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NORTH COAST
RAILROAD AUTHORITY (NCRA) |
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BOARD OF DIRECTORS
REGULAR MEETING MINUTES |
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WEDNESDAY, MARCH 15, 2000
AT 10:00 A.M. |
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HEALDSBURG CITY HALL, 401 GROVE STREET, HEALDSBURG, CALIFORNIA |
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A.
CALL TO ORDER
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����������� Chair Jehn called the
meeting to order at 10:00 a.m. |
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B.
ROLL CALL |
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����������� Directors present:� Chair Jehn, First Vice Chair David Ripple,
Allan Hemphill, Jack McKellar, Daniel |
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����������� Opalach, Robert E.
Simonson, and Max Schlienger. |
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�� ���������Directors absent:� None. |
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����������� Also present:� Executive Director Max H. Bridges, General
Counsel Christopher J. Neary, Property��������� |
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����������� Manager Cyndee Logan, Consulting
Accountant Russ Mustola, and Administrative Assistant Pamela |
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����������� Fishtrom. |
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C.
MINUTES |
����������� Approval of Minutes of the February 16, 2000 Regular Board Meeting |
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����������� Motion by Dir. Ripple to approve
the Minutes; seconded by Dir. Opalach.�
Vote taken; motion |
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����������� approved. |
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D.
AGENDA
APPROVAL
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����������� The Agenda stands approved by
Chair Jehn. |
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E.
PUBLIC
COMMENTS
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����������� James w. Calkins, Attorney representing Pacific Rail Services, expressed appreciation for the Board's����������� |
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����������� action on his claim.����������� |
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����������� Pam Van Meter, Van Meter Logging, contested a passage written by NCRA General Counsel Neary to |
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����������� her lawyer regarding the relationship between Van Meter Logging, Jon Green, and former NCRA |
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����������� Executive Director Mr. McLaughlin. |
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����������� Loretta Ellard, Planning staff of Mendocino Council of Governments, reported their next fiscal year�s |
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����������� draft work program includes $20,000 to be used as a match towards a state grant that will be used to |
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����������� prepare the 20-year transportation development plan for the Railroad.� However, the state seeks support��� |
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����������� of the grant by a contribution from all four counties; Humboldt, Mendocino, Sonoma, and Marin.������������� |
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����������� James Quinn, retired attorney from the Public Utilities Commission, characterized NWP as undergoing |
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����������� �death by a thousand cuts" because of endless delays and requirements.� He indicated not one public |
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����������� official, besides those appointed to NCRA, catches the vision of a viable railroad.� Worse yet, some |
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����������� officials do not want the NWP.� He said, because this is an election year, emphasis should be on getting |
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����������� the politicians to get to the regulatory agencies and involve the media.� Dir. Hemphill and Mr. Neary� |
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����������� lauded Mr. Quinn for his support while he was part of the PUC staff that worked on Railroad issues |
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����������� during bankruptcy and abandonment proceedings and thereafter.� |
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����������� Chair Jehn announced he must leave at 11:45 a.m. to meet with six members of the Assembly |
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����������� including the Chair of the Senate Sub-Committee on Transportation. |
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����������� Mike Pechner, who donates his services as a weather man, gave a report regarding the status of weather����� |
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����������� this year as compared to last year in terms of impact on the Railroad.� |
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F.
