NORTH COAST RAILROAD AUTHORITY (NCRA)

BOARD OF DIRECTORS REGULAR MEETING

Thursday, July 28, 10:00 am

Healdsburg City Council Chambers

401 Grove Street, Healdsburg

Sonoma County

Final MINUTES

A. CALL TO ORDER

The Meeting was called to order at 10:10 am.

B. ROLL CALL

Directors Present: Directors Simonson, LaVallee, Hemphill and Chairman Woolley.

Directors Absent: Directors Ripple, Ollivier, Wagenet.

C. AGENDA APPROVAL

Chairman Woolley received consensus from the Board to convene into closed session at 10:15 am. With that change and upon motion by Director Simonson, seconded by Director LaVallee and carried (4-0) the Agenda was approved.

The Board convened into Closed Session at 10:15 am.

The Board reconvened into Open Session at 11:00 am.

D. CONSENT CALENDAR

Consent Calendar was approved unanimously (4-0)

Approval of Financial Statements – June 2005

Approval of Minutes - Regular Meeting - June 2005

Approval of Minutes - Property Committee Meeting - June 2005

Approval of Minutes - Special Meeting – July 2005

E. PUBLIC COMMENT

Mike Pechner presented the Board with a handout entitled “Before the North Coast Railroad Authority Monthly Meeting at Healdsburg, Calif. In Thursday, July 28, 2005.” Said document is hereby made a part of these minutes by reference.

Mike Hart discussed the FEMA Alternate Project funds and possible equipment purchase with these funds. He was concerned that the equipment and box cars would be “unmarketable.” He also talked about possible assignment of the Operator Agreement to a “non-railroad operator.” He emphasized that he would like to see the FEMA Alternate Project funds used to make the track repairs necessary to get the line reopened.

J.T .Wick informed the Board that Berg Holdings had reached agreement on the acquisition of NWPY. Mr. Wick told the Board that Berg Holdings was in the process of obtaining the required signature to finalize the acquisition. NCRA Legal Counsel said he was not aware of any agreement.

John Clifton submitted to staff a document entitled “Remarks by John Clifton July 28, 2005”. Said document is hereby made a part of these minutes by reference.

Loretta Ellard asked that the Board review the draft Mendocino County Regional Transportation Plan “Rail Element” and make any comments NCRA would like incorporated. She also wanted the Board to be aware of the public meetings regarding the Regional Transportation Plan that are scheduled over the next couple of weeks. The Board directed staff to bring to the August Board meeting any comments that should be submitted for inclusion in the Regional Transportation Plan.

F. PRESENTATIONS

There were no presentations.

G. CONDUCT OF BUISNESS

1. Development of DBE Program and Scope-of-Work for ISTEA Funding

Motion to approve use of Alternate Project Funds to accomplish the development of a Disadvantaged Business (DBE) Program that conforms with federal requirements and develop a detailed scope-of-work for repairs to the Russian River Division (Willits, mp 142 to Lombard, mp 1), Motion made by Director Hemphill, seconded by Director Simonson, carried unanimously (4-0).

2. NCRA Volunteer Policy

Motion to authorize Dave Anderson to volunteer his time to formalize an NCRA Volunteer Program in consultation with the Executive Director and legal counsel. Motion to approve made by Director LaVallee, seconded by Director Hemphill carried unanimously (4-0).

H COMMITTEE REPORTS

1. Property Committee Report – Property Committee Chairman Ripple

No report as Director Ripple was absent.

I. STAFF REPORTS

1. Executive Director Mitch Stogner

a) OES/FEMA Alternate Project

Mr. Stogner reported to the Board that all permits have been secured and FEMA has released the final $1.5 million for bridge repairs. NCRA has submitted the final scope- of-work for the $7.9 million South End Alternate Project.

Staff report cont.

b) SB 792/HR 3

SB 792 will be sent to the Governor in August. Mr. Stogner is planning to meet with the Governor’s Legislative Affairs staff in August to reconfirm the need for SB 792.

c) Consent Decree Close Out

Mr. Stogner reported that in order for the Consent Decree Agencies to approve the final close-out report, HNTB’s team and NCRA staff will have to answer additional questions raised by the ECD agencies.

J. MATTERS FROM THE BOARD

The Board convened back into closed session at 12:20 pm.

Director Ripple arrives at 12:23 pm.

K. CLOSED SESSION

1. Conference with Legal Counsel – Existing Litigation pursuant to Gov. Code 54596.9 (a)

Coast Guard Proceeding, Activity 20226382

NCRA vs. Jerico Products, Sonoma County # 235961

Jerico Products vs. NCRA N.D. (Cal.) 05-210

Michael Meyer vs. NCRA STB # 34337

2. Conference with Legal Counsel – Significant Exposure to Litigation pursuant to Gov. Code 545969 (b) (2 cases)

3. Conference with Real Property Negotiators

Property: 336 N. Lenore Ave, Willits Ca

Agency Negotiator: Mitch Stogner

Negotiating Parties: G & S Milling

Under Negotiation: Terms, Price

Government Code Section 54956.8

The Board reconvened into Open Session at 1:30 pm

L. ANNOUNCEMENT OUT OF CLOSED SESSION

The Board met with Real Estate Negotiator Mitch Stogner, received information and gave direction in relation to terms and price of Lease with G & S Milling.

The Board unanimously gave staff direction to take all necessary steps consistent with the termination of the Operator Agreement.

M. ANNOUNCEMENT OF NEXT MEETING

August 25, 2005

Eureka City Council Chambers

Eureka, Humboldt County

N. ADJOURNMENT

The meeting was adjourned at 1:45 pm.