NORTH COAST RAILROAD AUTHORITY (NCRA)

BOARD OF DIRECTORS REGULAR MEETING MINUTES

 

WEDNESDAY, MAY 17, 2000 AT 10:00 A.M.

 

EUREKA CITY HALL
531 K STREET, EUREKA, HUMBOLDT COUNTY, CALIFORNIA

 

 

A.                 CALL TO ORDER

����������� Chair Jehn called the meeting to order at 10:05 a.m.

 

B.                 ROLL CALL

����������� Directors present:Chair Jehn, Jack McKellar, Robert E. Simonson, and Max Schlienger.

����������� Directors absent:First Chair David Ripple, Allan Hemphill, Daniel Opalach.

����������� Also present: Executive Director Max H. Bridges, General Counsel Christopher J. Neary, Property���������

����������� Manager Cyndee Logan, and Administrative Assistant Pamela Fishtrom.

 

C.                 MINUTES

����������� Approval of Minutes of the April 12, 2000 Regular Board Meeting

 

����������Dir. McKellar motioned to approve the Minutes as written; seconded by Dir. Schlienger.Vote

����������� taken; motion passes unanimously.

 

D.                AGENDA APPROVAL

 
����������� Dir. McKellar motioned to approve the Agenda subject to inclusion under Item I � Legal Reports of

����������� an actionitem addressing extension of the statute of limitations for lawsuits by Pacific Rail

����������� Services and Bushnell Enterprises.Seconded by Dir. Simonson.Vote taken; motion passes

����������� unanimously.�� ��

 

E.                 PUBLIC COMMENTS

����������� Kay Strickland, Chair of Citizens for Port Development, thanked the Board for posting information to

����������� the NCRA web site, and is actively seeking vocal support for the Railroad to pursue headwaters funds.

�����������

F.                  CONDUCT OF BUSINESS

����������� 1.�� Proposed Amendment to Rail-Ways, Inc. Lease and Operating Agreement���������������������

General Counsel Neary reported he and John Darling, President of Rail-Ways, Inc. jointly

����� recommend the contract contingency date be extended to July 15, 2000.

 

Dir. Simonson motioned to approve Section 3.01 of the contract be changed to read July 15, 2000.�� Seconded by Dir. McKellar.Vote taken; motion passed unanimously.

 

����������� 2.�� Proposed Amendment to the South End Remediation Contract with NorCare

��� This item was continued to the June, 2000 Regular Meeting.

 

����������� 3.�� Announcement of Employer Contribution Rate for Membership in CalPERS and Agreement

����� to Pool 1959 Survivor Benefits Assets and Liabilities

����� Chair Jehn announced the annual employer contribution rate for membership in CalPERS is

����� estimated to be $3,753.01, of which the employer rate based on payroll is $3,690.61, subject to

����� change with future amendments and/or experience and other factors, coupled with $62.40, the

����� employer cost for Survivor Benefits, subject to annual change.��

 

Dir. Schlienger motioned to authorize the Secretary to execute the Certificate of Compliance with

Government Code Section 7507 � that the future annual employer costs have been made public.

Seconded by Dir. Simonson.Vote taken; motion carried.

 

Dir. Simonson motioned to approve the Agreement to Pool 1959 Survivor Benefits Assets and

Liabilities and authorize the Chair to execute it on behalf of the Board.Seconded by Dir.

McKellar.Vote taken; motion carried.

 

����������� 4.�� Adoption of Revised Bylaws

����� Executive Director Bridges introduced revised Bylaws for additional comments by Board members

����������������� and Counsel.Suggestions were received and the matter was sent back to Committee.��

 

����������� 5.�� Execution of Judgment Re: Law Offices of Roberts, Hill, Bragg, Angell & Perlman

 

����������� Based on General Counsel Neary�s recommendation, Dir. Simonson motioned to approve this

����������� judgment sought for professional services rendered.Seconded by Dir. McKellar. Vote taken; motion

����������� passed unanimously.

 

���������� 6.��� Proposed Agreement for Property Management Services

����������������� Consistent with direction given during the Regular Board Meeting of April, Executive Director

����������������� Bridges submitted for approval revisions to the contract for Property Management Services.���

 

�� ��������Dir. Schlienger motioned to approve the contract revisions with the additional commitment of

���������� paying for the Property Manager�s professional liability insurance at not more than $1,000 per year.��

���������� Seconded by Dir. Simonson. Vote taken; motion passed unanimously.

