Minutes of Board Meeting on  April 8, 2003

VIRGINIA CITY HIGHLANDS PROPERTY OWNERSí ASSOCIATION

(VCHPOA)

Monthly Meeting Minutes

April 8, 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 7:16PM, April 8, 2003 at the Virginia City Highlands Firehouse. On a motion by Kennedy, seconded by Ingram, the agenda was unanimously approved with the following addition. Discussion of the hiring of an accounting firm to the Financial Report.

2. APPROVE MINUTES OF REGULAR BOARD MEETING AND EXECUTIVE SESSION OF MARCH 11, 2003

On a motion by Ingram, seconded by Kennedy, the minutes of the Regular Board Meeting of March 11, 2003 were unanimously approved. On a motion by Kennedy, seconded by Watson, the minutes of the Executive Session of March 11, 2003 were unanimously approved.

3. COMMENTS BY ASSOCIATION MEMBERS & DISCUSSION OF COMMENTS

John Flanagan, Storey County Commissioner presented information on Nevada Assembly Bill AB 264 which, among other things, abolishes the Storey County School District. He requested support in opposition of the bill.

4. FINANCIAL REPORT

Kathy McDowell, bookkeeper, read the Treasurerís Report dated March 31, 2003 (copy attached). She also indicated that the Association is paying for two electric services. Judson indicated that one should be being paid by Storey County under the lease agreement with the county. Judson directed that the bill be forwarded to the county. Fruzza stated there would be no formal financial statements as he was late in getting together with the bookkeeper and had not yet finished the review for adjustments and preparation. The reconciliation report was, though, provided.

Delinquent dues continue to trickle in. A recommendation by the Associationís attorney to "write-off" as uncollectable certain dues accounts was deferred. The Board discussed the possibility of bidding at a property tax sale to protect the unpaid dues. It was determined not to be prudent as funds would be committed for no less than two years in holding the property if the Association was the successful bidder.

Fruzza indicated that a request had been made of the Lucini-Parish insurance agency regarding Directorsí and Officersí Liability Insurance. Travelerís Insurance, the primary writer of D & O insurance would not provide a quote due to the pending litigation involving the Association. Lucini-Parish was soliciting other quotes. Fruzza to continue to follow.

Judson reported that he had not received any response for additional bids for a new metal roof for the Associationís rental house. In order to not further delay the roof, Fruzza moved and Ingram seconded, a motion to proceed with the original bid received of $3,200.00 for a red or white roof. The motion was unanimously approved.

Judson read a request to engage an independent CPA for the audit of the Associationís financial statements and preparation of its federal tax return on an annual basis (copy attached). Discussion including recommendations of firms followed. On a motion by Judson, seconded by Watson, it was unanimously approved to move forward with the engagement of an auditor. Fruzza is to contact firms to entertain bids.

5. COMMITTEE REPORTS

a. Architectural Committee

In the absence of Wally Corey, Chairman, Ingram presented the written report (copy attached). The Board indicated its acceptance of the report.

b. Road Report

Ingram presented the road report (copy attached). In the report it was requested that $1,200.00 be approved for rental of a tractor to work on culverts and roadside ditches. On a motion by Ingram, seconded by Kennedy, the funding was unanimously approved. A discussion followed regarding the burn pile and near-by vehicles. Efforts are to continue in the removal of the vehicles. The Board indicated its acceptance of the report.

c. Park Report

No Park report.

6. OLD BUSINESS

Kennedy reported on the lawsuit that parties are waiting on the judge to rule on the dismissal and summary judgment motions. The next action could be in as little as thirty days.

7. NEW BUSINESS

Discussion of the disposition of house plans was again deferred due to the absence of the Architectural Committee chairman.

Judson indicated that there will be three positions on the Board to fill at the next election. Those being Watson, Ingram, and Fruzza. Watson and Fruzza are not eligible for re-election and Ingram has indicated that he will not seek re-election if he were deemed eligible as he had served on the Board in the past. Discussion followed on NRS 116 procedures for nominations, etc. It was also considered that a vote be included regarding a requirement that new buildings be "rustic" and in "earth tones". Keith is to prepare a definition of each for consideration prior to including with the ballot.

The Board agreed to move forward with both the Annual Meeting and picnic at approximately the same date as prior years.

On a motion by Fruzza, seconded by Ingram, and unanimously approved, the meeting was adjourned at 8:23PM.

Randy Fruzza

Board Secretary

Attachments:

Cash Flow Statement dated 3-31-03

Annual Audit Request

Architectural Report

Road Report