MINUTES OF THE OHIO RAIL DEVELOPMENT COMMISSION
REGULAR BIMONTHLY MEETING
MAY 12, 2005

CALL TO ORDER AND ROLL CALL
Chairman James E. Betts called the meeting of the Ohio Rail Development Commission to order at 10:20 a.m. Commission members present included: Chairman Betts, James Hartung, Daniel Roberts, Howard Wood, Eric Neff and Solomon Jackson. Six voting members were present. Commission members absent included: Representative Allan Sayre, Herk Wolfe, Tom McOwen, Larry Sowers and Senators Mumper and Hagan.

APPROVAL OF THE MINUTES OF THE MARCH MEETING
Chairman Betts asked for a motion to approve the minutes of the March 10, 2005 Commission Meeting. Commissioner Hartung moved to approve the minutes and Commissioner Jackson seconded. The minutes were approved as presented.

EXECUTIVE DIRECTOR'S REPORT
James Seney, Executive Director of the Ohio Rail Development Commission (ORDC), presented the Executive Director's Report to the commissioners. Director Seney spoke about the $100,000 in federal planning money approved by ODOT for ORDC and he thanked Director Proctor and Howard Wood for their efforts in helping ORDC to obtain this funding. Director Seney reported that ODOT had also previously approved an additional $150,000 to ORDC to assist with the feasibility study for the Ohio Hub. He said that these two commitments are an enormous help in assisting ORDC to fulfill its mission in developing and implementing a passenger rail system in the State of Ohio. Chairman Betts spoke on the continued attempts by those in state government to reorganize ORDC's structure and explained that every several months questions seem to be raised about how ORDC is best suited to function; either as an independent agency operating under the ODOT umbrella (as it exists now) or as an office or section in a larger state agency (ODOT or ODOD). Thus far, the argument has been made that ORDC is most effective as an independent agency and it has been recommended that it remain that way.

FINANCE REPORT
Matthew Dietrich presented the Finance Report to the commissioners. Mr. Dietrich reported that page seven of the commission packet is a copy of the testimony given by Director Seney to the Senate Finance and Financial Institutions Committee regarding the budget (HB66). This testimony was given on March 8^th. Mr. Dietrich then reported on item #6 of his finance report. This item indicates that Ashland Railway had previously proposed as part if its yard rehabilitation project, the intent to expand its traffic control building by adding a third floor in order to provide enhanced dispatching capabilities in the yard. Mr. Dietrich reported that, although the Railroad had full intentions of completing this project, engineering review of the building's structure would not support the addition of a third floor, therefore the Railroad had decided to purchase two car detectors at its interchange points with CSX and NS in lieu of the expansion project. Mr. Dietrich noted that although a motion or vote was not necessary to approve this change, he wanted to bring it to the attention of the commissioners.

Mr. Dietrich then said that on page 12 of the packet was the spreadsheet of all projects that are currently before the Commission. He reported that due to the fact this was the final meeting before the close of the State's fiscal year, all accounts would be examined very closely to determine if any project may have come in under budget or over budget in order to zero-out all accounts prior to the new fiscal year beginning (July 1, 2005). Mr. Dietrich reported that the total funds available for projects in FY '05 is currently $908,368. He also stated that several computers and new software would be purchased for the ORDC staff. Commissioner Jackson raised a question regarding Lou Jannazo's Section Report; page 4 of the Commission packet (Note: Mr. Jannazo was not able to be present at the meeting). Commissioner Jackson inquired about Mr. Jannazo indicating on his report that "ORDC is relying on the railroads to inspect contractor work and is doing its own ORDC inspections for select force account projects." Commissioner Jackson reported that he is concerned about the railroads inspecting track and does not want to compromise ORDC's ability to go in and inspect track on any project. Mr. Dietrich responded by saying that with Dave Reid's retirement, 30 years of his knowledge will not be easily replaced and that this is only a temporary situation as ORDC's intent is to fully train safety staff and other staff members in the area of track inspection. Mr. Dietrich noted this very reason was why Mr. Jannazo was not present at the meeting because he was attending training in Illinois. A short discussion followed with both Mr. Dietrich and Director Seney reassuring Commissioner Jackson and all present that ORDC will utilize every source necessary to ensure that each and every project is done correctly. Director Seney then indicated that Mr. Reid is available to ORDC on a contract basis in the event the need arises.

