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.