Call to order:
A regular meeting of the Board of Directors, DSROA, was held in Parry’s Lodge, Kanab, Utah on March 8, 2014. The meeting convened at 9:00 A.M.
President Art Ortaloni presiding, Shawna Cox, Secretary. Members of the Board in attendance were: Art Ortoloni, Shawna Cox, Dale Clarkson, Joe Bosze, Robert Allen, Jodi Akers.
Guests and Employees attending: Linda Alderman (Sec.), Paul Brayton, Candy Bosze, Larry Baer, Larry Clarkson (later).
Opening prayer offered by Art Ortoloni.

Shawna read the February Minutes.
Motion to accept February 8th minutes.
(By Dale)
Motion was seconded (by Jodi)
Motion carried.
Art asked Shawna to re-send copy of final January and February minutes to Vance Green to post on the web site.

Financial Report:
Linda handed out DSR Balance Sheet as of March 1, 2014. Linda said she had taken in $72,000 in assessments so far. In the bank we are at $54,000. Linda will work with Jodi to put items in the correct places in the budget and report back.
Dale asked how much was the check on the Kabota, Linda reported $4,800. Art said the repairs and the bill would have been $7,000 if not for Paul getting some refunds on the parts. Paul stated a bad installation of the clutch, and we were credited about $900 in parts. Paul said the shaft was sheared off but is fixed and the Kabota is up and running the best it has in years.

Jodi reviewed financial statements sent, clarifying that under Headquarters area, $6,000 was spent, but $4500 - $4700 was for the solar batteries, which are under budget item of Special Projects.
Jodi stated that there is only $1,000 left in the budget for tools, etc., so for Paul to understand that and keep an eye out for that. Paul asks if that includes the $675 for the compressor being rebuilt. Linda said the Generator had already been paid for out of the budget. Paul suggests breaking down the tool item into categories. Joe suggests Power Tools and Hand Tools. Jodi suggests the categories of Power Tools, Hand Tools, and Parts & Maintenance. Instead of a tools category, Shawna suggests you break it into Equipment and Maintenance.

The ballpark estimate to do Solar on one Cabin was between $1300 - $1500. So we're a little bit over ($2400), but at the same time, some of that material purchased will be also used in Cabin #8. We will still need the batteries for Cabin 8. As these projects were added on after we prepared the budget, Jodi suggests holding off till next year to begin the solar in Cabin 8.

Discussion reviewing how to reimburse Podunk for road work done, Jodi would like to see Podunk submit an invoice for the maintenance, and we pay from that invoice. So as they do their work, we can track what it is, where it is, and we can have a paper trail for accounting purposes. Art agreed that we should do this for everything. Paul wanted to know if we are still hauling the fuel tank out to Podunk so Lee Bellar and crew can have fuel to do the road repairs there? Paul inspected the tank and hose was cracked, so Paul purchased a new hose, nozzle and fuel filter for the tank. Art stated it would be easier to let them use their $1000 for fuel and let us know when they do. Fuel tank to stay at the Ranch. One representative from that neighborhood that has the book and the key. Lock it and give the key to one person.

Motion:
(by Art) We leave the fuel tank for Podunk at the ranch so we can monitor the fuel usage.
Motion seconded (by Joe)
Motion Carries
There will be a representative with a log book and key.

There were questions on the P&L Statement.
Dale asked what was the check for $939 for repairs on the new Ford truck?
Paul said the brakes had to be redone $464 plus a new rotor and a trailer plug was installed. Back right rotor was shot. Joe asked if Paul kept the old parts. Paul said no.
What was the check for $1,071 for unleaded fuel for? What do we have that is run on unleaded fuel? Linda said we were purchasing fuel in town at the gas station because the traveling fuel we had purchased at the ranch was more money than it was to buy in town lately.
Dale asks if the Reno trip good for Paul to go get tools for himself? How does that equate to the Ranch? Art stated that the Board agreed to that in a previous meeting.
What was the check for $197 for Non Use/ Other for? Hoses etc.
Why was there 60-70 gallons of fuel ($400) used in going to Reno?
Jodi asks the Board members to review the P&L and check register that is sent out the week prior to the Board meeting, so questions and answers can be provided outside of the meeting to save time during the meetings.
Jodi said that as we have budgeted, there is $833 per month for unleaded fuel which includes all fuel for Kabota/Grader etc. If it is different then we will adjust the budget.
What is the $1,800 listed for expenses with no receipts? Linda said she wasn’t sure where to post them in the budget she had questions about and receipts she couldn’t read.


