Cumbres and Toltec Special Commission meeting 15-Feb-25


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Colorado Commissioners: Scott Gibbs-Vice Chair, Mark Graybill-Treasurer
New Mexico Commissioners: Kim Smith-Casford-Secretary, Billy Elbrock-Chairman
General Manager of the Cumbres & Toltec railroad: Ed Beaudette

Glossary (initialisms that may appear in this document):
ARPA: American Rescue Plan Act of 2021
BAR: Budget Adjustment Request
C&TS: Cumbres & Toltec Scenic Railroad
C19: Covid-19 virus
CO: Colorado
CDOT: Colorado Department Of Transportation
CRF: Car Restoration Facility, Antonito
CS: Colorado Springs, CO
CTO: Cumbres Toltec Operating company
D&RG: Denver & Rio Grande Railroad
D&S: Durango Silverton Narrow Gauge Railroad
DFA: Department of Financial Administration (NM)
DRHS: Durango Railroad Historical Society
DTS: Dynamic Ticket Solutions (the prior ticketing company used by the C&TS)
FH: Fare Harbor (the current ticketing company used by the C&TS)
FY: Fiscal Year
FRA: Federal Railroad Administration
G&A: General and Administrative HPA: Historic Preservation Account, or Historic Preservaton Association
HR: Human Relations
JBC: Joint Budget Committee (CO)
LFC: Leglislative Finance Committee (NM)
MOW: Maintenance Of Way
NOI: Net Operating Income
NM: New Mexico
ROW: Right of Way
RPO: Railroad Post Office
RR: Railroad, the Cumbres and Toltec Scenic Railroad, unless mentioned otherwise
SHF: State Historic Fund (CO)
SLV: San Louis Valley, the area that contains Antonito
TABB: Tracks Across Borders Byway
VIHR: Victorian Iron Horse Roundup (August 2021 special event)
YTD: Year To Date (fiscal normally)
‘the Friends’: The Friends of the Cumbres & Toltec Scenic RR, the museum arm, http://www.cumbrestoltec.org


The regular meeting scheduled for February 8 was cancelled due to scheduling conflicts.

This meeting was conducted via Zoom due to poor weather in the Antonito area.
Erin Minks from CO US Senator Bennet's office was active in this meeting. I refer her as Erin in this report.
Patrick Ortiz from CO US Senator Hickenlooper's office was active in this meeting. I refer him as Patrick in this report.

1. Call meeting to order

2. Pledge of Allegiance

3. Approval of Agenda

4. Approval of the Minutes from the November 2, 2024 Regular Commission meeting

5. Superintendent's Report-Marvin Casias

The Antonito shops started the year with half crews due to a flu going around the area, leaving just a few people in the shop. All passenger coaches have gone through annual inspection and are ready to go. Interior work on the premium cars is being done, fixing scratches, etc. They are building a new coach, 526. Next week, seats should go in. It is hoped that that will be a fast paced project. 526 should be ready at the beginning of the season. Last week, locomotive 19 went to Osier. Marvin reported things are really dry out there. There was no real snow from Antonito to Toltec. There was not much snow from Toltec to Osier. The area did get some snow this week. They went back to Toltec 2/12 with a representative that will do some tree and brush trimming. Due to the new snow, Toltec was far as they could go with 19. The trimming service would like to get started about mid March. They would like to be done by June 1, about when the RR season begins. Work can occur between trains if the project extends to the operating season. The shop is building up fire suppression equipment. Some motor cars will be joining the fleet. Marvin is praying for more moisture on the ROW, it is dry. The RR needs to have its equipment ready to go to prevent fires.
Locomotive wise, 488, its arch tubes should be installed in the following week. Then it will be done with its annual. 487, its cylinders were bored. Steven (Butler, of Monte Vista) will take the sleeves to his shop for work. In a few weeks, the sleeves should be ready to install, and the final work on 487 hopefully comes together pretty quick. Most of its annual inspection is already complete. On the Chama side, not much has been done with 463. 484 is getting bushing work, side rod pins. 489 has its #1, & #3's out (ed. drivers I am guessing). There is a need to get measurements on tires and axles. The tires on 489 need machining. 315 is locked up in the Chama shop. 168 is locked up in Antonito. Both of those two engines still need their annuals. Ed Beaudette followed up by saying that the dry conditions mean the two oil burning locomotives need to be ready for service. 463 is currently last priority. Commissioner Gibbs reported that he had a chance to see the new coach 526. It looks really, really good. Hats off to Marvin and crew. Commissioner Graybill followed up by reporting that extra funding for fire mitigation came from CO. It was important to receive that funding. Ed commented that when 526 is complete, the RR can have two symmetrical train sets. Commissioner Elbrock asked for an update on the Diesel engine #114 (from AK). The locomotive arrived Antonito with a known computer problem. That is being worked on. Wiring work needs to be done for the computer box. (Ed. it sounds like an outside, firm D&S? is working on the locomotive. It was mentioned in prior meetings that D&S would be involved in work on 114). The team working on 114 hope to have it operational April 1. Marvin reports it would be nice to have it available at that time. Not much will be happening in the next 2, or 3 weeks on 114. It does keep the locomotive out of the shop, where the work on 487 & 488 can move along. When work is being done on 114, it takes an entire engine stall while the work is performed. During the really cold snaps, it is not desirable to leave the steam engines outside.

