[VCHPOA Agenda] Annual Meeting Minutes - July 14, 2007

[Agenda distribution list]

[ As received from VCHPOA Secretary,  9/16/07 ]

Virginia City Highlands Property Owners Association
Minutes - Annual Meeting, Saturday July 14, 2007
Virginia City Highlands Fire Station Training Room - 10:00 a.m.

Present:  Bill Lewis,  Mary Tallent-Stewart, Mike Lupo, Rita Lumos, Debra 
Gravenstein

I.    Call to order, declaration of a quorum and approval of meeting 
agenda

President Rita Lumos called the meeting to order at 10:00 a.m., declared 
a quorum present.  

II.  Introduction of Board and Architectural Committee Members

Rita introduced the members of the VCHPOA Board and the Architectural 
Committee, Bob Moore, Walter Fox and Andy Beiderman.  Bill Lewis will not 
remain as a member but will be an advisor.  

Rita advised that the Agenda will be reviewed and conducted out of order 
at this meeting.  There were items added including item D, a report from 
the Virginia Range Wildlife Protection Association.  There were no 
objections to the Agenda being conducted out of the printed format.    

III.  Presentation of Invited Guests and Reports (Discussion)
A.	Storey County Commissioners 

Commissioner Kershaw discussed two 3,000 acre potential developments 
owned by Dolan Properties.  They would like to build 2,700 homes 
northwest of the VC Highlands.  The research done on the ownership of 
Lousetown Road points to ownership by Storey County.  It has also been 
discovered that the forty acre association has been disbanded.  We have 
the right to say no to access from outside development but Maggie Lowder 
will due further research on this subject.  The Planning Board may vote 
on CordeVista next week.  The TRI Business park is definitely growing.  
An association member asked if the County could take over all our roads 
here in the Highlands.  It was explained there would be considerable cost 
involved in that endeavor and as the Association has control the County 
would not want to step in.  Al Drake mentioned that it would be a good 
idea to upgrade the roads for ambulance and emergency vehicles. Jim 
Watson interjected that if the County took control of all roads in our 
area we would not be able to stop CordeVista from becoming a reality.  
Commissioner Kershaw said he was in favor of SLOW growth.  Commissioner 
Hess also discussed controlled growth, for which he is also in favor.  On 
July 19, there will be a planning committee meeting at the Courthouse at 
6:00 p.m. regarding CordeVista.  He stated that the County is still on 
the "fair share" program regarding taxes which are ad valorum.  Ad 
valorum tax is paid on buildings and power line miles within the County, 
we don´t receive much tax from power plants and nothing on coal or gas.  
The Department of Taxation is monitoring the TRI impact more closely.  
Population of Storey County is 4,500.  Commissioner Kershaw stated that 
funds for the park are available.  Rita Lumos has spoken with Mike Nevin 
and provided him with a copy of the plans for improvements.  Commissioner 
Kershaw also stated that the County is hiring an experienced planner to 
assess water, roads, power and growth.  Buildable acreage in Virginia 
City and the Highlands needs to be identified.  Approximately 30% is 
already built out.  Water is an important issue as is fire and defensible 
space.

Battalion Chief Curtis from the Storey County Fire Department addressed 
the group regarding Insurance Services Office (ISO) ratings.  The 
Highlands has been upgraded from a 9 to a 3 which will save homeowners 
money on their policy premiums.  We need to check though to make sure 
that ISO is used by the carrier.  The change in the rating is good for 
fifteen years and is based in good part on water shuttle credits and 
where water storage tanks are located in relation to the fire house.  The 
rating however, does not apply to TRI.  An association member expressed 
concern about construction sites in the Highlands and the high heat and 
dryness experienced this year where a spark could start a fire.  Chief 
Curtis said there are currently no restrictions regarding construction 
and fire conditions.  He also stated that throwing cigarettes from 
vehicles is illegal and anyone seeing this should report it immediately.  
Three batallion chiefs positions have been added to the fire department 
as well as two division chiefs and he feels that the County is well 
covered for fire protection.