Roads:
Joe went over to Phil Halls house and got a stack of paperwork from him. As Joe understood, Art had talked with Phil and Phil was ok with what had happened and that he wasn't looking for anything else, and Phil disagrees with that. Art stated that Phil was ok with what Art was saying. Phil contends that he is not happy with what's been going on so far. He asked to borrow the grader, he was told the grader was not running and had a flat tire, he personally had the grader hauled to Colorado City, had the grader repaired, had the tire replaced, brought it back, he used it, the ranch used it, was never reimbursed for that, and the reason he wasn't was that he never submitted a bill. Alan Steed never rec'd a bill from the repair shop. He is now requesting Alan Steed to go back to that shop to get a copy of the bill. The statement made by Lynette that he did not pay for the gravel was a true statement. He didn't pay the Ranch for the gravel, but he did pay the county for some of the gravel. He had submitted a request for payment on his original bill of over $63000. He cut that in half and was trying to get compensation on the $31,000. His suggestions were to cover dues for a number of years, and the remainder paid to him over the next 5 years, interest free. He should also be compensated for the work done on the grader. (Between 2010 and 2012) Paul does not remember the grader ever leaving the ranch while he was there. Phil told Art he would get back to the old emails to bring us something in writing.
Phil was compensated his assessments in the year of 2013 for both lots.
Art says that we need to do some research on the minutes, and that if the Board made a commitment to him, then we have to follow through on it. Joe states that if we are going to compensate Podunk, and we compensated Dale for the roadwork he had done to MC Road...
Dale interjected that we did not compensate him anything. That was a ranch road. Joe stated that they are all ranch roads. Jodi stated that the point being is if we do it for one member, we have to do it for the other member. We made an agreement for road maintenance on MC Road for $5000, but we ended up paying Dale and additional $10,000 for work the Board never authorized. Art and Shawna state that Phil needs to provide some type of paperwork that states that we made a commitment. And that we need to be fair. We need to be fair from now on.
Some of the rock Phil had crushed was used on MC Road, so we do owe him something. Dale states that we do not pay any fees for the use of gravel laid on Ranch Roads. We do pay if used on private lots.
Joe will go through Phil's paperwork and discuss at next meeting.
Art asks about Quarterhorse Lane that is totally destroyed. Larry to get to that road and see what is needed. Art to get with Larry.


Ranch Report:
(Paul) Found 2 - 7 ½ foot Cattle Guards for $800 each and 3 24” 20’ pvc culverts for $150 each. Joe wanted to know if we can install the new cattle guards at the Headquarter entrance into the ranch.