CONDUCT OF
BUSINESS
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����������� 1.�� Consideration of Federal Emergency Management Agency (FEMA) Alternate Project��������������������� |
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Proposal |
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Executive Dir. Bridges reported FEMA hosted a meeting to discuss NCRA�s options because of |
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concern over the nature of the responses received as a result of the Environmental Assessment |
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(EA).� Option one:� Alternate Project where 90 % of the money identified in North End DSRs could |
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be spent improving the South End, satisfying eligible debt, and purchasing equipment, in lieu of |
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taking on an environmental battle providing NCRA can find another way to address the canyon.� |
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Option 2:� Modified Improved/Alternate Project where the North End DSR money is shifted to |
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open the South End and a portion of the North End.� The unopened portion would be connected as� |
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money becomes available.� Option 3:� Continue North End environmental work; address EA |
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comments and secure a determination by FEMA to issue an additional EA or require a full |
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environmental impact statement.� The project will proceed upon completion of the environmental |
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work.� The environmental work may lead to litigation further delaying the process.� |
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Ms. Logan indicated PacBell contacted her to complete a fiber optic lease resulting in $4-$5 million |
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to use as match money or for completion of work in the canyon.� |
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Mr. Neary reported the environmental assessment is surmountable and once NCRA has completed |
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review, FEMA will be able to proceed with a mitigated negative declaration.� An Environmental |
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Impact Study may not be necessary.� Litigation may occur if the facts support a preliminary |
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injunction which would prohibit the job from moving forward, however, delaying environmental |
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concerns should not be the sole reason for approval of an Alternate Project.� In addition, selection |
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of the Alternate Project option precludes ineligibility for further disaster relief although FEMA has |
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indicated an exception might apply.� |
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Mr. Darling, President of Rail-Ways, Inc., reported he strongly supports the Alternate Project and |
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has crafted a proposal which meets the needs of NCRA and Rail-Ways, Inc.� His proposal allows |
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for NCRA to finish restoring the South End and relieve some creditor debt, thus restoring Rail- |
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Ways� financial health.� In addition, environmental concerns are deferred.� Mr. Darling explained |
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other funding sources would be needed to restore the North End and if private money is used the |
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work may be performed outside the EA.� |
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Harry Sherwood, FEMA, explained converting to an Alternate Project means the public is not |
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served by restoring the project, therefore, the facility is normally abandoned.� However, precedence |
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has been established in a few instances of unusual circumstance where a great deal of damage |
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occurred and where private monies, not federal funds, restore a facility � for the Railroad that is to |
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Class I standards � FEMA will consider it a new facility, therefore, eligible for future disaster |
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funds.� The process for future eligibility could be an amendment to the improved project agreement |
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or as a new agreement. Alternate Project funds can be used on capital improvements, hazard |
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mitigation projects, equipment purchases, and debt relief on a case-by-case basis for in-eligible |
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items from past disasters.� The money cannot be used for operating expenses or the non-federal |
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share of federal projects, and all costs must be supported by adequate documentation.� |
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Dir. Hemphill indicated there is not enough FEMA money available to open the canyon, additional |
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funding is needed regardless of the option chosen.� Chair Jehn remarked the Railroad needs |
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approximately $90 million to re-open the line two-thirds of which would be spent in the canyon.� |
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Mr. Darling indicated repair of the line for work trains only from Eureka to Willits is $10 million;������ |
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from Glynn to Eureka $650,000 with an additional $300,000 to bring it to Class I.� |
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In response to Mr. Bridges,� Charles Rabamad, OES, said the 10% reduction in funds from |
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approval of an Alternate Project can be offset by the addition of contingencies increasing the |
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estimate of the DSRs.� |
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Motion by Dir. Hemphill to table the item, schedule a meeting within 10 days, direct staff to |
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prepare a feasibility study for the Alternate Project hybridized with the Improved Project to open |
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from Scotia North and Nashmead South including dealing with environmental issues, and perform� |
