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.