NCRA(NWP) money issues...

John Barnhill Apr 13, 2007

  1. John Barnhill

    John Barnhill TrainBoard Member

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    BOARD DECLINES TO HELP RAILROAD RECOVER MILLIONS

    WILLITS, CA -- The board of supervisors has declined to move a finger to help the NCRA recover $5.5 million.

    At issue was whether or not the county would send a letter to State Senator Pat Wiggins thanking her for introducing SB 861 into the state senate. SB 861 would make available 5.5 million dollars of federal funds, which are currently in a special account in Sacramento and earmarked for the NCRA.

    The funds originally were borrowed by the NCRA from the Federal Highway Administration in 1996 to enable it to acquire the southern portion of the line. In 1999, the FHA asked for the funds to be repaid and in July of 2000, with the help of then state senator Wesley Chesbro, funds were set aside in the state treasury in Sacramento, with the intention that they would be given to the NCRA so it could repay its debt to the FHA.

    While this was happening, the NCRA approached Congressman Mike Thompson and asked him to push for legislation which would forgive the debt. Thompson did so, but that provision did not become law until early 2005.

    Then, in early 2005, Chesbro submitted a bill to the state senate that would have released the funds to the NCRA, since the federal debt had been forgiven. The bill passed the senate but Governor Arnold Schwarzenegger vetoed it in October 2005, saying that the money would be better spent elsewhere. But since that time, Chesbro and NCRA officials have been talking to Schwarzenegger, and California voters have passed Proposition 1A, which authorized the state to sell $20 billion worth of bonds for transportation projects in the state.

    Now the current state senator, Pat Wiggins, has just submitted SB 861, which is a repeat of the old Chesbro bill and which again seeks to release the $5.5 million to the NCRA.

    According to NCRA Executive Director Mitch Stogner, the money would be used for subsurface environmental clean-up in nine rail yards and also for addressing "right of way" issues that have bubbled to the surface along the 316 mile long semi-abandoned line, such as cleaning up homeless encampments, addressing fire hazards such as weeds and grass, and fixing road crossings that need repair.

    Opponents of the bill and of the railroad claim that SB 861 would also provide more than $1 million for administrative costs for the railroad. At Tuesday's board meeting, this aspect of the spending provisions in the bill raised several negative comments from members of the public, including attorney Ron Kuns of Willits, who asked the board not to send the letter of support because of what Kuns called "lack of accountability" in the railroad's administration.

    Kuns said that he had been looking all over for financial records of the railroad, and that he keeps getting the runaround. "They told me they were in a locked metal building in Cloverdale but when I called Cloverdale they said they were gone and they didn't know where they were,"
    Kuns said. "I don't know where the records are. Nobody seems to know where they are."

    The issue provided an opportunity for supervisor John Pinches to inveigh against the railroad, which has not operated since November 1998. "This is just more money to fund the attorneys and the bureaucrats," Pinches said. "This is just a dream. Already, more than $200 million of the taxpayers' money has been poured into it. When is it gonna stop?

    "How can you tell the CTC (California Transportation Commission) board members that you want 'em to fund the Willits bypass when today, we send this letter to say that we want this railroad as a top priority? If I was a CTC member and you did that, I'd ask myself, 'What do those folks want?'" Pinches said.

    Pinches' vituperation was countered by that of David Colfax, who is a member of the NCRA board and who said that the railroad has made progress over the past year. He also reminded the board of comments made earlier in the day by Congressman Mike Thompson, who said that it has been estimated that dismantling the railroad would cost $2 billion.

    Colfax then moved that the letter in support of SB 861 be sent, but not one supervisor would second his motion. No other motion was made, and the item was allowed to die.

    Contacted by The Willits News, Stogner said that he is planning to "make another run at the board, because I don't think they understand the significance of the bill, what it does and where the money is coming from.