Harry Stanley from the Firesafe Highlands spoke to the group.  There are 
funds left from the $40m grant.  Additional grants have been applied for 
and he is anticipating the same amount for next year.  As homeowners, our 
contribution form performing defensible space clearing is credited on a 
one to one basis against the grant funds.  Harry encouraged property 
owners to fill out the forms and turn them in for credit.  He also 
introduced Phyllis Blake and Cecelia Lak as committee members for the 
Firesafe Highlands.  Prior to June 2007 $18m was spent on fuel 
reductions.  The slash pile was not burned but ground up and hauled out 
instead at a cost of $5,000.  This is planned for each fall and spring.  
Sazarac Road was chosen by Chief Gary Hames as an escape artery for the 
Highlands.  The shaded fuel break has been done on that road but of 55 
letters sent out to property owners to participate only 22 responded and 
6 of those did not want the fuels reduction.  A 30% response is not very 
favorable considering the benefit to the owner and the community and 
Harry is concerned at the lack of participation.  He and Gary Hames will 
colaborate on the next project and work with the fire department to see 
if we can get more participation and involvement by property owners.  
Harry also explained that the Firesafe Highlands is an elected board and 
all the members have been on it for quite some time.  They meet on the 
second Wednesday of the month and will meet again in September.  There is 
a trailer at the fire house for use in hauling slash and anyone wanting 
to use it should contact the Fire Department.  Property owners can also 
contact the Fire Department to find out how to have a property fuels 
reduction assessment performed.

Jean Gribben, the new President of the Virginia Range Wildlife Protection 
Association introduced herself and the other members of VRWPA, Tom 
Gribben and Bill Henderson.  They need volunteers as this is an all new 
board and all property owners are considered members.  They are currently 
evaluating the water situation in the vicinity including springs and 
water tanks.  They have watering tanks they can provide to homeowners to 
assist in watering of wildlife and horses.  VRWPA meets the last Monday 
of the month at 6:30 p.m. at the fire house.  In case of wild 
animal/horse injury or other issue residents are to call the Sheriff´s 
dispatch.

Rita Lumos has contacted the Association attorney regarding Blake Smith's 
use of "Virginia Highlands LLC" for the 1800 acres he owns in Storey 
County.  His website states the same name.  She has asked the attorney to 
write a letter advising Mr. Smith that his use of this title violates the 
common man understanding rule and that it cannot be used.

IV.  Financial Report (Discussion/Action)

President Lumos presented the financial reports to the attendees.  She 
used slides to make it easier for all to see.  There is $15,645 in 
checking, $91,950 in savings.   Assets total $109,000.  Historically 
funds held in reserve have been kept in savings and operating funds have 
been kept in checking.  Reserve is actually $45,000-50,000.  With the new 
software, reserve and operating will be separated.  The Association also 
has $81,000 value in equipment for a total asset value of $209,488.  
Revenue comprised $60,000 in association dues and $121,000 in special 
assessment funds.  Architectural and transfer fees are down 	due to the 
building slow-down.  $210,750 was the total revenue, costs for 
administrative expense were $17,135, road expense including vehicle 
maintenance was $119,948, other expense $58,171 for a total expense of 
$195,254.  $15,501 was the net income leaving a balance of $107,595 cash. 
  

Rita presented the Road Plan LARRRI to the group.  Fall 2006 and spring 
2007 projects were completed at a total of $107,600.  Budgeted amount was 
$97,250.  	Rita presented, again using slides, the cost for road plan 
work, additional work on Calavaras and Pinenut added $3,500.  Petitions 
were received last year from homeowners concerned that road work would 
not be continued past Phase 1 and that their roads would not be done in 
accordance with the plan.  A motion was passed by the Board at that time 
to continue ALL the road work until each road 	was completed.  Debra 
Gravenstein stated that there was a discrepancy regarding the petitions.  
She spoke with the Ombudsman and stated she was shut down by the Board, 
of which she was a member, each time she attempted to voice her concerns. 
 It was noted that Ms. Gravenstein had missed 7 of the last 11 meetings.  
She also feels that the road plan will not be completed properly and 
timely unless a company that does this type of work comes in and handles 
it. Another association member states that the internet ballots and 
mailed ballots regarding the road plan voting was very confusing.  Rita 
Lumos explained the road plan as written to the group.  The website was 
not updated with the correct Plan until Debra Gravenstein noticed it.  
Keith Judson explained the Nevada Revised Statutes regarding Association 
Board meeting attendance and the fact that Ms. Gravenstein was informed.  


