A member of the SEDA-COG Joint Rail Authority (JRA) has been removed as board treasurer because he favors privatizing the local railroad system.
Dennis Reitz, one of two JRA members representing Northumberland County, called his removal "extremely insulting."
Reitz was the focus of a portion of the authority's board meeting on Wednesday, during which Scott Harvey, from Lycoming County, was promoted from assistant treasurer to treasurer. Twelve members voted in favor of Harvey and four people - including Reitz - abstained.
Reitz, of Herndon RD, a manager at Clark's Feed Mills in Weigh Scales, near Shamokin, remains as a member of the board. But tension over the privatization issue seems to have increased with Wednesday's action.
Reitz spoke at a Dec. 13 meeting where Northumberland County commissioners voted 2-1 to seek the opinion of the state Attorney General as to selling the rail operation to a private company and disbanding the JRA, a public agency whose board is comprised of two members each from its eight-county region - Centre, Clinton, Columbia, Lycoming, Mifflin, Montour, Northumberland and Union.
Reitz's support of privatization created an issue of trust, according to JRA Chairman Jerry Walls. He said he asked Reitz during Wednesday's meeting to reiterate his position and provide a copy of his Dec. 13 testimony to the JRA board.
That was part of what some have called an unfair attack of Reitz, and Tom Herman, one of Montour County's representatives, walked out at one point, letting the door slam behind him, Walls said.
The chairman said Thursday he meant no disrespect to Reitz, his abilities or his service to the board. He said the nominating committee, "without influence from me," had a concern about Reitz's belief in the JRA mission in light of his comments and that he should no longer be an officer.
Walls did say he agreed with the nominating committee, which is made up of chairman John Showers (Union County), Robert Postal (Mifflin), Rick Jenkins (Columbia) and Frank Dombroski (Montour).
"When the member of any authority is appointed," Walls said, "they have a fiduciary responsibility to the functioning of that organization, and to the development of that system. And, therein, was the concern of board members."
'Damaged goods'
Reitz, meanwhile, said his responsibility is not solely to the JRA board, but also to Northumberland County. As for privatization, he said the commissioners of the member counties or the Attorney General's Office would have to make that call - not the JRA board - and so having a different opinion than other members shouldn't matter.
"It would absolutely be no problem for me to continue doing what I have done for the past four years," Reitz said Thursday, "and that is looking after the authority's best interest and that of Northumberland County. I don't think any of those goals are in conflict."
But most of the JRA board member don't feel that way, he said. To them, "I'm kind of like damaged goods," Reitz said.
Reitz said even before he was on the board, he attended JRA meetings on a regular basis since 2001 because Clark's uses the railroad.
"Quite frankly, for my integrity and abilities to be questioned is extremely insulting," he said.
Walls said that was not his intent, and that he was polite to Reitz.
"I was trying to give him an opportunity to express himself so that trust could be rebuilt," Walls said.
He said a request by Reitz to be named to the operating agreement committee was granted.
Jeff Stover, JRA executive director, who joined Walls in a conference call Thursday about the issue, said Reitz has been the board's best treasurer during his 26-year tenure. "That was never the issue," Stover said.
Differing opinions
Walls said JRA bylaws say the chairman and executive director serve as spokespersons, and they attended the Dec. 13 meeting in that capacity. Reitz, even though he qualified his comments that day as his own, was walking a "fine line" between private person and JRA board member in the eyes of the public, Walls believes.
As to Wednesday's meeting, Walls was asked if he believes he accomplished his goal of restoring trust.
"I thought so because I had four or five board members come to me after the meeting in the lobby thanking me for handling it delicately and for my closing statement," he said.
Reitz didn't seem to share that opinion, saying Walls is hypocritical in his statement that he values diverse thoughts.
"If he wants to single out someone for having a different opinion, I feel sorry for him," Reitz said.
Clausi reacts
Word of the discussion reached Northumberland County Commissioner Vinny Clausi, who, along with now-former commissioner Merle Phillips, voted in favor of the privatization resolution. Clausi said he does not know Reitz, but was upset that he was questioned for speaking his mind. He said he talked to Reitz and left a phone message Thursday for Walls.
"He (Reitz) should not get thrown under the bus because they don't like his opinion," Clausi said.
In addition to Reitz, others abstaining from the treasurer's vote were Herman and Centre County representatives John Spychalski and Sam McCartney.
A call placed to Herman's cell phone Thursday was not returned. Walls said Herman returned to the meeting before it was over and told him afterward there were "no hard feelings."
Offer rejected
Also at Wednesday's meeting, the board rejected a $12.5 million offer from Moran Industries, Watsontown, for the 200 miles of rail and associated assets of the JRA, an offer prompted by the privatization resolution. That is the only formal offer the JRA has received, Stover said.
He and Walls have said the actual value of the JRA may be upwards of $100 million.
Also Wednesday, the board formally appointed Eric Winslow as a Union County representative, replacing Dennis Shaffer, who, because he works for Moran, resigned after the firm made its offer.
The JRA owns five short-line railroads and related infrastructure and contracts with an operator, North Shore Railroad, to provide the actual shipping service.