NORTH COAST RAILROAD AUTHORITY (NCRA)

BOARD OF DIRECTORS REGULAR MEETING

Thursday, October 27, 10:00 am

Willits City Council Chambers ~111 E. Commercial Street

Mendocino County

APPROVED MINUTES

A. CALL TO ORDER

Chairman Woolley called the meeting to order at 10:10 am

B. ROLL CALL

Directors Present: Directors Simonson, LaVallee, Wagenet, Hemphill, Chairman Woolley

Directors Absent: Director Ollivier

Also Present: Executive Director Mitch Stogner, Legal Counsel Christopher Neary and Recording Secretary Heather Newell

C. AGENDA APPROVAL

Agenda stood as presented after the following changes:

Upon recommendation by Legal Counsel, Item H.5 was moved until after closed session.

Upon recommendation by the Executive Director, TCRP and FEMA/OES Budgets were added under Item E.3.

D. MATTERS FROM THE BOARD

Chairman Woolley stressed the importance of an open dialogue between all funding agencies involved with NCRA after the veto of SB792. He suggested a workshop to bring all parties together to discuss strategies for obtaining much needed funding.

Director Wagenet stressed the importance of a relationship between NCRA and the Harbor District.

E. CONSENT CALENDAR

Motion to approve the Consent Calendar made by Director Hemphill, seconded by Director LaVallee Carried Unanimously (5-0).

1. Approval of Financial Statements - August 2005

2. Approval of Financial Statements - September 2005

3. Approval of Final 05-06 NCRA Budget

4. Approval of Minutes – Property Meeting – August 2005

5. Approval of Minutes – Regular Meeting - August 2005

6. Approval of TCRP 05-06 Budget

7. Approval of FEMA/OES 05-06 Budget

F. PUBLIC COMMENT

Moss Bittner updated the Board on the September Harbor District meeting. He agreed with Chairman Woolley that an open dialogue with all of the stakeholders including Consent Decree agencies would be very beneficial.

Richard Jensen updated the Board on recent Willits News articles relative to SB 792(Chesbro) and said that he felt that the articles required an editorial response.

G. PRESENTATIONS

Chairman Woolley provided staff with a CD-ROM that Rick Khamsi prepared of photos taken along the NCRA right-of-way.

H. CONDUCT OF BUSINESS

1. Request Board Support for Access to ISTEA Funding

Motion to approve the following made by Director Hemphill, seconded by Director Simonson, and carried unanimously (5-0):

1. Authorize Executive Director to work with Congressman Mike Thompson’s staff to effectuate the transfer of $8.6 million in ISTEA funding from FHWA to FRA;

2. Authorize the Executive Director to begin development of the scope-of- work and DBE program necessary to secure ISTEA funding;

3. Authorize the Executive Director to apply for the $2.1 million required local match through the Traffic Congestion Relief Program (TCRP).

2. Policy Discussion Regarding RFP and Establishment of Peer Review

No Action – The Board unanimously supports further discussion of the concept of a Peer Review Committee to provide input to the Board throughout the operator-RFP process.

3. Consideration of Support Position of GO21 Principles

Motion to approve adoption of Go21 Principals made by Director Simonson, seconded by Director LaVallee, and carried unanimously (5-0).

4. Consideration of Track Access Policy

No Action – After discussion, it was decided that the item will be brought back for future Board Consideration.

5. Consideration of Passenger Operations Termination Agreement

The Board unanimously (5-0) approved the concept of the settlement and recommended that the details of the settlement be delegated to the Operator Committee.

I. COMMITTEE REPORTS

1. Operator Committee Report – Director Hemphill

Director Hemphill made a brief report of the status of NCRA vs. Jerico Products and deferred details for further discussion in closed session.

J. STAFF REPORTS

1. Executive Director Mitch Stogner

a) Veto of SB 792

b) Update on FEMA/OES Grant – Dave Anderson

2. Legal Counsel Chris Neary

The Board convened into Closed Session at 11:45 am

K. CLOSED SESSION

1. Conference with Legal Counsel – Anticipated Litigation

Significant Exposure to litigation pursuant to Government Code 54956.9(b) (three cases)

2. Conference with Legal Counsel – Existing Litigation

Government Code 54956.9(a) (4 cases)

a.) NCRA vs. Jerico Products, Sonoma County # 235961.

b.) Jerico Products vs. SMART, Northern District of California, Case # C-05-00210 JSW.

c.) NCRA vs. U.S. Coast Guard (FOIA action), Northern District of California,

Case # C 05-2739.

d.) California Western vs. NCRA; STB Finance Docket # 34337 and accompanying case before U.S. Circuit Court of Appeals, Ninth Circuit.

The Board reconvened into Open Session at 12:15 pm.

L. ANNOUNCEMENT OUT OF CLOSED SESSION

The Board met with its Legal Counsel on three matters of Anticipated Litigation and four matters of Existing Litigation and received information and gave direction to Counsel.

The Board unanimously (5-0) approved the concept of the settlement between Jerico vs.SMART and NCRA vs. Jerico Products and the finalization of the settlement was delegated to the Operator Committee.

Deferred action on California Redwood Coast matter until the December Meeting

M. ANNOUNCEMENT OF NEXT MEETING

December 14, 2005

Healdsburg City Council Chambers

Sonoma County

N. ADJOURNMENT

The meeting was adjourned at 1:02 pm to the next regularly scheduled December 14, 2005 meeting.