3.38 miles of road are scheduled for work the rest of 2007 and 2008.  
Calaveras, Dortort, Delta, Crestview and Bonanza are all schedule to 
receive attention.  Rita 	discussed the cost breakdown and projection for 
the next phase.  

The reserve study was discussed.  State of Nevada law required a 
qualified individual perform this study.  There is now a qualified person 
licensed to do the study and we need to contact them.  Association 
members indicated that they would like this information to be included on 
the website.  

The budget for the fiscal year ending 6/30/2008 was sent out in the 
newsletter prior to the annual meeting.  Payroll costs were noted but 
after reviewing costs to have individual contractors considered for 
performing the work it was decided that the costs involved would be much 
higher.  The Board voted last fall to make the people working for the 
association temporary employees with no benefits due to liability issues. 
 

Ray McPartlin questioned the expenditures for the road maintenance, the 
cost as opposed to the information discussed with Kelly Rogers at the 
informational meeting held in May at the firehouse.  Mr. McPartlin feels 
that the property owners are not getting their money´s worth from the 
quality of work that has been completed and wants to make sure that 
proper repairs are made and Phase II addressed in a different manner.  
His concerns were duly noted.  

The Architectural Committee has a new chair, Walter Fox who is taking 
over for Bill Lewis although Bill will continue in an advisory only role. 
 Construction has slowed down due to the market conditions.  An 
association member asked a question regarding setbacks.  It was noted 
that the fire department recommends fuel clearance at least 30 feet from 
your home.  Stucco is now allowed due to fire resistance.  The subject of 
lawns was brought up as there are a few in the Highlands.  Of course, 
water is a main issue and with more building in the last few years wells 
have had to be redrilled or new ones put in.  Common sense is the key.  

Keith Judson has reviewed the C C & R´s and made recommendations to the 
Board.  To change these, 585 property owner votes are needed.  The most 
votes received for any issue has been 400 to date.  The focus will be on 
the dues charged by the Association which are now $50 per lot since 1972. 
 A questionnaire was mailed in December and 60% of those responding was 
in favor having dues set by the Board in line with the annual budget.  Of 
those ballots sent out in april, 285 yes votes were tallied and 108 voted 
no.  300 votes are needed for approval and the election will stay open 
until November 10, 2007.  There will be a follow-up in August.  If you 
have lost your ballot, contact bookkeeper, Lydia Hammack.  A question was 
raised that if the dues were set by the Board based on 	the budget, could 
a special assessment still be levied.  The answer is yes.  A new budget 
is presented each year so all property owners will know what their dues 
would be for the coming year.  

Road Manager Bob Moore was next on the agenda.  To recap the past year he 
began by giving the group some of his personal background as it relates 
to volunteering for the road manager position.  Last winter was not bad 
in 	comparison to the two prior.  Bob explained his experience and the 
situation with utilizing incorrect material in several areas on Phase 1 
of the road plan project and his commitment to finish the projects and 
address the areas on the roads that have caused concern in the community. 
 A couple of test strips will be completed 	on the worst areas using a 
scarifier to determine if that will help our roads to hold up better in 
certain conditions.  It was noted that Kelly Rogers is not employed by 
the Association and not the new road manager.  Kelly has assisted Bob as 
a friend and because he has expertise in this area and can share several 
techniques to make the job easier and more effective.  All the equipment 
has been repaired including the water truck.  There was a suggestion to 
change sprayers on it but no commitment will be made to water roads every 
day in the Highlands.  It is not cost effective.  Shelly Hanson talked 
about renting a water truck, prices for 	material and trial and error.  
Roads would be graded and repaired on a maintenance basis with a 
reciprocal agreement with the 10 acre association road crew to assist.  
An association member voiced budget concerns regarding Phase II and 
reworking Phase I.  That is the goal of the Association.  Karlyn 
McPartlin asked President Lumos if the Board intended to follow the road 
plan as written. President Lumos stated that is what the Board intends to 
do.  Keith Judson made a motion to approve the annual budget with a 
second by Dave Thomas.  All in favor, motion carries.  The special 
assessment will go out in November.  

Annually in August or September our roads are closed at the Cartwright 
entrance for prescriptive rights.  Volunteers are needed.  Highlands H 
stickers can be obtained at the fire station.  

V:	Adjourn
There being no further business, the annual meeting was adjourned at 
12:34 p.m.

Respectfully submitted:

Mary Tallent-Stewart, Secretary