Friday, November 27, 2009

Dorr: "They Told Me Not To Include Land Costs"

No. 41 -- VIRGINIA AND TRUCKEE RAILWAY -- Nevada Railroad Reconstruction Chronicles

KEN DORR SAYS HE WAS TOLD TO LOWBALL ORIGINAL V&T RECONSTRUCTION ESTIMATES

11/27/09 warning may contain satire and/or cynicism, read at your own risk

FOR IMMEDIATE RELEASE

(EASTGATE SIDING, NV)-- Following the strange turn of events to a perfect day summarized in the previous release (#40), I decided to let Project Engineer Ken Dorr know about the uncivil behavior of his underling, Gary "The Strongman" Luce. That story was already covered in #40.

Once we returned to the Dump Road station, I asked Ken if I could speak to him for just 30 seconds. He and I stepped off the locomotive and I said something like this: "Look, Ken, I know some of you Commission people dislike me, and some of you hate me, but there was no excuse for what Gary just did." I told him about Gary blocking my video shot and hitting my camera.

Ken was having none of it and quickly switched subjects. To summarize, he proceeded to tell me that I had better things to do with my time than criticize the Commission. His top suggestion was that I should raise money for the Commission.

I will ramble on about this further down in this post, but let me get right to the most interesting point. Ken and I began debating the continually unrealistic and low budget estimates for the Virginia and Truckee Railway Reconstruction project long-bungled by the Nevada Commmission for the Nevada Commission for the Reconstruction of the Virginia and Truckee Railway. He brought up the original estimate of $20 million, which has now soared to over $70 million. You can see a rough timeline of these estimates and supporting docs at virginiaandtruckeerailway.com.

When Ken mentioned the $20 million estimate, I pointed out that this estimate was really $10 million. I mentioned that at the time in 1995 then-and-now Commissioner Ron Allen had said that half ($10 million of the $20 million) was for equipment, and the other half was for construction. Ken shrugged that off, saying no one now knows what Ron Allen said back then. I pointed out that it was entered in the record by the Nevada Legislature.

THEY TOLD ME THE LAND WAS FREE!!!

Let me say quickly that at this point Ken was mad at me. People will often lower their guard when they're mad and say what's really on their mind. You know how when a girlfriend gets mad at you and says something mean, then later says, "I didn't mean it?" You can be sure she meant it, and you can be sure Ken Dorr was being honest.

In that unguarded moment, Ken became defensive and said that when he made the $20 million estimate, he was told not to include land costs. He listed a number of assumptions that turned out to be wrong, including the assumption that the land for the entire project would be donated!!!

I asked him, "who told you to do that?" Ken replied that he didn't remember. I asked if it was then-Commissioner and Chairman Greg Smith, and he said "maybe."

As covered more thoroughly in post #39 and the excerpt below ...

Reconstruction -- Then and Now, A Story of Unmet Expectations

many statements made to the Nevada Legislature at the start of the project turned out to be false or were later ignored. My favorite is the claim that no money will be spent until all the money is raised. Another one is the claim that $7 million would come from a professional fund-raiser, and $10 million would come from a phantom private foundation that never materialized.

Beyond that, Ken and I spent nearly 20 minutes where he would tell me to join the Rotary, start a club to raise money for his project, and quit being negative by criticizing the Commission.

I would counter that government criticism and watchdogging is a necessary function of a free republic, and that if all the "negative" criticism of government went away, government would likely be more out of control that it already it.

So when someone criticizes you, do it using the Dorr Method, saying, "they made me do it!"

EXCERPT FROM LINKED NEVADA LEGISLATIVE HEARING TESTIMONY:
Mr. Allard asked if it was intended to delay construction until
the entire $20 million was raised. Mr. Smith responded
affirmatively and added that none of the money

will be spent until the entire amount necessary
to finish the project is raised.


Mr. Close asked what the assets of the V & T would total
once the project is completed. Mr. Smith responded the railroad
cars would each cost from $250,000 to $300,000. The engines
could cost from $750,000 to nearly $1 million. Ron Allen,
President of the Virginia and Truckee Historic
Railroad Society, estimated the
physical assets
would be at least half of the total project price.

He noted the estimate would have to include right-of-way,
physical assets and the goodwill of an ongoing business.


If you read this far, take a look at the contradiction in these statements from Dorr and Allen. Dorr says he was told not to include right-of-way (land) costs. Allen says these costs must be included in the estimates. Too bad Dorr won that one or we would have had an honest budget from the start.


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