Despite the flooding and insurance issues that led to a devastating first quarter for the Chehalis-Centralia Railroad & Museum (CCRM) and the resignation of CCRM’s president, the railroad’s current leadership is confident they’ll be able to get CCRM “back on track.”
“This dedicated group of railroad directors and members are anything but timid when it comes to problem-solving and persevering,” stated CCRM President Mary Kay Nelson in a news release.
CCRM shut down all passenger operations on March 6 after its insurance provider was unable to renew CCRM’s liability insurance policy.
Factors in the loss of liability insurance were CCRM’s loss runs, which amounted to $1.064 million over six years, along with a lack of business experience in CCRM’s operations, according to insurance broker Tripp Salisbury, of Borden Perlman McRAIL.
McRAIL — a rail insurance provider based out of New Jersey — was CCRM’s insurance agency when the railroad closed in March, but CCRM has since switched to a local home, auto and business insurance broker: W.F. West alumni Neil Muller, of Bell-Anderson Insurance.
Muller, along with CCRM volunteer and Cowlitz River Valley Depot Museum Vice President Phil Brooke, were key in securing premises liability insurance for CCRM, according to Nelson.
“These individuals both know the value of the Chehalis Centralia Railroad as a historic attraction preserving the history of railroading in Centralia, Chehalis and Lewis County,” she said in the release.
CCRM secured premises-liability insurance coverage, which allows people to work on CCRM’s property on April 8.
CCRM will need to secure rail liability insurance before it can resume passenger service.
“Finding insurance coverage for the revenue-generating passenger excursions is being explored while awaiting closure on issues that have yet to be finalized,” stated Nelson in the news release.
Repair work on a mile of track that was washed out during the Jan. 6 flood will necessitate the continued closure of passenger operations for the spring and summer months, according to Nelson.
Meanwhile, volunteers are reassembling the Engine 15 steam train and working on “dozens of projects,” including repair and renovation work to 1920s coaches, according to Nelson.
“Presently, over 50 members of the organization are giving time, talents and resources to this beloved attraction,” stated Nelson in the news release.
“As time allows, more work will be accomplished but without revenue coming in, the projects will need to rely on donated time and materials,” Nelson said in the news release.
To offset the lack of revenue, Nelson appeared before the Chehalis City Council on Monday to request that it modify the use of the Lodging Tax funds it received from the city last year to include the coverage of operating expenses.
The city’s Lodging Tax Advisory Committee (LTAC) awarded CCRM $29,860 specifically for the purposes of tourism promotion, advertising and projects that promote tourism only.
LTAC is responsible by law for selecting recipients for the lodging tax fund allocations, to then be approved by the city council.
Nelson’s request would have been made to the LTAC specifically, but Chehalis City Manager Jill Anderson explained that due to personnel changes, the LTAC is not currently staffed. Thus the request before the city council to change the use of the funds.
“We have approximately $6,000 in bills to pay every month, regardless of whether we run or not,” Nelson told the city council. “So that’s just to pay our general operating expenses. And so, $30,000 will last us five months.”
Yet CCRM does not want to use the $29,860 for their operating expenses in totality.
“We aren’t in dire straits. We have a bank account. We can be good,” Nelson said. “It’s just that we looked at the rental of the units that we have for restrooms and our office space, and those together (are) $1,000 a month. So that’s $12,000 because we felt we could use the lodging tax dollars that weren’t being used by marketing because we are not operating (to) supplant that bill.”
There was some chatter among the councilors about whether the funds’ change of use should be decided by a reconstructed LTAC before it came before the council, on a basis of legality.
While Anderson felt the law allowed the council to modify the use of the funds, she told the council that the LTAC could be reconstructed in about 60 days, for a possible June decision on the matter.
When Mayor Tony Ketchum asked Nelson if CCRM could hold out on the use change until June, she replied, “yes,” so the council unanimously voted to redirect the matter to a reconstructed LTAC.
For more information or to offer assistance or donations to CCRM, visit steamtrainride.com/sponsor or contact at info@steamtrainride.com.
