Rusk ratifies TSR contract
American Heritage to operate railroad if the legislature votes for privatization
BY GLORIA JENNINGS STAFF WRITER

The Rusk City Council unanimously approved a contract Thursday evening between the Texas State Railroad Operating Agency and American Heritage Railways to operate the Texas State Railroad. The contract will allow the TSR Operating Agency (TSROA) the right to contract with American Heritage Railroad if the Texas Legislature authorizes the transfer of the railroad.

"If the legislature does not approve the authority's creation or if the legislature votes to continue operations of the railroad the contract will go away," said Ron Stutes of Potter & Minton Law Firm in Tyler. He is Palestine's city attorney and works for the TSROA. Representing the TSROA in Rusk are Charles Hassell, vice-chairman, Marie Whitehead and Bob Goldsberry.

Rusk City Attorney Forrest Phifer told the council he has problems with the contract because the three exhibits connected with it were not attached. The exhibits are for TSR real estate, TSR personal property, TSR equipment and the campgrounds. Mr. Stutes said the reason they are not attached is because the items have not been finalized.

The contract will be in place if the state legislature decides to privatize the railroad.

The council voted later in the meeting to authorize appraisal of the Rusk State Park. Cost of this appraisal should run in the neighborhood of $4,000, Mayor Suzann McCarty told the council.

"American Heritage Railway is prepared to assume operation of the TSR on Sept. 1," Mr. Stutes said.

The Palestine City Council adopted the contract with no concerns, Mr. Stutes reported. However, he and members of the council said the City of Rusk has more property than Palestine. Rusk owns the land where the campground is located.

Mr. Phifer raised the question, "Can the campground be given in the transfer without a vote of the people?" He said the transfer "seems" to be the same situation the city experienced when it sold the KOA. In that situation the Texas Attorney General ruled that voters had to approve a sale.

If this applies to the Texas State Railroad and the campground, an election may be required in November.

Mr. Stutes replied that the legislature could allow the city to transfer the property without an election.

The city deeded all but a small tract at the depot to the state in 1974. The ownership of 88 acres at the campground remains city property.

The city should gain a water customer, the council was told. American Heritage Railway will also generate tourist dollars for the area. During the first year they are planning three or four special events including "Thomas the Tank."

Of the $12 million the TSROA is requesting the state to transfer to the railroad, most will be used for track maintenance.

In another matter, the council approved a contract with Marks Lanham to operate the swimming pool.

Mr. Lanham will receive his pool operator certification on May 3. Grand opening is planned for June 2. "I hope to have everything ready for the Senior Finale to use the pool if they want on graduation night, May 25," he said.

He will be paid $8,000 on May 25 and equal payments of $4,000 in June, July, August and September. He will pay all of the operating expenses with the exception of water, which is provided by the city.

The council approved an audit report from Lynn Acker of Acker and Company, the city's independent auditor.

"Overall the city's financial records are in good shape," he said.

The council delayed action on an oil and gas lease on city property until the next meeting.

Proposed restrictions for the lease were discussed. The matter will be on the agenda for next month's meeting.

Several discussed concern of drilling in front of the civic center. If this happened it would affect the swimming pool and trucks will tear up the city street, they said.

Kris Morgan, a surveyor, said he would like to see the entrance made from FM 343 on the Atoy Mountain. A road would be built through the property, which could later be used by the city.

Following public hearings, the council approved changing zoning for property in the Easy Living Subdivision from single family to multiple family residential to allow Bobby Tosh an opportunity to construct a duplex.

Also, the council approved a special use permit for Bryan P. Cook to locate a manufactured home on property on Ray Street.

A contract with Cherokee County was approved for election services at a cost of $250.

Mary Ann Patterson was named election judge and Andrea Patterson, alternate judge.

A police car was purchased from Bob Frances Ford for $21,277.75. The car was to be delivered Monday. Equipment is expected to cost approximately $3,800.

A truck for the public works department was purchased from Bob Francis Ford for $17,955.02. Delivery date was Monday.

A tractor with a brush hog was purchased from Rucker Equipment in Palestine at a cost of $19,992. The tractor was to be delivered in three days.

The next regular meeting of the council will be Thursday, May 10.

Attending the meeting were Mayor McCarty; Councilmembers Morgan, Walter Session, Don Jones, Donald Woodard and Sam Florian; City Manager Mike Murray and City Secretary Fran Wendeborn.