NORTH COAST RAILROAD AUTHORITY (NCRA)
BOARD OF DIRECTORS REGULAR MEETING MINUTES
WEDNESDAY, SEPTEMBER 20, 2000 AT 10:00 A.M.
Chair Jehn called the meeting to order at 10:00 a.m.
B. ROLL CALL
Directors present: Chair Robert Jehn, David Ripple, Allan Hemphill, Daniel Opalach, Robert E.
Simonson, and Jake Mackenzie.
Directors absent: Max Schlienger
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.
1. Passenger Committee Appointment
With Board concurrence, Chair Jehn appointed Dir. Hemphill to the Passenger Committee in his stead.
2. Consider Agreement for Legal Services
Executive Director Bridges recommended the Board enter into an agreement for legal services
with General Counsel Neary and pay him for his past work.
Dir. Hemphill moved approval to enter into a contract for legal services with Mr. Neary and
pay him for his past work when funds become available; seconded by Dir. Mackenzie. Vote
taken; motion passed unanimously.
3. Consider Cost of Living Wage Increase for Non-Management Employees
Executive Director Bridges recommended the Board provide a 5% cost of living adjustment for
the non-management employee because it has been two years since the last increase in wages.
Mr. Bridges indicated he will perform yearly employee evaluations for staff under his authority.
Dir. Simonson moved approval to provide a 5% cost of living adjustment for the non-
management employee for Fiscal Year 2000-2001; seconded by Dir. Mackenzie. Vote taken;
motion passed unanimously.
4. Consider Providing Employee Health Insurance
Executive Director Bridges reported an offering of health insurance is necessary to attract a
Project Manager. Membership in CalPers provides access to health insurance, therefore, Mr.
Bridges recommended NCRA provide up to $200.00 per month per employee toward health
insurance. The decision would not impact Mr. Bridges as any benefit represent a reduction in
his salary.
Dir. Mackenzie moved to authorize Executive Director Bridges to proceed with the steps
necessary to contract with CalPers with the understanding that the employer contribution by
NCRA will be up to $200.00; seconded by Dir. Opalach. Vote taken; motion passed
unanimously.
5. Discuss Arrangements for Ribbon Cutting Ceremony for Anticipated Resumption of
Service to Petaluma
Chair Jehn requested input from Directors and members of the public to augment his idea to
invite the Governor to ride a train to the re-opening celebration near Petaluma.
6. Extension of Start-Up Date for Northwestern Pacific Railway Co. LLC (NWPY) and
Northwestern California Railway Engineering Corp. (NorCare) Permanent Operating
Agreement
General Counsel Neary recommended extending the start-up date to the September meeting.
Dir. Simonson moved approval to extend the start-up date to the October Meeting;
seconded by Dir. Ripple. Vote taken; motion passed unanimously.
7. Property Management Issues
a. Approve Fee Structure
Property Manager Logan requested approval of the fee structure for leases as presented based on the Property Management Committee’s suggestions.
Dir. Hemphill moved approval of the fee structure for leases as stated in the proposal and defer the fee structure for encroachments until a fair market value is determined, factoring in the cost of administration, and allowing an opportunity for input by the public; seconded by Dir. Mackenzie. Vote taken; motion passed unanimously.
b. Rail Employees/Residents on Railroad Property
Property Manager Logan proposed a policy statement for dealing with residents on Railroad property. Dir. Simonson recommended exchange of the word “unauthorized” for “illegal.” Executive Director Bridges indicated the issue is insurance. Mr. Darling, President of Rail-Ways, Inc. said he would indemnify authorized Railroad residents who provide security.
Dir. Mackenzie moved approval of the proposed policy statement exchanging the word “unauthorized” for “illegal;” seconded by Dir. Simonson. Vote taken; motion carried.
8. Request Copier for Eureka Business Office
Executive Director Bridges recommended purchase of a used copier for $536 for the Eureka office.
Dir. Simonson moved approval of the purchase of a used copier for $536 for the Eureka office; seconded by Dir. Mackenzie. Vote taken; motion passed unanimously.
1. Northwestern Pacific Railroad Authority (NWPRA) – Executive Dir. Bridges
Mr. Bridges reported NWPRA requested collateral for an anticipated loan to NCRA for
$250,000 to repair the Haystack Landing Bridge. Due to collisions and vandalism, General
Counsel Neary requested addition of an emergency item to the Agenda – Consider Providing
Security on the Haystack Landing Bridge. Mr. Neary recommended the Board authorize Mr.
Bridges to put security in place at the bridge until repair work begins in approximately 30 days.
Dir. Mackenzie moved to agendize as emergency items: 1) Security for the Haystack Landing
Bridge, and 2) Collateral for NWPRA loan; seconded by Dir. Hemphill. A 4/5 vote of the
entire Board was necessary: all Directors present needed to vote affirmatively. Vote taken;
motion carried.
Dir. Mackenzie moved to allocate up to $7500.00 towards half of the cost of providing
security for the Haystack Landing Bridge in partnership with NWPRA; seconded by Dir.
Hemphill. Vote taken; motion passed unanimously.
b. Collateral for NWPRA Loan
Dir. Hemphill moved to allocate a loan of up to $250,000.00 to repair the Haystack
LandingBridge, and pledge the proceeds of the sale of the Ukiah Depot to repay such
loan from NWPRA; seconded by Dir. Ripple. A roll call vote was taken. All Directors
voted “aye;” motion carried.
