JPA BOARD MEETING 10/06/2008

SACRAMENTO-PLACERVILLE TRANSPORTATION CORRIDOR
JOINT POWERS AUTHORITY
A G E N D A
BOARD MEETING
9:30 A.M., MONDAY,OCTOBER 6, 2008
FOLSOM PUBLIC LIBRARY, CONFERENCE ROOM
411 STAFFORD STREET, FOLSOM, CALIFORNIA
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ROLL CALL Chair Jack Sweeney and Directors Don Nottoli, David Sander, Linda Budge, and Kerri Howell Respective Alternates: Helen Baumann, Roberta Mac Glashan and Don Nottoli


CLOSED SESSION
1. Conference with Real Property Negotiators Pursuant to Government Code 54956.8 for Lease of a Portion of the Placerville Branch for Excursion Rail Operations:
Property: A portion of the Placerville Branch railroad right-of-way extending from the Folsom Wye to Latrobe
SPTC-JPA Negotiators: John Segerdell, CEO
Tom Garcia, Deputy CEO (City of Folsom)
Tammy Urquhart (County of Sacramento)
Jordan Postlewait (County of El Dorado)
Fred Arnold (SRTD)
Kirk Trost, General Counsel
Negotiating Parties: SPTC-JPA and the Folsom, El Dorado & Sacramento Historical Railroad Association
Under Negotiation: Price and terms


NEW BUSINESS
3. Information: Presentation of Corridor Inventory and Inspection Report:
Don Dali of Hatch Mott MacDonald (formerly Rail Technology, Inc.) presented a PowerPoint presentation summarizing the Corridor Inventory and Inspection Report prepared by his team in March 2008.
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4. Motion: Authorizing JPA Staff to Negotiate Lease for Excursion Rail Operations:
CEO John Segerdell presented JPA Staff's findings with respect to the proposals for excursion rail operations submitted by Pan-American Railway and the Folsom, El Dorado & Sacramento Historical Railroad Association (FEDS), along with Staff's recommendation that the Board authorize Staff to negotiate a lease with the FEDS. Various members of the audience spoke in favor of Staff's recommendation; no speakers opposed the recommendation. Upon motion and second, the Board voted unanimously to authorize JPA Staff to commence discussions with the FEDS, the City of Folsom and the Counties of Sacramento and El Dorado, in order to determine the feasibility of one or both of the operations proposed under the FEDS’ Basic Plan and, ultimately, to negotiate a lease of a portion of the rail line, subject to approval by the affected member agencies and the JPA Board of Directors.
5. Resolution: Approving the FY 2008/2009 Operating Budget:
CEO John Segerdell presented the proposed FY 2008/2009 Operating Budget. Mr. Segerdell advised the Board that the Operating Budget requires a drawdown in the SPTC-JPA reserves and does not include much room for contingencies, due to the inability of the SPTC-JPA member agencies to increase their contributions in the current fiscal year. Upon motion and second, the Board voted unanimously to adopt a Resolution approving the FY 2008/2009 Operating Budget presented at the meeting.
6. Resolution: Authorizing Execution of Amendments to Contracts for Professional Services:
Upon motion and second, the Board voted unanimously to adopt a Resolution authorizing execution of amendments to contracts with PGH Wong Engineering Inc., Miller Owen & Trost, and Fehr & Peers, substantially in the form presented at the meeting.
7. Information: CEO/Member Agency Reports:
No reports were given at the meeting.
PUBLIC COMMENT
An announcement was made concerning the Trails Now grand opening gala of the Parkway Drive - to - Los Trampas Drive section of the El Dorado Trail on June 7th.
The meeting adjourned at 11:10 a.m.
8.4.08 2 STAFF REPORT Board Meeting Date: October 6, 2008 Page 1 RESOLUTION: Authorizing Execution of Nonbinding Letter of Intent for Excursion Rail Operations AGENDA ITEM NO. 2 SACRAMENTO-PLACERVILLE TRANSPORTATION CORRIDOR JOINT POWERS AUTHORITY
INFORMATION
BACKGROUND:
At the January 7, 2008, JPA Board Meeting, the Board authorized JPA Staff to issue a Request for Proposal (RFP) for Excursion Rail Services (ERS). The RFP was issued on January 28, 2008, and JPA Staff received two proposals on March 26, 2008. One proposal was submitted by the Folsom, El Dorado & Sacramento Historical Railroad Association (FEDS) and one by the Pan-American Railway (Pan-Am) from Hayden, Idaho.
On May 12, 2008, the JPA Board approved a motion to authorize JPA Staff to commence discussions with the FEDS, the City of Folsom and the Counties of Sacramento and El Dorado to determine the feasibility of one or both of the operations proposed under the FEDS’ Basic Plan, and to ultimately negotiate a lease with the FEDS for a portion of the rail line, subject to approval by the affected member agencies and the JPA Board of Directors.
DISCUSSION
Subsequent to the 5/12/08 Board action, JPA Staff has held several meetings with the FEDS to initiate the planning and lease negotiations for the aforementioned services. Staff has also reviewed the basic concepts of the FEDS’ plans with the Folsom City Council. Presentations have not yet been made to the Board of Supervisors for El Dorado and Sacramento Counties.
It has been determined that in order for the FEDS to commence negotiations with potential lenders and further refine their operating plans, the parties need to outline the basic parameters of the proposed lease in a nonbinding Letter of Intent (LOI). Such a document will give credibility to the FEDS’ excursion rail proposal for their talks with various institutions, including financial, governmental, and regulatory agencies. A draft LOI has been reviewed and discussions held between the JPA’s ERS Committee (Chair Sweeney and Director Howell), the JPA Staff and executive members of the FEDS and their legal counsel. It is felt that the form of the LOI being presented for JPA Board approval is protective of the JPA’s interests while providing the necessary commitments for the FEDS to pursue and perfect their proposed excursion rail operation.