6. Financial Report-Alysia Martinez

Going into this season, the train will run May 31, to October 25. The train will run 6 days a week (no Monday), like last year. Seating in a premium car has been changed to be much like that of the parlor cars. It will be on one of the train consists. This car is being added as the premium/parlor cars are best sellers. This increases inventory for those types of seats. The ticket reservation system was opened up January 6. Year over year, the RR is up 21%. Group sales are starting strong again this year, but a little lower than last year at this time. There is still time to catch up on group sales. They really helped the bottom line last season.
The target markets for this season will pretty much remain the same. A bit more attention in Pagosa Springs, Sante Fe, Alamosa will be given, digitally geofenced. With an unknown economy, target closer communities to see if customers can be gained there. There will be some advertising along with the NM Rail Runner train. Albuquerque and CS will see advertising aimed at seniors. To keep the target market engaged on social media, they are doing a photographer takeover. This will be done every other week. The RR website has been redesigned. This needed to be done to better promote the RR. The brochure is being designed. It is targeted to have them in house about mid March. This year will see the 100th anniversary of the K-36 engines. Plans are being developed for that celebration. The celebration dates are August 12 through the 17th. Keep checking social media or the web site as final plans are announced. This event is in conjunction with Dak Dillion Photography.
Right now, it is too early to gauge how ticket sales are going. About April, the numbers should provide better indication of how sales are going. Commissioner Graybill was really happy with the new web site.

7. Marketing Report-Abigail Martinez

Currently, financial is working on capital projects as well ARPA projects which have NM commitments. The HPA account is pretty quiet this time of year. Insurance expense for management & liability policy is shared with the CTO and HPA. General funding from CO & NM have been received for the Commission. Expenses for the Commission have decreased from the prior year. Work is being done to stay on budget for the Commission. For the CTO, there is a 1.3% increase in income. Operational revenue has increased from prior year. There was about a 10% decrease in expenses. Payroll, supplies and services, G&A, utilities, insurance have all decreased from prior year. The balance sheet for the CTO has seen an increase in bank accounts. There is an increase in the ticket revenue account. Total assets have decreased about 36%, due to intercompany transfers. So far advance ticket sales are up about 0.3% from last year. For Capital, they are working on the draw downs. CO is reimbursing the work done on the locomotives. There some big expenses coming in for fire mitigation. Those will be submitted to the state(s) for reimbursement. It was pointed out that keeping the financial books are a bit tricky. There are four different companies to keep track of, as well as the state reporting required. Erin pointed out how she has been working with the RR over the last 10 years. She asked about the ARPA funds that Alysia spoke about. Alysia replied that the ARPA funds received were $3,000,000 from NM in 2021. CO did not provide ARPA funding, just general funding. Erin invited commissioner Gibbs & Graybill to reach out to her if there is anything federal to request. Erin mentioned that they (Patrick) were there pretty much there to listen. Patrick mentioned he recently joined the Hickenlooper office. He was born and raised in Alamosa. His grandfather worked on the D&RG for 45 years.

8. General Manager's Report/Summary-Ed Beaudette

Right now, both states have active legislative sessions. NM has received a capital request of $1.275 million. There is an additional special request (state not mentioned) for over $800,000 for the culvert work at Long Creek. That culvert was put in in the 1930's. There two there, and one is failing. General fund request for the commission has an inflationary increase. It is hoped this is granted with few issues. It is a 60 day legislative session in NM this year, a little longer, thus it will take a bit longer to see how the RR does. CO is more complicated. CO is having some funding challenges. CO, through the governors office received a request for about $1.3 million. That is about what has been requested the previous three years. It is now working through the legislative process. The right people have been informed the RR is to the people of southern CO. The CO process takes longer than the NM process, so it will take longer to find out how CO decides. Commissioner Graybill mentioned the RR lobbyist sent out an e-mail. Things in CO are more complicated this year. Fingers are crossed. It is important to stay diligent to keep things on track. Erin asked of the RR has worked with representative Martinez out of Monte Vista and senator Simpson. Commissioner Gibbs answered that the RR and the prior mayor of Antonito (Arron Abeta?) got together with the joint budget committee. Simpson & Martinez have been extremely supportive. Representative Martinez recognized that a large locomotive repair facility is being established in Monte Vista. Once that shop is established, Martinez will get a tour. Erin pointed out how she has supported the RR off and on since 2005. She pointed out how there is a constant re-education process to inform the legislature about the purpose and value of the RR. Ed pointed out how local support has been great. The RR, being in a sparsely populated area, it is easy on a state level to not be seen.

