Minutes of Board Meeting on  June 10, 2003

VIRGINIA CITY HIGHLANDS PROPERTY OWNERS’ ASSOCIATION

(VCHPOA)

Monthly Meeting Minutes

June 10, 2003

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

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 7:09PM, June 10, 2003 at the Virginia City Highlands Firehouse. On a motion by Ingram, seconded by Kennedy, the agenda was unanimously approved with the change of Lawsuit Update from Old Business to the beginning of Comments.

2. APPROVE MINUTES OF REGULAR BOARD MEETING OF MAY 13, 2003 AND EXECUTIVE SESSION OF JUNE 4, 2003

On a motion by Ingram, seconded by Kennedy, the minutes of the Regular Board Meeting of May 13, 2003 were unanimously approved.

On a motion by Ingram, seconded by Kennedy, the minutes of the Executive Session of June 4, 2003 were unanimously approved.

3. COMMENTS BY ASSOCIATION MEMBERS & DISCUSSION OF COMMENTS

Judson reported to those present that the Association had been awarded a Summary Judgment by the First Judicial District Court. He further explained that with the Judgment, the court declared that the Association was within its rights and duties to enact the Special Assessment. The court did not, though, speak to legal fees and who should pay them. Judson informed all that an offer had been made by the Plaintiffs’ counsel to not file an appeal of the court’s decision if the Association would not press the court for legal fees. The Board agreed to the offer if the plaintiffs would pay $1,000.00 to the Association to offset legal costs of the Association. The plaintiffs’ attorney agreed and the Association has received the funds but has not received any agreement stipulating that no appeal will be filed. The Association’s attorney will be requested to follow.

Bob Kershaw, Storey County Commissioner, commented on the petroglyphs discussed at last months meeting and public access across private property. He expressed concerns over liability. He further informed those present of the research being done regarding water issues in the Highlands. He suggested that the Board invite speakers on water conservation and aquifers.

Judson explained that bills out of the 2003 Nevada State Legislature may exempt the Association from NRS 116 effective October 1, 2003. More research is needed. At present, the Association is governed by NRS 116.

4. FINANCIAL REPORT

Kathy McDowell, bookkeeper, read the Treasurer’s Report dated May 31, 2003 (copy attached). The reconciliation report was not available as there is an out of balance situation of $50.00. Fruzza has reviewed the reconciliation with McDowell and believes the error may be in an adjustment he made for a previous month. Fruzza and McDowell will continue to research to resolution. Fruzza presented copies of the financial statements for the periods ended April 30 and May 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 continue to be reviewed. Judson commented on the accounting of rent received. Fruzza explained that due to the offsets for items purchased for the rental, the rent "received" is still in the process of adjustment.

Kennedy reported on the status of collection of delinquent dues. He also indicated that it is necessary to charge-off dues on properties held by Storey County. 21 units are undergoing further action at the Association’s attorney’s office. Discussion ensued on tax liens and sales.

Fruzza stated that Lucini-Parish Insurance had yet to provide a "sample" policy for Directors’ and Officers’ (D & O) Liability Insurance for the Board to review. The agent had previously indicated that the insurance company was "re-doing" the policy. Fruzza is attempting to contact the agent to determine the status.

Fruzza indicated that the current property damage/liability policy, not including vehicles, has been renewed.

Selection of an independent CPA for the audit of the Association’s financial statements has not been made. Several names were presented. Judson to contact prospects for fees and timing.

Judson presented the Reserve Budget (copy attached). After discussion, on a motion by Ingram, seconded by Kennedy, the Reserve Budget was unanimously approved.

Fruzza indicated that he had not yet completed the Fiscal 2004 Operating Budget. He committed to have it done and to the Board members by June 15.

Judson presented a proposal to change the dues collection process and timing (copy attached). He explained that it would speed up the process by three months with no effect on those that pay their dues on time. On a motion by Fruzza, seconded by Ingram, the change was unanimously approved.

 

5. COMMITTEE REPORTS

a. Architectural Committee

Wally Corey, Chairman, presented the written report of the Committee’s meeting of June 3, 2003 (copy attached). A comment was made regarding a shed and dog run constructed near the front property line of a residence on Dortort. Corey is to send a letter to the property owner. The Board indicated its acceptance of the report.

b. Road Report

Ingram presented the road report. Included was a request to purchase a large metal building from Storey County for equipment storage and repair facility discussed at the May Board meeting. Judson stated that although the price was low, the funds were not available and a special use permit may not be easily obtained. Fruzza to see if the Budget could justify the expense. The Board indicated its acceptance of the report.

c. Park Report

No Park report.

6. OLD BUSINESS

Lawsuit update was presented during Comments.

Nominations received include five individuals for three seats on the Board. Contact is to be made with each in order to confirm their candidacy.

The Annual Meeting and its agenda are set.

A check from State Farm Insurance, the driver’s insurance company, has been received in the amount of $3,200.00. Work on repair of the entrance monument should begin in three weeks.

7. NEW BUSINESS

Articles and Operating Budget for publication in the June Newsletter are needed by June 15, 2003. Once received, a mailing date prior to June 26, 2003 will be set.

On a motion by Kennedy, seconded by Ingram, and unanimously approved, the meeting was adjourned at 9:04PM.

Randy Fruzza

Board Secretary

Attachments:

Cash Flow Statement dated 4-30-03

Financial Statements for 4/30/03, 5/31/03

Architectural Report

Reserve Budget

Changes to Dues Collection Procedure