Minutes of Annual Meeting on  July 26, 2003

Call to Order and Determination of a Quorum

With Board Members Jim Watson, Don Ingram, Dennis Kennedy, and Randy Fruzza present, the Annual Meeting of the Virginia City Highlands Property Owners’ Association was called to order at 10:08AM by Association president Keith Judson July 26, 2003 at the Virginia City Highlands Firehouse.

Association Secretary Fruzza stated that NRS 116 requires that 20% or 234 of the 1169 lots be represented by ballots for the Annual Directors’ Election in order to declare a quorum present. Having received 443 returns voting one or more lots, a quorum was declared.

Welcome and Introduction of Current Board Members

Judson welcomed those property owners present and introduced the current board members along with members of the Architectural Committee.

Voting for Directors and Amendments to the By-Laws and Architectural Guidelines

Fruzza explained the voting procedure as required under NRS 116.

Selection of Persons to Count Ballots

Fruzza introduced those individuals that would be counting ballots and invited any other members to observe or assist.

President’s Comments

Judson provided highlights of the previous year to the audience present:

• The paving of Cartwright Road was completed with costs split with the Highland Ranches (10 acres) with VCHPOA responsible for 60% of the cost. It could not have been done without the assistance of Storey County, its Commissioners, and Rich Baccus;

• The road closings to non-residents by the Association and the 10’s in order to preserve the "prescriptive easement";

• The erection of the community bulletin board with materials paid for by Fire Safe Highlands and labor provided by volunteers;

• Lease of the firehouse to the County Fire Department resulting in a new roof at no expense to the Association;

• New roof for the Association’s rental house;

• Compliance with NRS 116 particularly regarding elections, volunteerism, financial information;

• There have been challenges to the Association not the least of which are money, increase in population, new homes, Reno closing off public access areas, and that the public does not think the Highlands are private property. The increased popularity of the petroglyphs and increase in traffic and speeding. Water continues to be an issue and a recent informational meeting was well attended. Judson reminded all that there will be another meeting regarding the water situation in the Highlands August 9, 2003;

• Judson thanked those in attendance but acknowledged that there continues to be few in attendance at monthly board meetings.

Status of Lawsuit

Judson provided history regarding the Special Assessment of 2002 and the lawsuit that was filed in December 2002. He further explained that in May 2003, the First Judicial District Court awarded the Association a Summary Judgment finding that the Association acted properly. Judson informed those present that the legal cost to the Association to defend itself was $1,250.00 but that $1,000.00 of that cost was reimbursed to the Association by and under agreement with the plaintiffs.

Reports

Financial Report

Review of Financial Statements

Fruzza presented the Association’s financial statements for the year ended June 30, 2003 with comments on selected items.

Status of Reserve Account

Discussed under Item 7.A.5.

Status of Collection of Delinquent Dues

Kennedy reported that the delinquency at present totals $6,000.00 down from $32,000.00 of which $16,000.00 was for prior years. There remain 50 delinquent properties of which 22 are being pursued by the Association’s attorney and 28 are deemed uncollectible for various reasons included County ownership, bankruptcy, etc.

Statement Regarding Future Assessments

As required by NRS 116, Judson informed those present that the Board of Directors did not anticipate that any Special Assessment would be required in the fiscal year commenced July 1, 2003. He did though state that according to the Operating Budget, the Association would be "out of money" by September 2004. He further stated that the Board would not allow this to happen. In order to avoid future financial concerns, Judson indicated that the Board will address the Association’s CC&R’s in August regarding not only the annual dues but also other factors and ambiguities. Input from the membership is needed.

 

Ratification of Annual Budgets

Operating Budget

Judson highlighted the operating budget for the upcoming year. Asking for a show of hands, the Operating Budget was approved by membership present with two owners dissenting.

Reserve Fund Budget

Judson explained the Reserve Fund Budget for the upcoming year and its need regarding equipment. By a show of hands the Reserve Fund Budget was approved with no dissent.

Road Report

Ingram reported on the progress made during the past year including tons of rock on the Association’s roads, the completion of the paving of Cartwright, the shoulder work on Cartwright, and the cleaning and replacement of various culverts in the Highlands. He reported on the acquisition of a 120 by 38 foot vehicle shed from the county and the enclosure for salt and sand used by the Association. He extended his thanks to the road manager, Rick McDowell, Rich Baccus, and the County Commissioners.

 Association Web-site

Judson explained the content of the Association’s web-site and its benefits, reporting that it had received over 7,200 "hits".

Comments by Association Members

Question regarding newspaper delivery - Judson explained the history and that the Association was not preventing delivery of newspaper only the placement of orange receptacles along Cartwright and Lousetown

Comment on water shortage and that information is available on gray water systems and other means of water conservation

Question on curbside recycling - Not yet offered by Waste Management, also concern about appearance of recycle crates

Question on vote to change the CC&R’s - Process explained

Question on vote of Architectural Guideline and By-Law changes - Explained in process

Question on guidelines on ATV’s - Deferred to Storey County Sheriff

Presentations by Invited Guests

Highlights of the presentations were:

Commissioner Bob Kershaw - Discussed water issues, petroglyph activity, upcoming VRWPA breakfast

Commissioner John Flanagan - Discussed County Treasurer auction by request

Commissioner Bum Hess - Not able to attend due to a previous commitment to the Jeep Posse Scholarship Fund Raiser

Fire Chief Gary Hames - Discussed testing of firehouse warning horn daily, firehouse now occupied 24 hours each day, emergency phone access, ambulance co-pay waiver

Planning Commissioner Lydia Hammack - Updating of County Master Plan, seeking input via questionnaire, etc.

VRWPA’s O’Mahoney - The association is working on more than wild horse protection with the Department of Wildlife including re-introducing the sage grouse back to the Highlands, seeking funding and participation

VFD Chief Phil McKenna - Discussed equipment issues, reflective signs, evacuation plan, Fire Safe Highlands. Explained fire retardant test, programs for dead tree removal and problems with absentee owners. Street signage delayed by timing of grant funds but 50% should be done soon with the remainder by autumn. There are approximately 152 signs to be replaced.

SCA’s Melissa Jones - Explained history and purpose of program encouraging residents to take advantage of free home evaluations regarding fire preparedness.

Sheriff Pat Whitten - After fielding question from Judson on radar trailer, explained $300,000 grant for enhanced 911 service asking that everyone check their phone bill for correct service address, addition of part-time animal control officer, two new resident deputies for the Highlands. Discussed dirt bikes, speeding (by outsiders and locals alike) and full enforcement rights of the Sheriff’s office. Reminded all of the importance of the vehicle stickers and reflective address signs.

Jeanne Gribben - Introduced Nevada Department of Agriculture representative regarding noxious weeds and the problems they cause.

Election Results

Association Secretary Fruzza reported the results with the election to the Board of Colleen Brownwell, Dave Thomas, and Donna Wasson. He also reported on the passage of both of the Amendment proposals.

On multiple motions and seconds from the Board and the floor, the Annual Meeting was adjourned at 12:16PM.

Financial report

Operating budget

Reserve Fund budget

Election Certification