Approved Minutes – Tuesday, June 15, 2000

The Board met at its offices at 450 N Street, Sacramento, at 9:30 a.m. with Chairman Andal, Vice Chairman Parrish, Mr. Klehs and Mr. Chiang present, and Ms. Mandel present on behalf of Dr. Connell in accordance with Government Code Section 7.9.

ANNOUNCEMENT OF CLOSED SESSION

The Board went immediately into closed session with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

CLOSED SESSION

The Board met to discuss personnel matters and Revenue and Taxation Code 7093.5 and 50156.11 settlements and pending litigation.

The Board recessed closed session at 9:40 and reconvened in open session with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

ANNOUNCEMENT OF ACTIONS TAKEN IN CLOSED SESSION

The Board announced the appointment of Charlotte Paliani to Chief, Program, Planning and Evaluation Division, Sales and Use Tax Department.

RETIREMENT RESOLUTIONS

Upon motion of Mr. Klehs , seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Ms. Mandel voting yes, Mr. Chiang not participating, the Board adopted the following resolutions (Exhibit 6.3) extending its best wishes on their respective retirements and its appreciation for their service to the Board and the State of California:

Sandra Rose, Business Taxes Compliance Specialist, Headquarters
Dennis Smith, Business Taxes Compliance Supervisor III, Headquarters
Marlys Quackenbush, Tax Technician I, Headquarters
Fred M. Spitzer, Senior Delineator, Headquarters
Betty A. Wolkoys, Secretary, Santa Ana District Office
Richard Zahm, Business Taxes Specialist I, Headquarters

Exhibits to these Minutes are incorporated by reference.

EXTENSIONS OF TIME GRANTED PURSUANT TO REVENUE AND TAXATION CODE SECTION 155

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Ms. Mandel voting yes, Mr. Chiang not participating, the Board granted extensions of time under the provisions of Revenue and Taxation Code Section 155 for filing local assessment rolls to the assessors of Butte, Calaveras, Colusa, Kings, Lassen, Madera, Modoc, Orange and Tulare Counties..

GUIDELINES FOR THE ASSESSMENT OF TAXABLE GOVERNMENT-OWNED PROPERTIES

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Ms. Mandel voting yes, Mr. Chiang not participating, the Board adopted the approved Guidelines for the Assessment of Taxable Government-Owned Properties.

LEGISLATIVE COMMITTEE REPORT

Margaret Shedd, Legislative Counsel, recommended adoption of the Legislative Committee Report.

Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the committee report. (Exhibit 6.4).

CUSTOMER SERVICES & ADMINISTRATIVE EFFICIENCY COMMITTEE

Delena Bratton, Chief, Customer and Taxpayer Services Division, recommended adoption of the Customer Services & Administrative Efficiency Committee Report.

Mr. Andal made a motion that beginning with the 2001-2002 budget year, staff shall use the $36,000 translation budget to translate, into Spanish, the top 50 requested Board publications. The motion was seconded by Mr. Parrish but failed to carry, Mr. Andal voting yes, Mr. Parrish and Mr. Chiang voting no, Ms. Mandel abstaining and Mr. Klehs not participating.

The Board recessed at 9:45 and reconvened at 9:50 with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present. The Board deferred consideration of this matter until later in the day.

BUSINESS TAXES COMMITTEE REPORT

Ramon J. Hirsig, Deputy Director, Sales and Use Tax Department, recommended adoption of the Business Taxes Committee Report.

Upon motion of Mr. Klehs, seconded by Mr.Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the committee report. (Exhibit 6.5).

PROPERTY TAX COMMITTEE REPORT

Richard Johnson, Deputy Director, Property Taxes Department, recommended adoption of the Property Tax Committee Report.

Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the committee report. (Exhibit 6.6).

CHIEF COUNSEL MATTERS - RULEMAKING

Upon motion of Mr. Andal, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish and Mr. Chiang voting yes, Mr. Klehs and Ms. Mandel not participating, the Board authorized publication of Sales and Use Tax Regulation 1620, Interstate and Foreign Commerce for public hearing.

APPEALS MATTERS

Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang and Ms. Mandel voting yes, Mr. Klehs voting no, the Board adopted the Memorandum Opinion in the matter of Hewlett-Packard Company, SY GH 98-039144-003, 004; 89002094240, 89002094250.

Plastikon Industries, Inc., SR CH 26-713724-010; 89000654330
10-1-93 to 12-31-96, $38,808.83
Considered by the Board: May 3, 2000
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried,
Mr. Andal, Mr. Parrish and Ms. Mandel voting yes, Mr. Klehs and Mr. Chiang voting no, the Board ordered that the petition be granted and the penalty for negligence be deleted.