Motion:
(Jodi) Purchase the second cattle guard for $800 and 3 culverts for $150 each.
Motion was seconded (Shawna)
Motion carries.
Paul said he would give the key to the fuel tank for Podunk to Lee Bellar and assign him to be responsible for it.
Cabin #7 solar system has the brackets on the roof almost finished mounting for the solar panels.
Posts were purchased to finish fence around headquarters. Will finish while the weather is good.
Talked with Brent Robinson about borrowing the 15' Brush Hog.
Fence Plan section North of the cattle guard is being worked on. We have a T-Post puller and will do it by hand.
We will still need some wire and T-posts but will reuse the T-posts pulled out.
Paul understands that there are some T-posts left over from the fencing project in the Meadow but he doesn't know where they are at. Need to find out where Jessop may have put the left over T-posts.
Dales states that the Ranch was only billed for the materials that were used. He also said there were some posts left over, there was some wire left over, none of that was charged to the Ranch. Joe asks if we paid for them upfront and got a credit or did we just pay for them as we used them? Dale said we only paid for them after they were used and counted. The last $3 - $5000 that was billed was never billed to the Ranch. The Ranch did pay for shipment of the wire and posts that came to the Ranch. That was given credit from billing that was submitted from the overall project. The wire and posts were used over in the fence on Black Knoll Springs, which was not a ranch project.
Another person counted the posts and the wire, and billed the Ranch only for a certain part of the project that was used. The first amount of wiring and posts that came in, Linda paid that to the company in Cedar City. Dale stated the same, but that it was not all used on Deer Springs projects. Linda states that we did pay for it and Dale states that we then got credit in the final bill. We will need to go over it.
Paul said Brush Hogging was on his Top 10 list. It has been a rough two weeks since Nancy’s mothers passing and might be another week or so.
Dale asked Art if he had a count of how many posts had been cut since the goals were set to cut 200 posts and 10 cords of firewood in January board meeting? What about the group of trees that were to be removed on Broad Hollow? It's report time to tell where we are on those items. And many hours have been used on the Kabota and grader. And how many thousands of dollars have we spent on those hours over a 4 year period. Repairs to factor in well.
Paul states that this was discussed two months ago - was he supposed to cut 200 posts and 10 cords of wood in two months? Jodi stated that it was supposed to be a winter project - we didn't specify it to be done w/in two months. Linda said that Paul has got about 30 % done, he built a new deck, pumped the septic tank, had a death in the family, was sick for a month and there was lots of snow.
Art said we have been watching what he had been doing and he has been dealing with bad weather and family problems, but Dale is right we have set a goal to measure by.

Cabins, Legal:
(Dave Turley) Absent.


Activities, Agriculture, Wildlife:
(Shawna )
Mark Foley from the BLM came to visit us in place of Mr. Wolf who recently retired. Mark showed us a map of DSR and our rights of way.
We have one current right of way that has expired. The smaller one # 45815 7.575 acres was good for 30 years. Started in 1980, expired 2010.
Mark Cram started paperwork in Nov. 2012 but did not follow through.
Mark Foley left a bill that was sent 2/14/13 certified and signed for by Terry Alderman. Linda said she did not see the bill and will send the check.
Art will check on this. The large right of way is current #79349 good until 2022.
Art asks that one of the things we applied for in 2003 was Slide Canyon. Is that a current right of way? Mark stated it is not. Art believed we had received approval on this in 2003, but we got duped on that as the County requested to keep the right of way. We need to work with the County to maintain it.
Grazing: At the January Kane County Planning and Zoning meeting
The Chairman of the Resource Committee, Byard Kershaw displayed a map of the AUM’s on the GSENM which did not show some of the local ranchers AUM’s including none shown for DSR. Dale will check at the next P&Z meeting to see if they have been added yet.

Security, Public Safety, Communications, and Fencing
(Art)
Newsletter: Art started a newsletter and as soon as he put out his first article he received negative comments from board member Robert Allen and 15 minutes later almost the same negative response from Jodi Akers. Art had asked for articles from a few board members but after Dale wrote his article dated February 17th Jodi wrote a letter on the 23rd in opposition to Dale’s Article. The News Letter has not materialized as of yet. He stated that we must make things accurate before we put them out to the membership in a news letter. Dale stated for the record, that the letter that Jodi sent out a couple weeks ago, has many, many false statements in it. So he doesn't want anyone referring to that letter, saying that that represents the water program at DSR. Because she wasn't there, she doesn't know what the background is, and her letter has multiple errors. Jodi asks to go through them one by one. Art asks for Dale and Jodi to go over them together, and Jodi says that if Dale wants it on the record, it must happen here. Jodi states that her letter is accurate, and that she has sent this documentation to the Board for the past two years and the Board chooses not to read it, they choose to ignore it, and you (Dale) choose to keep bringing it up stating it is not correct, and it is.

