NORTH COAST RAILROAD AUTHORITY (NCRA)

BOARD OF DIRECTORS REGULAR MEETING MINUTES

 

WEDNESDAY, AUGUST 16, 2000 AT 10:00 A.M.

 

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

 

 

����������� CALL TO ORDER

����������� Chair Jehn called the meeting to order at 10:15 a.m.

 

A.                 ROLL CALL

����������� Directors present:Chair Robert Jehn, David Ripple, Allan Hemphill, Daniel Opalach, Robert E.

����������� Simonson, Max Schlienger, and by telephone Jake MacKenzie.

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

����������� Manager Cyndee Logan, Consulting Accountant Russ Mustola, and Administrative Assistant����

����������� Pamela Fishtrom.

 

B.������� PRESENTATION HONORING BOARD MEMBER COMPLETING TERM

����������� Chair Jehn honored Jack McKellar with a plaque for his service as a Director for the Board as the�������

����������� Cities Representative.

 

C.������� INTRODUCTION OF NEW BOARD MEMBER

����������� Chair Jehn introduced Dir. MacKenzie, replacing Jack McKellar as the Board�s Cities

����������� Representative, who described his interest in transportation.

 

D.                MINUTES

����������� Approval of Minutes of the July 19, 2000 Regular Board Meeting

 

������������ Dir. Hemphill moved approval of the Minutes with the following changes: note that Executive

������������ Director Bridges� absence was due to his attendance at the California Transportation Committee

����������� (CTC) Meeting, and change the heading to reflect the correct address; seconded by Dir. Ripple.

����������� Vote taken; Dir. MacKenzie abstained; motion carried.

 

E.                 AGENDA APPROVAL

 
����������� Dir. MacKenzie moved approval of the Agenda with addition of Item G.6 Repair of Haystack

����������� Landing Swing Bridge and Item G.7 Consider Extension of Commencement Date of Permanent

����������� Operating Agreement with Northwestern Pacific Railway Company, LLC (NWPY); seconded by���������

����������� Dir. Ripple.Vote taken; motion passed unanimously.

 

F.                  PUBLIC COMMENTS

����������� Fred Carmichael, long-time proponent of the Railroad, read a letter he wrote supporting his position��

����������� for balance between rail and truck shipment, and he recommended a moment of silence before each

����������� Meeting.

 

 

 

G.                CONDUCT OF BUSINESS

����������� 1.�� Presentation by Northwestern Pacific Railroad Support Coalition (NPRSC)���������������������

Kaye Strickland, Chair of Citizens for Port Development (CPD), presented the Board with a press release issued that states the goals of NPRSC, a sub-committee of CPD.

 

����������� 2.�� Presentation by Northern Counties Logging Interpretive Association (NCLIA)

��� Marcus Brown, President, presented his ideas for a first-class logging/railroad museum which

��� includes a scenic train trip around Humboldt Bay.

 

����������� 3.�� Adopt Single Year Audit of Fiscal Year 1998-1999

�����

����� Dir. Hemphill moved to adopt the Single Year Audit of Fiscal Year 1998-1999 presented by

����� Aycock and Edgmon, CPAs; seconded by Dir. Ripple.Vote taken; motion passed���

����� unanimously.

 

4.�� Approve Firm to Provide Single Year Audit of Fiscal Year 1999-2000

��� ��Executive Director Bridges reported Aycock and Edgmon, CPAs, were the sole responders to

����� NCRA�s Request for Proposal to Provide an Independent Audit.

 

����� Dir. MacKenzie moved to authorize Executive Director Bridges to enter into an Agreement��

����� with Aycock and Edgmon, CPAs; seconded by Dir. Ripple.Vote taken; motion passed��

����� unanimously.

 

5.�� Consider Approach to Southern Division Repairs to Class I Status

����� Executive Director Bridges reported Herzog Contracting Corp. (Herzog) may be willing to

����� complete the Southern Division repairs and CalTrans has indicated possible contract approval

����� under a sole-source procurement.However, CalTrans will not recommend reimbursement for����

����� work performed by Rail-Ways, Inc. due to an audit which found exception to record-keeping

����� practices.Chair Jehn recommended Mr. Bridges proceed with a course of action to get the��

����� Railroad re-opened.

