Healdsburg City Councilman David Hagele was welcomed aboard and
attended his first meeting as at large city representative. And it was a lively
one.
The California Transportation Commission (CTC) was on the forefront of
the NCRA July meeting. There seemed to be a demand of the Commission for the
NCRA to produce a working business plan or a shut down plan by October. It is to
note that the CTC has no Jurisdiction over the NCRA. As I am on the Finance
Committee I have been privy to the projected budget for next two years and can
confidentially say the NCRA will be able to pay their bills thanks to a
settlement with AT&T over encroachment issues in Ukiah. That, of course, is
contingent on no emergencies. The CTC speculated that the NCRA was selling
properties purchased with public dollars to cover debt incurred and wanted
accountability of those funds. A land transaction with the Judicial Council of
California at Ukiah’s old train depot was supposed to generate $1.3 million for
4.1 acres has been in the works for a few years. The hope is to build a new
Mendocino Court House at the location.
NCRA Executive Director Mitch Stogner explained that his
organization has Operating Expenses of about $700,000 and Revenues of $500,000.
That statement in itself usually gets attention. You have to remember that the
NCRA is not legislatively funded so operating expenses have been “smoke and
mirrors” or creative financing for years. One of the ways the NCRA has been able
to exist is having NWPco make $15,000 payments to the NCRA for a Rail
Rehabilitation & Improvement Financing (RRIF) 3.1 million dollar loan that
was made in 2011 for track repairs with NCRA acting as Co-Borrowers with NWPco.
Another critical financial burden for future consideration is the millions that is pending in lawsuits against the NCRA. Our audit calls us a "ongoing concern."
NWPco counsel and former North Coast Congressman Doug Bosco
explained that the original legislative creation of the NCRA did nothing to fund
the ongoing operations. Mr. Bosco said NWPco announced to the CTC Commission no
plans to service the 240 miles north of Windsor. Currently they are only
operating at night and have had to battle flooding. A proposed rail spur that
was initially estimated at $150,000 has now been priced at $800,000 at
Lagunita’s Brewery in Petaluma. Mr. Bosco said the NWPco is profitable in Marin
and Sonoma County. But what about Mendocino, Humboldt and the Port at Eureka?
Not in the plans at this time.
When you compare some of the numbers for transportation concerns, it is
hard not to consider the $459 million for the 6 mile bypass at Willits or the
$440 million to Sonoma Marin Area Rail Transit (SMART). Is train service even
being considered by our local legislators? The bottom line is that the NCRA need
legislative help as quickly as possible. The rail line is an important asset for
the North Coast. As freight service or as recreational trail.
