������ NORTH
COAST RAILROAD AUTHORITY (NCRA)
BOARD OF DIRECTORS REGULAR MEETING MINUTES
WEDNESDAY,
FEBRUARY 16, 2000
531 K STREET, EUREKA CITY HALL, EUREKA, CALIFORNIA
�
A.
CALL TO ORDER
Chair Jehn called the meeting to order at 10:03 a.m.
B.
ROLL CALL
Directors present:�
Chair Robert Jehn, David Ripple, Allan Hemphill, Robert Simonson, Daniel
Opalach, Jack McKellar, and 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.
C.
MINUTES
1.
Approval of Minutes of the
January 8, 2000 Special Board Meeting
2.
Approval of Minutes of the
January 19, 2000 Regular Board Meeting
Motion to approve both
sets of Minutes by Dir. Hemphill; seconded by Dir. Ripple.� Vote taken;�
motion carried.
Legal Counsel Neary reported Agenda Item G.4 � Consideration of
Contract with Williams Communications � needs to be moved to after the Closed
Session.� Chair Jehn approved the Agenda
with Mr. Neary�s correction.
E. ������PUBLIC COMMENTS
Kay Strickland of Eureka, Citizens for Port Development, recommended
the Board consider being placed on the agenda for the Humboldt County
Supervisor�s meeting every three months when NCRA meets in this county.� In addition, the petition drive is
developing more slowly than last summer�s drive.� Further, she discussed an article from the Willits paper which she
gave to Dir. McKellar that reports a $400,000 planning study is to be performed.
F.
�����CONSENT AGENDA
1.�������� Ratification of
Contract with NetNation Communications, Inc. for Web Hosting Services
2.�������� Endorse Development
of Long Range Plan
3.
Transfer of Inventory to NorCare
Rex Bohn, L & M Renner, inquired as to
the nature of the inventory being considered for transfer.� His company is owed money by NCRA.� His concern is that NCRA is transferring
assets that could later be sold to pay creditors.� Mr. Bridges explained the majority of the inventory that is under
consideration has already been installed.�
In addition, the inventory would never leave the roadbed even after
transfer.��� Motion by Dir. Schlienger
to approve the Consent Agenda; seconded by Dir. McKellar.� Vote taken;�
motion passes unanimously.
G.
������CONDUCT OF BUSINESS
1.
Proposal for CalPERS Participation
Mr. Bridges recommended the Board authorize
the Executive Director to proceed with providing for participation in CalPERS
consistent with the Executive Director�s employment contract and include
payment by the Board of the employer portion for the Administrative
Assistant.� Motion by Dir. Ripple;
seconded by Dir. Simonson.� Vote taken;
motion carried unanimously.
2.
Consideration regarding Property Management Services
Mr. Bridges reported the current 36-month
contract with Cyndee Logan, Lake Management, expires April 8, 2000.� He discussed NCRA�s possible options and
requested policy direction.� Ms. Logan
indicated she would like a year extension with amendments to her contract.� Ms. Rockefeller urged the Board to renew Ms.
Logan�s contract.� Motion by Dir.
Hemphill for staff to negotiate a new contract with a one year extension which
addresses:� major real estate land deals
beyond the scope described in the current contract; comparable rates of
commission for property managers of public agencies; and firm up current
negotiation commitments and the commissions relating to them.� Seconded by Dir. McKellar.� Vote taken;�
motion carries unanimously.
3.
Proposed Budget for Fiscal Year 2000-01
Mr. Bridges prepared the proposed budget as a
tool to request funds at the State level for administrative functions of NCRA
beyond that allocated by AB2782.� Dir.
Hemphill recommended increasing the budget to include money to satisfy creditor
debt.� Mr. Darling described the need
for funds for environmental remediation in response to a proposed shifting of
funds from that category.
Motion by Dir. Hemphill to adopt the proposed
budget with addition of $1,000,000 for creditor relief and $20,000 to fund the
local match for development of the Long Range Plan approved under Item
F.2.� Seconded by Dir. Simonson.� Roll call vote taken;� motion carries unanimously.
H. ������LIAISON REPORTS
1.
NWPRA � Max H. Bridges
Mr. Bridges reported NWPRA received a report
from SMART regarding passenger service.�
In addition, NWPRA forgave the NCRA rent payment for five years and
while NCRA expends ISTEA funds within the boundaries of their portion of the
track.� NWPRA announced failed
negotiations for a fiber optic lease within their right of way.� Further, the development of station sites
was discussed.�������
2.�������� Legislation � Max H.
