BOARD OF DIRECTORS REGULAR
MEETING MINUTES
A. CALL TO ORDER -
B. ROLL CALL
Present: Chair David Ripple, Vice Chair Allan
Hemphill, Second Vice Chair Leo Sears, Director Robert Simonson, Director Budge
Campbell, Director Bruce Burton.
Absent: Director John Woolley
Also Present: Executive
Director Max H. Bridges, Assistant Executive Director Douglas M. Christy, Admin. Asst. Louise Evans, and
General Counsel Christopher J. Neary.
C. AGENDA APPROVAL
Director Campbell moved to
add Regular Board Meetings Minutes of August 13, 2002 and a closed session item
of potential litigation to agenda; 2nd by Director Sears.
Agenda:
1.
Regular Board Meeting Minutes of August13,
2002.
Modifications of Minutes: E. Conduct of Business; 1. Status Report of Eel
River RR will read: Director Sears read a letter from Mr. Niemeyer extending
his proposal for 30-days and asked that the Board accept the email and reaffirm
Director Sears and Director Simonson for any communication with Mr. Niemeyer.
2.
Item of Potential Litigation – Closed Session
Vote taken; motion carried unanimously with
modifications.
D. PUBLIC COMMENTS
Mr. Mike Pechner: Expressed his dissatisfaction with the lack
of success in reopening the Railroad.
James Quinn: Voiced his disappointment with the many delays for
the NWP returning to service.
Preventative maintenance is needed along the
E. CONDUCT OF BUSINESS
1.
Independent Audit
Mr. Bridges recommended accepting the proposal from
Aycock & Edgmon to perform the 2001-02 audit for
an amount not to exceed $16,150.
Director Campbell moved to accept proposal
from Aycock and Edgmon with modifications.
Pg 2, Audit Services, 2nd paragraph, the first sentence will
read: The examination will be conducted in accordance with generally accepted
auditing standards applicable to local agencies using state and federal,
transportation and storm damage funds for storm damage repair and will
include…;2nd by Director Sears.
Vote taken, motion carried unanimously with
modifications.
2.
Independent Review of Debt Reduction
Aycock and Edgmon completed their review of the
distribution of $10 million from Traffic Congestion Relief Funds. Upon acceptance they will produce the final
version for distribution.
Director Sears moved to accept Independent
Review; 2nd by Director Simonson
Vote taken, motion carried unanimously.
3.
TCRP Applications
Requested funding for the
completion of the environmental documentation phase, including the preliminary
engineering and right of way support required to complete the anticipated
EIR/EIS.
District 1 staff advised that Caltrans and CTC
requested that the application be reduced to the preliminary environmental
assessment and supporting activities only.
The funding for the EIR/EIS component would then be requested in a
subsequent application.
Staff and Board members discussed the current
applications, the environmental process and the potential for flexible
utilization of the remaining FEMA/OES 1203 funds to move forward with various
capital projects and/or operational needs.
Director Sears moved to drop present request
to CTC for funding in October and ask for November placeholder in order that
alternative uses of FEMA funds can be explored and information provided answers
on how the FEMA funds can and cannot be used; 2nd by Director Hemphill.
Vote taken; motion carried unanimously.
4.
Financial Report from
Mr. Bridges acknowledged having an excellent working
relationship with Sonoma County Auditor-Controller’s Office staff and
introduced Eric Roeser and Donna Dunk.
A brief presentation was given from Mr. Roeser and
Ms. Dunk, explaining the monthly reporting documents.
Director Sears moved to receive report; 2nd
by Director Hemphill.
Vote taken, motion carried unanimously.
5.
Payment of Caltrans Audit Exceptions
Caltrans audits of the Proposition 116 payments to
Railways and Herzog identified approximately $166,000 that was not properly
supported for a variety of reasons and must be repaid to the State.
Director Hemphill moved to approve payment to
Caltrans in five annual payments beginning in the current fiscal year; 2nd
by Director Sears.
Vote taken, motion carried unanimously.
6.
Partial Payment on Q-Fund Loan
An audit exception dealing with the purchase of the
railroad using the Q-Fund money resulted in Caltrans paying FHWA $1.3 million
and Caltrans requested that NCRA reimburse that amount. With this payment, the amount due in 2013 is
reduced from $12 million to $10.7 million.
