SPECIAL MEETING
BUTLER
COUNTY BOARD OF COMMISSIONERS
Wednesday, August 8, 2001
Commission Chairman, Bill Shriver, called the Butler County Board of Commissioners to order. Present were Commissioner Will Carpenter; County Administrator, Jay Newton; and Commission Secretary, Marcy Zwall. Commissioner Randy Doll was absent at the opening of the meeting.
RAIL PROPERTY TRANSFER
Rich Batie, Project Engineer for Burlington Northern & Santa Fe Railway (BNSF), was present to discuss the transfer of the rail property to the Butler County Port Authority/Butler County. Also available for discussion were Norman Manley, County’s Counselor; Larry Powell, BCED Director; Will Johnson, BCED Chairman; Marce Brewer; Steve Waite; Gary Fugit; & Eric Grooms. Mr. William Mauk, Sr., of Augusta, was present as a public citizen.
Mr. Batie reviewed the BNSF’s Line Transfer Process. He indicated that BNSF has 3 options for disposing of a line: abandonment, sale or donation. Briefly, Mr. Batie informed the Board all steps of the process have been taken up to the Environmental Report, & as far as he knows, it is okay. The next step will be ordering an appraisal, at the County’s cost (approximately $15,000), which is standard with all of BNSF’s donations. The firm of Arthur Anderson of Chicago, IL has been used since 1995 & BNSF’s real estate department is comfortable with this company. He also noted that BNSF uses the same closing company for its transactions as well. Upon completion of the transfer, the County will receive an original of an executed agreement; a quitclaim deed, by Kansas Statute; a Bill of Sale, for track materials (will give the County a “Common Carrier Obligation”). This would allow the County to offer service, but only in a win-win situation, & only after passing Federal Railroad Administration inspection; or let the railway set as is. If the County decides to use the line, a Certificate of Public Convenience & Necessity would need to be issued.
Commissioner Shriver inquired about what would happen with existing leases, to which Mr. Batie acknowledged BNSF’s desire to transfer them all (5-7 totaling <$10,000/yr). However, BNSF may sell them prior to transfer. BNSF’s real estate department will make the final decision. Should they be transferred, Mr. Batie warned the Board that all documents might not be received until after closing due to time constraints. Likewise, mortgage releases may take 6 months after the transaction occurs to receive. In addition, The Board was told that BNSF may retain mineral, water or telecommunication rights.
Mr. Batie informed the Commissioners that he would be meeting with the City of Wichita & Sedgwick County this afternoon to discuss the abandonment of the BNSF Rail in Sedgwick County.
<<Commissioner Randy Doll joined the meeting at 11:20a.m.>>
Commissioner Shriver commented to Mr. Batie that he was worried about Sedgwick County’s involvement with this project. Mr. Batie informed the Board that Butler
County’s involvement stops at the County line. Whatever happens in Sedgwick County, Butler County has no control over. The two entities are completely separate as far as BNSF is concerned. He noted that BNSF’s real estate department has not decided what to do with that right-of-way. Further, the other complicating issue is that there are 2 parties interested in putting an Offer of Financial Assistance (OFA) (allows purchase or subsidizing operations on line – obligates them to serve the line for 2 years – very costly). Sunflower Trust is one of the parties. Mr. Batie acknowledged actions that might be taken: Offer of Financial Assistance; Public Use Condition (PUC), which he expects the County to do (ties right of way up for use of public purposes only – gives the City & County an edge over OFA’s); or a NITU. Mr. Batie is requesting both a PUC & an NITU. From there, he has no idea of what the OFAs’ involvements will be. BNSF will go through the abandonment process (to be filed late 2001 or early 2002), then see where their best interests will lie.
Commissioner Doll moved to enter into negotiations with BNSF for the transfer of title, to Butler County, of the rail line from Augusta to the Butler County line, approximately 10.62 miles. Commissioner Carpenter seconded the motion. Motion carried 3-0.
Commissioner Shriver, having no further business before the board, adjourned the meeting at 12:05p.m.