 

����������� 6.�� Haystack Landing Bridge

����� Executive Director Bridges reported the Coast Guard has ordered the Bridge be repaired.

����� Although the Northwestern Pacific Railroad Authority (NWPRA) owns the bridge, NCRA is

����� responsible for its repair.NWPRA offered to loan NCRA $125,000.��

 

����� Dir. Hemphill moved to authorize Executive Director Bridges to enter into a contract with��

����� Vortex Diving not to exceed $150,000; seconded by Dir. Ripple.A roll call vote was taken;

����� each Director responded affirmatively; motion passed unanimously.

 

7.�� Consider Extension of Commencement Date of Permanent Operating Agreement with���

����� NWPY

 

����� Dir. Simonson moved approval to extend the start-up date of the Operating Agreement with

����� NWPY to September 20, 2000; seconded by Dir. Schlienger.Vote taken; motion carried.

 

 

 

H.                LIAISON REPORTS

������������ 1.�� Northwestern Pacific Railroad Authority (NWPRA) � Executive Dir. Bridges

������� Dir. Hemphill said NWPRA reported on the governance of the Railroad by so many agencies,

������� and he reported to them on funding issues, re-opening the Railroad, and administration.���

 

������������ 2.�� Legislation � Executive Dir. Bridges

������� Mr. Bridges reported there is a bill penned by Assembly Member Strom-Martin that will�����

������� allow increased flexibility of Transit Capital Improvement funds designated for NCRA.

 

������������ 3.�� Passenger � Chair Jehn

������� No report.

 

4.�� Cities � Dir. MacKenzie

������� Dir. MacKenzie reported he looks forward to working with the Board and Executive Director��

�������� in making sure communication with the cities along the line is �wide open.�

 

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

������� Chair Jehn reported SMART will meet September 13 and will approve a final draft of the����

������� document outlining commute rail start-up between Cloverdale and San Rafael beginning as

������� early as 2005.

 

6.�� Mendocino Council of Governments Technical Advisory Committee � Ms. Logan

������� Ms. Logan reported the 10% set-aside of State Transit Improvement Program funds is����������������

������� approved by the Mendocino Council of Governments to be used for Railroad Crossings.

������� The cities and counties will recommend which crossings are to be repaired first during

������� November.

 

7.�� Web Site � Chair Jehn

������������������ Chair Jehn reported visitation to the site continues to be about 3,000 hits per month, and��

������������������ 143 subscribers.In addition, a more sophisticated map will be added with the help of a���

������������������� volunteer.

 

8.      CalTrans District 1�District External Advisory Liaison Committee (DEAL) � Dir.����

Opalach

������������������� Dir. Opalach reported attending his first meeting August 2 with fourteen members of the

�������������������� community.He gave an update on the funding provided to the Railroad by AB 2928, and

��������������� �����feels being invited to participate in regional transportation issues indicates CalTrans views

�������������������� the Railroad as an important part of the transportation system.Meetings are quarterly; the

�������������������� next meeting is November 1.

 

�������������� 9.�� Contractor � Northwestern Pacific Railways Company, LLC (NWPY)

�������������������� John Darling, President of Rail-Ways, Inc., reported Rail-Ways, Inc. is being replaced by���

�������������������� NWPY that adheres to the accounting procedures as required by 49 CFR, 48 CFR, and 44����

�������������������� CFR.����

 

��������������������� He is working with Herzog and NCRA to remain within the budget for completing Southern

��������������������� Division repairs by utilizing the people most familiar with the Line.

 

��������������������� He reiterated the Board�s concern that the Haystack Landing Swing Bridge will continue to��������

��������������������� be a problem even after repair in that it is obsolete.

 

����������� ����������Tomorrow he, Herzog, and Chair Jehn are meeting with the Federal Railroad��������������

��������������������� Administration (FRA) to discuss compliance with Emergency Order 21 and an approach to

��������������������� the Southern Division re-opening.��

 

��������������������� To open to Willits, Mr. Darling indicated it will be between 90-120 days beyond the date of��

���������������������� re- opening to Petaluma.