OHIO RAIL TOURISM ASSOCIATION (ORTA) ANNUAL AWARD PRESENTATION
Chairman Betts introduced Mr. Warren Hyer, President of ORTA. Mr. Hyer attended the ORDC meeting to present two of three special awards bestowed by ORTA - the 2005 President's Award and the 2005 Outstanding Service Award. Mr. Robert Bixler of the Orrville Railroad Heritage Society (ORHS) was previously presented with the Lifetime Achievement Award at the ORHS meeting earlier in the month.

Mr. Hyer presented the 2005 President's Award to the Ohio Rail Development Commission. The award was accepted by Chairman Betts (who included all commissioners and ORDC staff in the acceptance). Mr. Hyer then presented the 2005 Outstanding Service Award to Lynda Nelson, ORDC's Special Projects Manager. Congratulations to all who have received these honors.

PROJECT

Buckingham Coal Spur (Resolution 05-05)
Matthew Dietrich presented Resolution 05-05 to the commissioners. Commissioner Jackson asked to be recused prior to discussion of the resolution and left the room. Mr. Dietrich reported that Buckingham Coal Company is requesting a grant in the amount of $200,000. The grant is to assist with the costs associated with creating rail access from Norfolk Southern's Columbus to Charleston "West Virginia Secondary Line" to its new mine in Perry County. This project will help defray the costs associated with one (or more) of five different rail-related projects being proposed by Buckingham Coal. Mr. Dietrich introduced Ron Bird, Vice President, Buckingham Coal, who thanked the Commission for its assistance with this project. Mr. Bird reported that 75 percent of Buckingham Coal's workforce comes from Perry, Hocking and Athens Counties, two of which are economically distressed areas of the state. This project has the potential to create up to 200 new jobs for the area. A short discussion followed. Bill Strawn, President of the Ohio Central Railroad, explained Ohio Central's involvement in this project as the railroad responsible for bringing the coal from the mines to the transfer points at which the track meets NS track.

Chairman Betts asked for a motion to adopt Resolution 05-05. Commissioner Hartung moved to approve the Resolution and Commissioner Wood seconded the motion. The motion was approved with five votes in the affirmative, three absent and one recused.

APPROVED PROJECT BRIEFINGS

Youngstown Steel Door Industries Lead Track Rehabilitation Update
Ms. Beverly Lee, ORDC Planner, presented Youngstown Steel Door (YSD) Industries' approved project briefing to the commissioners. Ms. Lee reported that in November of 2004, Chairman Betts, Director Seney and the commissioners approved a $10,000 grant toward the total cost of $60,000 that was needed for rehabilitation repairs along 500 feet of lead track to YSD Industries. At that time, the Ohio Department of Development (ODOD) had committed to assist YSD with a $30,000 Roadwork Development (629) Account grant. Due to the fact that YSD Industries could not commit to creating new full-time positions, the ODOD was unable to fulfill its commitment to this project. Therefore, YSD Industries and the Mahoning Valley Economic Development Commission are requesting the $30,000 necessary to complete the repairs along the lead track to YSD. This project will retain 63 current jobs at YSD Industries and will generate approximately 100 new carloads per year.

U.S. Rail Corporation Rehabilitation of Meadow Run Yard
Ms. Lee reported that U.S. Rail has requested a grant of $45,520 to rehabilitate tracks in its existing yard and construct two new storage tracks in its Meadow Run Yard located in Wellston, Ohio. Chairman Betts and Director Seney have agreed to provide $40,000 toward this project and will re-evaluate the remainder of U.S. Rail's grant request ($5,520) at the end of the current fiscal year (June 30, 2005). U.S. Rail acquired a new customer, Marathon Ashland Petroleum, LLC (MAP), which the railroad will provide car storage and repair and inspection services. Presently, the rail yard (Meadow Run) cannot be used because it needs a sound road bed in order to safely accommodate the amount of traffic that will be generated as a result of MAP. Ms. Lee reported that the total project cost is estimated at $134,245. This project will result in the creation of 8 new positions and will generate approximately 70-150 cars annually.