    "If somebody says, 'Don't give it to the NCRA,' what they are really saying is, 'Give it to other parts of the state,' and that means, 'Give it to Southern California,'" Stogner said. - Mike A'Dair, The Willits News
     
  2. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    Ouch. This behind the scsnes stuff is always a mess. I hope this won't stop the rebuild.

    :sad:

    Boxcab E50
     
  3. John Barnhill

    John Barnhill TrainBoard Member

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    SACRAMENTO BEE Newspaper 5/17/07

    Dan Walters: A rathole swallows our money

    One could devote a book -- a thick one -- to detailing how state and local governments defy reality and common sense and waste money on narrow, venal, petty and politically motivated projects and programs.

    The North Coast Railroad Authority isn't, by any means, the biggest example of such foolishness, but it neatly encapsulates the pervasive syndrome.

    The multicounty agency was created by the Legislature in 1989 to assume operation of the 316-mile-long railroad line linking Humboldt Bay with the San Francisco Bay Area. The Northwestern Pacific Railroad, a subsidiary of Southern Pacific, had operated the line for some 70 years before closing it down as uneconomical.

    The NCRA actually ran a few trains for a few years until federal rail safety officials shut down service in the 1990s because of track deterioration. Ever since, it's been a paper railroad whose officials, local politicians for the most part, keep promising to resume service of some kind, but have never done so. It has evolved, by all appearances, into an entity that exists primarily to extract handouts from state and federal governments to finance its administrative and political superstructure so it can seek more handouts.

    A landmark in NCRA's money-grubbing history occurred in 2000, when the state enjoyed a momentary, multibillion-dollar surge in its revenues and Capitol politicians were salivating to spend it. The NCRA's political enablers cranked up a fundraising drive that generated about $60,000 for then-Gov. Gray Davis' campaign treasury and petitioned for a chunk of the windfall. Davis' predecessor, Pete Wilson, had refused to give NCRA any more state money, labeling it a sinkhole. But Davis responded by designating $60 million in so-called "congestion relief" funds for the railroad.

    The corporate consortium that the NCRA later designated to rebuild and operate the line is controlled by politicians and local businessmen adept at extracting money from the public treasury. They include former Congressman Doug Bosco, who was instrumental in persuading Davis to cough up the $60 million allocation.

    One of the NCRA boondoggles was a $12 million federal loan that the local congressman, Mike Thompson, arranged to buy part of the rail line. One portion of the $60 million Davis granted to the NCRA was designated to repay about half the loan. Later, when Thompson arranged to have the federal loan forgiven, the $5.5 million set aside for repayment should logically have reverted to the state to finance real transportation projects. But, true to form, NCRA's political network cranked up again and began demanding that the paper railroad be allowed to keep the money anyway.

    A bill to that effect, carried by the region's state senator, Wes Chesbro, reached Gov. Arnold Schwarzenegger's desk a couple of years ago and he rightfully vetoed it, saying the money should go to other, real transportation projects. And now Chesbro's successor, Patricia Wiggins, has reintroduced the bill, which cleared its first committee last week.

    The NCRA is a rathole that has already swallowed millions of dollars in taxpayers' money. The rail line it purports to operate is a physical wreck and economically infeasible. Its operators -- political operatives, not real railroaders -- float dreamy visions of a rail renaissance to the public while politicians pander.

    NCRA's boosters tout the railroad as a link for the isolated region with the Bay Area. But the money being squandered would be better spent to upgrade the North Coast's inadequate, antiquated highway network, such as the long-delayed bypass around Willits on Highway 101 and bottlenecks on Highway 299, which could become a real link between Humboldt Bay and Interstate 5 at Redding.
     
  4. John Barnhill

    John Barnhill TrainBoard Member

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    Re: NCRA response to Editorial


    Dear Editor:

    Despite numerous attempts by the North Coast Railroad Authority (NCRA) to meet with Sacramento Bee columnist Dan Walters to correct the record, he has chosen once again to bash the NCRA without checking his facts. His April 18 column in the Press Democrat is a rehash of a factually incorrect column he wrote in June 2005 berating NCRA, state and federal legislators, local elected officials and everyone else who supports the return of rail service on the North Coast.

