NORTH COAST RAILROAD AUTHORITY (NCRA) REGULAR BOARD MEETING
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1 North Coast Railroad Authority 419 Talmage Road, Suite M Ukiah, Ca NORTH COAST RAILROAD AUTHORITY (NCRA) REGULAR BOARD MEETING Wednesday, February 9 10:30 a.m. City of Healdsburg Council Chambers 401Grove Street Healdsburg Sonoma County Approved Minutes Approved 03/09/11 A. CALL TO ORDER Chairman Hemphill called the meeting to order at 10:30 a.m. B. ROLL CALL Directors Present: Meyers, MacDonald, McCowen, Atkins, Clendenen, Kelley, Wagenet, Wolter, Chairman Hemphill Directors Absent: None Also Present: Executive Director Mitch Stogner, Legal Counsel CJ Neary, Project Manager Dave Anderson, Transportation Planner Angel Lucero, Recording Secretary Heather Lindsteadt C. AGENDA APPROVAL Agenda Stood As Presented D. PUBLIC COMMENT Nadananda Friends of the Eel River She asked Director Wagenet if he had a conflict of interest because he owned property near the railroad in Willits. Charlie Siebenthal - Northwestern Pacific Railroad Historical Society (NWPRRHS) - Mr. Siebenthal requested permission to access NCRA property located at Eel Rock to survey the condition of two wooden NWP Coaches. He said he wanted to see if any parts could be used to renovate the NWPRHS wooden passenger cars. 1
2 Chris Morrison Standard Structures - Mr. Morrison said that it is imperative that the NCRA resume freight service. He said Standard Structures and others will benefit greatly from the reduced shipping costs and that the restoration of freight service will remove trucks from the highway. Garrett Soiland- Mr. Soiland spoke to the Board regarding the reasons rail transportation is necessary. He said that freight rail will allow the transport of goods in and out of the County. He said that rail freight service supports local industry and the business community should not be denied access to a wider market in the current economy. Mark Mendoza Standard Structures Mr. Mendoza said that Standard Structures will benefit greatly by having access to the rail line. He said that the savings realized by shipping using freight will enable them to compete with other companies when bidding for projects. He said that shipping by train will also expand their business and prevent further layoffs. Loretta Ellard Mrs. Ellard said that MCOG was recently awarded a Grant for the NWP Rail Trail in Ukiah. She said this will allow the issuance of an RFP for preparation of a feasibility study. Roselind Demello Standard Structures Ms. Demello told the board that shipping product by freight is much more economical than shipping by truck and she looked forward to having the opportunity to ship using rail again. Dick Caletti Standard Structures Mr. Calleti expressed his support for the resumption of freight service. He said that in order for Sonoma County business to remain competitive it is imperative that the freight line be utilized for shipment of goods and products. He thanked the Board for all of its hard work and diligence in ensuring resumption of freight service to Sonoma County. Bill Owens Korbel Champagne Cellars Mr. Owens said that Korbel was using rail transportation since the 1800 s. He said that he would like to have a rail spur servicing the Korbel facility because the cost to ship by train would be much more economical than shipping using trucks. Gordon Neilson Mr. Nielson said that he has come up with a very good idea to stabilize slides in the Eel River Canyon. He said that the railroad could construct large cement walls like Caltrans does to support the freeway. E. CONDUCT OF BUSINESS 1. Election of Chairman and Vice Chairman Upon Motion by Director Kelley, seconded by Director McCowen Hal Wagenet was appointed as Chairman and Clif Clendenen was appointed Vice-Chair. AYES: 9 NOES: 0 ABSENT: 0 ABSTAIN:0 Chairman Wagenet replaced Director Hemphill as Chairman of the NCRA Board of Directors. 2
3 2. Committee Appointments Chairman Wagenet made the following appointments to NCRA Standing Committees: Property Committee: Directors Kelley, Wolter, McCowen, Meyers Finance Committee: Directors MacDonald, Hemphill, Atkins, Wolter Policies and Procedures Committee: Directors Hemphill, Clendenen, MacDonald, Meyers Motion to approve the Standing Committee appointments as outlined by Chairman Wagenet made by Director Hemphill, seconded by Director Kelley. Motion approved: AYES: 9, NOES: 0 ABSTAIN: 0 ABSENT: 0 Chairman Wagenet made the following appointments to NCRA Ad Hoc Committees: Ad Hoc Resurrection Committee: Clendenen, Wagenet, Hemphill, MacDonald Ad Hoc Bylaws Committee: Atkins, Hemphill, McCowen Ad Hoc THA Committee: Clendenen, Atkins, Wagenet There was a lengthy discussion regarding the composition of the Resurrection Committee. Nadananda expressed concern over the NWP Lease Agreement and said that she has taken it to several attorneys who believe it is a flawed agreement. Mike Pechner Mr. Pechner said that he does not think Director Meyers should be on the Resurrection Committee. Upon Motion by Director Hemphill seconded by Director Kelley, the Appointments to the NCRA Ad Hoc Committees were approved: AYES: Hemphill, Wagenet, McCowen, Wolter, Kelley, NOES: 4 MacDonald, Clendenen, Atkins, Meyers ABSTAIN: 0 ABSENT: 0 The Board requested review of the Bylaws. And the Board also suggested that the name of the Resurrection Committee be changed. Items E. 3 and E.4 were discussed together. 