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a study in collaboration with FEMA of possible creditor relief issues and potential uses of funds by |
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selection of the Alternate Project.� Seconded by Dir. Ripple. Vote taken; �motion carried.���� |
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Chair Jehn announced the meeting will be held March 24, 2000 at 9:00 a.m. in Willits.� Chair Jehn |
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recessed the meeting at 12:05 p.m. and left, leaving Dir. Ripple to chair the meeting.� The meeting |
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reconvened at 12:20 p.m. |
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����������� 2.���� Disbursement of Funds |
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����� a.���� South End Improved Project |
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��������������������������� Executive Dir. Bridges reported
current project funds are due to Rail-Ways, Herzog, and |
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����������� ����Boyle Engineering, however, there is no agreement as to how the remaining funds should be |
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��������������� disbursed.� Mr. Davis, Rail-Ways Road Master, made an impassioned plea for funds.� Mr. |
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��������������� Denny, Herzog, addressed the distribution of funds be based on logic rather than emotion. |
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��������������� The Board suggested Rail-Ways and Herzog meet to gain consensus. |
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�������� b.��� Federal Emergency Management Agency / Office of Emergency Services |
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��������������� Executive Dir. Bridges reported NCRA received approximately $202,000 from a Net Small |
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��������������� Project Cost Overrun from Disaster 1044.� He reported the Finance Committee discussed�� |
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��������������� three options for distribution;� paying Disaster 1044 vendors, paying some vendors after |
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��������������� retaining the portion that was reimbursement for force account, or paying Rail-Ways because |
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��������������� of the audit exception offsets taken out of Disaster 1203.� The Committee recommended |
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��������������� option three.� Staff recommended that, in addition, Ross Mayfield receive the administration |
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��������������� funds, approximately $15,000 be paid on invoices that were directly related to the work |
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��������������� performed on Disaster 1044, yet unpaid, and the rest be given to Rail-Ways.� Dir. Hemphill |
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��������������� moved to accept the staff recommendation; Dir. Opalach seconded.� Vote taken; motion.����� |
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������������� ��approved unanimously. |
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����������� 3.���� Action regarding Single-Year Audit; Fiscal Year End
1996�������� |
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������� This item was continued until the next Board of Directors meeting. |
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����������� 4.���� Consideration of Acceptance of Single-Year Audits; Fiscal Year End 1997 and 1998 |
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������� Phil Aycock, Aycock and Edgmon, CPAs, presented the draft audits.� He indicated that the audits |
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������������������� of 1995 and 1996 should be approved first.� He discussed his firm�s findings; the opinions are� |
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������������������� unqualified.� They will begin the 1999 audit right away.� He reported progress has been made in |
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terms of the financial reporting and he anticipates a better report
will be associated with 1999.� As� |
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������������������� with Mr. Staley�s report, a response from management is required and incorporated into each |
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audit. |
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����������� 5.���� Establishment of the Passenger Committee |
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������� By direction
of Dir. Ripple, First Chair, appointments to the Passenger Committee are as
follows:� |
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Chair Jehn, Dir. Schlienger, and himself. |
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����������� 6.���� Transfer of Easement to Eurdora Crider |
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������������������� General Counsel Neary
recommended accommodating the request of Eurdora Crider for transfer |
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easement to facilitate the sale of her property.� Moved by Dir. Hemphill; seconded by Dir.� |
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Schlienger.� Vote taken; motion
carried. |
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7.
��Consideration of the Claim
of David and Destra Beatie � General
Counsel Neary recommended rejecting the $280.47 claim of David and Destra
Beatie for |
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� damage to
their car occurring at a crossing in Petaluma because liability is not
clear.� Moved by��� |
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� Dir.
Simonson; seconded by Dir. Schlienger.�
Vote taken; motion carried.� |
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8.����
Action on Standstill Agreement � Secured Creditor |
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General Counsel Neary recommended continuing this Item until M.1 is
considered in Closed��� |
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Session. |
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9. ��Request Purchase of Copier for Eureka Business Office |
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Executive Dir. Bridges requested authorization to purchase of a
copier.� Dir. McKellar motioned������� |
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������������������� approval of purchase not
to exceed $1,000 plus tax; seconded by Dir. Schlienger.� Vote taken; |
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������������������� motion carried.�� |
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G.
