[VCHPOA Agenda] Minutes 14-Mar-2006

Agenda distribution list Agenda at vchpoa.org
Wed Apr 12 19:43:03 CDT 2006


[ As received from VCHPOA Secretary,  4/12/06 ]

Virginia City Highlands Property Owners´ Association
Minutes -Monthly Meeting 
Tuesday March 14, 2006
Virginia City Highlands Fire Station Training Room 

Present: Richard Woolley, Rick Bent (until 8:30 pm), Rita Lumos, Debra 
Gravenstein (after 7:30 pm)
Absent:  Martin Landaburu

I.	Call To Order, Declaration Of A Quorum And Approval Of Meeting Agenda 
(Discussion/Action)

Declaring a quorum present, President Woolley called the meeting to order 
at 7:00 pm.


II.	Approve Minutes Of March 2, 2006 Special Meeting (Discussion/Action)

*   A motion by Bent, seconded by Woolley, to approve the minutes as 
    presented was approved unanimously.


III.	Financial Statements (Discussion/Action)
A.	Monthly Cash Report

B.	Monthly Financial Statements

Lydia Hammack reviewed the highlights of the financial statements.  Cash 
on hand in the operating fund account as of March 14, 2006, is 
$40,488.46.  The amount in the reserve account is $27,419.40.   The 
expenditures required for storm related road repairs were $6,274.39.  If 
fuel were included the amount would be greater than $8,000, but it is 
very difficult to compute the exact amount of additional fuel costs.

Approximately 100 unit´s annual dues are still outstanding which amounts 
to $9059.25 in dues and late fees.  Late notices were sent out March 1.  
There is not a need to transfer fees from the reserve fund to the 
operating fund this month but it may need to be done soon.  

Lydia noted that transfer fees for the sale of properties are way down.

The county has replaced the sand that they borrowed during the January 
floods.  It is not certain whether the amount delivered included an 
additional amount which was purchased until an invoice is received from 
the county. 

*   A motion by Lumos, seconded by Bent, to accept the financial report was 
    approved unanimously.

IV.	Comments by Association Members (NRS 116.3108(3)) (Discussion Only)

Stephen Musser attended a Nevada Legislative update seminar regarding NRS 
116 last month and passed out handouts from that meeting.  He stated that 
the association is missing sources of revenue that don´t have to be 
approved by a vote of the membership.  He suggested that the board 
consider instituting some of these fees.  This will be discussed on a 
future agenda.

A seller or his agent is required to give a buyer a copy of a "resale 
package" when accepting an offer of purchase.  The package includes the 
association governing documents, the amount of monthly assessments, 
current operating budget and financial statement which include a summary 
of the reserves, and a statement of any legal actions pending.  The 
association may charge a reasonable fee for the preparation of a 
certificate containing the amount of monthly assessments, etc., and up to 
25 cents per sheet for copying the documents.   

Some associations are charging $50 to $100 dollars for an owner´s 
certificate.

The amount of the transfer fee paid to the association when a unit is 
sold is not based on statutory requirements and is based on the 
association´s rules.  Many associations are charging a percentage of the 
selling price.  Mr. Musser related that a common fee in Incline Village 
is 1% of the selling price of the unit.   Some associations around the 
state are charging $400 to $500 per transfer.  

Cynthia Lak commented that a truck for sale is parked near the mailboxes 
and asked how long it will be allowed to remain there.  Maggie Hohn 
pointed out that this is a 10 acre property.  She stated that the 
sheriff´s office has stated that they need a letter of permission from 
the lot owner for the sheriff to enter the property and take any action.  
Ms. Hohn stated that she will handle it through the 10 acre association. 

Dave Abel would like an item on the agenda to discuss the Tahoe Pyramid 
Link which is still in the planning stages.  Large developments are being 
planned for the area.  Commissioner Hess would like to talk to the 
association about the plans.  It is rumored that there is a large 
development planned north of the Highlands which might be accessed from 
the planned highway.

Lydia Hammack, a member of the Planning Commission, stated that these 
developments have not yet made any applications to the Planning 
Commission or County Commission.  She said that they have been told that 
there is to be no access through the Highlands.  