9. Local Affairs Report

Last season was good. The constituents seem to be happy. There has been a lot of growth in the downtown Chama area. Several places have remodeled. It is hoped that downtown Chama will be thriving again. Antonito seems to be self sufficient. Commissioner Elbrock said things were quiet for him as well. The questions will arrive soon as the season arrives. John Bush mentioned that he does a restaurant list every year. Fosters is now out of the restaurant business. Its bar will remain open (no restaurant food in the bar). The future of Outlaw BBQ is uncertain. He wanted to know if they have any ridership projections for the season. Commissioner Smith-Casford first responded that she heard from Becky (Outlaw), and they are planning to open March 19. Ed responded to the ridership projection. Last season saw about a 14% growth. That would be quite a goal for this year, so 7% is the projection. Holiday trains will be promoted more, to get more riders in the area during that season. Even with an unknown economy for the year, it is felt the 7% growth is reasonable.

10. Capital Projects Report

Marvin covered the locomotive front quite well. The Lava water tank has been restored. It will be filled by taking tank cars there to fill it. It has a 12,000 gallon liner. Two tank cars will fill it. It will provide an additional water stop. The Sublette water supply has been running low. (ed. mentioned in a prior meeting, water at Lava could be useful for fire mitigation as well). The Long Creek culvert issue is a big one. It is hoped that NM will help with that one.

11. Tracks Across Borders Byway

John Bush started the presentation. There has been an informational sign at the Watchable Wildlife Area near Arboles CO. There is an additional sign ready to go. It will be installed at Juanita CO. The signs were underwritten by CDOT. Some new signage in NM is desired. The Continental Divide sign west of Chama is weathered and needs replacement. One of the two stock cars at Dulce NM has finally collapsed. Work is being done to replace those two cars. The Friends have two cars that came back from Oklahoma. There is work with Jicarilla nation to gain some funding sources.
John Porco then continued the presentation. He reported that relating to the stock cars, they have a good relation with the president of the nation. He has been an advocate for doing something with the stock cars for years. There is an indication that there might be some tribal funding available. There has been a grant from the CO tourism office, a consulting grant. The consultant helped frame a sponsorship program. This program is ready to go live. There are three sponsorship levels. This will reach out to businesses and other organizations. Funding would be nice for additional signs and other improvements along the byway. A new trifold brochure is nearly ready to print. It will replace the prior rack cards. It is almost a travel guide for the byway. This is thanks to CDOT funding. There some train shows coming up that TABB will participate in. Porco hopes to have even more to report in the next commission meeting.
John Bush continued by thanking the Friends for the phone application that provides a travel guide along the TABB. He further thanked the RR for costs involved in providing the app. The D&S has also been very helpful with costs for other resources. He reminded that the purpose of TABB is to increase visitorship in the area, as well as gain more riders for the C&TS. There is a desire to extend the byway from Chama to the state line where it will join with the CO byway Los Caminos Antiguos.

12. Friends of the C&TSRR Report-Tim Tenant/Rick Marsden

Tim started off by mentioning that Rick will be taking over the Executive Director position at the Friends. The spring banquet will be held March 14. The moonlight and wine train was scheduled for August 9. It was found to be during Chama Days. It has been moved to August 2 out of Chama. There are train shows coming up this spring and summer. The Friends wants to buy a case of brochures from Abi to hand out at the shows, as well to mail to members. There will be a post season charter this year in October. Work session dates are established for the year. Tim expects to be working with Rick over the next month as his position transitions to Rick. He thanked the RR for the support he has enjoyed for the last 20 years as executive director. Tim was thanked by many for his fine work over the years.

13. New Business

None

14. Old Business

None

15. Public Input

John Bush asked Marvin if 463 would be operational when the season gets strong (July'ish). Marvin wouldn't commit to a date at this time. It is anticipated that the 4 K-36's will be in service. 315 is expected to be in service as well as 168. So, six steam locomotives available for the season.
Erin Minks then spoke. She mentioned how she and Patrick Ortiz attend a lot of local water meetings. There is a lot of snowpack talk during those meetings, as Marvin mentioned. She asked if Marvin worked with the Forest Service (FS), regarding water and fire mitigation. Marvin replied that he works with the US FS, both Carson (NM) and Rio Grande (CO). They are in the loop with what the RR is doing. They are always part of the discussion with RR activities. Commissioner Gibbs followed up by saying that CO did a special appropriation last year to assist with fire mitigation. Marvin & Ed met with FS technical experts. They outlined ways to address the fire risks. The RR is putting that information into action. The RR has increased fire fighting equipment as well as lineside mitigation. Erin mentioned that there has been a fire commission established in the SLV that meets once a month. They exist to break down silos between organizations. Erin can help the RR get together with the group. There is a group call two three two that provides forest management. They will be meeting at Ghost Ranch February 28. Patrick provided a web link relating to fire mitigation:

Link to website entioned

16. Executive Session: Personnel Matters

No Executive session required

17. Actions following Executive Session

18. Adjournment

Next regular meeting date: May 3, 2025, 9AM in Chama, subject to change if required

** An Executive Session may be called at any time during the meeting, pursuant to Commission Policy and Practices Manual v8.0, adopted May 20,2023 regarding limited personnel matters; strategy preliminary to attorney-client privilege pertaining to threatening or pending litigation in which the public is or may become a prticipant, discussion of the purchase, acquisition or disposal of real property or water rights by the public body. The Governing Body may revise the order of the agenda items considered at this Open Meeting.

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