    Here are the facts:

    _ NCRA has a Strategic Plan and Business Plan acceptable to the California Transportation Commission (CTC);

    _ Thanks to recent actions by the CTC, NCRA has enough transportation funding to repair the first 62 miles of track (Lombard to Windsor) and will commence that repair effort this summer;

    _ NCRA has an experienced Operator under contract anxious to move commodities on this section of line when the repairs are complete;

    _ SB 861 (Wiggins) provides the funds necessary to complete a court-ordered environmental clean-up and to respond to emergency maintenance issues all along the 316 mile publicly-owned line, at no cost to the State General Fund.

    _ Funds in Senator Wiggins’ bill cannot by law be used for local highway projects. If the money in SB 861 is not used by NCRA, it will be exported to another designated congestion relief project in another part of the state.

    _ NCRA supports a Willits Bypass and looks forward to railing-in the aggregate necessary for its construction.

    If given the opportunity to meet with Mr. Walters, we would also have made the case that the return of freight service to the NWP line is good for the environment, good for the economy, and good energy policy. We would have pointed out that one rail car takes 4 trucks off of 101, that moving freight by rail as compared to truck reduces greenhouse gas emissions by 80%, and that the investment of state funds in rail infrastructure compares favorably to investment in Southern California freeway interchanges.

    It has taken far too long, but the repairs to the NWP line are finally set to begin thanks to the long-standing support of legislators, cities, counties, and citizens of the North Coast. Dan Walters needs to talk to us before he launches another baseless tirade against North Coast rail service.

    Allan Hemphill, Chairman
    North Coast Railroad Authority
     
  5. BoxcabE50

    BoxcabE50 HOn30 & N Scales Staff Member TrainBoard Supporter

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    :sad:

    Boxcab E50
     
  6. BOK

    BOK TrainBoard Member

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    I wish not to through cold water on a move to revitalize a rail line.
    However, about twelve years ago while working for the Wisconsin Central one of the engineers I supervised, had worked on this line and had some interesting slides and stories about it.

    There are countless bridges and tunnels which are extremely expensive to maintain and the soil conditions are so unstable that in at atleast one location a bulldozer was needed to shift the track back into position before and after the passage of a train.

    I appreciate the desire to put tracks back ito service but the promised revenue customers must be there to ensure the line can
    atleast "break even" and hopefully make a profit rather than hope they will be there.

    I have worked for several shortlines and revenue generation is terribly difficult to achive unless you generate lots of profitable carloads. This is especially important when you need to cover
    large expenses on a line which is 300 miles plus. You also need to consider that most class one railroads do not want to deal with shortlines for revenue growth opportunities or car supply if you don't deliver to them 25 to 100 cars per day of solid, profitable,
    freight. They will put their dollars into their own projects rather than spend money to increase service on a shortline connection which may cost more.

    Not a pleasant situation for many shortlines which have far less expenses to cover than this proposal but reality as it is today.

    Having stated these grim facts, I have been a professional railroader, railfan,and modeler for over 30 years and I enjoy this business. I wish them well but it will be a long, long, hill to climb.

    Barry,

    Training new railroaders for the future

    railfan and modeler for over thirty years
     
  7. Shannon

    Shannon TrainBoard Member

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    Barry,

    The NCRA is a rat hole for the local political wags to dump money into. The problem as you stated is that there are local and state government people running the show and not one railroad man in the group.

    I can understand why the bill for money for the NCRA would be vetoed in Sacramento. It is then and now money for the pockets of jerks and dolts who are more worried about themselves than the railroad.

    And yes there are several areas on the railroad where continued track work is necessary. The area you are talking about is called Scotia Bluffs. My wife and I were very lucky to ride the North Coast Daylight some 23 years ago and the ride was fantastic.

    The first thing that needs to be done is the NCRA needs to be desolved. The second is there needs to be put in place a group of railroad men who have no political axes to grind to get the railroad running. Then and only then will the NWP ever return to life as a railroad. There are customers for the rail line. They have already told the NCRA they want to use the railroad instead of trucks.