LIAISON
REPORTS
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����������� 1.���� NWPRA � Max H. Bridges |
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Executive Dir. Bridges presented a written report. |
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��������� ��2.���� Legislation � Max
H. Bridges |
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�������� No
report. |
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����������� 3.���� Passenger � Robert Jehn |
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�������� No
report. |
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�4.���� Cities � Jack McKellar |
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Dir. McKellar reported he spoke with various political agencies regarding
the area from Scotia to |
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Eureka.�������� |
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�5.���� Sonoma-Marin Rail Transit Commission �
Robert Jehn |
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�������� Executive Dir. Bridges
mentioned the failure of Measure C in Sonoma County as a set-back |
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�������� because
there were moneys available for the Railroad in that measure. |
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�6.���� Contractor � Rail-Ways, Inc. |
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������������������� No report. |
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H.������� COMMITTEE REPORTS |
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����������� 1.���� Finance � Robert Jehn, Daniel Opalach, Robert E. Simonson |
������������������� Previously discussed. |
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2. ��Organizational � Robert Jehn, David Ripple |
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Executive Dir. Bridges indicated the Organization Committee has not
met.� |
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I.��������
STAFF REPORTS
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���������� 1.������� Executive Director � Max H. Bridges |
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Mr. Bridges asked the Board Members to turn in their Conflict of
Interest Forms. |
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2.�������
Property Manager � Cyndee Logan |
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��������������������� No report. |
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J.��������
LEGAL REPORT � General Counsel Christopher J. Neary
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1.
Finalization of Appeal on Excise Tax Mr. Neary reported NCRA will receive a refund for
appealed excise taxes of just over $50,000. |
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2.
Action to Expunge Improperly Recorded Abstract Covered under Item J.4. |
���������� 3.������� Further Information on Improper
Public Disclosure of Withdrawn 1998 Grand Jury�
��������������������� Subpoena
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��������������������� Mr. Neary reported in 1998 and early this year information was disclosed by FEMA to the press |
��������������������� and he will make a written recommendation that the Board act on this matter possibly in April. |
���������� 4.������� Status of Mendocino Transit Authority (MTA) Contract |
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Mr. Neary indicated the contract with MTA cannot be consummated
until the Abstract of�����
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���������� Judgment recorded by Jon Green is dissolved.� That lawsuit has been filed and sent to Mr.� |
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������������ Green�s attorney. |
5.
Meeting with Department of Toxic Substances, Regional
Water Quality Board, and��
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Department of Fish and Game
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��������������������� Mr. Neary reported this meeting is scheduled after this meeting to discuss the status of Consent������������������ |
����������� ����������Decree compliance.� |
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K.������ MATTERS FROM BOARD
MEMBERS
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���������� None. |
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L.������� ANNOUNCEMENT OF NEXT
MEETING
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����������� Special Board Meeting � March
24, 2000 9:00 a.m. in Willits, Mendocino County |
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����������� Regular Board Meeting � April
19, 2000 10:00 a.m. |
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����������� Willits City Council Chambers,
111 East Commercial Street, Willits, Mendocino County |
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M.������ CLOSED SESSION
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����������� Motion by Dir. Hemphill to continue
Item M and Item N to the Special Meeting of March 24, 2000; |
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����������� seconded by Dir. Schlienger.� Vote taken; motion carried. |
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����������� 1.������� Conference with Legal Counsel � Potential Litigation � Two Cases |
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���������������� ������Government Code Section 54956.9(a) |
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����������� 2.������� Conference with Legal Counsel � Consider Initiating Litigation |
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���������������������� Government Code Section 54956.9 |
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���������������������� Jon Green � Two Quarry Agreements |
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���� �������3.������� Conference with Real Property Negotiator |
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���������������������� Government Code Section 54956.8 |
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���������������������� Negotiating Parties:� Pacific Bell, etc.; NCRA |
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���������������������� Under Negotiation:� Longitudinal Easement |
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N.������ ANNOUNCEMENT OF ACTION
TAKEN IN CLOSED SESSION
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O.������ ADJOURNMENT
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���������� Dir. Ripple, First Chair, adjourned the meeting at
1:50 p.m.
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