Dale stated that a couple of months ago, he suggested that we go on a field trip to talk about water development. In her (Jodi's) letter, she says that is not true. Jodi added the correction in that we were to be going on a road trip and check out the water while we were out there. There was nothing said about a Water "development" field trip. It was agreed that Dale, Art and Jodi would go over this after the meeting, but Jodi stated that this needs is something the Membership needs to know.


After looking at the Jan. 2014 minutes under #7 - Water Resources and Management section. Quote:
Dale said he would love it if the Board would like a field trip. If DSROA wants to put the money in I could give you the approximate cost and ideas. The State of Utah designed water processes to proceed with water Development in the State. Shawna- MOTION- April board meeting the board will take a field trip with Dale to look at the water system at DSR. 2nd Dave Turley. Vote: Unanimous.
Art said he will meet with Dale and Jodi after the meeting.


Reservation and Web Development:
(Robert Allen) Bob asked Linda and Paul if they have any reservations for the cabins they were going to advertise for public rental. It was stated that they have not as of yet put any advertising out until we find out about the legal status to do so.
It was mentioned that it had a motion to do so and was carried so shouldn’t it be in the works already?
Dave needs to check on the legal status and Shawna will find out about the room tax status.
Dave should check with Nyle Willis about how it would effect a 501(C3) status.

Old Business:
Art said he still had not gotten with Dale about getting a copy of the June 1997 Minutes but will do that today right after this meeting. The Members of the Board have been requesting to get all of our documentation and Art suggested that we get them all digitized.
When asked about the Equipment Record Books Paul said that they used to be there at the Ranch but there is nothing there now. Dale stated that he went out to the Ranch several years ago and found, underneath the cabinet in what we now use as the store, and there were original deeds and records in there, that you can't replace. He's been tracking some of those things over the years. There's nothing very secure out there, and nobody cares out there - it's one of the worst places to have it. Joe stated that Brent would section off a section, put up a steel door, and have a key to sign out and make it secure. Vance has offered to digitize all of these documents. Art will work on that with Vance.

New Business:
Newsletter. Dale stated that it was suggested that the newsletter be sent out, but that 2 Board members said not to do it. Jodi corrected Dale that 2 Board members said we did not want to PAY for one to be done, it wasn't in the budget, but to email it would be just fine. Art stated that the Newsletter was not an “Atta Boy” but needed for information for the members.
Linda said we mail out two hard copies per year; Voting Ballets and the Christmas Newsletter.
All the negative comments hurt others and STOP progress!
In the newsletter of 2007 there was always a Presidents message.
It has always been a project trying to get the cabins to pay for themselves.
Lets don’t rehash everything over and over.
Remember the 20/80 rule.
Members need to update their contact information and if you don’t get email then the newsletter will be posted on the DSROA website.
Linda will email members and ask them if they are ok with receiving emails.
Bob will call the members and ask them if they are ok with receiving email.

Motion:
(Art) To adjourn the meeting.
Jodi asked an explanation of why we are not allowing discussion of the water issues that come up, when they are Board activities, referring to the letter that Dale sent out and the letter that I sent out - why does that need to be addressed in private and not during the Board meeting? That is stuff that needs to be on record. Art states because it's an argument between 2 people. Jodi disagrees - it is not an argument. This water information needs to be out there.
Dale wants 1 minute
Jodi wants 1 minute

