HomeMy WebLinkAboutWS Item 02 - Steam Excursion Attraction11)K ITEM A 2
MEMO TO: HONORABLE MAYOR AND MEMBERS OF TH CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
;
MEETING DATE: SEPTEMBER 5, 2000
SUBJECT: WORKSESSION - STEAM EXCURSION ATTRACTION
The Tarantula Steam Train began service in Grapevine on August 30, 1996. Since that
time it has become synonymous with the history and heritage of Grapevine and is the
single most important image in Grapevine tourism promotion.
Engine 2248 was taken out of service in January, 2000 while the Tarantula Steam
Excursion Train was under lease to Coe Sun Rail of Michigan. Fort Worth and Western
Railroad has since terminated that lease. The sidelining of the steam engine has had a
major impact on the promotion of the area and the ridership of the train, which is
currently being pulled by a diesel engine only.
Representatives of the Fort Worth Stockyards, the Fort Worth Convention & Visitors
Bureau, the Grapevine Convention & Visitors Bureau and Fort Worth and Western
Railroad met several months ago to discuss the possibility of returning the steam engine
to service. Fort Worth and Western Railroad has spent many millions of dollars on the
original restoration and refurbishment of the steam engine and passenger cars as well
as building a bridge across Marine Creek, installation of the Stockyards Turntable and
Stockyards Station itself. Fort Worth and Western Railroad representatives advised the
group that they were unable to invest any more capital into the Steam Excursion train
project. The group agreed to raise the $200,000 necessary to rebuild and recertify
Steam Engine 2248. Mr. Bill Davis made the offer that if the funds were raised to
restore the Steam Engine that he would offer the City of Grapevine a long-term lease on
the Excursion Train with the eventual ownership going to the City of Grapevine. Mr. Holt
Hickman of the Stockyards Station group has agreed to provide, at no cost to the City of
Grapevine, all of the railroad related assets including the Stockyards Station Ticket
Office, the Water Tower, siding and switches for the Tarantula Steam Excursion Train.
The Fort Worth and Western Railroad would lease the Federal Railroad Administration
certified crew of Steam Engineer, Fireman, Brakeman and Conductor to Grapevine to
handle all the railroad operations of the Excursion Train. The Excursion Train would hire
a Maintenance Supervisor, a Concession and Ticket Sales Supervisor as well as several
part time persons to assist with the passenger side of the operation. While the
Operating organization would be a part of the Convention & Visitors Bureau
memberships and sponsorships would be available to those who want to join. A
volunteer program would be established to provide opportunity for interested persons to
participate.
September 1, 2000 (2:04PM)
The Grapevine Fort Worth Cotton Belt Railroad Corridor Committee made up of
Grapevine Convention & Visitors Bureau, Fort Worth Convention and Visitors Bureau,
the Stockyards Station Group, North Fort Worth Business Association and the Tarantula
Steam Excursion Train has agreed to fund an annual marketing campaign for the
promotion of the Steam Excursion Train service between Grapevine and Fort Worth.
The promotional value of this marketing partnership will be in excess of $120,000
annually.
Included with this memorandum is a proposed and projected budget for the railroad
through fiscal year 2003. The budget was developed using actual Excursion Train
ridership experience from Fort Worth and Western for 1998, the last year they operated
the Excursion Train. The projections include ridership numbers of 80,000 in FY 2001,
86,500 in FY 2002 and 98,500 in FY 2003. The average ticket prices are $10.10,
$10.74 and $11.49. The increase in the annual ridership assumes that with over
$120,000 per year being spent to promote the train the ridership will increase during the
first three years. The average ticket price assumes that the promotion of the train will
also increase the percentage of people riding the train from Grapevine to Fort Worth in
relation to the people riding just the 8th Avenue leg of the trip.
The proposed budget for FY 2001 does not include any charter services for the
Excursion Train. It is staff's recommendation that the charter portion of the business
wait until we have had roughly a year's worth of operating the Excursion Train before an
attempt is made to sell the charter business. Fiscal year 2002 assumes a total of 78
charter runs and for FY 2003 we are assuming 140 charter runs. The charter business
in FY 2003 is equal to the charter service that the Excursion Train generated in 1998.
The budget also includes an "encumbered expenses" account that will function similar to
the PCMF in the General Fund. The items listed are a combination of the annual
inspection required after 1400 hours of operation on 2248, the five year FRA
certification, which requires a refurbishment of the locomotive and a line for
unanticipated repairs that could arise for the engine or the cars.
Also included in the budget is funding for upgrades to the train and its capital needs.
