NORTH COAST RAILROAD AUTHORITY (NCRA)

SPECIAL MEETING OF THE BOARD OF DIRECTORS

Conference Call

MAY 30, 2006 ~ 4:00 PM

Minutes Approved June 14, 2006

Call-in Location:� NCRA ~ 419 Talmage Road, Suite M, Ukiah

A.����������� CALL TO ORDER

��������������� The meeting was called to order at 4:03 p.m.

B.����������� ROLL CALL

��������������� Directors Present:� Director Simonson, Director Wagenet, Director Kelley, Director Ollivier, Director Woolley, Chairman Hemphill

��������������� Directors Absent:� Director LaVallee

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

C.����������� AGENDA APPROVAL

��������������� The agenda was approved unanimously..

D.����������� MATTERS FROM THE BOARD

��������������� There were no matters from the Board.

E.������������ PUBLIC COMMENTS

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����������� There were no members of the public present.

F.������������ CONDUCT OF BUSINESS

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��������������� There were no Conduct of Business Items.

G.����������� CLOSED SESSION

The Board convened into Closed Session at 4:05 p.m.

Director LaVallee joins call at 4:07 pm.

��������������� 1.����������� Conference with Real Estate Negotiators; Government Code 54956.8

������������������������������� Property:  NWP line

������������������������������� Agency Negotiators:  NCRA Operator Committee comprised of Allan Hemphill, Hal Wagenet, and Robert Simonson

������������������������������� Negotiating Parties:  NCRA and respondents to the NCRA Request for Proposals for Operator chosen by the Operator Committee on April 10, 2006 for the �Short List�:  NWP, Inc;  Sierra Railroad Company;  and North Bay & Pacific Railroad ��������������������������������������������� Co. Inc.Under Negotiation: Terms of Operating Agreement transferring leasehold in portions of the NWP line to a potential operator, including price, terms.

Director Woolley leaves call at 4:35 p.m.

H. ��������� ANNOUNCEMENT OUT OF CLOSED SESSION

The Board reconvened into open session at 4:45

The Board of Directors directed its staff to commence negotiations with NWP Inc. for a lease and operating agreement of the NWP line for freight service for the Southern Division from Lombard to a point North of Willits, with an option for the Humboldt Bay Division from South Fork to Samoa; an option for the Northern Division; and an option for excursion service.� The vote was 6-0 with Director Woolley absent.

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I.������������� ADJOURNMENT

The meeting was adjourned at 4:47.