Dale: In the January minutes, it says that we need to get the 1/2 moon reservoir up and to keep the reservoir full. We need a new well. If we are using it for culinary because the old well won't pass. Jodi says we have $4000 in the budget for system maintenance, and repairs. Art would like the Board to take a field trip and look at the water system and catchments. Dale said he would love it if the Board would like the field trip, if DSR wants to put money in, I could give you the approximate costs and ideas. Shawna made a motion, April Board meeting, will take a field trip with Dale to look at the water systems at DSR. Seconded by Dave Turley and was unanimous. Jodi's letter to Dale stated that "the Board is planning a field trip to review the Ranch roads in April, and it was suggested that while we were out there, we also take the tour of our water sources for better understanding. There was nothing said that insinuated that this was a Water Development Field Trip. You already know that we do not have enough dollars in the budget to develop any of the springs unless we can bring neighborhoods together to share costs, or approve a special assessment to the entire membership. At present, I am unaware of any water rights that are in danger or being lost. If you know some, please let me know."
Now there's a contrast between what the minutes say and what Jodi says.
Jodi stated that while you just read that outloud, it did not say anything about a Water Development Field Trip, we did say in the minutes that we were taking a field trip. We were going out there to look at it, and study it and learn from it - it is not about developing it, and I didn't want you getting the idea that you were. Jodi asks the members present...."did anyone hear that we were doing a water development field trip?" Answer was no.
Jodi moves on to number 1. In your letter (Dale's), it states that per our bylaws, we have .25 acre feet of water. The bylaws state that we are entitled to .45 acre feet of water. Am I incorrect there? Dale answers no. Jodi states that that information needs to be in the newsletter, that the members have .25 on their deeds, they need to check that. Dale states that water rights are not on any deeds. Jodi says that she has water rights listed on one of her papers, whether or not it was a deed or purchasing papers.
The other point (#4) - is that the water system that is not approved and not an approved source....we already have the letter, and I've already got this to everybody and I'm not going to do it again, that it is classified as a non-public system and it is approved. We don't have to make it certified, but we can do so at a cost of about $10,000. So that is not false either.

Dale continues reading Jodi's letter that people need to drill a well to get your water rights. Years ago, the first 20 years, no water was given to anybody. Because we had the new water right to the well and to 1/2 moon, we could share the water. Then we went to the .25, then we went to the .45. Those water rights were to come from the existing Deer Springs rights. That's the reason why Deer Springs can commit to give everyone .45. Dale claims the information is false, that we can not take the water right from the spring. Jodi interjects in that the Bylaws do not provide for that and Dale states that she did not write the Bylaws, but Jodi said "no, but I've read them, and I've written them in here." Dale says that we shouldn't think the Bylaws tell the whole story. Jodi responds that the law governing the laws at the Ranch. So my statement was true. It also states that it is not guaranteed that the members will receive this water, it provides the "opportunity" to the member to receive that after drilling a well.
Vance suggested we put it out at another time to clarify. Bring documentation to how it works.
Larry Baer said in it an open basin goes to Arizona not to Kanab. Then it won’t deplete any DSR water rights. We can’t let other people drink it from the DSR well. It would be cheaper to drill another well than bring this one up to state specs.
Jodi makes a correction to a statement that she said earlier...
this is the agreement for the water connection between DSROA and the DSROA member - it's that time when "Member agrees to covey to DSROA .45 acre feet of water when they CONNECT to a water system - not when you dig your own well. When you dig your own well, you get the well, the 1.73 acre feet of water and you also keep your.45 acre feet until you need it. When you hook into a DSROA water system, that's when you convey your .45 back to DSROA.
Dale goes on to state that it is complicated, but the thing that he objected to was the paragraph "any member who purchased a lot after 1996, is entitled to .45 acre feet and should be listed on their deed as such." Dale states that this is totally false. Jodi says that "deed" might be the paperwork, and she will look back to find out what the official name of that paperwork is and I'll correct that.
Dale asks if Tom Davis is still doing the audit and Art clarifies that Tom is not doing an audit. He is giving us guidelines so we can proceed the correct way. It will be an audit review.

Art asks everyone if we wanted to pursue the right-of-way on Slide or let it go. No decision was made.


12:14 (Noon) Motion to Adjourn (Art)
Motion Seconded
Motion Passed
Next meeting: April 12th DSR Field Trip 9:00 a.m.
Shawna Cox (Sec.) Art Ortolani (Pres)


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