Has there ever
been an honest public estimate of the Re-con costs?
Inflation Doesn't Tell the Whole
Story
ARTICLE TOPICS:
Back in 1993 This Was
Supposed to be a $20 Million Project, Said Mayor Marv
As
Recently as 2005 Mayor Marv Still Called This a $36 Million Project, While a
2005 Business Plan Said $28 Million
2008: $54 Million? $70
Million? What's the Truth? |
WHAT IS THE HISTORY OF V&T
RECON BUDGETS?
I'll deal with the second question first. There has been
a fifteen-year history of understating the total costs of rebuilding the
Virginia and Truckee Railroad.
Back in 1993/1994 a feasibility study was
done. In this study, the cost estimate was over $19 million. The document made
clear that all costs were not accounted for, and that several environmental
studies would need to be done at added costs. The study also made clear that
additional engineering would be needed beyond the $19 million
estimate.
This estimate also included millions to purchase and refurbish
the locomotive and equipment to run the tourist railroad. The construction
costs were estimated at less than $15 million.
In 1995 Mayor Marv
Teixeira testified to a state Legislative committee that the total costs of the
railroad would be $20 million. The (then-named) Tri-County Commission was
lobbying to get a state matching grant of $5 million if they could raise $15
million. It was estimated that a private fundraiser could raise $7 million,
which never happened. Many claims were made that never bore fruit, beginning a
long history of overselling this project.
Perhaps the most interesting
claim made during this testimony was that not a dollar would be spent until all
the money was raised.
FAST FORWARD TO 2005
At the September 1,
2005 meeting of the Carson City Board of Supervisors various people were
lobbying the Supervisors to add the 1/8% sales tax so that $15 million could be
raised in a bond issue. As it the case today, it was represented at the time
that another $15 million would finish the project. Longtime Project
Engineer Ken Dorr famously said, "Almost all of the funding is now in
place." That was 2005. Now in 2008 they are asking for another $10 million
from Carson City.
ALSO IN 2005
Mayor Marv Teixeira was back in
his seat as Mayor of Carson City. At the SB 169 Legislative Hearing he
presented documents claiming the project would cost $36 million. At the same
time a "business plan" was floating around still claiming a total project cost
of $28 million.
If anyone has specific questions or needs to see the
documents, please email me at jim@traincop.com. The history of
misrepresentations must stop!
NOW THE FIRST QUESTION, WHY HAVE
PROJECT COSTS RISEN SO MUCH?
In any well-run government construction
project, all the right of way would have been acquired first, then engineering
and environmental analysis would have been done, then construction would
start.
Instead the Commission chose to build this project piecemeal.
Now, to get through the Carson River Canyon they must pay much higher prices
for right-of-way than just a few years ago.
The claim is also made that
inflation is responsible for rising budget costs. While this is partially true,
the Commission is not telling the whole story. I have been told that the costs
of dealing with the Bureau of Land Management is a significant cost that was
never accounted for in public budgets. This helps explain why the Carson River
Canyon Phase 3 was originally budgeted at $3.5 million, but now will cost
between $12 and $16 million. The current cost of Phase 3 was originally
represented as the entire construction cost!
NOT ALL THE COSTS IN THE
COMMISSION BUDGET
It's interesting to note that some project costs are
off-budget. The Attorney General has provided legal review, but has not been
paid directly for that. NDOT adminstered the Federal Grant for Phase 1 and took
a 5% or 10% cut of the funds. These numbers do not show up in the Commission
project cost claims.
More interesting is the rumored plan to have Carson
City parks and rec acquire one or more parcels of land in the Carson River
Canyon and then assign the right-of-way to the Commission. These kinds of
budget tricks belong in Washington, DC, not Carson City.
PART 2 -- NOT
ALL COSTS IN THE COMMISSION BUDGET
Let's take an overview of where the
project is at. The Commission has enough funding to get across Highway 50, and
will have spent $37 million at that point. If they get the $10 million from
Carson City in the November ballot measure, they will not have enough to finish
Phase 3, the Carson River Canyon.
Here's the rest of what they have to
do: Find a way around the sewer pipe at the mouth of Brunswick Canyon, acquire
right of way and build track to the Drako way depot location, build a depot and
shops at Drako way, acquire the Virginia and Truckee Railroad, extend the track
and build a better depot in Virginia City, re-open Tunnel 6, choose a new
operator if Sierra drops out, pay off the loan on the #18 locomotive and
more.
The Commission might cut costs by stopping the train at Gold Hill.
Do you think people want to ride the V&T tourist train and stop short of
Virginia City? |