NORTH COAST RAILROAD AUTHORITY

BOARD OF DIRECTORS

REGULAR MEETING MINUTES

WEDNESDAY, DECEMBER 15, 1999

HEALDSBURG CITY HALL

HEALDSBURG, CALIFORNIA

  1. CALL TO ORDER

    Chair Robert Jehn called the meeting to order at 10:00 a.m.

  2. ROLL CALL

    Directors present: Chair Robert Jehn, David Ripple, Allan Hemphill, Daniel Opalach, Robert E. Simonson, and Max Schlienger. Director absent: Jack McKellar. Also present: Executive Director Max H. Bridges, General Counsel Christopher J. Neary, Property Manager Cyndee Logan, and Russ Mustola, CPA.

  3. INTRODUCTION OF NEW BOARD MEMBERS

    Chair Jehn introduced Robert E. Simonson and Max Schlienger, both Mendocino County Representatives.

  4. MINUTES

Motion to approve Minutes of November 12, 1999 Special Meeting and November 17, 1999 Regular Meeting by Mr. Hemphill. Seconded by Mr. Ripple. Vote taken. Motion carried.

E. AGENDA APPROVAL

Legal Counsel Chris Neary proposed a Closed Session Item be added regarding a Real Property Negotiation concerning the Mendocino Transit Authority. Motion by Dave Ripple to approve the agenda with the addition of Closed Session Item M.4. Seconded by Allan Hemphill. Vote taken. Motion carried.

  1. PUBLIC COMMENTS

    James W. Calkins, Attorney for Gary Boots, Pacific Rail Services, is eager to seek resolution of this claim.

    David Nelson, ex-Director for NCRA, pledged to remain involved with the Railroad.

    David Fuller received confirmation that the track is to be brought up to Class II Standards as indicated by Chris Neary at the November 15, 1999 NWPRA Board Meeting.

    Allan Wade, representing Dairyman’s Feed and Supply Coop, indicated each feed company in Petaluma loses about $34,000 per month coupled with increased truck traffic and a loss of business because they depend on the Railroad.

  2. CONDUCT OF BUSINESS
    1. Authorization of janitorial services for the Cloverdale Office

      Mr. Bridges explained that Sonoma County will pay $40 per month to have the restrooms cleaned under our contract increasing the monthly amount to $120. Motion to approve by Mr. Simonson subject to Compulsive Cleaning’s insurance naming NCRA as additionally insured. Seconded by Mr. Hemphill. Vote taken. Motion carried.

    2. Consideration of a preliminary proposed Budget for Fiscal Year 2000-2001

      Mr. Bridges recommended creation of a finance committee, therefore, Chair Jehn, Mr. Opalach, and Mr. Simonson volunteered. Motion by Mr. Simonson to approve as a tentative budget for next year with the understanding that it will be brought back to the Board later. Mr. Hemphill seconded. Vote taken. Motion carried.

    3. Request for Special Orientation Meeting for Staff and Board Members

Mr. Bridges recommended a special meeting to orient new members. A study session was arranged for January 8, 2000 at Brooktrails in Willits.

  1. LIAISON REPORTS
    1. NWPRA – Max H. Bridges

Mr. Bridges reported the meeting was Monday, December 13, 1999. Sonoma-Marin Area Rail Transit’s consultant gave a presentation on the agency’s activities. No action was taken on the agreement with NorCare, it will be considered at next month’s meeting. Development of Station Properties was discussed. The next meeting is January 24, 2000 at 10:00 a.m. at the Golden Gate Bridge District.

2. Legislation – Max H. Bridges

Mr. Bridges reported he and Chair Jehn met yesterday with the Governor’s Office of Emergency Services, Senator Chesbro’s office, and Assemblyperson Strom-Martin’s office to point out the need for legislation to support the NCRA. Mr. Opalach indicated he has appointments with the Eureka staff of the offices of Senator Thompson, Assemblymember Strom-Martin, and Senator Chesbro on Friday, December 17, 1999.