3. Status Report Lombard Windsor Start-Up Issues - For Discussion Purposes Only 4. Status of SMART/NCRA Replacement Operating Agreement - For Discussion Purposes Only Executive Director Stogner updated the Board on the 4 hurdles the agency faces as it gets closer to resumption of freight service on the first 62 miles from Lombard to Windsor. 1. Partial Lifting of Emergency Order 21 Executive Director Stogner reported that the FRA has inspected the NWP line and should make a decision regarding partial lifting of Emergency Order 21 in March; 3
4 2. SMART/NCRA Operating Agreement Executive Director Stogner said that Legal Counsel will update the Board on the one remaining issue; 3. Agreement with the City of Novato Executive Director Stogner said that NCRA has requested that the City of Novato allow NCRA to run trains at 25 mph through downtown Novato rather than the installation of continuously welded rail that will be replaced by SMART at a later date; 4. Certification of the Environmental Impact Report (EIR) - He said that a Special Board meeting may be called to discuss and possibly certify the Environmental Impact Report (EIR) which will be the final action prior to the resumption of freight service. Director MacDonald asked questions regarding the City of Novato agreement, Special Board meetings related to the certification of the EIR and inquired as to whether Kleinfelder will be in attendance at the EIR meeting. There was a lengthy discussion about the EIR process and schedule. It was made clear that there will be a10-day public review period prior to Board certification of the EIR. Mike Pechner Mr. Pechner said that he has talked to the FRA in Washington and he said that once Emergency Order 21 is lifted NWP Co. can run trains. He said that NWP Co. does not need the EIR to run trains. Loretta Ellard Mrs. Ellard said that the Board may have a Brown Act violation because the EIR is not listed specifically on the agenda. Nadananda She asked Legal Counsel Neary to repeat his statement regarding comments related to the revised draft EIR and when the public will be allowed to view the EIR. She said that NCRA has spent millions of dollars on the EIR and she hopes to have assurance that there will be sufficient time for the public to review the document. Legal Counsel Neary responded to Nadananda s questions. 5. Discussion and Possible Approval of Contract Extension AndersonPenna Partners Upon Motion by Director Meyers, seconded by Director McCowen the AndersonPenna Contract Amendment # 3 was approved with the following changes. Motion carried: AYES: 7, NOES:0, ABSTAIN: 0, ABSENT: 2 - Kelley, Wolter Section 1 Duration of Contract Change the words at last sentence from either agreement has been fully executed to to both agreements have been fully executed Section 4 third paragraph prepared or caused to be prepared by CONTRACTOR will be changed to read prepared or caused to be prepared by or for CONTRACTOR Attachment B Task 3.a will be changed to read RRIF loan preparation pre-approval 4
5 Attachment B.2 Task No. 1.b will be changed to 1.c Mike Pechner Mr. Pechner suggested said that the next time NCRA issues an RFP for project management services that it be sure to select an engineering firm that has specific experience working with railroads. Director Kelley leaves at 12:45 p.m. Director Wolter leaves at 12:55 p.m. F. DISCUSSION 1. Railbanking Eel River Canyon - For Discussion Purposes Only Chris Weston Eel River Trail Association Mr. Weston addressed the Board regarding his goal of converting the Eel River Canyon into a non motorized trail. He said that he has circulated a petition and has gathered over 7000 signatures. He said that his intention is to preserve the public access to the rightof-way through Railbanking. He said that any time NCRA or any railroad company that has the funding, technology and demand, is ready to run trains in the Eel River Canyon, the right-of-way could be reverted back to a rail line. Mr. Weston requested a system diagram map, track map, structure maps, areas of special concern, areas of suspected hazardous waste, and