There was a discussion as to the ownership of the first mile of 
Cartwright Road.  It was dedicated by the plat of the Highlands Ranches, 
but it is not known whether it was accepted for maintenance by Storey 
County.  Steve Musser said that there is record of acceptance in the 
minutes of the County Commission and that the District Attorney has 
opined that it is a county road.

Ron Field asked about snow removal.  He lives on Fey and complained that 
the road crew cleared the connector road to Fey and piled the snow on 
Fey.  President Woolley explained that the road crew has changed 
personnel.  The crew will be advised of the problem.  Maggie Hohn pointed 
out that there is an agreement from 2002 that delineates responsibilities 
for plowing between the two associations.  Fey is the responsibility of 
the HRPOA.  She will look into whether it was their plow or ours.  She 
said the crews do check the roads at higher elevations first.  

V.	Committee Reports 

A.	Architectural Committee (Discussion/Action)

Rita Lumos reported that Sherry McCready has resigned.  President Woolley 
has put out a call for volunteers and there have been respondents.
   
*   A motion by Woolley, seconded by Gravenstein to nominate Bob Moore to the 
    architectural committee was approved unanimously.

Three cases were presented where complaints of possible violations of the 
CC&Rs have been received.  

*   Motions by Lumos, seconded by Gravenstein and Bent to send notices of 
    these violations to each of the owners of the three properties to ask 
    them to remedy the situation or appear at a hearing before the board in 
    executive session on April 11 were approved unanimously.

*   A motion by Lumos, seconded by Bent, to file a complaint with Storey 
    County Code Enforcement regarding a small building within the front 
    setback was approved unanimously.

Rita Lumos reported that she had gone to the building department to learn 
of building department´s inspection process as directed at the February 
meeting.  She noted that the inspector does check for compliance with 
setback requirements when they do the footing inspection for new 
construction.  Eric Geuvin, Fire Marshall, stated that they work with the 
property owner on compliance with proper clearing of fire prone materials 
around buildings on their property.   

Rita stated that currently property owners are asked to stake out their 
property and building outline and then a member of the Architectural 
Committee currently visits the property and checks for setback compliance 
and clearing before approving a person´s building plans and plot plan. 
She asked whether the board and those present think these inspections by 
Architectural Committee members are necessary and appropriate.  

Stephen Musser stated that he feels the inspections are necessary since 
once the plans are approved there is no chance to rescind the approval.  
The inspection also gives the committee member to check the houses in the 
neighborhood to ensure that the plan is not too similar to another within 
2500 feet.  Woolley says that it is an informational process.  It was 
pointed out that owners can be informed of the rules and advised to 
comply with all the requirements of the building department.  It was 
reiterated that the county is responsible for code issues while the 
Architectural Committee is responsible for aesthetic issues.  

*   A motion by Gravenstein, seconded by Lumos, that the Architectural 
    Committee be instructed not to do physical onsite inspections for 
    building setbacks at proposed construction sites was approved 
    unanimously.

Eric Geuvin stated that the Certificate of Occupancy would not be issued 
until any necessary remediation is complete.  President Woolley asked 
whether the county enforces conformance to approved grading plans and 
ensures that culverts are installed on drainage ways.  Mr. Geuvin stated 
that the county is encouraging a dip in the driveway rather than culverts 
which plug easily.  They are concerned about fire and rescue access and 
don´t want very steep dips across driveways that would impede their 
access.  

B.	Road Report (Discussion/Action)

John DuFresne has been plowing snow from the roads as necessary.  He has 
enlisted his father who is experienced in roadwork and equipment 
operation to help with plowing.  The two younger men who had been helping 
him are no longer working on the roads.


VI.	Old Business
A.	Fire Station Lease Approval  (Discussion/Action)

The proposed changes to the lease agreement discussed at the February 
meeting were submitted to Chief Hames.  There has been no response to 
date.  The lease continues on a month to month basis until the new 
agreement is approved by both parties.

B.	Sale Of Surplus Vehicles/Equipment  (Discussion/Action)

The two vehicles were posted on Craig´s List on the internet.  President 
Woolley did research on the internet to determine an approximate value 
for the vehicles.  They were listed as $2500 each with the rationale that 
they are worth at least that much for parts.  They have not yet been 
posted in the newspaper.  They will be listed in the Tribune, Chronicle, 
and the Big Nickel.

