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RECEIVED-CITY CLER~
LOCOMOTIVE AD HOC COMMITTEE
'85APR -2 A9:17
March 12, 1985
Councilman Ralph Hernandez - Acting Chairman
Deputy City Administrator - Ray Schweitzer
Park/Recreation Administrative Assistant -
Tom Boggs
Council Executive Assistant - Phil Arvizo
Risk Management Director - Ronald Solheim
San Bernardino Railroad Historical Society:
Daniel Rodriguez
Scott Brittin
Jim Thornton
The Sun - Mark Lundahl
1. LEASE AND OPERATING AGREEMENT - LOCOMOTIVE 3751 - It was
recommended that the City sell LOcomotive 3751 to the San Bernardino
Railroad Historical Society; subsidize the cost for moving it out
of its present location with monies available from potential salary
savings; and, if possible, provide a specific amount for the first
two years (savings from what the upkeep would have cost - approxi-
mately $2000 per year - Attachment #1).
-
The conditional sale agreement would provide the coneession
that the San Bernardino Railroad Historical Society would assure
that Locomotive 3751 would represent the "Spirit of San Bernardino"
wherever it would be used. Additionally, the City would be
absolved of any responsibility for Locomotive 3751. Substantial
savings over the next five years at the present site, at the
present cost, will be $80,0000 (Analysis - Attachment #2).
Meeting adjourned.
Respectfully submitted,
~c~anl Ralph Hernand
Acting Chairman
Locomotive Ad Hoc Commit
RH:ej
Attch.#l,i2
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ANALYSIS
In view of the fact that the Santa Fe Railway Company
raised the rent on the present location to $600 per month,
($7,200 per year plus $8,800 annual maintenance) the Council
voted to relocate Locomotive 3751. The estimated cost to move
the locomotive to the "main~line" is $18,000.
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ADVANTAGES TO LEASE
1. City controls locomotive.
2. City saves $16,000 annually.
DISADVANTAGES TO LEASE
1. City has "deep pocket" liability.
2. City must continue to provide some funds if Society
cannot.
ADVANTAGES TO SALE
1. City can condition the sale.
2. City does not have future liability.
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DISAIlVANTAGBS,TO, SALE
1. City no longer controls engine.
ATTCH. 12