Minutes of Board Meeting on  May 13, 2003

VIRGINIA CITY HIGHLANDS PROPERTY OWNERS’ ASSOCIATION

(VCHPOA)

Monthly Meeting Minutes

May 13, 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 7:15PM, May 13, 2003 at the Virginia City Highlands Firehouse. On a motion by Ingram, seconded by Kennedy, the agenda was unanimously approved.

2. APPROVE MINUTES OF REGULAR BOARD MEETING OF APRIL 8, 2003

On a motion by Ingram, seconded by Kennedy, the minutes of the Regular Board Meeting of April 8, 2003 were unanimously approved.

3. COMMENTS BY ASSOCIATION MEMBERS & DISCUSSION OF COMMENTS

Bob Kershaw, Storey County Commissioner, spoke regarding the water situation in the Highlands. He indicated that an engineer had been contacted and that he is seeking both funding and information.

Phil McKenna, Fire Chief, provided information on new street signs for the Highlands. He presented preliminary drawings of signs that would preserve the rural nature of the area yet have visibility, uniformity, and stability. Installation of the signs should be completed by September.

Ernie Winters of the Nevada Rock Art Foundation spoke to the Board and those present in order to raise awareness of the deterioration caused by both man and weather of the area petroglyphs. He discussed what is being done to preserve and restore the "rock art" and indicated that the Foundation is not looking to restrict access, only damage.

4. FINANCIAL REPORT

Kathy McDowell, bookkeeper, read the Treasurer’s Report dated April 30, 2003 along with the reconciliation report (copies attached). Fruzza presented copies of the financial statements for the periods ended January 31, February 28, and March 31, 2003 (copies attached). He stated that the financials were materially correct but also indicated that there were entries going back to the beginning of the fiscal year, July 1, 2002, that could be changed but would require re-statement of the financials for each month since. These changes would not have sufficient effect on the accuracy of the statements to warrant the time necessary to effect the changes. He further stated that he had not yet reviewed the April 30 statements and that they would be presented at the June meeting along with the May statement.

Delinquent dues continue to trickle in.

Fruzza stated that Lucini-Parish Insurance had provided a quote for Directors’ and Officers’ (D & O) Liability Insurance at $1,485.00 for $500,000.00 of protection. He indicated that it would include an exclusion regarding the current lawsuit. On a motion by Kennedy, seconded by Ingram, it was unanimously approved to move forward with the D & O insurance subject to receipt and review of a "sample" policy. Fruzza also indicated that the current property damage/liability policy, not including vehicles, is up for renewal. Lucini-Parish has stated the last year premium was under-billed at $4,600.00 and should have been $6,700.00. No adjustment is to be made. This year’s premium will be approximately $7,400.00 with a yet to be determined adjustment for the fire house which is protected under the policy of the tenant, Storey County.

Judson reported that the new roof for the rental house is in place. He further stated that a new stove had been installed in the rental and that the tenant was seeking a replacement for the dishwasher. A determination is to be made as to the problem and the Board polled at a later date.

Selection of an independent CPA for the audit of the Association’s financial statements was deferred. Fruzza and Kennedy to follow.

Requests had been made by property owners as to details of individuals delinquent on dues and assessments. It was reaffirmed that individual names will not be released.

5. COMMITTEE REPORTS

a. Architectural Committee

Wally Corey, Chairman, presented the written report of the Committee’s meeting of May 6, 2003 (copy attached). He also presented a Special Report (copy attached) on a complaint of a 10-acre resident regarding light coming from a 1-acre property owner. The report indicated that no foundation for the complaint was observed. The Board indicated its acceptance of the report.

b. Road Report

Ingram presented the road report indicating that 5,450 tons of dirt and rock had been placed on the Association’s roads and that the Cartwright project was complete. He also presented a proposal to purchase from Storey County a 140 by 38 foot structure for $2,000.00. The structure would be used to house Association equipment and salt/sand and to be a facility for repair work. The foundation and labor to erect would be at the Association’s expense. The item was deferred due to the yet to be determined costs of the ongoing lawsuit.

A resident commented on damage that was caused with the removal of dirt and destruction of property during the shoulder repair on Cartwright. It was the feeling of the Board that any damage should be mitigated and Ingram was asked to investigate. Another resident stated that there were still areas of Cartwright to be completed. The location is to be determined and the road manager is to be advised.

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 may be three weeks in the future.

7. NEW BUSINESS

A discussion on the disposition of house plans revealed that copies should be made available to home owners. That although storage was becoming a challenge, that the Association retaining the copies made them available to future owners.

Judson scheduled mailing of nomination forms (copy attached) for the upcoming election for May 20, 2003. The newsletter and ballots are to be mailed the last week of June for return and counting by the Annual Meeting date. Judson presented to the Board for its consideration, two potential amendments to the By-Laws and Architectural Guidelines (copy attached) to be mailed with the ballots. The amendments address color and style of residences. Both were items of concern in the recent survey of property owners.

Judson presented a tentative agenda for the Annual Meeting to the Board. After discussion, the date was set for July 26, 2003.

A bid was received from the original builder of the Highland’s entrance monuments for $3,200.00. The bid has been presented to the vehicle driver’s insurance company, State Farm.

On a motion by Kennedy, seconded by Ingram, and unanimously approved, the meeting was adjourned at 9:08PM.

Randy Fruzza

Board Secretary

Attachments:

Cash Flow Statement dated 4-30-03

Reconciliation Report

Financial Statements for 1/31/03, 2/28/03, 3/31/03

Architectural Report

Architectural Committed Special Report

Nomination Form

Potential Amendments