Jin Woo Chang, SR AB 99-303950-010; 89002191290
1-1-94 to 12-31-96, $8,299.40
Considered by the Board: February 3, 2000
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Ms. Mandel voting yes, Mr. Chiang not participating, the Board ordered that the petition be redetermined as recommended by Appeals.

Donald Bannister & Robert Haddad, SR AC 13-807211-010, 020, SN AC 52-002380-010, SN AC 52-002381-010; 89000080880, 89000080900, 89000963210, 89000963230
7-1-92 to 6-30-95, $40,070.64
Considered by the Board: February 3, 2000
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals.

Palace Holdings, Inc., SR AS 11-802944-010; 89000032930
4-19-91 to 3-31-94, $52,438.78
Considered by the Board: February 3, 2000
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals.

Youssef Lazarnejad, SR AC 13-878099-010; 89000097730
4-1-93 to 3-31-96, $103,150.70
Considered by the Board: February 3, 2000
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition be redetermined as recommended by Appeals.

Comdisco Healthcare Group, Inc., SS OHA 30-690964-010; 8900872260
4-1-92 to 6-30-95, $140,557.40
Considered by the Board: April 5, 2000
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel not participating, the Board ordered that the petition be redetermined as recommended by Appeals.

Sandra L. Mcquilkin and Grace Y. Boyd, SR AP 17-770659-010; 89000213130
1-1-93 to 12-31-95, $21,230.94
Considered by the Board: April 6, 2000
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Chiang, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that

Octavio O. Ramirez, SR AP 23-854928-010; 89000427690
10-1-91 to 12-31-94, $13,237.73
Considered by the Board: April 6, 2000
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: Upon motion of Mr. Chiang, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the petition for rehearing be denied.

Allied Signal, Inc., SY OHB 30-680407-030; 89000858110
4-1-91 to 3-31-93, $255,773.02
Considered by the Board: July 29, 1999
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: The Board deferred consideration.

Barbara A. Wallace, LLC, SR DH 99-702975-010; 89002365270
7-1-91 to 5-4-95, $61,783.26
Considered by the Board: March 16, 2000
Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Action: The Board took no action.

FRANCHISE AND INCOME TAXES MATTERS

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed for any of the following-listed matters Ted W. & Darlene Dress to Steve & Winifred Wachko.

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted a decision in the appeal of Ted W. & Darlene Dress, 29838, sustaining the action of the Franchise Tax Board.

Upon motion of Ms. Mandel, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted a decision in the appeal of Jane E. Harger, 998A-1370; 89002462870, sustaining the action of the Franchise Tax Board with amended language as directed by Ms. Mandel.

Upon motion of Mr. Chiang, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted a decision in the appeal of Ralph A. and Gail M. Jacobson, 99A-0039; 89002463300, sustaining the action of the Franchise Tax Board.

The Board deferred consideration of Sharon L. Nazaroff, 99I-0171; 89002464550.

Upon motion of Mr. Klehs, seconded by Mr. Andal and duly carried, Mr. Andal, Mr. Parrish, Mr. Klehs, and Ms. Mandel voting yes, Mr. Chiang voting no, the Board ordered that the request for rehearing in the appeal of Joseph R. & Marianne Barrios, 98A-0085; 89002466390, be denied.

Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish, Mr. Chiang voting yes, Mr. Klehs voting no and Ms. Mandel not participating, the Board ordered staff to prepare a Formal Opinion in the appeal of Consolidated Freightways, Inc., 98A-0499; 89002460300.

Upon motion of Mr. Andal, seconded by Mr. Parrish and duly carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Ms. Mandel voting yes, Mr. Chiang voting no, the Board ordered that the request for rehearing in the appeal of Karen M. Heuer, 98A-0169; 89002463040, be denied.

Mr. Parrish moved to grant the petition of Carl R. & Sandra A. Kikerpill, 99R-0042; 89002468170, seconded by Mr. Klehs but failed to carry, Mr. Klehs and Mr. Parrish voting yes, Mr. Andal, Mr. Chiang and Ms. Mandel voting no.

Upon motion of Mr. Andal, seconded by Mr. Chiang and duly carried, Mr. Andal, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Parrish voting no, the Board ordered that the request for rehearing be denied.

Upon motion of Mr. Andal, seconded by Ms. Mandel and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the request for rehearing in the appeal of Douglas P. Pedersen, 99A-0008; 89002464850, be denied.

