Deer Springs Ranch Owners Association

Board of Directors

Minutes of Board meeting held January 28, 2006

Mesquite, NV

Board members present: Candace Bosze, Larry Clarkson, Dale Clarkson, Shawna Cox, Val Cram, Phillip Hall, Larry Walters

Others present: Joe Bosze, George Strain, John Martine, Dan Wirt, Clyde Nixon, Diane Currigan, Larry Murphy, Brent Fullmer, Joseph Woods, Ken Lent, Larry Baer, Paul Ford, Bob Becker, Taylor Button, Suzanne Tuckey, Rodney Johnson, Bob Woolsey, May Woolsey, Elise Moore

Meeting called to order by President Bosze at 9:02 AM.

Minutes of the December 10, 2005 were reviewed. Larry Clarkson moved their approval. Phil Hall seconded the motion. Vote in favor was unanimous.

Finance report was given by Shawna Cox. Operating account balance was given as $32,521.88, with no change in the capital account balance. Expenses for January were reviewed. A request was made that the year-end income statements be sent to all Board members. Nyle Willis will again be retained to complete the year’s tax returns.

Manager’s report:

• New siding has been installed on the south side of the ranch house.
• The shower has been replaced in the rest station.
• A general cleanup of the headquarters area has been completed.
• New tires have been installed on the Kubota tractor
• The reservation confirmation process was reviewed. When made, reservations are checked against accounts paid and payable list and entered in several backup locations. Reservation confirmation is issued when payment in full is made.
• Carl Durney has volunteered to make road signs for the ranch. Ken Lent will buy the wood and paint the signs. The names to be used are listed in attachment A. Area representatives will be consulted on sign locations. Joe Woods and Taylor Button agreed to install the signs. Signs will be made of 2X6 material. Phil Hall moved acceptance of the name and area strategy. Larry Walters seconded the motion. Vote in favor was unanimous. Larry Clarkson will contact the area representatives regarding sign locations.
• The wood stove in the ranch house belongs to the Buttons, who have offered to sell it to the ranch for $500. Dale Clarkson moved acceptance of this offer. Larry Clarkson seconded. All in favor.
• The advertisement for the new ranch manager will run in 52 newspapers the week of February 5. The cost will be $330. The ad was also placed in SouthernUtahHelpWanted.com and listed with the LDS employment center.
• The advertisement and recruiting strategy for the RV hosts was discussed.
• No one has expressed interest in taking Scout as of yet.

Old Business

• To correct an imbalance in the 2006 operating budget, Larry Walters moved that $1,500 in expected income be moved from the capital improvement fund to the operating fund. Dale Clarkson seconded the motion. Vote: six in favor, Val Cram abstained.
• Discussion of the capital improvement budget was tabled.
• Shawna Cox reported on potential construction of RV pads. Such construction would comply with all relevant building and health codes. It would require a 1,200 gallon septic tank to serve three pads, and would cost approximately $3,500. Installation of the septic systems would need to be sensitive to the location of any springs. Discussion of this topic will be continued.
• Horseback riding: Jeff Allen operates a riding program. He has more than six employees, provides all necessary insurance, horses, tack, etc. He would charge $25/hour and $45/half-day. Dale indicated that he would be willing to put up $5,000 for horses and tack if the ranch operated its own riding program. The understanding would be that if the riding program earned more than $5,000, Dale would be reimbursed at the end of the year. If the riding program did not earn at least $5,000, no reimbursement would be made. Larry Clarkson moved that we accept Dale’s offer and move ahead with our own program or with a program run by members if such a program can be arranged by the end of February. Shawna Cox seconded the motion. Vote in favor was unanimous. Follow-up was delegated to the recreation committee.
• A request was made for an audit of cabin usage for 2005, but this information has been provided previously.
• Cabin rental pool: Dale Clarkson suggested that a rental pool with fees of $145/night be established. After some discussion, Phil Hall moved that the suggestion be tabled at this time. Larry Clarkson seconded the motion. Vote: six in favor, Val Cram opposed.
• Conflict of Interest policy: Larry Walters reported on a draft conflict of interest policy (see attachment B), and asked the Board to endorse the general direction of the policy and the concept of including the policy in the Association Bylaws. Phil Hall moved approval of the concept and approach. Larry Clarkson seconded the motion. Vote: six in favor, Val Cram abstained.
• Meadow Canyon Road: The proposal to make Meadow Canyon Road a public right of way was discussed. Phil Hall moved that the proposal not be acted upon at this time but that it could be revisited in May in preparation for the annual meeting. Larry Clarkson seconded the motion. Vote in favor: Phil Hall, Candace Bosze, Larry Clarkson. Vote against: Val Cram, Shawna Cox, Dale Clarkson, Larry Walters. Motion failed.
• Barbara Button’s job description: The Board was polled previously regarding asking Barbara to continue with bookkeeping responsibilities. Her duties and responsibilities were discussed. Larry Clarkson moved that we have Barbara continue with the bookkeeping, cabin reservations, water testing and management of fish resources from January 1, 2007. She will also help orient the new ranch managers.  Phil Hall seconded the motion. Vote: six in favor, Val Cram opposed.

New Business:

• Dan Wirt presented a member petition signed by 46 lot owners (15.3% of membership) regarding the status of Meadow Canyon road and the process that should be followed to change that status. In addition, the petition placed on the ballot of the next regular or special membership meeting the tabled motion to recall Dale Clarkson, and proposals to recall Shawna Cox and Val Cram. The complete text of the petition and list of those signing is included as attachment C.
• The Board reviewed information regarding improper commercial activity on lot 164, owned by Dan and Bunny Ortolani. This activity includes operating a website that advertises their cabin for rent on a nightly or weekly basis including catering, sale of alcohol, and access to ranch amenities; and advertising their cabin for sale as an income property. Larry Walters moved that the President be directed to write a letter to the Ortolanis informing them that they are in violation of the protective covenants and bylaws, and asking them to stop their commercial activity. Phil Hall seconded the motion. Vote: five in favor, Val Cram abstain, Larry Clarkson absent.
• Resolution clarifying who speaks for the Board: tabled until the next meeting
• Resolution on past lots acquired at auction: tabled until the next meeting
• DSROA privacy policy: Larry Walters raised the question of whether DSROA should have a privacy policy with regard to distribution of member contact information. Phil Hall moved that ownership, and therefore membership, in Deer Springs Ranch is a matter of public record, and the association should therefore provide a complete list of members, including full contact information, for non-commercial use to members who request it. Larry Clarkson seconded the motion. Vote: five in favor, Dale Clarkson opposed, Shawna Coz abstain.
• Revisions of the protective covenants will be the main topic of discussion at the next Board meeting.

The next meeting was set for February 18, 2006 in St. George, UT at 9:00 AM MT.

Prepared by Larry Walters, Secretary