 

G.                LIAISON REPORTS

����������� 1.�� Northwestern Pacific Railroad Authority (NWPRA) � Max H. Bridges

������ Executive Director Bridges provided a written report reflecting items of interest from the NWPRA

������ �����������Board Meeting of May 1, 2000.In addition, he reported significant damage to signal crossing

����������������� protection was sustained on NWPRA property in Sonoma County at Fulton and River Roads by

����������������� underground work performed by Pacific Gas & Electric (PG&E).Chair Jehn reported a meeting������������������

����������������� was held to facilitate station site development of the Petaluma Depot while considering the future

����������������� needs of freight service operations.

�����������������

����������� 2.�� Legislation � Max H. Bridges

������ Chair Jehn reported a hearing is scheduled during this week regarding AB1093, funding for short��������

����������������� line railroads proposed by Assemblymember Strom-Martin.

 

����������� 3.�� Passenger � Robert Jehn

������ Executive Director Bridges reported the committee met May 2, 2000 with California Redwood

������ Coast Company, NCRA�s contractor for passenger service, to discuss several issues.Proponents of����

������ rail passenger service around Humboldt Bay were invited to speak at the committee meeting and at

������ this meeting, but were unavailable.

 

4.�� Cities � Jack McKellar

������ No report.

��������

5.�� Sonoma-Marin Area Rail Transit Commission (SMART) � Robert Jehn

������ Chair Jehn reported SMART met May 10, 2000 when they approved for distribution a final draft of

������ the document which provides for the start up of commute service from Cloverdale to San Rafael.��

���� ��Comments regarding the document are due by June 30, and a meeting is scheduled August 9 to

������ review those comments.In addition to $28 million of Proposition 116 money appropriated, the����

������ Governor proposed $37 million dollars from his budget.However, additional funding is required�������

������ because start up costs have been projected at $165 million.

 

6.�� Web Site � Robert Jehn

����������������� Chair Jehn reported on the amount of viewers accessing the site monthly since its inception in

����������������� February, 2000.

 

����������� 7.�� Contractor � Rail-Ways, Inc.

����������������� John Darling, President, reported as follows:

 

����������������� The damage caused by PG&E, as previously reported by Mr. Bridges, is estimated at $200,000, and

����������������� he requested direction regarding proceeding with this issue.

 

����������������� The rest of the rehabilitation project is suspended pending receipt of funding with the exception of

����������������� Federal Highway Administration work replacing crossings in Santa Rosa.

 

����������������� There is no work being performed North of Willits.

�����������������

����������������� Train service � The Federal Railroad Administration (FRA) provided a waiver for one commercial

����������������� movement.

 

����������������� Environmental � Nicad batteries have been removed from the property, and an environmentally

����������������� friendly device using steam has been located which would be used for vegetation control.

 

����������������� A written report will be submitted.

 

����������������� He spoke with staff regarding the factoring of invoices which is more difficult than first envisioned.

 

����������������� He encouraged and offered help in securing funds through the Transit Capital Improvement (TCI)

����������������� fund.

 

����������������� He intends to share more fully his strategic plans for operating the Railroad as the track becomes

����������������� available.

 

�������������� ���Chair Jehn responded by reporting on where the Board is in securing prospective funding from the���

����������������� Governor�s proposed budget, TCI, and the potential Pacific Bell fiber optic easement.

 

����������������� In response to Dir. Simonson regarding additional funding sources, Mr. Darling reported retention

����������������� is held by the Federal Emergency Management Agency until all the Southern blocks are complete

����������������� due to a request that all the Southern blocks combined be considered one improved project.

 

I.�������� STAFF REPORTS

���������� 1.��� Executive Director Max H. Bridges

������ Mr. Bridges reported meeting with CalTrans regarding accessing TCI funds.The grant is

������ approximately $1 million dollars with a 50% match requirement.Approximately $3 million has

������ been located as spent by the Railroad, yet not reimbursed by any agency.Currently, CalTrans is���

������ deciding what type of expenditures fit into the scope of work approved for the grant.Meetings are

������ scheduled onFriday with the FRA and with California Transportation Commission Executive

������ Director Bob Remen.Mr. Bridges recommended re-establishing the Technical Advisory

������ Committee to work on revising the 5-Year Business Plan to include the Governor�s proposed $65

������ million.Finally, he sought approval to attend a County Engineers meeting in September.