Upon motion of Mr. Andal, seconded by Mr. Klehs and duly carried, Mr. Andal, Mr. Klehs and Ms. Mandel voting yes, Mr. Parrish and Mr, Chiang voting no, the Board ordered that the request for rehearing in the appeal of Valley Pontiac-GMC Truck, 98A-0749; 89002460950, be denied.

Upon motion of Mr. Klehs, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel abstaining, the Board ordered that the request for rehearing in the appeal of Steve & Winnifred Wachko, 98R-1006; 89002466110, be denied.

BUSINESS TAXES MATTERS

Contribution: Disclosures Pursuant to Government Code Section 15626: No disqualifying contributions were disclosed.

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the staff recommendations with respect to denials of claims for refund. (Exhibit 6.7).

APPEALS MATTERS

Upon motion of Klehs, seconded by Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted the Legal Appeals Matters Consent Schedule dated June 15, 2000, except the Board deferred consideration of National Supply Co., Inc., & Oil Well Inc., SZ OH 30676907-010; 89000854610, Old Now Oilfield Services, Inc., et al, SZ OH 99-961252-010; 89002448170 and Palm Computing, Inc., SR Gh 99-383269-010; 89002227050, consisting of Hearing Notice Sent No Response, Appearance Waived, Hearing Request Withdrawn, Hearing Request Withdrawn and Petitions for Rehearing. (Exhibit 6.8).

FRANCHISE AND INCOME TAXES MATTERS

Upon motion of Mr. Parrish, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the staff recommendations with respect to Franchise and Income Tax Decisions and Petitions for Rehearing Schedule dated June 15, 2000, except the Board deferred consideration of Barry and Amy Baker, 99R-0350; 89002469650, Gerald and Elizabeth Beaulaurier, 99A-0012; 89002466420, Lothar & Eveline Schmidt, 99R-0022; 89002465680, Clarence and Joan Bonner, 99N-0013; 89002466520, Howard and Helen Fox, 99R-0017; 89002467610, Martin and Charlene Maxey, 28597, John Patterson, 99A-0235; 89002468370, Marvin Wilcher, 99A-0147; 89002458490, Cherish F. Robinson, 99A-0366; 89002469810, Alex Tiffany, 99A-0367; 89002469820, Crystal Tiffany, 99A-0368; 89002469830 (Exhibit 6.9).

BUSINESS TAXES MATTERS

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Chiang not participating on China Times, Inc., SR AP 17-806226; 89000221850, the Board approved the staff recommendations with respect to Business Tax Matters Consent Schedule dated June 15, 2000, consisting of Redeterminations and Denials of Claims for Refunds (Exhibit 6.10), except the Board deferred consideration of Scimed Life Systems, Inc., SC OHA 99-598502; 60449 and International Business Machine Corp., SZ OHB 98-006714; 89002086480.

BUSINESS TAXES MATTERS

Upon motion of Mr. Klehs, seconded by Mr. Andal and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board approved the staff recommendations with respect to Business Tax Matters Consent Schedule dated June 15, 2000, with respect to credits, cancellations, relief of penalty and refunds (Exhibit 6.11), except the Board deferred consideration of Zinko's Copy, Inc., SR EA 24-683448; 26974.

SPECIAL TAXES MATTERS

Upon motion of Parrish, seconded by Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board adopted the Special Taxes Matters Consent Schedule dated June 15, 2000, consisting of Redeterminations (Exhibit 6.12).

SPECIAL TAXES MATTERS

Upon motion of Mr. Parrish, seconded by Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, except Ms. Mandel not participating in accordance with Government Code section 7.9 on United Grocers, Inc., CR ET 002-001183;59264, United of Omaha Life Insurance Company, IT ET 34-000878; 46932, Associated International Insurance Company, IT ET 34-002073; 57190, American Reliable Insurance Company, IT ET 34-00354; 57770 and American Contractors Indemnity Company, IT ET 34-003634; 60251, the Board adopted the Special Taxes Matters Consent Schedule dated June 15, 2000, consisting of a Credit and Cancellation and Refunds (Exhibit 6.13).

PROPERTY TAXES MATTERS

ESCAPE ASSESSMENT

Upon motion of Mr. Parrish, seconded by Mr. Chiang and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Ms. Mandel not participating in accordance with Government Code Section 7.9, the Board adopted the Property Tax Matters Nonappearance Matters Not Subject to Contribution Disclosure Calendar dated June 15, 2000, consisting of an Escape Assessment and Audits.

