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NORTH
COAST RAILROAD AUTHORITY |
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FINANCE COMMITTEE MEETING
MINUTES |
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MARCH 3, 2000 2:00 P.M. |
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501 ASTI ROAD |
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CLOVERDALE DEPOT |
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CLOVERDALE, CALIFORNIA |
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A.
CALL TO ORDER |
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����������� Chair Robert Jehn called the
meeting to order at 2:04 p.m. |
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B.
ROLL CALL
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����������� Finance Committee Directors
present:� Chair Robert Jehn, Robert E.
Simonson, and, by phone,���������� |
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����������� Daniel Opalach.� |
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����������� Also present:� Executive Director Max H. Bridges, Russ
Mustola, CPA, and, by phone, General |
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����������� Counsel Christopher J. Neary. |
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����������� Additional attendees:� Members of the public including
representatives of Rail-Ways, Inc. and�
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����������� the press.� |
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C.������� MINUTES |
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����������� 1.������� Approval of Minutes of the Finance Committee Meeting of
January 12, 2000 |
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����������� 2.������� Approval of Minutes of the Finance Committee Meeting of
February 8, 2000 |
���������������������� Motion
by Dir. Simonson;� seconded by Dir.
Opalach to approve Minutes of both��������������������
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���������������������� meetings with a modification to the
February 8, 2000 Minutes to include that Dir.
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���������������������� Simonson attempted to participate by
teleconference, but was unable.�
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D.������� AGENDA APPROVAL
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����������� The Agenda stands approved by Chair Jehn. |
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E.
PUBLIC COMMENTS |
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Dana Fuller of Richmond, California, asked about an internet message
regarding a public |
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meeting in Eureka attended by Dan Hauser in which he says that it
appears that NCRA and |
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��� ��������Rail-Ways have pretty much written
off the Northern end of the line.�� |
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Chair Jehn and Executive Dir. Bridges emphatically indicated that is
not the case. |
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�John Darling, President of Rail-Ways, Inc.,
reported lay-offs due to funding issues and that all��� |
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services are suspended; however, he assured the Committee that his
company is here for the� |
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�long haul.�� He has requested
the Federal Railroad Administration (FRA) inspect the Railroad� |
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��� ��������and considers it ironic that the
line could be opened, yet service suspended.�
Chair Jehn |
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responded favorably to his suggestion for a special board meeting if
an opportunity for possible |
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solutions to this financial crises arises.� In response to Dir. Opalach�s question regarding past� |
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FRA inspections, Ron Poulsen, Chief Engineer of Northwestern Pacific
Railways Co., LLC,� |
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indicated one in late May or early June in Willits and one in late
June from Lombard to �����������
Schellville which passed.� Then
one in September where it became apparent the track was to be������������������������������������� held
to a higher standard than previously thought. |
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F.
CONDUCT OF BUSINESS |
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1.����� Status of AB 2782 Funds |
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�������������������� Russ Mustola, Consulting Accountant,
reported CalTrans is processing the Prop. 116 |
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�������������������� payment that reimburses NCRA for AB2782
funds advanced to contractors.�
Executive |
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�������������������� Dir. Bridges indicated that NCRA has less
than $3000 and payroll is unpaid as of the end |
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�������������������� of last month.� Mr. Mustola reported that of the Prop. 116 check expected
approximately� |
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�������������������� $143,000 should be returned to NCRA and the
rest should be considered Federal� |
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�������������������� Emergency Management Agency (FEMA) Disaster
1203 funds because NCRA also used |
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�������������������� Disaster money in obtaining Prop. 116
reimbursment.� The Prop. 116 check is
expected |
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���������������as early as
March 6, 2000.������ |
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2.������ Report on the Status
of the Single-Year Audits |
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�������������������� Mr. Mustola thanked General Counsel Chris
Neary for the letter.� The issue with
Warren |
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�������������������� Staley is not resolved, however, he has
indicated that Aycock and Edgmon, CPAs, can |
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�������������������� rely on the balances they carried
forward.� Aycock and Edgmon are
drafting the 1997 and |
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�������������������� 1998 financial statements to present at the
March Board meeting.� In addition,
they are |
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�������������������� working on the 1999 financial
statements.� Mr. Neary indicated Mr.
Staley will be sending |
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�������������������� a revised report.� Mr. Bridges reported that completion of these single year audits
will |
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�������������������� fulfill one requirement necessary to receive
approximately $8 million in Intermodal |
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�������������������� Surface Transportation Enactment Act (ISTEA)
funds.� He also reported that NCRA has |
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�������������������� not received the results of an audit
performed by CalTrans.� Mr. Darling
commented that |
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�������������������� Rail-Ways is being audited by CalTrans.� Mr. Mustola commented designation as a
�High� |
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�������������������� Risk� subgrantee allows CalTrans to hold
NCRA to a higher standard.�
Additionally, he� |
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�������������������� believes granting agencies might assume
Rail-Ways is not financially independent from |
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�������������������� NCRA and, therefore, not entitled to earn a
profit.������� |
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3.
����Distribution of
Anticipated Disaster 1044 Reimbursement Funds for a Net |
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�������������������� Small Project Cost Overrun |
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�������������������� Executive Dir. Bridges reported NCRA is
expecting approximately $200,000 |
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�������������������� possibly Wednesday.� Several scenarios were discussed with
regard to the |
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�������������������� distribution of these funds;� Mr. Bridges spoke of paying Disaster 1044 |
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�������������������� creditor debt, Mr. Darling spoke of applying
the payment as a reduction in |
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���������������� ����the
security agreement, and Mr. Neary indicated there were more options |
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�������������������� including integrating use of anticipated
income from a contract with Williams� |
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�������������������� Communications.� Mr. Neary volunteered, with the assistance of Max, to draft |
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�������������������� options to present them at the next Regular
Board Meeting with a |
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�������������������� recommendation from the committee.�� Dir. Simonson moved to recommend, |
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�������������������� based on Mr. Neary�s analysis that the
intent of the Security Agreement |
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�������������������� with Rail-Ways was to include payment from
all prior disasters, the funds be�������������������� |
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�������������������� given to Rail-Ways.� Dir. Opalach seconded.� Motion carried unanimously. |
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4.
����Status of South End
Rehabilitation Projects |
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�������������������� a.�������
Original and Revised Project Budgets |
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�������������������� b.�������
Actual Funds Now Available |
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�������������������� c.�������
Contractual �Not To Exceed� Amounts� ��������� |
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��������� d.������� Items
Disallowed by Funding Agencies |
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�������� e.������� Actual Expenditures |
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�������������������� f.��������
Equitable Distribution of Revenues |
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�������������������� g.�������
Committee Recommendation to the NCRA Board |
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��� ����������������������������Executive Dir. Bridges
reported a potential agreement was reached during a |
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������������������������������� meeting with Rail-Ways and Herzog
to decide the future disbursement of funds, |
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������������������������������� including retention, according to
a calculation based on �not to exceed� contractual |
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������������������������������� amounts instead of amounts
actually billed.������������������������������ |
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��������������������������������� |
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������������������������������� Chair Jehn left at 4:15 p.m. |
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G.������� ADJOURNMENT |
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Dir. Simonson adjourned the meeting at 4:40 p.m. |
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