Engineering Report

• Phase I.  No activity.
• Remarks on reason that track was built to FRA Class II standards.  In the event that maintenance defects might be found in inspection, operations could continue under Class III standards at reduced speed.  If the railroad were built to Class I standards, any further deterioration would put the track out of service.  Note that the planned operations on the V&T Railway will be at 15 mph (Class III), but a burst over the speed might make sense on some tangent track (Class II allows 30 mph operation).
• Phase IIA, B:  Some storm damage was repaired.
• Phase IIC:  Essentially complete and track accepted last week.  Emergency water supply at Linehan Road has been constructed.  Linehan Road signals passed inspection last week and is now in service.
• Phase IIIA:  Q&D Construction started work two weeks ago to support Railfest at the East Gate siding with a water line for tender and passenger drinking water, a passenger ramp, and a parking area.  Earthwork in the canyon has started at Eureka.
• Phase IIIB:  Draft plans are now available from Eureka siding to the Bertagnolli property.  A balloon track option has been drafted, as well.
• Decided not to purchase Jim Clark's hi-rail truck due to mechanical problems.  Jim has a suburban that would be better suited to the Commission's use.  Decided to continue to borrow the H&H hi-rail that was left over from earlier construction.  Gary Luce of Geocon Consultants said that the environmental impact studies will be ready to support a design hearing in October.
• Ken Dorr (project engineer, Manhard Engineering) said that their contract is coming to a close.

11.  Commissions are required to sign conflict of interest acknowledgments.

12.  Sierra Nevada Realtors' $50,000 donation for passenger car purchase.  Three, 1924 Delaware and Lackawanna cars remain available for sale for $17,000 each and are located north of Detroit.  Much frustration expressed on the part of John Tyson by the lack of action on this purchase.  Information will be distributed to the commissioners before the next meeting.

13.  Deferred.

14.  Lease of McCloud #18 to the V&T Railroad.  V&T will not accept the locomotive in an unknown condition if the V&TRR is responsible for maintenance thereafter.  The problem is that hidden damage was discovered when the 18 was unloaded at East Gate after its trip by truck from California:  Badly-scored rod bearing(s) and left front pilot truck bearing ran hot during the move up the hill.  It was concluded that the locomotive needed to be torn down for inspection before anyone could accept delivery.  The action was taken to try to engage Chris Dewitt to perform the inspection.  There was much speculation, but no facts, as to how the damage occurred and whether or not the damage occurred while in the possession of the Sierra Railroad.  The locomotive was not used in the past year.  It's boiler inspection had been allowed to lapse.

It was pointed out that a running gear inspection is a tedious expensive proposition, since the locomotive has to be jacked up until the drivers fall out the bottom.

It was also pointed out that complete inspection and daily operating records were delivered with the locomotive, and that the Sierra Railroad uses infrared pyrometers to detect hot moving parts.  [Really? Out in the middle of the boonies, a locomotive crew is going to go around with a $3,000 IR detector to look for hot bearings, when putting the back of your hand up near the bearing would do just as well?  Sounds bizarre to your humble reporter.  -- Ed.]

Dwight Millard pointed out that the Commission is going to have to fix the locomotive no matter what, so spending any time or money trying to affix blame for the locomotive's current condition is a waste of energy.

No discussion was held as to the impacts to the V&TRR for taking the #29 out of VC-Gold Hill service each Saturday to make these runs down to Carson City.  The situation is made worse by the fact that the train set has to dead head to and from Carson City, since the Commission insisted that the train run round trip from Carson City, not Virginia City.

There was also no mention that the Feather River Shortline #8 is sitting unused at Gold Hill at the moment.

The discussion showed, in the opinion of Dwight Millard, why the Commission cannot run a railroad.  To consider any matter for action, it has to be posted on the next month's agenda.  A simple decision typically takes 3 months  to make.

15.  Paydown of #18 loan.  NNRF is the custodian of $50,000 in realtors' donations for locomotive acquisition.  Decision on whether or not to apply this to pay down the principal on the #18 loan was deferred.  The realtors must agree to specifically which locomotive project would receive the grant.

16.  Carson City Convention and Visitors' Bureau (CCCVB) - funded study on interim operations.  The CCCVB received a proposal from the Sierra Railroad in the amount of $21,300 for a study to determine the ticket price point for 2010 interim operations.  The study would take about five weeks.  Data gathering mentioned only meetings with officials and agencies.  No interaction with potential riders was mentioned.  Would propose a public-private business model.  [Let me guess the results:  The local governments should subsidize the operator, the operator's profits would be guaranteed by the public purse, and surprisingly the Sierra Railroad would be the only operator considered by the Sierra Railroad's study to be qualified to be the operator --  Ed.]

John Tyson:  "Deep in my heart, I want local people running the railroad."  Tyson suggested visiting successful railroads by the commissioners and letting the commissioners reach their own conclusions, as Larry McPherson has done this summer with his trip to the White Pass and Yukon.  (Larry's conclusion:  We have to market the scenery).

Bonnie Weber:  One of her constituents has provided tickets for all the commissioners to ride the Durango and Silverton.

17.  Western Village, comprised of Brunswick Mill Station and 200 hilltop condominiums, will be built by the Bertagnolli family at Brunswick.  The Brunswick Mill Station complex is a western village with town square, shops, railroad station, reconstructed mill (disguising a power plant), and a reconstructed smaller version of the now-dismantled V&T stone engine and car shops at Carson City.  The existing aggregate operation would still exist, just be moved northwest, to the back of the property.  No cars would be allowed in town.  Access would be by rail only (the Zermatt Switzerland model).  All merchants must dress in period costume (the Knotts Berry Farm or Colonial Williamsburg model).  This will be marketed as a family destination, away from gambling, bikers, and so forth.  The townhouses will be almost out-of-sight on a ridge across the river.  Marketing will include international targets.  Tim Bertagnolli stated that they have the funding in-place and implied that they are proceeding.

Tim presented a video of a scale model of the project, with a voice over to explain the project's operation and layout.

18.  V&TRR report.  None.

19.  NNRF. Janice Ayers meeting with Sen. Reid's staff regarding grants for 2010 appropriations.  Looking for $26 M.  It's probably too late for 2010, but not too late for 2011.  The Government's fiscal year starts in about 7 weeks.

20.  Long-trip train ticket sales are going extremely well.  The first public run (Saturday, August 15th) is sold out, the next day nearly sold out, and half the trains in September are sold out.  No major resistance to the $48 ticket price is apparent. 

21.  Larry McPherson re-iterated the need to sell the scenery, not just the train.

22.  Bonnie Weber is worried about the Commission potentially making financial demands on the counties in the future.  She remarked that there is no more county money.

23.  September meeting will be August 31st.  It was changed from the first Monday in September due to the labor day holiday.

24.  1729 hrs. adjourned.