NORTH COAST RAILROAD AUTHORITY (NCRA)

FINANCE COMMITTEE MEETING MINUTES

JUNE 9, 2000 10:00 A.M.

AT THE LAW OFFICE OF CHRISTOPHER J. NEARY

110 SOUTH MAIN STREET SUITE C

WILLITS, MENDOCINO COUNTY, CALIFORNIA

A. CALL TO ORDER

����������� Chair Robert Jehn called the meeting to order at 10:00 a.m.

B. ROLL CALL

����������� Finance Committee Directors present:� Robert E. Simonson and Daniel Opalach, and by phone����������

����������� Chair Robert Jehn.�

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

����������� Consulting Accountant Russ Mustola, and Property Manager Cyndee Logan.

����������� Additional attendees:� Members of the public and press.�

C.������� MINUTES

����������� Approval of Minutes of the Finance Committee Meeting of March 3, 2000

Motion by Dir. Opalach to approve the minutes; seconded by Dir. Simonson.� Vote taken; motion

carried.

D.������� AGENDA APPROVAL

����������� The Agenda was approved as written by Chair Jehn.�����������

E. PUBLIC COMMENTS

����������� None.

F. CONDUCT OF BUSINESS

����������� 1.����� Review of CalTrans Draft Audit and NCRA�s Response

����������� Mr. Bridges was directed to further revise the response for presentation at the next Regular

����������� Board meeting based on the outcome of a June 13 meeting with the CalTrans Audit Division

����������� staff and anticipated input by Dir. Opalach who requested additional time to review both

����������� documents.

���������� 2.������ Revised Budget for Fiscal Year 2000-01

���������� Mr. Bridges indicated significant changes are based on receiving an anticipated $65 million

���������� from the Governor�s budget, and include reducing debt, funding the Q-fund, and receiving

��������� �revenue from property leases.

Dir. Opalach motioned to submit the revised budget for consideration at the next Regular Board

meeting; seconded by Dir. Simonson.� Vote taken; motion carried.

���������� 3.����� Status of Single Year Audits����������� ���

���������� Mr. Mustola reported Warren Staley has requested a letter from NCRA before re-issuing the

1995 audit.� Additionally, Mr. Mustola offered to address the audit findings relative to the

current audit for 1998-99.

4.����� NCRA Cash Flow

���������� Mr. Bridges reported there will be no cash flow by the end of July.� There is money held from

���������� the Williams Communications lease pending negotiations with Union Pacific, and fuel excise

���������� tax refunds offset by the amount owed the Internal Revenue Service leaves approximately

$30,000 for operating costs through July.� Mr. Neary reported the property revenue account may

���������� be accessed providing the Governor�s budget passes which fully funds the Q-fund.� Mr. Bridges

���������� reported Pacific Bell has promised to present a position paper outlining their ideas for a fiber���

���������� optic easement by July 10.�

���������� 5.����� Report on the Status of Funding

���������� Although Chair Jehn warned that the allocation within the Governor�s budget is not absolute,����������

���������� Mr. Bridges indicated the budget is likely to be signed by June 30, and language for the

���������� legislation has been crafted to include:������������������

��������� �$250,000 for administration with a second $250,000 six months later,

���������� $600,000 to open the South End immediately upon signing,

���������� $500,000 within one year through the California Transportation Commission (CTC),

���������� $1 million to augment the Federal Emergency Management Agency funds for the North End

���������� within four months,�

���������� $5,000,000 to upgrade the line to Class 2 or 3� $4.1 million with four months for environmental

���������� issues,�

���������� $10,000,000 through the CTC within four months for debt reduction,

���������� $1.8 million for local matching funds also through the CTC,

���������� $5.5 million for Federal loan obligations, and

���������� $36 million for long term stabilization.

F.�������� ADJOURNMENT

����������� Chair Jehn adjourned the meeting at 11:35 a.m.

