Virginia City Highlands Property Owners’ Association

Minutes - Monthly Meeting – Tuesday August 12, 2008

Virginia City Highlands Fire Station Training Room

 

Present: Steve Morrow, Mary Tallent-Stewart, Andy Biederman, and Rita Lumos

Absent:  Ray Robbins

I.       Call to Order, Declaration of a Quorum and Approval of Meeting Agenda

Outgoing president Rita Lumos called the meeting to order at 7:00 pm and declared a quorum present.  She noted that new board member Ray Robbins was out of town on a trip that had been scheduled prior to his election to the board.

II.     Election of Officers for FY 2008-09

Nominations for officers for the current fiscal year were accepted.  Those nominated were:

President:                    Andy Biederman

First Vice President:          Steve Morrow

Second Vice President:     Ray Robbins

Secretary:                    Rita Lumos     

Treasurer:                   Mary Tallent-Stewart

A motion by Morrow, seconded by Biederman, to approve the slate of officers as nominated was approved unanimously.

At this point the meeting was turned over to new president, Andy Biederman.

III.    Approve Minutes of Previous Meetings

A.     June 10, 2008 Regular Meeting  

A motion by Lumos, seconded by Morrow, to approve the minutes of the June 10, 2008 regular meeting was approved unanimously.

B.     June 26, 2008 Emergency Meeting  

A motion by Lumos, seconded by Tallent-Stewart, to approve the minutes of the June 26, 2008 emergency meeting was approved unanimously.

C.    July 12, 2008 Annual Meeting

A motion by Lumos, seconded by Tallent-Stewart, to approve the minutes of the June 26, 2008 emergency meeting was approved unanimously.

IV.   Financial Statements  

The financial statements were reviewed.  A motion by Tallent-Stewart, seconded by Morrow, to accept the financial statements as accepted was approved unanimously.

V.     Comments by Association Members (NRS 116.3108(3))

Karlyn McPartlin read a letter from the Oversight Committee and asked that it be included in the minutes of the meeting. (See Appendix A)  The letter asserts that the budget as adopted at the July annual meeting cannot stand and would like the board to prepare and adopt a new one that does not include the special assessment.

Mary Tallent-Stewart pointed out that there might need to be an additional special assessment once the reserve study is completed in order to comply with the state statutes regarding the reserve fund balance.

President Biederman stated that he would like to meet with the association’s accountant in order to understand whether the discrepancy suggested by Ray McPartlin actually exists.  Keith Judson suggested that since the assessment invoice does not go out until early November there is plenty of time to determine the actual budget balance and needs for the coming year.

It was suggested that the budget issue be an item on the agenda for the September meeting.  Keith Judson suggested that a special meeting might be in order to discuss the budget issues.  The president and treasurer will meet with the accountant to better understand the financial situation prior to the next meeting.

VI.   Committee Reports

A.     Architectural Committee

Rita Lumos reported that the architectural committee had met and approved applications for one new residence, one home addition, one shed, two homes changing the exterior color, and one fence.

B.     Road Report

Road Manager Bob Moore reported that the water truck repairs were complete and that it was in use.  The final inspection by the Nevada Highway Patrol had not yet been completed.

The roads that received the Magnesium Chloride application were being watered per the supplier’s recommendation.

The speed limit signs will be installed within the next month.

The equipment yard is completely cleaned up and free of hazardous materials.  Bob was able to dispose of the old tires at no cost to the association.

He will have to replace six culverts and clean out a number of others.  Moore also reported that dust control watering is in progress.  Gabriel Venegas asked why the culverts were being replaced.  Moore responded that they were too plugged with dirt and debris to be cleaned out and some were damaged.

Nancy Judson asked how well the Mag. Chloride is working and many in the audience responded that it is working well.  Moore and Steve Morrow cautioned that we would not really know how well it holds up until after the winter.

Morrow reiterated that speed is a critical issue in the condition of the roads.

A resident asked why some owners do not have culverts across their driveways.  It was explained that Storey County does not require them.