    So there you have my two cents worth. By the way if you don't know, the NWP train men called it Never Will Pay. I hope they are wrong.

    Shannon
     
  8. BOK

    BOK TrainBoard Member

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    Shannon:

    Well spoken. I couldn't agree more.

    Barry
     
  9. John Barnhill

    John Barnhill TrainBoard Member

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    North Coast rail line gets $7.5 million boost

    State commission giving freight route more for repairing crossings, signals; opening slated for end of 2008

    By STEVE HART
    THE PRESS DEMOCRAT

    The state's transportation agency on Thursday released $7.5 million to repair the Northwestern Pacific Railroad, which could reopen for freight service in Sonoma County next year.

    Together with $1.5 million approved by the commission last month, it's the first state construction funding since the rail line closed in 2001, said Mitch Stogner, director of the North Coast Railroad Authority, which controls the route.

    The money will be used to rebuild railroad signals at 54 street and road crossings from Napa to Windsor, including 13 in Santa Rosa. Work will take place this summer, Stogner said.

    The rail authority is seeking additional funds for repairing bridges and tracks, with the 62-mile route south of Windsor targeted to open in mid-2008.

    There's demand for rail service from North Bay shippers of wood products, rock, animal feed and other bulk commodities, according to the authority. Sonoma County also is considering shipping its garbage by rail, now that its landfill has closed.

    Freight cars will reduce the number of trucks on Highway 101, the authority said.

    Last year, the authority approved a lease agreement with a private company, Northwestern Pacific Railroad Co., to operate the freight trains.

    Cargo service was halted in 2001 after federal rail authorities deemed the line unsafe. The 316-mile route between Napa and Eureka has a long history of disasters, including fires that destroyed tunnels and floods that wiped out miles of track.

    Southern Pacific Co. tried to abandon the line in the early 1980s and a subsequent owner declared bankruptcy.

    In 1989, state lawmakers created the rail authority to keep it open as a transportation alternative to Highway 101, but it continued to be plagued by closures.

    At a meeting Thursday in San Luis Obispo, the California Transportation Commission released $7.5 million from the state's traffic congestion relief program, which is funded by gasoline sales taxes.

    Last year, the commission approved $7.4 million for environmental and engineering work on the rail line.

    So far, the state and federal governments have pledged $50 million to restore a 142-mile stretch of the railroad from Napa to Willits, Stogner said.

    The segment from Windsor to Willits is scheduled to reopen by the end of 2008, he said.

    There's no firm timeline for repairing the heavily damaged route between Willits and Eureka.

    The cost is expected to reach $100 million.

    You can reach Staff Writer Steve Hart at 521-5205 or steve.hart@pressdemocrat.com.
     
  10. John Barnhill

    John Barnhill TrainBoard Member

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    Freight rail will return to Novato
    Repairs to begin on tracks through city in the next two months

    By Rob Mitchell, Executive Editor

    Freight trains may rumble through Novato again next year if track repairs go
    as planned.

    The North Coast Railroad Authority is close to starting $25.5 million in
    repairs on the 62 miles of long-unused train tracks between Lombard in Napa
    County and Windsor in Sonoma County.

    "We're going to begin repairs within the next two months," said Mitch
    Stogner, Executive Director of the NCRA. Trains will be running by about
    this time next year, he said, operated by Northwest Pacific Railroad (NWP).

    Once the tracks are brought to a federal Class III standard, meaning freight
    can travel up to 45 miles per hour, the repairs will continue north to
    Willits, another 62 miles. Reopening the line all the way to Eureka is a
    possibility in the future, Stogner said.

    The route has been closed since 1998, save for a nine month period in 2001,
    Stogner said.

    The tracks that will be repaired run roughly parallel to Highway 101 into
    Novato, then take a turn east along Highway 37 through Black Point and into
    Sonoma.

