THE OHIO RAIL DEVELOPMENT COMMISSION
MAY 13, 2004
The meeting was
called to order by Chairman James Betts at 10:13 a.m. Members present included: Chairman Betts, Don Clark, Howard Wood,
Representative Jeanine Perry, Herk
Wolfe, Larry Sowers, Soloman Jackson, Tom McOwen, Dan Roberts and James
Hartung. Nine voting members were
present. Members absent included: Janet
Weir Creighton, Senators Robert Hagan and Larry Mumper and Representative
Stephen Buehrer.
Chairman Betts
welcomed new Commissioner, James Hartung.
Commissioner Hartung brings years of experience in the transportation
field to the commission. He is
currently president of the Toledo-Lucas County Port Authority.
APPROVAL OF
THE MINUTES OF THE MARCH MEETING
Chairman Betts asked
for a motion to approve the minutes of the March 25, 2004 meeting. Commissioner Sowers moved to approve the
minutes and Commissioner Wolfe seconded.
Motion approved.
EXECUTIVE
DIRECTOR’S REPORT
Executive Director
Jim Seney stated that the Quiet Zone legislation (HB 247) passed the Senate on
May 12th and is on its way to the Governor’s office for
signature. This legislation will
provide ORDC guidelines to use when communities approach the State for
assistance in establishing quiet zones.
Director Seney also reported on the status of SB139. This legislation will allow ODRC to
guarantee federal loans and bond enhancements.
He indicated that the bill is currently in the House.
The Cincinnati
crossing closure issues are currently in the PUCO’s hearing process. ORDC is receiving requests to preserve rail
corridors and will be discussing these issues at future meetings.
Director Seney
reported that ORDC staff members Lou Jannazo and Matthew Dietrich had a
successful meeting with the Maumee & Western to help them find a solution
to their infrastructure concerns.
Director Seney then
introduced Stu Nicholson, ORDC’s new Public Information Officer, to the commissioners. Mr. Nicholson brings years of media
experience to ORDC. Mr. Nicholson thanked Director Seney for the introduction
and stated he is happy to be on board with the commission. A press release with Mr. Nicholson’s bio as
well as ORDC’s Table of Organization was included in the report packet for
everyone to review.
Director Seney
reported that the Baard Renewables resolution was pulled from the agenda at the
company’s request. No further
information was available at this time.
ACKNOWLEDGMENT
Commissioner McOwen
announced he heard a public radio news report on his way to Columbus for the
meeting regarding the Ohio Rail Development Commission. He indicated that the report was regarding
the decrease in crossing accidents over the past year. Commissioner McOwen praised the efforts of
the Commission. Director Seney pointed
out that Mr. Nicholson is already working to create a strong public relations
image for the Commission and that the report was due to Mr. Nicholson’s
efforts.
OHIO RAIL TOURISM
ASSOCIATION ANNUAL AWARDS PRESENTATION
Lynda Nelson, ORDC's Special Projects Manager and representative to the
Ohio Rail Tourism Association (ORTA), reported that in April ORTA honored two
individuals with awards; an Outstanding Service Award and a Lifetime
Achievement Award. She indicated that
Chairman Betts and Executive Director Seney would present these awards to Mr.
William Linebaugh and Mr. Roy Carmony.
Mr. Linebaugh was awarded ORTA's Lifetime Achievement Award, and Mr.
Carmony the Outstanding Service Award.
Both awards were presented for the gentlemen’s service to the Toledo,
Lake Erie and Western Railroad and Museum.
Ms. Nelson provided details about why these individuals were chosen to
receive the awards as Chairman Betts and Mr. Seney made the presentations.
FINANCE REPORT
Matthew Dietrich presented the Finance Report to the
Commissioners. Mr. Dietrich reported on
the progress of the Ohio Rail Map.
He stated that Ohio Department of Transportation staff members Bruce
Hull and Matt Thompson were doing an outstanding job with the map. The printing of the map will go out to bid
shortly. The cost is expected to be
approximately $32,000. Mr. Dietrich is
hoping the map will be available for distribution at the July Commission
meeting. He reported that ORDC staff
will soon receive training in GIS so they can assist with future updates to the
map.
Mr. Dietrich referred to his report on page five of the commission
packet and indicated that a slight change had been made. McGrann Paper was intended to be the
recipient of a $25,000 grant but due to delays in the project’s implementation,
the ORDC commenced with the Wheeling & Lake Erie River Styx Bridge Phase I
project, a $53,000 grant, rather than the McGrann Paper project. The $53,000 came from our budget cuts;
$25,000 from the McGrann Paper project as well as savings from Mr. Butz’s
retirement and the cut back on equipment purchases. Mr. Dietrich indicated that ORDC is putting as much money as
possible into the grant program.
Chairman Betts asked Mr. Dietrich for the fiscal 2004 “bottom
line.” Mr. Dietrich stated that it is
zero. He indicated that ORDC will most
likely be able to pull together another very small project (under $10,000) but that would be it. There has been no change in the federal
funds. The City of Marion has been
encumbered and the only loan outstanding is the Maumee & Western
Railway. That loan will be encumbered
as soon as the documents have been returned to ORDC.
PROJECTS
Resolution 04-07 - Panhandle Debt Refinancing
Chairman Betts clarified to the commission members that refinancing of
the Panhandle debt is totally unrelated to any potential sale of the Panhandle
in the future. Mr. Dietrich concurred. Mr. Dietrich reported that in 1992,
Certificates of Participation (COPs) were issued to purchase the Panhandle rail
line. Recently, the State of Ohio,
Office of Budget and Management (OBM) and Seasongood & Mayer, LLC (SGM)
approached the ORDC about some potential savings the State of Ohio could
realize by refunding the COPs. As of
April 15, 2004, the premium on the right to call the bonds had expired. Depending on the rate, the ORDC could
realize a savings of approximately $750,000 in debt service payments by
refunding the COPs.