C.	Park Construction Priority List  (Discussion/Action)

Per the approval at the February meeting, the priority list and plan 
posted on the web site were updated with the well as a top priority and a 
letter sent to the County Commissioners urging the development of the 
park utilizing park impact fees.


VII.	  New Business 
A.	Position On Open Burning Permits In The Highlands Discussion/Action)

As a result of a request by Dave Abel at the previous meeting, the issue 
of supporting a ban on open burning permits was discussed.  President 
Woolley stated that he is not opposed to open burning permits during the 
winter months, but not during the dry months.  The Fire Marshall stated 
that it is their position that open burning is an unnecessary risk.  The 
trees in the area will burn in any conditions and wind is a factor.  
Issuing of a burn permit does not mean that it will be a supervised burn.

There were only about 5 permits issued last year.  Those owners present 
expressed agreement with support of the ban on open burning.

*   A motion by Woolley, seconded by Gravenstein, to urge Storey County to 
    discontinue issuing of open burn permits in the highlands was approved 
    unanimously.

B.	Attorney Response to Questions from the Board (Discussion/Action)

Rita Lumos reported that the answers to the questions the board sent to 
the attorney in January had been received.  The attorney has asked that 
the exact correspondence not be published although the information could 
be imparted to the board and owners.  She read the questions and 
responses.  The opinions are summarized as follows:

*   The hierarchy of the governing documents in order of importance is the 
    Articles of Incorporation, the Declaration of Covenants, Conditions, and 
    Restrictions, the By-laws; and the Architectural Review Guidelines or 
    other rules and regulations.

*   The CC&R´s were originally written to extent until December 31, 1996 and 
    then extent for successive 10 year periods unless an instrument signed by 
    a majority of the current owners of the lots agrees to change it in whole 
    or in part.  It extends automatically for a 10 year period if no action 
    is taken.  It can be changed or cancelled only by a vote by written 
    ballot of the majority of owners.  There are no other options for 
    changes.

*   The By-laws contain language naming the Association as a rural 
    agricultural residential common-interest community.  Per the provisions 
    of NRS 116 such an association is subject to the open meeting law.  Some 
    provisions of that law are in conflict with provisions of NRS 116 which 
    require that all hearings for possible violations of the CC&R´s or rules 
    and regulations must be done in private and the names of those involved 
    cannot be made public.  The attorney opined that the VCHPOA does not 
    qualify as a rural agricultural residential common-interest community and 
    therefore is not subject to the open meeting law.  The board does feel 
    that the By-laws should be amended to remove the language naming it as a 
    rural agricultural residential common-interest community.

*   The CC&R´s contain language regarding an architectural control and 
    planning committee and have very broad and vague requirements for the 
    buildings to be "in harmony" with the general surroundings.  The attorney 
    was asked how much authority the board and architectural committee have 
    to set standards for approved colors, construction materials, etc.  He 
    answered that the board and architectural committee have the authority to 
    determine what colors and construction materials are deemed to be in 
    harmony with the surroundings.  These standards cannot be in conflict 
    with the CC&R´s.  The CC&R´s do allow reasonable variances and 
    adjustments of the stated conditions and restrictions to overcome 
    practical difficulties.  The attorney believes that conditions such as 
    the high fire danger in the area are sufficient reason to allow building 
    materials other than the 50% wood exterior finish stated in the CC&R´s.

*   The Association does not have the authority to charge a fee for the 
    review and approval of construction plans.  It does have the authority to 
    charge a fee to offset the impact of new construction of the condition of 
    the roadways. He cautioned that there is no Nevada case law on this issue 
    but stated that the Association is in a strong position to prevail as 
    long as the fee is provided for in the governing documents.  The current 
    language in the architectural guidelines states that "the fee schedule is 
    established to offset the Committee operating costs and costs associated 
    with damage caused to Association roads by deliveries of heavy 
    construction equipment and construction materials".  There is authority 
    given the Association in NRS 116 to regulate the use and maintenance of 
    the private roads and to impose fees for the use of the common elements, 
    which include the roads.