However, the early payment from the fund results in an anticipated
$800,000 shortfall in 2013. It was
acknowledged that NCRA should seek funding that would retire this obligation
early freeing funding for capital project needs.
Director Sears moved to approve payment to
Caltrans to reimburse what has been paid to FHWA; 2nd by Director
Campbell.
Vote taken, motion carried unanimously.
7.
FY 2002-03 Budget
Final Budget for adoption.
(The Finance Committee meeting of
Director Campbell moved to approve expenditure
of $135,000 for consulting activities, on an as needed basis, from property
funds and deferred budget to Finance Committee for review; 2nd by
Director Burton.
Vote taken, motion carried unanimously.
Finance Committee will meet on September 23rd,
8.
Contract with Mustola Management
Mr. Mustola’s current contract expired
Director Simonson moved to approve the second
revision to the contract extending the completion date to
Vote taken, motion carried unanimously.
9.
Executive Director Position
Mr. Bridges informed the Board of Directors that his
last day as a full time employee with North Coast Railroad Authority would be
Mr. Bridges stated that he remains very interested
in continuing to support the effort of the goal of re-establishment of rail
service to the
Director Simonson moved that an Ad hoc
committee of Directors Campbell, Sears and Simonson be implemented to search
for successor; 2nd by Director Sears.
Vote taken, motion carried unanimously.
F. COMMITTEE REPORTS
1.
Passenger – Director Hemphill
Director Hemphill expressed concern with the need for
completion of the sale. Mr. Bridges
advised that there are issues with the distribution of any proceeds due to
liens and conditions from grant funding for the original purchase. Director Simonson requested a letter of
appreciation regarding action by City of
2.
Property Management – Directors Sears, Campbell, and Simonson
Mr. Bridges advised of the need for a
meeting and Director Sears requested teleconferencing if possible.
3.
Finance Committee – Directors Simonson,
No meeting due to lack of
quorum.
Adjourned for closed session at
G. CLOSED SESSION
H. ANNOUNCEMENT OF ACTION
TAKEN IN CLOSED SESSION
Reconvened at
1.
Conference with Legal Counsel – Existing Litigation - Government Code
54956.9(a). Hardin Cook et al. vs.
NCRA, Mendocino Superior Court Case SCUK-CVG-02-88417
Met with General
Counsel and received information. No
action taken.
I. STAFF REPORTS
1.
Executive Director Max H.
Bridges
Reported
that letter to CAO’s and City Managers requesting
local funding support will be distributed with copies to the Board.
2.
Assistant Executive Director Douglas M. Christy
Reported
that the operational shortfall identified in the Rail Feasibility Report is
generating the concern for additional funding.
The
environmental cleanup activities required by the Consent Decree are underway
with TCR funds. Perhaps the additional
flexibility that appears to be available with the FEMA funds may create an
opportunity for addressing any potential shortfall in Consent Decree
compliance.
The Board
commissioned $15,600 to pay PB Ports & Marines for an Economic Impact
Report. This report quantifies the
effect of no railroad. It is quite
detailed and county specific. Clearly
Request
for funding to update the Draft Final Report, “The Long Term Financial
Feasibility of the Northwestern Pacific Railroad”, released July 2002.
Director
Sears moved to add to next meetings agenda information from Mr. Christy
regarding scope of work needed to revise the data report; 2nd by
Director Simonson.
Vote taken, motion carried unanimously.
Director
Sears moved to authorized expenditure not to exceed $10,000 to PB Ports &
Maine Consultants to update the Draft Final Report, “The Long Term Financial
Feasibility of the Northwestern Pacific Railroad”, released July 2002; 2nd
by Director Hemphill.
Vote taken, motion carried unanimously.
3.
General Counsel Christopher J. Neary
Nothing to report.
J.
MATTERS FROM BOARD MEMBERS
Director
Burton requested that Counsel provide a response to a recent letter to the
editor challenging the Legislative Counsel opinion regarding sale of the
railroad.
Counsel
Neary also agreed to provide information on the possible transfer of ownership
of a historic crossing protection device.
K.
ANNOUNCEMENT OF NEXT MEETING
Regular Board Meeting –
L.
ADJOURNMENT –