VII. Unfinished Business

A.     Reserve Study – Choose Consultant

Rita reported that the consultants had not yet been registered by the State of Nevada.  The item was continued until the next meeting.

B.     Status of Complaint to Ombudsman  

As directed at the June 26 special meeting, association attorney Jay Hampton has written a letter to the Ombudsman’s Office in answer to the complaint filed last year.  No further developments have occurred.  The Ombudsman has not filed a formal complaint against the association as of this time and no hearing date has been set.  It will likely be several months before more is known.

VIII.          New Business

A.     Mailbox Shed Insurance  

Lumos explained that the insurance underwriter had finally removed the rental house from the insurance policy and that an invoice had been received which only stated coverage for the mail box sheds, valued at $10,000.  The invoice amount was for $2000.  After many phone calls and emails it was determined that this policy also covers all the heavy equipment and tools, valued at over $60,000, and the bill was paid.

IX.   Any Other Matters which the Board Members Wish to Discuss

No board member brought any issues before the board for discussion.

X.     Executive Session to discuss possible violations of CC&R’s  

Since no complaints had been brought to the board, there was not an executive session.

XI.   Adjourn

A motion by Lumos, seconded by Tallent-Stewart, to adjourn the meeting was approved unanimously.  The meeting was adjourned at 8:30 pm.

 

Respectfully submitted,

 

 

Rita Lumos,

Secretary


Appendix A

 

 

 

 

 

 
 

 

 

 


8/7/2008

VCH Oversight Committee

P.O. Box 427

Virginia City, NV 89440

Ms. Rita Lumos, Board President

VCHPOA Board

P.O. Box 686

Virginia City, NV 89440

Dear Ms. Lumos and Members of the Board:

First of all, I am sorry I couldn’t make the Board meeting on August 12th due to a conflict and having to be in the Bay Area for meetings.  I’ve asked one of my neighbors to hand deliver this letter and make it part of the minutes on the behalf of the Oversight Committee.

We think that it is a given, after the annual meeting, that the proposed budget was incorrect and misleading.  Even though a vote was taken for approval, the procedure of the vote being in question, the Oversight Committee feels that the budget cannot stand due to the errors and that the fiduciary responsibilities of the Board must come into play and take precedence in this decision.

We make the following observations:

1.      The budget as presented contained errors which made it look like the coming year was underfunded and needed an additional $100.00 special assessment for the coming year.  If corrections were made to the budget as presented at the annual meeting, the budget would have been sufficiently funded without the additional assessment.

2.      This issue is one of a financial nature and clearly comes under the fiduciary trust that the Homeowner’s have placed with the Board members.  If the Board, now noticed about the errors which have been brought to their attention, does not take corrective action on this, then they are potentially being negligent in fulfilling their fiduciary responsibilities.  This could cause additional costs to the Association and also add personal costs to the Board members as “knowing actions” by the Board.  They would not be exercising correctly their fiduciary responsibilities as “a common man would be expected to”, and would not be covered under the Board’s liability policy and potentially could be held personally for economic losses by the Homeowners.

3.      As a result, we hope the Board puts this matter to rest, and ask that the Board have the accountant prepare a “Corrected Budget” and that such budget reflects the elimination of a special assessment for this current year as being unnecessary and that sufficient funds are projected without the assessment to allow reasonable spending on road repair and snow removal for the coming year.

The Oversight Committee believes that such action by the Board would evidence good faith and judgment on the part of the Board and also would evidence a concern for the Homeowners who are all ready being faced with problems of high oil costs and a severe problem in real estate values.  We are sure all Homeowners would be appreciative of such action by the Board at this time, and respect their responsibilities in taking such actions.

I respectfully make this request to the Board on behalf of the Oversight Committee and hope that such actions will end the need to further pursue this issue and let us go on with the everyday business of the Association rather than to needlessly lead to further action by the Committee which benefits no one.

 

 

VCH Oversight Committee

Patrick J. Flanagan

P.O. Box 427

Virginia City, NV 89440