    The NWP signed an operating agreement last summer with the NCRA, a public
    agency, to operate rail freight on the tracks. The NCRA owns a permanent
    freight easement on the tracks, which are in turned owned by a variety of
    entities.

    NWP will eventually pay the NCRA about $500,000 a year in fees, Stogner
    said. Right now NCRA is receiving advance payments on the lease while the
    repairs get underway.

    "I expect to run about 2,000 carloads a year, five or 10 carloads per
    train," said John Williams, CEO of NWP. "I'd expect to run a train in each
    direction 3 days a week."

    He said the trains will carry goods like lumber and grain that are currently
    unloaded from trains in Lombard and shipped by truck to Sonoma.

    The trains also might carry Sonoma County solid waste to Lombard.

    "(Sonoma County) has been using Redwood Landfill and Marin would like Sonoma
    County to go elsewhere," Williams said. If the waste doesn't travel by
    train, it will have to go by the highway, he said. "So we think it's more
    efficient and more environmentally friendly."

    The track through Novato is part of a vitally important stretch of rail that
    connects the north coast of California with the rest of the nation.

    Ports in Oakland and Long Beach are stretched thin. An idea that Humboldt
    Bay could become a new center for shipping in Northern California, taking
    pressure off the more southern ports, and giving the north state economy a
    shot in the arm.

    That idea would be much closer to reality if there were a freight line
    connected to the national rail system east of Novato, in Lombard, Stogner
    said.

    "Proposition 1B is key there because we're going to need significant public
    dollars to fix the track north from Willits to Eureka," Stogner said. That's
    another 192 miles of track, currently closed because of a landslide in the
    Eel River Canyon, a geologically unstable area.

    Proposition 1B, approved by voters last November, has $2 billion earmarked
    for the "Trade Corridors Improvement Fund." It is this money that will
    possibly pay for the far northern extension.

    For now, Novato's leaders are working on protecting the City's interests. An
    informational meeting was held between city, county and rail representatives
    three weeks ago.

    Novato is now requesting that two vacant spots on the NCRA board of
    directors, which are allocated to Marin, be filled.

    The NCRA was formed in 1999 to restore freight service to the railroad,
    which operated through Novato since at least 1875. By 1898, the railroad was
    shipping 500 to 1,000 pounds of cheese daily from Novato by train towards
    San Francisco, according to the Novato History Museum.

    Passenger service ended in 1958, but freight continued until 1998.

    -----
    Who's been working on the rails:

    . North Coast Railroad Authority

    Was created in 1989 by the California legislature to ensure freight and
    passenger train infrastructure in northern California. In the last year the
    NCRA has won $42 million for track repair from Lombard to Willits, plus
    almost $8 million more to study reopening the track north to Eureka.

    . Northwestern Pacific Railroad

    Last operated freight service in 2001; newly incorporated with renewed
    mission. Will haul freight from national rail system in Lombard into Sonoma;
    will also haul solid waste out.
     
  11. YoHo

    YoHo TrainBoard Supporter

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    I understand the skeptcism about this route and it's well founded, but NCRA Has got an operator and It has started repairs. Evidence of which can be found in another thread. I choose to be optomistic about the line's chances.

    I suspect though that to make it to Eureka, it won't be Politicos or Railroad men that make the difference, but rather structural engineers, environmental engineers and Geoligists to devlope new ways to ensure that the line will be able to withstand the tempests of the river valleys.
     
  12. Shannon

    Shannon TrainBoard Member

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    YoHo,

    Its going to take all the other people you mentioned AND the ones I did less the political types. If the NWP we able to control its own rail line and not the NCRA. I think the work would be done much faster and with less problems.

    The ONLY problem is the Eel River between Farley and Fortuna. The river can be a good friend or a monster.

    I wish them all the best and I hope this work will not be in vain.

    Shannon
     
  13. YoHo

    YoHo TrainBoard Supporter

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    SAdly, if you want money for the project, Politicians will be needed. Now, if we can minimize them......
     

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