2. Legislation – Executive Dir. Bridges
Mr. Bridges reported AB1093 passed.
3. Passenger – Dir. Hemphill
Chair Jehn announced his replacement by Dir. Hemphill.
4. Cities – Dir. Mackenzie
Dir. MacKenzie reported he will consider contacting representatives from each City on the
Line electronically as items come up, such as, alerting each about the proposed increase in
encroachment fees.
5. Sonoma-Marin Area Rail Transit Commission (SMART) – Chair Jehn
Chair Jehn reported SMART is hiring a project manager then applying for the $37 million in
funds allocated to them in the Governor’s Budget.
6. Mendocino Council of Governments Technical Advisory Committee – Ms. Logan
Ms. Logan reported Mr. Bridges attended the Mendocino Council of Governments meeting
when money was set aside to be used for railroad crossings throughout the county. Chair Jehn
recommended the Directors and staff visit Sonoma County and Humboldt County Association
of Government meetings.
7. Web Site – Chair Jehn
Chair Jehn reported visitation to the site is about 4,000 hits per month with 137 subscribers. Mr.
Bridges recommended additional uses for the web site including downloads such as
encroachment applications, and that the Board may consider hiring a professional web master.
9. Contractor – Northwestern Pacific Railways Company, LLC (NWPY)
John Darling, President of Rail-Ways, Inc., reported NWPRA is investigating vandalism of
the Brazos Bridge. In addition, the power cable at Black Point Bridge is severed. With Mr.
Bridges approval, it will be repaired by the end of the week. He reported contact with
shippers eager to use the Line: a marketing officer has been hired.
H. EXECUTIVE DIRECTOR REPORT – Mr. Bridges
Mr. Bridges reported he will make a presentation on the status of NCRA to the Public Transit
Committee of the California Transportation Commission next week in San Francisco. The
Agenda also includes five applications for funds from the Transportation Congestion Relief
Program (TCRP); $10 million for debt reduction, $1 million for re-opening Willits North, a
portion of environmental funds, a portion of matching funds, and funds to repay the Q-fund.
CalTrans has been very helpful with the applications, the consultant selection process, and the
sole-source procurement for Herzog to re-open the South End. The Request for Proposals for
Engineering Services process may need correction.
I. LEGAL REPORT – General Counsel Christopher J. Neary
1. Proposed Bidding Policy
Mr. Neary provided a proposed bidding policy for the Board to review and consider at the next Board meeting.
2. Proposed Special Legislation for Public Contracts Code
Mr. Neary presented special legislation to formalize policy in issuing public contracts for the Board to review and consider at the next Board meeting.
3. Establishment of Prevailing Wage Rates for NCRA Public Works Contracts
Mr. Neary reported CalTrans has determined NCRA needs to establish the payment of prevailing wage rates in all public works contracts. He has requested and expects issuance by the Department of Industrial Relations prior to the next meeting.
Additionally, Mr. Neary reported termination of the temporary restraining order issued in the matter of Green v. NCRA, and that Mr. Green dropped his application for relief.
Dir. Opalach reported appearing before the Humboldt County Board of Supervisors on August 22
to discuss the status of NCRA including an overview of the TCRP, repair of the South End, and the
Environmental Assessment with FEMA/OES. He reported receiving much support, much interest,
and the Supervisors expressed happiness in the Railroad’s progress and willingness to help.
Regular Board Meeting – October 18, 2000 10:00 a.m.
Willits City Council Chambers, 111 East Commercial Street, Willits, Mendocino County, CA
Government Code Section 54956.8
Concerning Sale of the Ukiah Depot
Chair Jehn announced the Board received information from Ms. Logan
2. Conference with Real Estate Negotiator – Fiber Optics – Ms. Logan
Government Code Section 54956.8
a. Pacific Bell
b. Qwest Communications
Chair Jehn announced the Board received information from Ms. Logan
3. Conference with Legal Counsel – Existing Litigation
Government Code Section 54956.9
a. Rail-Ways, Inc. v. California Western (CWR)
Chair Jehn announced Mr. Neary provided information and was given direction.
b. Claim of CWR
Chair Jehn announced Mr. Neary provided information and was given direction.
c. NCRA v. Green
Chair Jehn announced Mr. Neary provided information and was given direction.
d. Green v. NCRA (2 Cases)
Chair Jehn announced Mr. Neary provided information and was given direction.
e. Claim of Richard Reid
Chair Jehn announced Mr. Neary provided information and was given direction.
4. Personnel Issue
Government Code Section 54956.7
Employee Performance Evaluation – Executive Director
Chair Jehn announced due to time constraints this item was continued to October’s meeting.
N. APPROVAL OF DEBT REPAYMENT PLAN
Executive Director Bridges presented a summary of judgment debt, trade debt, and contingent
debt for approval. NCRA intends to use the money from the CTC to satisfy all the judgment debt
and the principal portion of the trade debt. Property revenue will be used to satisfy the interest.
Dir. Mackenzie moved approval of the debt schedule with one modification: the Meecham car
debt be moved to a contigent debt with agreement by Dir. Hemphill to contact the creditor to see
what can be worked out; seconded by Dir. Ripple. Vote taken; motion passed unanimously.