Bridges
����������� Chair Jehn reported AB 1093, sponsored by Assembly
Member Strom-Martin to������ provide
monies to 28 California short line Railroads, has passed the Assembly and is in
the Senate; however, it is competitive and will be managed by CalTrans.�
����������� In addition, he reported that a bill has been presented
that would allow local jurisdictions to pass transportation sales taxes by a
majority, instead of two-thirds, of voters.�����
3.�������� Passenger � Robert Jehn
Chair Jehn reported that, although the
committee has not met, a proposal was distributed by Anderson Adams of Redwood
Business Systems to operate a passenger excursion around Humboldt Bay.
4.�������� Cities � Jack McKellar
Dir. McKellar
reported an article from Willits discloses Mendocino Council of Governments
will perform a $400,000 feasibility study of NCRA; $320,000 will be funded by
State Transportation Grant Funds and the rest will, hopefully, be shared by council
of governments of four NCRA counties; Marin, Sonoma, Mendocino, and
Humboldt.� He referenced Pacific
Maritime magazine in reporting that East Coast ports receive government money
to improve facilities;� however, the
Humboldt Bay port suffers because other West Coast ports do not want this area
to compete for business.����
5. ������� Sonoma-Marin Area Rail
Transit Commission (SMART) � Robert Jehn
Chair Jehn reported CalTrans has a document
available for public review that proposes grade changes in Mill Valley near San
Rafael which may seriously affect the railroad right of way.� In addition, SMART seeks funding sources
through the planning stage; however, the commission is postponing decisions
until it learns of the disposition of Measures B and C.
6.
Contractor � Rail-Ways, Inc.
John Darling, President of Rail-Ways, Inc.,
provided the Board with a written report.�
He reported that he and Mr. Bridges met with NWPRA to discuss
development of the station sites used as duty points and stressed the
importance that the function of the facilities remain the same.� The track has sustained some damage due to
the latest storm, but will be restored to service again shortly.� The track from Lombard to near Penngrove is
ready for FRA inspection.� The Petaluma
bridge was hit again; a tug operator has given $1,000 to install a camera with
which to view the bridge so as to clear his boat�s involvement.� A survey of the economic impact from loss of
the bridge showed a loss to shippers of $8,000,000 per year.� It was forwarded to the Coast Guard to
justify a $53,000,000 investment.�
George Scott worked on the rest of the bridges and all are ready for FRA
inspection.� The highway signals are
ready for inspection; NorCare has obtained two signal trucks.� An additional $12,000 is needed to equip the
trucks to resume a continuing maintenance requirement.� In January, Mr. Poulsen, NorCare, and Mr.
Bridges met with the FRA Regional Administrator in Sacramento to discuss
protocols for track and signal inspection.�
The outcome was a tentative track inspection by the FRA for the end of
February.� Service will resume a week
after a successful inspection; however, NorCare is unable to fund the parts,
materials, and equipment for the signal forces.� Therefore, resumption of service is suspended indefinitely.� On the North End there are several
slipouts.� Some portions have yet to be
patroled due to closures.� The North End
work is delayed due to the National Marine Fisheries Services need to complete
a biological opinion which may take four to six weeks,� the Army Corp of Engineers� need to complete
preliminary drawings and to prepare permits, and completion of FEMA�s
Environmental Assessment in terms of incorporating possible changes based on
the public�s response.� Funding will
only be available after a finding of no significant impact estimated to be
complete in April.� Mr. Bridges received
a package on reporting requirements for environmental issues.� The Railroad passed an annual inspection by
the Mendocino County Environmental Health Board. �Fish passage issues need to be addressed;� funds may be available from Humboldt County
Resources Conservation District.� Mr.
Darling assured the Board that his firm is not pulling out; however, his staff
will be seeking other contracts until funding becomes available.
I.��������� COMMITTEE REPORTS
1.
Finance � Robert Jehn,
Daniel Opalach, Robert Simonson
a.
Status of AB2782 funds �
Russ Mustola, Consulting Accountant
Mr. Mustola offered
to answer questions.� He reported that
his reports indicate that NCRA does not withhold funds earmarked for
subcontractors; in fact, NCRA needs to recoup their money based on advances
given to subcontractors in order to receive reimbursements through FEMA and
Prop. 116 programs.� The fuel tax refund
has not been received.
�
b.
Status of the Single-Year
Audits from 1995-1996 � General Counsel Neary
Mr. Mustola
reported that Warren Staley has not responded to NCRA�s request to re-issue the
single-year audits of 1995 and 1996.� He
was provided with a fully drafted set of financials, with supporting work
papers from Mr. Mustola and Aycock and Edgmon, CPAs, in August of 1999.� The field work for the single-year audits
for 1997 and 1998 has been completed by Aycock and Edgmon; however, they cannot
complete their work without Mr. Staley�s response and a letter from Mr. Neary
which discusses various contingencies related to financial issues.���
2.
