NORTH COAST RAILROAD AUTHORITY

 

FINANCE COMMITTEE MEETING MINUTES

 

TUESDAY, FEBRUARY 8, 2000 2:00 P.M.

 

501 ASTI ROAD

CLOVERDALE DEPOT

CLOVERDALE, CALIFORNIA

 

 

A.                 CALL TO ORDER

            Chair Robert Jehn called the meeting to order.

 

B.                 ROLL CALL

            Finance Committee Directors present:  Chair Robert Jehn and Daniel Opalach.  In  

            addition, Robert E. Simonson attempted, but was unable, to attend by phone. 

            Also present:  Executive Director Max H. Bridges, General Counsel Christopher  

            J. Neary by phone, and Russ Mustola, CPA.

            Additional attendees:  John Darling, President of Rail-Ways, Inc.; B.J. Henshaw, 

            Cloverdale Reveille; David Fuller; Ross Mayfield and Dallas Miller, Recovery

            Operations Specialty Services; Jim Jackson, public; Mark Pollack, Northwestern

            Pacific Railways

 

C.                 AGENDA APPROVAL

            The Agenda stands approved by Chair Jehn.

 

D.                PUBLIC COMMENTS

            None.

 

E.                 CONDUCT OF BUSINESS

            1.      Status of AB 2782 Funds

                     Russ Mustola, Consulting Accountant, informed the committee that NCRA  

                     is running out of funds in some areas and that monies can be redirected with

                     a Board Resolution.  He requested guidance in the handling of funds and

                     future invoices.  Although NCRA is within the total budget, some of the

                     money has been paid as an advance to contractors in order to request

                     reimbursement from Proposition 116.  General Counsel Neary and Mr.

                     Mustola will inquire of the IRS regarding a refund of fuel tax.  Mr. Mustola

                     reported that NCRA is under-funded for Legal, Environmental, and

                     Disability Claims.                      

 

           2.       Report on the status of the single-year audits

                     Mr. Mustola reported Warren Staley, CPA has not indicated when he will

                     finish re-issuing the 1995 and 1996 single-year audits, despite requests by

                     Mr. Mustola; Aycock and Edgmon, CPAs; and CalTrans audit staff. 

                     Aycock and Edgmon have completed the field work for the 1997 and 1998

                     single-year audits; they will begin 1999’s single-year audit when they are

                     finished with the two prior years.  General Counsel Neary will contact Mr. 

                     Staley and this issue is to be agendized for the next Regular Board Meeting,

                     open and closed session. 

 

3.          Update on Federal Emergency Management Agency (FEMA) / Office  

          of Emergency Services (OES) receipts and payments

                       Mr. Mustola reported Disaster 1155 closed out at a total of $2.6 million. 

                       The audit exception offsets are finished and have been reconciled.  Of 

                       Disaster 1203, $605,000 was used as an offset; 10% retention may still be 

                       available.     

 

4.           Sale of Inventory to Rail-Ways, Inc.

                       Mr. Mustola reported the physical inventory list of materials and supplies 

                       was created where only items that could be used were assigned   

                       replacement value totaling $360,000.  The list does not include equipment

                       or property, only consumables.  The committee decided this issue should 

                       go before the Board.    

 

5.            Subcontractor status of disallowed reimbursement requests

                        Mr. Mustola requested guidance accounting for invoices reflecting work

                        completed, yet disallowed by FEMA.  Mr. Darling indicated, starting

                        January 1999, a budget was created by NCRA represented by Allan

                        Hemphill and Dennis Wood, Rail-Ways, Herzog, and Mec Rail which 

                        identified these funding sources available to complete the work consistent

                        with the improved projects status:  Disaster, NWPRA, FHWA 130, Prop

                        116, and AB2782.  The money available was approximately $3.4 million. 

                        The application of these sources was to pay for all the work needed to

                        repair the FRA Emergency Order 21 defects and restore the track to Class 

I.  Mr. Bridges reported FEMA and OES have insisted that each DSR is an

improved project and the money written into each DSR must be spent in the area covered by that DSR, contrary to Mr. Darling’s understanding.  Mr. Mustola reported $1.4 million in Rail-Ways invoices is for work that the Board has never had a funding source available.  Mr. Darling, Mr. Mustola, and Mr. Bridges will meet to resolve this issue.

 

F.         ADJOURNMENT

            Chair Jehn adjourned the meeting; the Finance Committee was scheduled to meet    

            at the Cloverdale Depot, 501 Asti Road, Cloverdale, California on Friday, March 

            3, 2000 at 2:00 p.m.