 

I.���������� EXECUTIVE DIRECTOR REPORT � Mr. Bridges

������������� Executive Director Bridges reported he will attend a meeting in Ventura next week where the

������������� California Transportation Commission will discuss guidelines to dispersing AB 2928 funds.In��

������������� addition, he attended a workshop in Oakland on the State Freight Rail Plan.����

 

J.���������� PROPERTY MANAGER � Ms. Logan

������������� Property Manager Logan reported collecting approximately $25,000 in past due property

������������� accounts last month.This months billing will go out after the Property Management Committee

������������� Meeting at the end of this month.

 

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

������������� No report.

 

L.��������� MATTERS FROM BOARD MEMBERS

������������� Chair Jehn informed Dir. MacKenzie he would be unable to join the Closed Session

�������������� telephonically.

�����������

�������������� Dir. Opalach volunteered to give a presentation to the Humboldt County Board of Supervisors on

�������������� August 22.

 

M.�������� ANNOUNCEMENT OF NEXT MEETING

������������� Regular Board Meeting � September 20, 2000 10:00 a.m.

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

 

N.��������� CLOSED SESSION � Convened at 12:15 p.m.

������������ 1.�� Conference with Real Estate Negotiator � Ms. Logan

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

������������������� Concerning Sale of the Ukiah Depot

������������� 2.�� Conference with Real Estate Negotiator � Fiber Optics � Ms. Logan

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

������� a.�� Pacific Bell

������������������� b.�� Qwest Communications

3.      Conference with Legal Counsel � Existing Litigation

������� Government Code Section 54956.9

�������� a.�� Rail-Ways, Inc. v. NCRA, California Western (Including Consideration of Rail-

��������������� Ways, Inc. Claim)

��������������������� b.�� NCRA v. Green

��������������������� c.�� Green v. NCRA (2 Cases)

��������������������� d.�� Claim of Richard Reid

�����������������

��������������

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

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

������������������� a.�� California Western

������������������� b.�� Bushnell Enterprises v. NCRA (Consideration of Stipulation)

 

O.�������� ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION � Reconvened at 1:55 pm

������������ 1.�� Conference with Real Estate Negotiator � Ms. Logan

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

������������������ Concerning Sale of the Ukiah Depot

����������������� General Counsel Neary reported the Board gave direction to Ms. Logan.

 

������������ 2.�� Conference with Real Estate Negotiator � Fiber Optics � Ms. Logan

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

������� a.�� Pacific Bell

����� ��������������b.�� Qwest Communications

������������������������� General Counsel Neary reported the Board gave direction to Ms. Logan.

 

3.��� Conference with Legal Counsel � Existing Litigation

Government Code Section 54956.9

������� a.�� Rail-Ways, Inc. v. NCRA, California Western (Including Consideration of Rail-���

������������� Ways, Inc. Claim

������������������������� General Counsel Neary reported he received direction from the Board and the matter

������������������������� was continued to September Board Meeting.

 

�������������������� b.�� NCRA v. Green

�������������������������� General Counsel Neary reported he was given direction by the Board.

 

�������������������� c.�� Green v. NCRA (2 Cases)

�������������������������� General Counsel Neary reported the Board authorized $322,000 retention pending

��������������������������� resolution.

 

�������������������� d.�� Claim of Richard Reid

��������������������������� General Counsel Neary reported this matter was continued to the September Board

��������������������������� Meeting.

 

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

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

�������������������� a.�� California Western

�������������������������� General Counsel Neary reported he was given direction by the Board.

 

��������������������� b.�� Bushnell Enterprises v. NCRA (Consideration of Stipulation)

���������������������������������� General Counsel Neary reported a claim was approved by the Board for����������

���������������������������� $180,044.27 subject to review of the document to be prepared by Bushnell��

���������������������������� Enterprise�s counsel.

 

P.��������� ADJOURNMENT

������������ Chair Jehn adjourned the meeting at 1:57 p.m.