State of Wisconsin as Lead State for the Midwest Regional Rail Initiative
Mr. Don Damron, ORDC's Passenger Rail Planner, reported on the Midwest Regional Rail Initiative (MWRRI) Steering Committee's request and receipt of an FRA earmark in the FY'04 Transportation Appropriation Budget of $250,000 for planning, public involvement, engineering, and environmental work over a three-year period which began January 1, 2005 and runs through December 31, 2008. The total project cost is estimated at $500,000 for these efforts. All states involved in MWRRI (8) will make up the remaining $250,000 deficit. This project will fund and support the work of the MWRRI Steering Committee as it pursues additional funding and the implementation of the plan at the state and federal levels. ORDC's commitment for FY '05 is $11,000. Each of the eight participating states have agreed to contribute a total of $31,250 over three fiscal years (FY '05, '06 & '07). Participation in this process will help to identify an FRA-approved project development process and produce a scope-of-work and cost estimates for advancing the Midwest Regional Rail System into the National Environmental Policy Act (NEPA) process which should also apply to ORDC's efforts with the Ohio Hub (passenger rail system). A short discussion followed.

Old Business
None.

New Business
None.

Public Comment

• Mr. Steve Stickles, an attorney and resident of Hopedale, attended the meeting to voice an opinion on behalf of his community that the Piney Fork Line not be sold to Ohi-Rail Corporation. If the sale is achieved, the concern of the community is the hauling of waste and potentially hazardous materials through a residential area and close to their water supply reservoir.
• Mr. Ron Jedlika, Buckeye Central Scenic Railroad, thanked ORDC for its assistance on the rehabilitation project the railroad desperately needed as a result of flooding.
• Commissioner Jackson commended ORDC staff on the Hi-Rail trip the Commissioners were able to take recently. Commissioner Neff echoed Commissioner Jackson's sentiments.
• Mr. Bill Strawn reported that the Ohio-Pennsylvania Railroad (formerly CQPA Railroad) has just completed its second month of service. They have extended their operations into Pennsylvania now. Mr. Strawn thanked the Commission for its assistance with this project. He indicated there is still a lot of work to be done but the business along the line is coming. Director Seney commended Ohio Central for its abilities to rehabilitate the line and make it prosperous once again.
• Mr. Dave Mangold invited the commissioners to attend the 75^th Anniversary of Cleveland Union Terminal symposium later in the month. A short discussion followed regarding the Union Terminal's history.
• Mr. Art Arnold reported that the FRA has issued its Final Rule on the federal quiet zone issue and indicated this ruling should be very helpful for the state.
• Mr. Dan Van Epps reported that HB 77 (reassigns ORDC into ODOT) and HB 186 (privatizes state assets) have recently been introduced in the House and that CSX's court ruling regarding the hauling of hazardous materials was finalized with a decision going by way of CSX.

MOTION TO ADJOURN TO EXECUTIVE SESSION
Chairman Betts asked for a motion to adjourn to Executive Session for the purpose of discussing the Surface Transportation Board Amicus Brief filing in the matter of Railroad Ventures, Inc. - Abandonment Exemption between Youngstown, Ohio and Darlington, Pennsylvania in Mahoning and Columbiana Counties, Ohio and Beaver County, Pennsylvania. Commissioner Hartung moved to approve the motion and Commissioner Neff seconded the motion. The motion was approved with six votes in the affirmative. The meeting adjourned for Executive Session at 11:35 a.m.

RECONVENE TO EXECUTIVE SESSION
The meeting reconvened to Executive Session at 11:38 a.m.

ADJOURNMENT
Chairman Betts adjourned the meeting of the Ohio Rail Development Commission at 11:56 a.m.