2009/01/13 Railroad Commission Takes Up Operational Issues, Welcomes New Mayor
The Nevada Commission for the Reconstruction of the Virginia & Truckee Railroad met from 1500 - 1700 hrs. at the Sierra Room of the Carson City Community Center this afternoon. Operational issues were not on the agenda, but admitted to the discussions regardless. For the first time, the Commission openly discussed the need for a maintenance subsidy, and other operational issues. [A careful reading of, and correction of mathematical blunders in, the 1994 Final Report of the Reconstruction of the Virginia and Truckee Railroad reveals that an operating subsidy of approximately $1.15M in 2007 dollars will be required, in perpetuity. -- Ed.]
Attendees:
John Flanagan, Vice Chair and Acting Chair
Larry McPherson, Commissioner
Doug Johnson, Commissioner
Dwight Millard, Commissioner
Ron Allen, Treasurer
Bob Crowell, Commissioner
Bonnie Weber, Secretary
Bob Hadfield was ill.
The next meeting will be February 2nd, the opening day of the Nevada legislature, in Carson City. The March meeting will be in Lyon County.
1. Public Comment
- Bruce Kittess. Believed that the 1996 operating agreement with the V&T Railroad was breached by the Commission when it entered into discussions with the Sierra Railroad. He also states that the negotiations with the V&T RR for the use of V&T trademarks would not be necessary if the 1996 operating agreement were to be continued. He also complains of the way eminent domain is being used as an apparent threat against the V&TRR.
- Mr. Prakes (sp?) who lives in Woodfords but works in Carson City submitted a letter to members of the commission suggesting that a company be formed to re-build the Carson & Colorado Railroad from Mound House to Ft. Churchill junction, and in addition the V&T be extended to Minden, for purposes of hauling biodiesel materials and products to Minden (Bentley Nevada's new biodiesel operation). The letter recommends that the Nevada State Railroad Museum be given the operating contract, with the assumption that profits would be used to support the museum's restoration projects.
2. Minutes of December meeting were accepted
3. Treasurer's Report was incorporated into the auditor's report.
4. Ratification of Bills Due
The procedure is to pay bills and ratify the payment at the next meeting after the fact. This process was developed when the Commission was meeting only quarterly. Dwight Millard recommended the process be changed from ratification after the fact to approval before the payments are made. Total payments in the amount of $1,013,549 were approved.
5. Engineering Report (Ken Dorr)
West switch on the upper siding is a maintenance problem and has been clamped shut. Resolved to spike the switch closed, take it out of operation, and deal with final resolution of the problem later. Estimate is $5,000 to fix permanently with more rugged points.
The Notice of Completion for Phase IIA/B was filed on December 19th. No claims received yet. Cost was $5,642,764 vs. $5,229,229 bid. The variance was attributed primarily to a Tunnel #2 portal rock slide plus additional scaling of rock cuts. Due to the vagaries of geology Kenn Dorr, the project engineer, pointed out that all of the contracts are unit price vs. lump-sum for that reason.
A cultural assessment report will have sections available for public release. No release date was mentioned.
Expect to set the bridge deck for Phase IIC in March (the former UPRR bridge over Interstate 15 in Las Vegas). Frehner pit track laying will start in February and probably complete in June. Cost variances are not severe, and comprise the following: (a) Additional lights and traffic warning lights at the overcrossing work site on Highway 50, (b) grading for Cygnet Dr. right of way extension to permit alternative business access around the railroad, (c) additional rock scaling, and (d) provide funds to BC Racing (Brandenbergs) to allow them to move their access road. Two thirds of the payments to the Brandenbergs have been made.
Phase III is now divided into three segments. Phase IIIA is approximately 1 mi. in length, over BLM property. Phase IIIB runs 2.7 mi. from Eureka Mill up the canyon, and Phase IIIC is the final 1.5 mi. segment. Commission has acquired some of the Phase IIIB property but none of the Phase IIIC property. Preliminary construction plans have been drafted for all of the segments. This includes Right of Way (ROW) acquisition drawings. NDOT and Manhard Engineering are working under the premise that Federal funding will be available. Phases IIIA and B have been proposed as part of the "WPA" project funding for Nevada in the Obama administration.
