UKIAH VALLEY CONFERENCE CENTER, REISLING ROOM

200 SOUTH SCHOOL STREET, UKIAH, CA 95482

A. CALL TO ORDER – 9:20am

B. ROLL CALL

Committee Members present: Director Simonson and Director Ripple (sitting in for Director Hemphill). Also present: Theda Hawkinson and Stephanie Coleman of Caltrans, Erick Roeser of Sonoma County Auditors Office, NCRA Executive Director Doug Christy, Legal Counsel Chris Neary, and Executive Assistant Dina Polkinghorne

C. AGENDA APPROVAL

Committee Action: Upon motion by Director Simonson, 2^nd by Director Ripple, and carried (3-0) the committee moved to accept the agenda as presented.

D. PUBLIC COMMENTS

None

Director Campbell entered the meeting at 9:21 am

Cheryl Willis of Caltrans entered the meeting at 9:22 am

E. CONDUCT OF BUSINESS

1. Approval of 2003/2004 Agency Budget

Executive Director Christy introduced Erick Roeser from the Sonoma County Auditor’s Office.

Mr. Christy presented a proposed “Agency” budget worksheet for the 03/04 fiscal year. He explained that this new Agency budget represents a combined Property and Administration budget from the 02/03 fiscal year. The third budget reported during the 02/03 fiscal year, TCRP, will be changed to a “Project” budget. This budget will reflect all outside funding sources and will have no net financial effect on the Agency budget, as the expenses cannot exceed the fund amounts. This budget will be developed and approved after the Agency budget, as future funding sources for 03/04 have yet to be determined.

The committee (and attendees) reviewed each revenue and expense item presented on the budget worksheet. Staff was advised and directed to revise the proposed budget to reflect the following material changes below:

Retained earnings (cash carryover from prior year) should not be considered 03/04 revenue
Only passenger car revenue expected to be received in 03/04 should be accounted for
Add UP interest expected ($25,000) in the escrow account for 03/04
Remove the $18,000 City of Ukiah match since this is considered a fixed asset enhancement and will be accounted for on the balance sheet
Move $45,000 in legal expenses targeted for funding to 6500 – Professional Special Services
Add an additional $20,000 under Legal for outside services (Blackpoint)
Budget only the annual portion of long term debt that the agency is currently committed to pay (previous direction from Committee)
Increase contingency fund to $50,000 by taking away a like amount from other projected expenses
Maintain separate cost centers within the combined Property/Administration “Agency” Budget

The committee decided that the full Board should adopt this budget at its June 18^th meeting as “Preliminary” only. This would allow the agency to incur typical day-to-day operating expenses until the 03/04 budget is finalized.

Adjourned for a break at 10:45 am

Reconvened at 11:00 am

F. MATTERS FROM COMMITTEE MEMBERS

None

G. ADJOURNMENT

1:15 pm