Mr. Kurt Kauffman of OBM emphasized that refinancing the bonds from one
to eight years presents an opportunity to get a better interest rate. Ms. Megan Browning of SGM explained her
analysis on the savings and indicated that if ORDC approves the resolution,
they will look closer at the issues involved on the original securities. If authorized, they would hope for a sale at
the end of June or early July. Director
Seney reiterated that the purpose of the refinancing is solely to take
advantage of the lower interest rates.
Chairman Betts asked for a motion. Commissioner Wood moved to approve
Resolution 04-07 and Commissioner Clark seconded the motion. Roll call was taken and the motion was
approved with nine affirmative votes and one absent.
Approved Project Briefing: ORDC Lease of the CSX Grand River Railroad
Line
Beverly Lee, ORDC Rail Planner, reported that ORDC has been working
with three area shippers and the Ohio Central Railroad to possibly reactivate
service along the 2.56 mile abandoned CSX Line between Painesville and Grand
River. ORDC staff would like to invest
$25,000 toward the one-year cost of the lease ($58,000). Potential shippers will reimburse monthly
payments to ORDC. Mr. Bill Strawn of
the Ohio Central was present for any questions. Mr. Strawn commented that the Ohio Central has spent many hours
evaluating the line and feels that with a lease arrangement the line can be
kept operational. The Ohio Central has
committed $8,000 toward the lease arrangement.
Director Seney stated that annual evaluations will be done on the line.
OLD BUSINESS
No old business to review.
NEW BUSINESS
Mr. Dietrich read a proposed motion for consideration: In response to an offer to purchase from the
Ohi-Rail Corporation dated May 7, 2004, the ORDC moves to authorize the ORDC
staff to undertake investigations to determine the optimal and permissible
methods available to the ORDC for selling its interest in the Minerva to
Hopedale "Piney Fork Line,"
including branchlines off the mainline.
Investigations may include the performance of any appropriate
appraisals, price and costs comparisons, information gathering, and other due
diligence measures determined to be appropriate by staff. Staff shall report such findings along with
any recommendations to the ORDC.
Mr. Tom Barnett, Vice President and General Manager, Ohi-Rail
Corporation, presented the background on the Piney Fork line to the
Commission. Mr. Barnett indicated that
Ohi-Rail is interested in purchasing the line.
Chairman Betts asked for a motion. Commissioner McOwen moved to approve
the motion. Commissioner Sowers seconded the motion. Roll call was taken and the motion was approved with nine
affirmative votes and one absent.
W&LE River Styx Bridge Repair
Steve Wait, President and Chief Operating Office of Wheeling & Lake
Erie Railway Company (W&LE), was distributed a handout on the River Styx
Bridge project. Mr. Lou Jannazo, Chief
Rail Planner for ORDC, reiterated that when another project dropped from the
meeting agenda (McGrann Paper), ORDC chose to include the W&LE River Styx
project to replace it. The bridge is an
important line between Akron and Carey.
It carries an average of 23,700 carloads per year. Over 5,600 people are employed by businesses
served on this line. This is a project
that requires the bridge repairs to be done in stages. There is a total of $620,000 in necessary
repairs required for the bridge. The
W&LE invested $85,000 during 2002 and 2003. This $53,000 grant will fund the next phase to repair the bridge
top, girders and alignment of the bridge.
Mr. Wait prepared photographs of the work that needed to be done. He stated that if the bridge is not repaired
soon, train traffic would have to be re-routed which could cause up to several
hours of delays. Director Seney stated
the goal is to have the bridge repaired and get the train speed back up to 25
mph. Currently, train speed is set at
10 mph due to the condition of the bridge.
Mr. Wait reported that the Operation Lifesaver Train ran on Tuesday May
11th from Canton to Akron.
The train ran over this bridge and everyone could see its
condition. While the train ran down the
line, law enforcement was present at 70 crossings to watch for violators
attempting to cross the track before the train. Over 41 citations were issued, so it shows that Operation
Lifesaver Trains really do work.
PUBLIC COMMENT
Mr. Rick Platt, Executive Director of the Heath-Newark-Licking County
Port Authority, stated he wanted to congratulate the ORDC for looking into
refinancing the debt on the Panhandle.
He indicated that this is an issue that concerns many counties. The number one concern that needs resolved
is getting more capital into the Panhandle.
Mr. Platt indicated that “what you have done today will go a long way in
doing that, I congratulate you. I would
like to invite you to look at some of the issues raised by the counties on the
Panhandle line by going to a website:
www. hnlcpa.com\panhandle.
Ms. Nelson indicated she wanted to acknowledge the Randy Snyder of ODOT
for providing the microphone system for the meeting. The public could hear the meeting much better than during
previous meetings.
ADJOURNMENT
Chairman Betts asked for a motion to adjourn to Executive Session for
the purpose of discussing the ORDC V. Gatherco litigation update. Commissioner Wolfe moved to approve the
motion and Commissioner Sowers seconded the motion. Roll call was taken and the motion was approved with nine
affirmative votes and one absent. The
commissioners moved into Executive Session at 11:15 a.m.
RETURN FROM EXECUTIVE SESSION AND ADJOURNMENT OF THE BI-
MONTHLY COMMISSION MEETING
Chairman Betts adjourned the regular Commission meeting at 11:48 a.m.