Minutes of Board Meeting on  February 11, 2003

VIRGINIA CITY HIGHLANDS PROPERTY OWNERSí ASSOCIATION

(VCHPOA)

Monthly Meeting Minutes

February 11, 2003

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

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, February 11, 2003 at the Virginia City Highlands Firehouse. On a motion by Ingram, seconded by Kennedy, the agenda was unanimously approved with the following change. Discussion of lawsuit is moved from Old Business to Comments section in order to accommodate those that have attended to discuss the suit.

2. APPROVE MINUTES OF REGULAR BOARD MEETING OF JANUARY 14, 2003

On a motion by Ingram, seconded by Kennedy, the minutes of the Regular Board Meeting of January 14, 2003 were unanimously approved.

3. COMMENTS BY ASSOCIATION MEMBERS & DISCUSSION OF COMMENTS

Judson reported that a complaint had been received from an owner in the Highland Ranches (the 10ís) regarding the area around the firehouse. The complaint alluded to vehicles and equipment on perceived firehouse property and the appearance of the slash pile. It was noted that the equipment, owned by others, is on school district property. Judson is to discuss with owners regarding their equipment. The slash pile is to be "pushed together" and burned when moisture conditions are adequate. It was noted that the slash pile is an accommodation and safety factor for the residents. It was noted that if emphasis was placed on the area around the firehouse that the same emphasis should carry throughout the Highlands.

Judson reported that the "answer" to the complaint (lawsuit) was filed. Association attorney, Hampton, is to file a "motion to dismiss" declaring the suit is without merit and filed in the wrong jurisdiction.

A resident questioned the involvement in the suit of Storey Countyís District Attorney as he had excused himself in another matter where his spouse was a scheduled witness. The resident also questioned what response, if any, the Association had from the State of Nevada regarding NRS 116.

4. FINANCIAL REPORT

Kathy McDowell, bookkeeper, read the Treasurerís Report dated January 31, 2003 (copy attached). Judson provided financial statements through January 31, 2003.

No update was provided regarding the State of Nevada Ombudsman fees pending disposition of the lawsuit.

Judson reported that $300 to $400 had been collected in "old" delinquent dues. Attorney Hampton is to investigate any responsibility the county may have on county owned property acquired through delinquent taxes.

Fruzza reported that an application had been filed with Lucini-Parish insurance agency for Directorsí and Officersí Liability Insurance. Estimated costs are believed to be $2,000 annually for $1,000,000 in coverage. He also indicated that he will be meeting with the agency to discuss general liability and fire policies that expire in April. Fruzza requested that evidence of insurance be obtained from the county prior to dropping coverage on the firehouse.

Judson reported that bids had been received for re-roofing the Associationís rental house ranging from $1,870 for 20 year materials and $2,140 for 30 year. A quote of $3,200 was obtained for a metal roof. Fruzza indicated a preference for a metal roof due to its life span but asked that a second bid be obtained. Judson asked members to provide any names of roofers for potential bids.

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, was absent due to illness. Ingram reported that a meeting was held February 4, 2003 but there had been no issues presented and no formal report yet prepared. Judson conveyed one complaint received from a resident regarding the fence of a resident on Cartwright downed by winds in December. Ingram indicated that the owner and buyer would be repairing the fence soon.

b. Road Report

Ingram reported on gravel and shoulder work on the Highland roads and snow removal and maintenance comments from residents on roads served by both the 1ís and the 10ís. It was noted that there had been equipment and operator problems in the 10ís but they had been since corrected. Don will continue to coordinate with Gary Brownwell of the 10ís and Rick McDowell of the 1ís on continued improvement. He also reported that McDowell is working with Gary Hames of the Storey County Fire Department on radios for snow removal equipment. Ingram requested and it was moved by Kennedy, seconded by Fruzza, and unanimously approved for $3,000 for continued labor and equipment expense for shoulder work on Cartwright.

A resident suggested the painting of a center line on corners on Cartwright to encourage drivers to stay in their lane. Ingram is to investigate possibility with McDowell.

Ingram requested $2,000 for additional gravel. The funding was moved by Fruzza, seconded by Kennedy, and unanimously approved.

On a motion by Kennedy, seconded by Fruzza, the Road Report was unanimously approved.

On a related matter, Ingram reported that the Associationís road manager had agreed to stay on indefinitely. Ingram suggested that an increase in the monthly payment to the manager be approved. Although it was generally agreed that an increase was warranted that the timing may not be appropriate in light of litigation expenses.

c. Park Report

Judson provided an e-mail from Patti Poston on the park. She reported that the concrete provider was having difficulty in obtaining volunteers for the work and she was going to have the job bid again.

On a motion by Kennedy, seconded by Ingram, acceptance of the report was unanimously approved.

6. OLD BUSINESS

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

The January newsletter (attached) was mailed and responses to the enclosed survey are coming in. Judson provided early results which are attached.

Nancy Judson provided minutes of the ips beetle education meeting held January 18th (attached). It was suggested that an explanatory brochure be prepared and provided to residents when new construction permits are pulled at the County and also at Architectural Committee meetings.

The lawsuit was discussed under the Comments Section above.

7. NEW BUSINESS

With the absence of Wally Corey, Architectural Committee chairman, discussion of disposition of house plans was deferred.

On a motion by Fruzza, seconded by Ingram, and unanimously approved, the meeting was adjourned at 8:55PM.

Randy Fruzza

Board Secretary

Attachments:

Cash Flow Statement dated 1-31-03

Financial Statement as of 1-31-03

Newsletter

Preliminary survey results

Ips beetle report