Gary Milliman, representing the California Shortline Railroad Association, informed the Board that Assemblymember Strom-Martin has drafted legislation, AB-1093, to fund Shortline rehab projects. In addition, he stated the Association would welcome the opportunity to work with NCRA on legislative issues.

3. Passenger – Robert Jehn

No report.

4. Cities – Jack McKellar

No report.

5. Sonoma-Marin Area Rail Transit Commission (SMART) – Robert Jehn

Chair Jehn reported the SMART meeting is today at 2:00 p.m. The significant item on the agenda is their consultant’s report on the preferred method for start up.

    1. Contractor – Rail-Ways, Inc.

Many Rail-Ways employees were in attendance to support Ron Poulsen, Engineer with North Western Pacific Railway, LLC as he spoke urging NCRA to secure more funding with which to pay contractors. John Darling, Rail-Ways President, assured the Board and his employees that he will be meeting with the State to request funding.

I. STAFF REPORTS

    1. Executive Director – Max H. Bridges

Mr. Bridges reported OES will provide project monitoring when construction begins on the North end. In addition, OES agreed to review the issuance of funds for Disaster 1203 so that in projecting its needs, NCRA can rely on an identified funding source in discussions with the Governor’s office and Legislature.

2. Property Management – Cyndee Logan

Ms. Logan reported she is reviewing leases in an effort to improve property managing income.

J. LEGAL

    1. Environmental Compliance

General Counsel Chris Neary will issue a written report to the Board before the January 8, 2000 meeting.

2. Meeting with Union Pacific

Mr. Neary reported that Union Pacific has proceeded with the environmental clean up of the Ukiah Depot. UP has presented a report to the Water Board which indicates the Eastern portion has no significant environmental issues and they are presenting a plan for monitoring at that site leading to a transfer of ownership interest.

In addition, Mr. Neary reported the settlement of Peterson v. NCRA, where Mr. Peterson’s foot was crushed between to cars. NCRA paid a $25,000 deductible and the insurance carrier paid the balance of the settlement, $75,000. Another employee while under service with NCRA, through no fault of his own, struck and killed a pedestrian is going to trial in Humboldt County on January 24, 2000.

Further, the Schwartz and Harger case where two employees were injured in a motor car accident is very close to settlement.

  1. MATTERS FROM BOARD MEMBERS

    Mr. Opalach reported that he met with the North Coast Leadership Roundtable in Eureka whose members discussed drafting a statement in support of NCRA.

  2. ANNOUNCEMENT OF NEXT MEETING

    A study session to be held on January 8, 2000 in Willits, California

    Regular meeting to be held on January 19, 1999 at 10:00 a.m. in Mendocino County

  3. CLOSED SESSION

1. Conference with Legal Counsel – Potential Litigation

Government Code Section 54956.9 (Union Pacific)

    1. Conference with Legal Counsel – Potential Litigation

      Government Code Section 54956.9 (Pacific Rail Services)

    2. Conference with Real Property Negotiator

      Government Code Section 54956.8

      Negotiating Parties: Pacific Bell, etc., NCRA

      Under Negotiation: Longitudinal Easement

    3. Conference with Real Property Negotiator

Government Code Section 54956.8 (Ukiah Depot)

Negotiating Parties: MTA, NCRA

  1. ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION

Chair Jehn reported Item 3, fiber optic lease negotiations are on-going. Mr. Neary reported the Board gave direction to Legal Counsel on Item 1 authorizing a settlement upon technical review of a claim by Union Pacific for two items; one relating to damaged cars and a $17,000 older claim. With respect to Item 2, Pacific Rail Services, the Board considered two amended claims. NCRA approved a portion of the larger claim and continued the smaller claim to the January meeting for the development of further information. As for Item 4, NCRA directed Legal Counsel to file a lawsuit against Jon Green to challenge his attachment on the Ukiah Depot which is a barrier to its sale to MTA.

O. ADJOURNMENT

The meeting was adjourned at 12:40 p.m.