The Board recessed at 10:15 a.m. and reconvened at 10:20 a.m. with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

CUSTOMER SERVICES & ADMINISTRATIVE EFFICIENCY COMMITTEE

Upon motion of Mr. Klehs, seconded by Mr. Chiang and duly carried, Mr. Parrish, Mr. Klehs and Mr. Chiang voting yes, Mr. Andal voting and Ms. Mandel abstaining, the Board approved the committee report (Exhibit 6.14).

FRANCHISE AND INCOME TAXES HEARINGS

Eden Solbes, 37439
1997, $947.00

For Appellant: No Appearance
For Franchise Tax Board: Kathleen Cooke, Tax Counsel

Action: The Board took no action.

Ryan T. & Iva K. Bonar, 31057
1994 - Tax - $11,878.00, Penalty - $5,336.35
1995 - Tax - $68.00, Penalty - $83.60
1996 - Tax - $361.00 Penalty - $72.20

For Appellant: No Appearance
For Franchise Tax Board: Terry Collins, Tax Counsel

Action: The Board took no action.

Martha J. Dailey, 34448
1994, $12,085.00

For Claimant: Martha J. Dailey
For Franchise Tax Board: Jack Stilwell, Tax Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issue: Whether California tax law allows for an equitable refund of taxes when the tax liability was the direct result of erroneous information provided by the taxpayer's CPA concerning Internal Revenue Code section 1034 (the rollover of gain on sale of a principal residence).
Appellant's Exhibit: Mission of the Franchise Tax Board (Exhibit 6.15)
Respondent's Exhibit: IMF Transcript (Exhibit 6.16)
Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board sustained the action of the Franchise Tax Board, and supported the appellant's filing of a Board of Control claim. Ms. Mandel did not participate in support of the Board of Control claim.

Universal Computer Services, Inc., 98A-1270; 89002460930
Year ended 12-31-92, $22,750.00
Year ended 12-31-93, $27,954.00
Year ended 12-31-94, $69,146.00

For Appellant: Michael D. Herbert, Tax Partner
Wendy L. Blatt, Tax Manager
For Franchise Tax Board: Craig Swieso, Tax Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues: Whether the Board should retroactively apply its opinion in the Appeal of Huffy Corp (99-SBE-005), decided on April 22, 1999, to appellant's income years which predated that opinion.
Whether the Board may determine if Revenue and Taxation Code section 24402 violates the Unites States Constitution.
Whether the Notices of Proposed Assessment (NPA's) issued to appellant are defective because the deficiencies reflected therein are based on materials that were previously provided to appellant.
Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the appeal be submitted for decision.

Maxus International Energy Company, 98N-0953; 89002464140
Income Proposed Claims for

Years Ended Assessments Refund
12-31-78 $91,550.00  
12-31-79 $302,682.00  
12-31-80 $653,521.00  
12-31-81 $210,029.00  
12-31-82 $145,526.00  
For Appellant: No Appearance
For Franchise Tax Board: Jon Jensen, Tax Counsel

Action: The Board took no action.

Maximo M. Fuentes, 98A-1367; 89002462440

Income Proposed Claims for

Years Ended Assessments Refund
1996 $9,366.00 $4,683.00
For Appellant: Maximo M. Fuentes
For Franchise Tax Board: Mark McEvilly, Tax Counsel

Contribution: Disclosures pursuant to Government Code Section 15626: No contributions were disclosed.
Issues: Whether appellant is subject to California's tax laws.
Whether respondent properly determined appellant's tax liability.
Whether appellant has brought a frivolous or groundless position before the Board.
Action: Upon motion of Mr. Klehs, seconded by Mr. Parrish and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the appeal be submitted for decision.

The Board recessed at 11:25 a.m. and reconvened at 11:30 a.m. with Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel present.

FINAL ACTION ON APPEALS HEARD JUNE 15, 2000

Upon motion of Mr. Klehs, seconded by Ms. Mandel and duly carried, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, Mr. Andal and Mr. Parrish voting no, the Board ordered that the appeal of Universal Computer Services, Inc., 98A-1270; 89002460930, be denied.

Upon motion of Mr. Andal, seconded by Mr. Klehs and unanimously carried, Mr. Andal, Mr. Parrish, Mr. Klehs, Mr. Chiang and Ms. Mandel voting yes, the Board ordered that the appeal of Maximo M. Fuentes, 98a-1367; 89002462440, be denied and included a $750 frivilous appeal penalty.

The Board adjourned at 11:35 a.m.


The foregoing minutes are adopted by the Board on July 26, 2000.