The line from Morgan Mill Rd. to the Drako Way site is in the hands of only three owners across five parcels.
An effort will be made to vote on the interim operating agreement between the V&T Railroad and the Commission at the next meeting. The agreement is, however, complex and may not be ready for consideration until March. [The current agreement expired 12/21/2008 -- Ed.]
Ken Dorr, Project Engineer, emphasized that the Commission is the owner of the operations, and is liable for any fines or sanctions from regulatory agencies, including the Federal Railway Administration.
Mayor Crowell was concerned that the assessed land valuations would increase as the railroad got closer to the properties in question. Ken Dorr provided a procedural response that did not address the issue. Ken did say that many land donations were made before the railroad started construction, which accounts for the uncertainty that the line would ever be built. As construction projects progressed, the land donations appear to have mostly dried up.
6. Audit Report, July 2007 to June 30, 2009 (Kristen Burgess)
Auditor offered an unqualified opinion as to the balance sheet, GAAP-compliant methods, and income statements. Assets amounted to about $24M as of June 30th, with a $416K note balance due; $5.8M cash, $4.4M income, including $3.4M from Federal grants, and $9.4M capital acquisition costs.
No depreciation taken to date. All capital has either been expensed or is listed as construction-in-process as of the audit date.
Audit report was accepted unanimously.
7. V&T Railroad Report (Tom Gray)
Restrooms are being installed in two of the three new coaches and will be available for operations this spring.
Railroad will work on Tunnel #4 repairs this winter.
Tom Gray gave a five-hour presentation to tour companies this past Saturday, and a high level of interest was expressed. The tour companies prefer to operate Tuesday, Wednesdays and Thursdays, not the weekends. On-board restrooms are key. The tour operators would prefer to support one-way train operations, not round-trip.
Expect a fare increase for the long trip.
V&T will make best effort to table an interim operating agreement by the February meeting.
The V&T RR must commit early to an operating schedule, because the published schedule is used by tour companies. In 2009, the plan is to operate to Scales regularly, to Haywards weekly, and to Highway 50 once or twice a month.
In November, the National Tour Association will be holding their convention in Reno. Eleven bus loads of conference attendees are expected to visit the Comstock.
Ken Dorr: The railroad cannot afford to bear the inspection and maintenance costs at least until full operations are under way. During the period of interim operations, $75k has been budgeted for track maintenance. It has been estimated that track inspections will require an additional $25k.
Dwight Millard suggested that it would be impossible to operate the railroad without a maintenance subsidy. [Emphasis added -- Ed.]
Tom Gray offered that the V&T could afford the inspection costs, but surely not the maintenance costs [to Class II standards no less -- Ed.]. Commissioners agreed to instruct Ken Dorr to assume that the Commission would be responsible for maintenance costs.
Bonnie Weber questioned where the money will come from for on-going maintenance subsidies.
The railroad needs: Communications (cell phones are now being used but are unreliable), public restrooms, restrooms on the cars, and back-up motive power.
Larry McPherson suggested that the Commission retrieve Locomotive #18 from the Sierra Railroad, and to add this assumption to the interim use agreement with the V&T Railroad.
8. Northern Nevada Railway Foundation -- Janice Ayers
No treasurer's report this month.
A one-year and five-year fundraising plan will be presented at the February meeting.
9. Project Coordinator -- Kevin Ray
Made a Lyons Club presentation on the railroad project this month, which received considerable interest. Two more public presentations are scheduled for January.
10. Commissioners' Comments
Crowell: The "WPA" funds from the Obama administration are pooled with other NDOT funds and could get reallocated and never reach the V&T reconstruction project.
Millard: Interim operating agreement should be staffed out, then brought to board. Board should not get directly involved in negotiations. Highway 50 bridge needs a promotional sign as soon as possible. Long trains are possible by 4th of July, and a celebratory event should be planned for that date. Suggests Marv Texiera should be given a contact to continue fundraising.
Weber: Need to agendize the signage issue.
11. Adjourn
Last updated 2009/01/13