Minutes of Board Meeting on  January 11, 2003

VIRGINIA CITY HIGHLANDS PROPERTY OWNERSí ASSOCIATION

(VCHPOA)

Monthly Meeting Minutes

January 14, 2003

PRESENT: Board of Directors: President, Keith Judson. Members: Don Ingram, Dennis Kennedy, Jim Watson, and Randy Fruzza.

1. CALL TO ORDER AND APPROVE MEETING AGENDA

A quorum being present, President Judson called the regular meeting of the VCHPOA Board of Directors to order at 7:10PM, January 14, 2003 at the Virginia City Highlands Firehouse. On a motion by Kennedy, seconded by Ingram, the agenda was unanimously approved with the following change/addition. Discussion of lawsuit is moved from New Business to Comments section in order to accommodate those that have attended to discuss the suit. Addition of ips beetle and its infestation of trees to Old Business.

Judson also introduced Storey Countyís new commissioner John Flanagan to those in attendance

2. APPROVE MINUTES OF REGULAR BOARD MEETING OF DECEMBER 10, 2002

On a motion by Ingram, seconded by Kennedy, the minutes of the Regular Board Meeting of December 10, 2002 were unanimously approved.

3. COMMENTS BY ASSOCIATION MEMBERS & DISCUSSION OF COMMENTS

Property owner Dave Thomas complimented Judson on the content of the Associationís website and thanked him for his efforts.

Judson provided an overview of the lawsuit filed by several VCH property owners on December 23, 2002. Association attorney Jay Hampton has provided an Answer to the Complaint to be filed January 15, 2003. Judson further explained that a request will be made of the Court soon after filing of the Answer to grant a Summary Judgment in favor of the Association. Additionally, there remains a question as to whether the Complaint should have been filed with the Court or with the Real Estate Division of the State of Nevada. Kennedy read portions of NRS 38.310 that directs actions be heard by the Real Estate Division of the State. Several property owners were in attendance to discuss the lawsuit filed against the Association. All were supportive of the Associationís position and offered support and advice on the upcoming action. Additional comments made regarding the suit included:

Judson discussed potential attorney fees which could be $6,000.00 or more to defend the suit. As funds have been authorized in the Annual Budget of the Association for legal fees, no vote for funding is necessary at this time.

Judson indicated that it is necessary to notify all current and prospective property owners of the suit. As they are public records, both the Complaint and the Answer will appear on the Associationís website.

On a motion by Kennedy, seconded by Ingram, it was unanimously approved to authorized attorney Jay Hampton to defend the Association.

Property owner Dave Thomas suggested that even if it would take a year or longer to acquire all the necessary notarized votes, the Association should make an effort to formally adjust the dues structure and tie future adjustments to the federal Cost of Living Index.

4. FINANCIAL REPORT

Kathy McDowell, bookkeeper, read the Treasurerís Report dated December 31, 2002 (copy attached). Judson indicated that there were still minor adjustments to be made to the formal financial statements and that they would be presented at the February meeting.

No new information was available regarding the State of Nevada Ombudsman and it was suggested that no further action be taken until the lawsuit is adjudicated.

Although outstanding delinquent Association member dues total $22,247.00, $556.00 was received in November and $3,995.00 was received in December. Those present were reminded that some of the dues are uncollectable as the property is owned by Storey County.

As an emergency item, damage to the rental house roof by the recent wind storm was discussed. The tenant has agreed to perform repairs in lieu of a portion of his monthly rent.

On a motion by Kennedy, seconded by Ingram, the Treasurerís Report and related items were unanimously approved.

5. COMMITTEE REPORTS

a. Architectural Committee

Wally Corey, Chairman, presented the written report (copy attached). On a motion by Kennedy, seconded by Ingram, acceptance of the report was unanimously approved.

b. Road Report

Ingram reported that no action had occurred on the position of Road Manager due to time spent on road work and snow removal. For the same reason, no additional work had been performed on the salt and sand storage. He also requested on behalf of the road manager, $3,000.00 for additional road bed materials. On a motion by Fruzza, seconded by Kennedy, the report and funding requested were unanimously approved.

Ingram reported that during the recent storms no communication was available between vehicles. Additionally, repeater fees for the radio system were increasing. Ingram was asked to investigate with the Road Manager alternatives to the 2-way radios and communication systems for the Associationís snow removal vehicles.

c. Park Report

No Park report.

6. OLD BUSINESS

Judson reported that the past due account by a former rental tenant had been turned over to a collection agency. No further action is necessary.

There was no update by the Architectural Guidelines committee. Further action is on hold pending the opinion survey to be sent out with the newsletter and disposition of the lawsuit.

Judson is waiting on an article on the Association roads and recent road closure to preserve their private status. When submitted, the newsletter will be ready for mailing.

It was determined that no further action is warranted regarding NRS 116 pending the outcome of the lawsuit.

Nancy Judson reported on the timing of removal of sick and beetle infested pine trees and possible financial assistance from Fire Safe Highlands. She asked all to attend an upcoming meeting on January 18th. She also indicated that the Nevada Division of Forestry will begin "fly-overs" this summer and requested a letter from the Association to ask the NDF to include the Virginia Range. On a motion by Kennedy, seconded by Ingram, the issuance of a letter was unanimously approved.

7. NEW BUSINESS

The scheduled New Business had been discussed in the Comment period of the meeting.

On a motion by Kennedy, seconded by Ingram, and unanimously approved, the meeting was adjourned at 9:02PM.

Randy Fruzza

Board Secretary

Attachments:

Cash Flow Statement dated 12-31-02

Architectural Report

Newsletter draft