 

2.��� Property Manager � Cyndee Logan

����������������� Ms. Logan presented a written report to the Board.

 

J.�������� LEGAL REPORT � General Counsel Christopher J Neary

����������� 1.�� Notification from the California Carpenters Union

����������������� Mr. Neary reported NCRA received notice that their contract with the California Carpenter Union

����������������� has been extended.He requested more information from the Union.

 

����������� 2.�� Approval of Extension of Statute of Limitations for Pacific Rail Services and Bushnell

����������������� Enterprises

�����������������

����������� Dir. Simonson, upon recommendation by Mr. Neary, motioned to extend the statute of limitations

����������� for lawsuits for six months to January15, 2001 for Pacific Rail Services and Bushnell Enterprises.

���������� Seconded by Dir. Schlienger.Vote taken; motion passed unanimously.

 

K.������� MATTERS FROM BOARD MEMBERS

����������� Dir. Schlienger recommended the Board receive a monthly update regarding financial expenditures,

����������� and he wants to have a financial system in place when money is received from the Governor�s budget.

 

����������� Chair Jehn requested the next Agenda include an item where the Board can hear a financial report.

 

����������� Dir. McKellar asked the Rail-Ways employees if they had an opportunity to try the plastic ties he

����������� brought to Willits.He was told they were not cost effective.In addition, Dir. McKellar requested

����������� copies of the photos Mr. Bridges presented at April�s Regular Board Meeting.

 

����������� Dir. Simonson said he received a call from Mr. Bill Whyte expressing his desire to operate the

����������� Railroad.Dir. Simonson said he expressed his displeasure with Mr. Whyte�s tactics and thought it

����������� unethical to discuss the matter with Mr. Whyte while under contract with Rail-Ways, Inc.

 

L.�������� ANNOUNCEMENT OF NEXT MEETING

������������ Regular Board Meeting � June 21, 2000 10:00 a.m.

������������ Healdsburg City Council Chambers, 401 Grove Street, Healdsburg, Sonoma County, California, USA

 

M.������ CLOSED SESSION � Convened at 11:40 a.m.

����������� 1.�� Conference with Real Property Negotiator

����������������� Government Code Section 54956.8

����������������� Negotiating Parties:Pacific Bell, etc.; NCRA

����������������� Under Negotiation:Longitudinal Easement

����������� 2.�� Conference with Real Property Negotiator

����������������� Government Code Section 54956.8

����������������� Negotiating Parties:Mendocino Transit Authority (MTA); NCRA

����������������� Under Negotiation:Sale of Ukiah Depot

����������� 3.�� Conference with Legal Counsel � Potential Litigation � Four Cases

����������������� Government Code Section 54956.9(a)

����������������� a.�� Bushnell Enterprises

����������������� b.�� Haystack Landing Bridge

����������������� c.�� Union Pacific

����������������� d.�� State of California

����������� 4.�� Conference with Legal Counsel � Pending Litigation

����������������� Government Code Section 54956.9

����������������� NCRA versus Green

����� ������������Mendocino County Case Number 82709

����������������� Quiet Title Action � Ukiah Depot

 

N.������ ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION � Reconvened at 12:25 p.m.

������������� 1.�� Conference with Real Property Negotiator � Pacific Bell; NCRA

��������������������� Chair Jehn announced the Board provided direction to Property Manager Logan.

����������� 2.�� Conference with Real Property Negotiator � MTA; NCRA

����������������� Chair Jehn announced the Board provided direction to Property Manager Logan.

����������� 3.�� Conference with Legal Counsel � Potential Litigation � Four Cases

����������������� Chair Jehn announced information was received from Mr. Neary regarding four potential cases.

����������� 4.�� Conference with Legal Counsel � Pending Litigation

����������������� Chair Jehn announced information was received from Mr. Neary relative to NCRA versus Green.

 

O.������ ADJOURNMENT

���������� Chair Jehn adjourned the meeting at 12:27 p.m.