Minutes of  Board Meeting on  July 8, 2003

VIRGINIA CITY HIGHLANDS PROPERTY OWNERS’ ASSOCIATION

(VCHPOA)

Monthly Meeting Minutes

July 8, 2003

PRESENT: Board of Directors: President, Keith Judson. Members: Jim Watson, Dennis Kennedy, and Randy Fruzza. Don Ingram arrived following Call to Order and Approve Meeting Agenda.

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 7:14PM, July 8, 2003 at the Virginia City Highlands Firehouse. On a motion by Kennedy, seconded by Watson, the agenda was unanimously approved with the addition under New Business of NRS 116 changes and Association status.

2. APPROVE MINUTES OF REGULAR BOARD MEETING OF JUNE 10, 2003 AND SPECIAL MEETING OF JUNE 19, 2003

On a motion by Kennedy, seconded by Ingram, the minutes of the Regular Board Meeting of June 10, 2003 were approved 4-0-1 with Watson abstaining as he was not present.

On a motion by Kennedy, seconded by Ingram, the minutes of the Special Meeting of June 19, 2003 were unanimously approved.

 

3. COMMENTS BY ASSOCIATION MEMBERS & DISCUSSION OF COMMENTS

A resident commented on the damage being done by road bikes and quads to the shoulders of the roads. He also expressed lawsuit concerns and suggested restricting access to licensed, insured drivers. He stated that a discussion with the Storey County Sheriff was not conclusive.

 

A second resident voiced concerns about construction company vehicles speeding through the Highlands. Judson reminded all present that the "1’s" and "10’s" have given the Sheriff full authority on the Highland roads. It was requested that the Association consult with legal council regarding its authority.

 

A resident offered information on NRS 116. Further comment was deferred to New Business.

 

4. FINANCIAL REPORT

Fruzza, in the absence of the vacationing Kathy McDowell, bookkeeper, read the Treasurer’s Report dated June 30, 2003 (copy attached). The reconciliation report was not available as there continues to be 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 with the assistance of the outside auditor to resolution. Fruzza presented copies of the financial statements for the period ended June 30, 2003 (copy attached). He stated that the financials were materially correct but believed that adjustments will be made both prior to and as a result of the audit. Judson commented that the accounting of rent received was incomplete.

 

Kennedy and Judson reported on the status of collection of delinquent dues. It was noted that one property is in bankruptcy, on a second, $500.00 was collected with $600.00 on an installment plan, a third stated that $424.00 was in the mail, a fourth that $75.00 had been received. The decision to charge-off dues on properties held by Storey County was deferred until after the audit.

 

Judson reported that he had received the Directors’ and Officers’ Insurance proposal from Lucini-Parish Insurance. A discussion ensued on the merits and detriments. Judson recommended that this Board decide rather than defer to a future Board. Watson questioned the content of the policy and how many quotes were received. Fruzza noted that initially no insurance carriers were interested but upon a second presentation to three companies, one, Travelers, responded with a quote of $1,845.00 per year for $500,000.00 of protection. (Details attached.) Judson stressed that asking Directors to serve without the protection would be unfair. On a motion by Kennedy, seconded by Judson, the purchase was approved 3-2 with Ingram and Watson dissenting.

 

Judson presented two proposal from area CPA’s to perform an audit of the Association’s financial records and prepare the annual federal tax return. Three had been requested but one had requested to review the accounting systems prior to quoting a figure even though it had been requested that all bids be to the Board by July 8th meeting. On a motion by Judson, seconded by Watson, and passed 4-0-1, with Ingram abstaining, the firm of William J. Crandall, Chartered was selected with a low bid of $2,700.00. Ingram stated that the Board should wait for the bid from the third CPA.

 

Judson indicated that he had received the bill from the State of Nevada Ombudsman’s office requesting payment for 2000, 2001, and 2003 (2002 had been paid) but that the number of units had been left blank on the state form. Judson will respond with the number of units being the residences and refer the Ombudsman to previously remitted amounts.

 

As indicated in the annual budget, it was proposed that the transfer fee for lot sales be increased from $100 to $125 per originally platted lot. On a motion by Fruzza, seconded by Ingram, the proposal was unanimously approved.

 

5. COMMITTEE REPORTS

a. Architectural Committee

Wally Corey, Chairman, presented the written report of the Committee’s meeting of July 1, 2003 (copy attached). He also presented a Special Report to the Board (copy attached) regarding the upcoming vote on building colors and styles. Judson indicated that the decision now rests with the voters.

 

b. Road Report

Ingram presented the road report indicating that due to the dry conditions, little rock has been added but general maintenance has been performed.

 

c. Park Report

No Park report.

 

6. OLD BUSINESS

Although the lawsuit is behind us, the Association’s attorney Jay Hampton will be requested to report on any further actions or needs.

Annual election ballots were mailed to all property owners July 8, 2003.

The agenda is set for the Annual Meeting with only financial statements needed for presentation to the membership.

Work is underway on the repair of the Highlands entrance monument.

 

7. NEW BUSINESS

Dave Thomas reported that he had been in contact with the State’s Real Estate Division regarding interpretation of SB100. No decision had yet been made. This was the same response that he received from the Legislative Council Bureau. Kennedy suggested that the Association’s attorney be asked to render an opinion regarding the changes to NRS 116 and related bills. Once received, Kennedy recommended that the Board move forward based on that opinion.

 

On a motion by Kennedy, seconded by Ingram, and unanimously approved, the meeting was adjourned at 8:39PM.

 

Randy Fruzza

Board Secretary

 

Attachments:

Cash Flow Statement dated 6-30-03

Financial Statements for 6/30/03

Directors’ and Officers’ insurance details

CPA quotes

Architectural Report

Special Report by the Architectural Committee