Organizational � Robert
Jehn, David Ripple
Chair Jehn reported the committee has not
met; however, a meeting will occur in March and a draft of revised Bylaws will
be reviewed.
�����������
J.�������� STAFF REPORTS
1.�������� Executive Director� �
Max H. Bridges
No report.
����������� 2.�������� Property Manager � Cyndee Logan
No report.
K.������� LEGAL REPORT � General Counsel
Christopher J. Neary
General Counsel Neary reported receiving a written response to
inquiries by two of three agencies involved in the consent decree;� the Regional Water Quality Board and
Department of Toxic Substances.� He and
Mr. Bridges will attend a meeting with all three agencies on March 15, 2000 in
Santa Rosa.� In addition, he and Mr.
Bridges will attend a meeting with UP the third week in March.
L.�������� MATTERS FROM BOARD MEMBERS
Dir. Opalach reported the North Coast Leadership Roundtable met with
Zuretti Goosby of Senator Wes Chesbro�s office to discuss ways to help the
Railroad.� One suggestion included
asking Senator Chesbro and Assembly Member Strom-Martin to convene a meeting
with representatives of the appropriate Federal and State agencies and other
interested parties to discuss resolving short and long term funding issues.
Dir. Hemphill indicated that NCRA should continue meetings; however,
the message should be that action is necessary to resolve funding issues by
relying upon the 5-Year Business Plan.
Chair Jehn responded that NCRA, with assistance from Rail-Ways, has
made headway involving our elected officials.
Dir. McKellar indicated that the shippers are ready and, although the
NWP is close to re-opening, the government seems to stand in the way.
Dir. Simonson commented the scarcity of media people at Board meetings
indicates that the public is unaware of the issues surrounding the
Railroad.� He indicated that local
people and governments are supportive and, if educated on Railroad issues,
constituents� throughout the counties
involved will capture political support.
Chair Jehn announced NCRA�s new website at northcoastrailroad.org; the
site will be used to present accurate and timely information.� Additionally, he and Mr. Bridges met with
Sonoma County�s Supervisor Mike Reilly; Theresa McMillan, Metropolitan
Transportation Commission; and Susan Wilford, Executive Director of Sonoma
County Transportation Authority, to amend the Regional Transportation Plan to
include funding for the NCRA.� Sonoma
County previously placed ballot measures before voters to raise funds through
sales tax for rail-related improvements.�
Further, Sonoma County is exploring use of State Transportation
Improvement Program funds for use on rail-related projects.�������
M.������ ANNOUNCEMENT OF NEXT MEETING
�Regular meeting to be held on March 15, 2000 at 10:00 a.m.
�Healdsburg City Council Chambers, 401 Grove Street, Healdsburg,
Sonoma County.
N.������� CLOSED SESSION � Convened at 12:10
p.m.
1.���� ��� Conference with Legal
Counsel � Existing Litigation
Government Code Section 54956.9 (Pacific Rail
Services)
2.�������� Conference with Legal
Counsel � Existing Litigation
Government Code Section 54956.9 (L & M
Renner)
3.�������� Conference with Real Property Negotiator
Government Code Section 54956.8
Negotiating Parties:� Pacific Bell, etc.; NCRA
Under Negotiation:� Longitudinal Easement
4.�������� Conference with Real
Property Negotiator
Government Code Section 54956.8
Negotiating Parties:� Williams Communications; NCRA
Under Negotiation:� Longitudinal Easement
O.������� ANNOUNCEMENT OF ACTION TAKEN IN CLOSED
SESSION �
Reconvened at 1:18 p.m.
1.
Conference with Legal
Counsel � Potential Litigation
Chair Jehn announced the Board was provided
information by General Counsel�
regarding Pacific Rail Services.
2.
Conference with Legal
Counsel � Existing Litigation
Chair Jehn announced General Counsel Neary
provided legal updates regarding Green Right O�Way Construction and Van Meter
Logging.
3.
Conference with Legal
Counsel � Consider Initiating Litigation
Chair Jehn announced direction was provided
to General Counsel Neary in consideration of initiating litigation.
4.
Conference with Real
Property Negotiator
a.
����� Pacific Bell
Chair Jehn
announced the Board received information relative to further negotiations from
Property Manager Logan.
b.
����� Williams Communication
Chair Jehn announced the
Board approved an agreement to lay fiber optic �������
cable along the right of way; however, funds
realized would be initially sequestered due to a potential claim by UP.�
O.������� ADJOURNMENT
Chair Jehn adjourned the meeting at 1:21 p.m.