Virginia City Highlands Property Owners Association

Minutes – Monthly Meeting, Tuesday January 8, 2008

Virginia City Highlands Fire Station Training Room – 7:00 p.m.

Present:          Mary Tallent-Stewart, Bill Lewis, Rita Lumos, Steve Morrow,

                        Mike Lupo

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

President Lumos called the meeting to order at 7:00 p.m. and declared that a                  quorum was present.

II.       Approval of minutes of December 11, 2007 regular meeting

Minutes reviewed for the meeting and motion made by Bill Lewis to approve with second by Mike Lupo.  Motion carries.

III.      Financial Statements (Discussion/Action)

A. Monthly Cash Report

B. Monthly Financial Statements

Mike reviewed the financial statements with the attendees.  Balance in checking is $57,620, $82,594 in savings with accounts receivable of $117,002.  Road expense was $6,625 of which half is SIIS insurance and water truck repair.  There were also $566 in administrative expense.  Rita spoke with Dave Thomas about establishing a separate reserve account on QuickBooks but it cannot be done.  Manual calculations will have to be done.  The actual reserve account is set at a mandated amount.  It was suggested that we leave enough money in the operating account for several month's expenses and open another account so there would be one reserve, one operating and one regular checking.  Lydia will find out if we need new signature cards.  A motion was made by Bill Lewis with a second by Steve Morrow to allow Lydia to open the new account.  A motion was made by Mary Tallent-Stewart to accept the financials with a second by Bill Lewis.   Motion carries.

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

             None to Report

V.        Reports

            A.  Architectural Committee

One applicant would like to move a house from Reno to the Highlands and

                  place it on a piece of property on Cartwright Road.  The roof pitch is in

                  question.  She will need to apply for a variance from Storey County first.

B.  Documents

               l.  Keith Judson stated that the price from the attorney for a restatement of the

                   CC & R’s would run $700 which is a simple amendment of one page that

                   repeats verbatim the language that was in the ballots for the change.  The

                   attorney, Jay Hampton said it would take about a half hour to review and

                   there are funds left over in the budget from the project.  Keith presented

                   a draft.  Steve Morrow stated that he is concerned if its done this way that

                  someone will miss it and it is a very important part of the CC & R’s.  Lydia

                  Hammack also said that the website would need to be updated.  There was

                  also discussion of putting it on the demand document when property transfers

                  occur.  Keith is concerned about confusing people.  It was decided that a draft

                  would be reviewed by the Board first.  The attorney felt that the restatement

                  would be the most effective and proper method but would record an

                  amendment and that would work as well.  The original document was

                  recorded in 1972.  A motion was made by Bill Lewis to have a complete

                  restatement of the CC & R revision by the attorney with a second by Steve

                  Morrow.  Motion carries.

2. Mr. Patrick Flanagan submitted a letter to the Board and is concerned about

Voting irregularities regarding the CC & R dues issue.  He is also concerned

About the vote being extended as the original ballot gave a deadline of 11/10/07.  Keith pointed out that 80% of the voters voted in favor of the

Dues being based on the annual budget.  People who didn’t vote were considered as voting No.  Mr. Flanagan was also concerned that telephone voting was used and people were solicited for yes votes.  Keith explained that he had prepared a script for the volunteers that participated in the telephone calling and those that called had a listing of property owners to contact and logged the calls and the yes or no votes and then relayed that to Keith who then tallied the votes.  No undue pressure was put on property owners to vote either way.  If it was asked, people were told that the Board was in favor of the proposed amendment.  It is being alleged that the Board acting improperly by conducting the telephone voting.  Both the Board and Keith disagree.  The attorney was asked if voting on this issue needed to be done by secret ballot and the answer was no.  Mr. Flanagan disagrees and said he had spoken with an attorney regarding the matter.  Karlyn McPartlin is concerned that using phone voting and internet voting are not legal.   It was discussed that a recount of the ballots be considered by members of the “Oversight Committee” established by Mr. Flanagan.  Lydia explained that the ballots sent in late with checks for dues two or three weeks after the final deadline were not counted.  Mike Lupo requested the names of members of the “Oversight Committee” and was told by Mr. Flanagan that he would not divulge the names.  It was duly noted that the 10-acre Association were able to file a similar amendment to their CC & R’s by using the telephone voting method and their attorney did say the process was legal.  Keith also noted that he had sent out two reminders regarding the ballots and the deadline.  Rita will have our attorney review the matter prior to getting a legal opinion in writing.

            C.  Road Report

Bob Moore gave the report for December.  One of the plow trucks had a fuel

                  gauge that was not functioning normally and there was a leak found and

                  fixed.  Cartwright Road was a challenge with the last snowfall and Bob is

                  noticing lots of vehicles that are not set up to handle the weather hazards in

                  our community such as bald or no snow tires and no 4-WD.  The batteries

                  were replaced in the GMC truck at no charge and the sander has new

                  batteries.  A test was done sanding on Silverado with the new double

                  sanding vibrators and Bob said it worked very well.  The County doesn’t

                  want to plow Cartwright when there are abandoned cars on the side of the

                  road.  Sometimes folks get stuck and don’t have a choice but to go for help

                  to get pulled out.  Bob sanded Grizzley, Sazarac and Saddleback and hasn’t

                  yet had any feedback on how it worked.  Regular maintenance was performed

                  on the roads.  Workers comp insurance has been established for all association

                  employees and all the vehicles are insured and upgraded for snow removal.

D.   The water truck repairs are almost finished.  Weather is a factor.

E.   The reserve study will have to wait.  Rita checked with the ombudsman and

                   there are still no licensed specialists to perform the task.

No Park Report this meeting

VI. New Business

Lydia says that the new phone system is working very well and Margot Moore

has been checking messages regarding the roads.

It was noted that the lights at the mailboxes are not working inside again.  The person that fixed the issue before will be contacted for maintenance.

VII.       Any Other Matters Which The Board Members Wish to Discuss

      None to report

Motion to adjourn to Executive Session by Bill Lewis, second by Mary        Tallent-Stewart.

   VIII.      Executive Session

                  The house on the Adobe Road that is in foreclosure with Deutch Bank was

                  discussed and Rita will follow protocol and send a letter for 30-day removal

                  of the trash.

       IX.      Adjourn 8:55 p.m.

   Respectfully submitted

   Mary Tallent-Stewart

   Secretary