For FY 2001 there are expenditures for the acquisition of a second steam engine and
the air conditioning of the passenger cars. For FY 2002 there are funds set aside for the
refurbishment of the engine purchased in 2001, the purchase of an additional passenger
car and the purchase of historic railroad items. For FY 2003 there are funds for the
refurbishment of the passenger car purchased in FY 2002, the construction of a water
tower and sand tower, and the purchase of additional historic railroad items.
For immediate consideration are three items. The Fort Worth grant of $100,000 for the
rehabilitation of 2248 will take care of approximately half of the cost of the work. Staff is
recommending that $100,000 be taken from the CVB's fund balance to match the
contribution from Fort Worth. The second item is to proceed with the laying of a second
September 1, 2000 (2:28PM)
track into the roundhouse from the turntable. The CVB has already received bids for the
project and they total $28,000. There are funds available in the FY 2000 budget in the
CVB's capital projects accounts for this project. Finally, if it is Council's desire to
proceed with this project, staff will develop an operating agreement with Fort Worth and
Western Railroad for future Council approval.
This is an exciting project for this community. Grapevine has made a major investment
in its Cotton Belt Railroad historic district and now the opportunity is available to
guarantee an operating steam railroad for future generations of Grapevine Citizens and
visitors alike.
Staff recommends approval.
04
September 1, 2000 (2:04PM)
TARANTULA STEAM EXCURSION TRAIN
Revenue and Expense Projections FY 2001 - FY 2003
,s:
IN-KIND CONTRIBUTIONS
Stockyards Station
Stockyards Siding
Stockyards Water Tower
Stockyards Ticket Office
Stockyards Station Parking
Grapevine Roundhouse/Turntable
Grapevine Depot
TOTAL IN-KIND CONTRIBUTIONS
CAPITAL EXPENDITURES
Air Conditioning
Second Steam Engine
Additional Passenger Cars
Historic Railroad Items
Water and Sand Towers
TOTAL CAPITAL EXPENDITURES
SUMMARY
Operating Revenues
Operating Expenses
Capital Expenses
Revenues Over (under) Expenditures
Year End Fund Balance
2000-2001
2001-2002 2002-2003
30,000
30,000
30,000
1,800
1,800
> 1,800
12,000
12,000
12,000
19,938
19,938
19,938
1,200
1,200
1,200
12,000
12,000
12,000
6,000
6,000
6,000
82,938
82,938
82,938
65,000 0 0
75,000 125,000 0
0 35,000 65,000
0 45,000 75,000
36,000
140,000 205,000 176,000
881,071
1,209,094
1,554,805
654,381
870,519
1,042,859
140,000
205,000
176,000
86,690
133,575
335,946
86,690
220,265
556,211
TARANTULA STEAM EXCURSION TRAIN
Revenue and Expense Projections FY 2001 - FY 2003
FIXED EXPENSES
Leased Labor
2000-2001
2001-2002
2002-2003
REVENUES
Sales
33,112
41,390
Tickets
808,188
929,416
1,131,316
Food & Beverage
72,883
80,172
93,428
Merchandise
0
36,736
58,777
Charters & Special Events
0
162,770
271,284
TOTAL REVENUE
881,071
1,209,094
1,554,805
FIXED EXPENSES
Leased Labor
144,000
152,640
161,798
(Engineer, Fireman, Brakeman, Conductor)
Leased Labor - Charters
33,112
41,390
Direct Labor
91,500
96,990
102,809
(Maintenance, Concessions, Ticket Sales)
Direct Labor - Charters
18,720
23,400
Charter and Special Events
0
65,108
108,514
Food and Beverage Costs
24,294
26,724
31,143
Merchandise
0
18,368
29,389
Supplies and Services
76,787
96,057
171,616
Trackage Fee
48,000
48,000
48,000
(Maintenance & Dispatching)
DART Fees & Insurance
48,000
48,000
48,000
Equipment Lease
106,800
106,800
106,800
Marketing and Promotions
60,000
90,000
90,000
(Contribution to Cotton Belt Railroad
Corridor Marketing Committee)
TOTAL FIXED EXPENSES
599,381
800,519
9621859
ENCUMBERED EXPENSE FUNDS
Unanticipated Repairs
20,000
20,000
30,000
Annual FRA Inspection
15,000
30,000
30,000
5 -year FRA Boiler Inspection
20,000
20,000
20,000
TOTAL ENCUMBERED EXPENSES
55,000
70,000
80,000
TOTAL EXPENSES
654,381
870,519
1,042,859