*   The board was concerned that since the amount of the annual dues are 
    included in the CC&R´s and are very difficult to change that there might 
    be an inability to adequately fund the reserve account as required by NRS 
    116.  The attorney affirmed that the Association can impose a special 
    assessment for this purpose.  There was a challenge to the Association on 
    this subject a few years ago and the District Court ruled in favor of the 
    Association´s right to levy the assessment.

*   NRS 116.31065.5 states that any rule that is not uniformly enforced may 
    not be enforced against others.  The board asked whether there is a way 
    to negate past actions (or inactions) and enforce the rule from that 
    point forward.  It also asked whether granting of a variance for a single 
    property owner in effect granted a variance for all owners.  

    The attorney pointed out that at some point in every association´s 
    history some rules are not enforced.  If the Association is making an 
    effort to enforce the rules uniformly, despite previous violations, then 
    a court would find the Association is acting properly.  If there is 
    widespread violation of a rule then it may not be able to enforce the 
    rule.  If there is only a limited number of previous violations, then the 
    court would likely rule that the Association has the authority to enforce 
    the rule.

    The Nevada Supreme Court has ruled that a use restriction is valid and 
    enforceable if the purpose of the use restriction can still be served.  A 
    similar test may be applied to the Association´s right to enforce an 
    architectural guideline.

*   The board asked whether the time period for voting on changes to the 
    CC&R´s could be extended so that those who had not responded could be 
    contacted.  The attorney responded that there is no Nevada law that 
    addresses this situation but advised that it would be better to set a 
    sufficiently long time for the ballots to be returned so that reminders 
    could be sent out.

A discussion about impact fees ensued.  The language currently in the 
Architectural Guidelines appears to meet the conditions described by the 
attorney in order to be valid.  The authority might be stronger if the 
language was included in the By-laws.

President Woolley went over a method for calculating the amount of an 
impact fee based on the cost of road improvements based on a study done 
in Nye County.  The amount of the fee will depend on which of the 
alternatives in the long range road plan is approved by the property 
owners.  These will be presented to all owners by ballot before the 
annual meeting.  Depending on which alternatives are chosen there is the 
possibility of an assessment charged to all lots and an additional amount 
charged to those owners building new homes, additions, or outbuildings.

Ray McPartlin asked whether there is any way to make the County take 
responsibility for the roads.  This would be difficult since the roads 
are not built to County standards and they are not required to accept 
them for maintenance.  The roads are owned by all the individual owners 
whose lot contains the roadway easement.  Each owner would have to 
dedicate his/her portion or the County would have to obtain it by Eminent 
Domain.  

The board considered whether to continue charging the fee of $100 for new 
residences and $75 for additions, barns, and outbuildings, or to raise 
the fee to what is estimated for the future road improvements to be voted 
on.  The current fee of $100 approximately equals the cost for one hour 
of grader and driver use.  Many feel that the method outlined by 
President Woolley is an appropriate one.  It was decided to continue with 
the existing fees until the long term road plan is voted upon and 
adopted.

C.	Any Other Matters Which The Board Members Wish To Discuss (discussion)

Karlyn McPartlin read a passage from the CC&Rs regarding signs which 
states that only signs advertising a property for sale and of a 
reasonable size are allowed.  She stated that the Wireless Highlands 
vendor has put signs in people´s yards without their permission and 
reportedly told her that he has written permission from the board to put 
up his signs.  No one has knowledge of the board granting him said 
permission.  Maggie Hohn doesn´t recall that the HR board granted him 
permission for the signs.

It was suggested the Mrs. McPartlin should submit a complaint in writing 
and the board will place it on the next agenda for action.


VIII.	Adjourn

*   A motion by Lumos, seconded by Gravenstein, to close the regular meeting 
    and go into executive session was approved unanimously.  The executive 
    session is required by law to discuss possible violations by owners of 
    the governing documents.  At the end of the executive session the regular 
    meeting was reopened.

There being no further business the meeting was adjourned at 10.45 pm.
Respectfully submitted,

Rita Lumos, Secretary




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