any known historic or Native American areas of interest. He also asked for a clear explanation of how and when NWP Co. should be contacted. He also asked for the issue of railbanking to be placed on the agenda in March. He said that he would like Town Hall meetings in Alderpoint, Laytonville, Fortuna, Eureka, and Arcata. The Board requested information about trail management/manger, funding, and preservation of future development of the rail line with priority for railroad uses. There was a discussion about property owners along the Eel River line and the concerns they may have with a trail. The Board also asked about the future oversight of a trail, and said that NCRA supports compatible railwith-trail proposals. The Board suggested that Mr. Weston contact Humboldt County Associations of Governments (HCAOG) and Caltrans and become an active participant in their efforts to establish a coordinated approach to trail planning in Mendocino and Humboldt Counties. Letter submitted by RAPIT on this subject is hereby made part of the minutes and is available for review upon request. Mike Pechner Mr. Pechner expressed concern over Mr. Weston s plan. He said that the cost to Railbank and convert the right-of-way will exceed $250 million which does not provide for access to the trail, and future maintenance of the trail. He said that NCRA cannot and should not provide any funding for the trail. Roger Graeber Mr. Graeber said that any motor car operator needs to carry $10 mil. in insurance and he said that the insurance requirements for a trail will exceed that. He asked who would assume the liability for trails on railroad right-of-way. 5
6 Paul Downing Mr. Downing asked how Mr. Weston would finance the project and repair the structures through the Eel River Canyon. Richard Jergensen Northwestern Pacific Railway Society - Mr. Jergensen requested a moratorium on the railbanking conversation until freight is resumed from Willits South. He said there is too much uncertainty right now. He asked the Board to focus its energy on the South End of the line. Steve Schweigerdt- Rail to Trails Conservancy Mr. Schweigerdt updated the Board on the history of Railbanking. He said that Railbanking preserves the corridor for future rail use and allows for other transportation uses in the meantime. He said that it also allows for light rail and excursion rail. Staff was directed to agendize the matter for discussion at the March meeting. Legal Counsel and Staff were directed to prepare staff report listing any preliminary issues that should be addressed for inclusion on a future Agenda and that any discussion regarding this issue in March should be a timed discussion. The Board convened to a 5 minute break at 2:00 p.m. The Board reconvened the Regular Meeting at 2:05 p.m. G. CONSENT CALENDAR 1. Approval of Minutes - Regular Board Meeting January 12, Acceptance of NCRA Quarterly Financials 2 nd Quarter Ended December 31, Acceptance of NCRA Financial Statements January Approval of Warrants Issued - January Approval of Cal Card Statement January 2011 Upon Motion by Director MacDonald seconded by Director Atkins no action on Item G.2 as it will be deferred to the March 9, 2011 Board meeting. Items G.1, G.3, G.4 and G.5 were approved. AYES: 7, NOES: 0, ABSTAIN: 0, ABSENT: 2 - Kelley, Wolter H. PROJECT MANAGER REPORT AndersonPenna Partners - Dave Anderson No Report I. OPERATOR REPORT NWP Co. John H. Williams No Report J. MATTERS FROM THE BOARD Director McCowen said that he has requested Mendocino County Counsel review the proposed agreement with Mr. Chris Neary. She will prepare a formal recommendation and he said he will distribute as appropriate. The Board convened into Closed Session at 2:15 p.m. K. CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL -Exposure to Litigation, two cases, Government Code 54956(b)(1) and (b)(2) 2. CONFERENCE WITH LEGAL COUNSEL- Anticipated Litigation Initiation of Litigation pursuant to Government Code Section ; One Case. 6
7 3. CONFERENCE WITH REAL ESTATE NEGOTIATORS - NWP Railroad Agency Negotiators; C.J. Neary; Members of Resurrection Committee; Gov Code Parties to Negotiation: NCRA; NWP Co., Inc. Under Negotiation: Terms and conditions of Resurrection Agreement including price and terms of payment. L. ANNOUNCEMENT OUT OF CLOSED SESSION Legal Counsel Neary reported that the Board met on 2 matters of Exposure to Litigation met on 1 item of Real Estate Negotiators regarding NWP Co., received information and gave direction. No reportable action taken. M. ANNOUNCEMENT OF NEXT MEETING March 9, :30 County of Humboldt Board of Supervisors Chambers 825 5th Street, Eureka Humboldt County N. ADJOURNMENT Chairman Wagenet adjourned the meeting at 2:17 p.m. 7
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