Humboldt River Ranch Association

Board of Directors Meeting

September 19, 2000
Corrected Copy

A regular meeting of the Board of Directors was held Tuesday, September 19, 2000 at 2205 Rye
Patch Reservoir Road, Lovelock, NV.

The meeting was called to order by the vice-president Mr. Bruce Luke at 6:00 P.M. A quorum was
established, and verified by the Board Secretary, Sandi Houston.

The following Directors were present; Mr. Bruce Luke, Mrs. Sandi Houston, Mrs. Mary Lou Ashe
and LaVelle Castillo. Mr. Casey Mahaney was absent. Others attending the meeting were POA
Manager, Jim Ilecki, POA Attorney Todd Plimpton, Fred Yotter, Dorothy DeVinney, Giselle and
Ken Francesconi, Margaret Teixeira, Shirley Hutzler and Loren and Naomi Rush.

The Board reviewed the minutes of August 15, 2000 Board of Directors meeting. Mary Lou Ashe
motioned to approve those minutes. LaVelle Castillo seconded the motion. Motion was approved
unanimously.

Open Forum

Naomi Rush has questioned the need for a light by the R.V. area. The Board members agreed to
look into putting up a light, and it will be discussed in the future.

COMMITTEE REPORTS

ARC Committee

The Chairperson of this committee is Dorothy Devinney, the vice-chairperson is Ken Francesconi
and the Secretary is Fred Yotter. There will be a workshop at 7:00 P.M. on Tuesday, October 10,
2000 at Dorothy DeVinneys home. The committee approved an extension for Clancy Hultgren to
live in his RV for another 90 days in order to complete his home. Maps of the septic systems and the
land have been put together. Also 5 manuals have also been generated so that everyone in the ARC
can be familiar with the rules and regulations governing the ARC.

Social Committee

Margaret Teixeira reported that the Labor Day Luau went quite well, and it was noted by the Board
that it was a job well done. We are now looking forward to the next party that is planned for the
Christmas Holidays.

1
FINANCIAL REPORT
Mrs. Mary Lou Ashe the Board Treasurer has recommended that we have an audit of our financial
statements by year ending December 31, 2000. Based on Jim Ileckis requested information from
Kafoury, Armstrong and Company, it has been determined it would be best to have an audit rather
than a review. A review is not quite as complete as an audit and would cost about $4,500 to $5,500,
where as an audit is more intense and would cost between $7,000 to $9,000. Since some of the
people at the annual meeting requested that they would like to have an audit, the board has concluded
that an audit would best serve everyones interest, especially since we have not had an audit in about
five years. It was also noted that included in the cost of the audit would be the cost of preparing the
2000 Federal Tax returns. It was suggested by the board to have a review every year, and an audit
every 3 to 5 years in the future, which will be determined after this initial audit has taken place. A
motion by Mary Lou Ashe to have Kafoury, Armstrong and Company do the audit and prepare our
year 2000 Federal Tax Returns was made, and Mrs. Sandi Houston seconded the motion. Motion
was unanimously approved.

LEGAL REPORT

Mr. Todd Plimpton; POA attorney, and Jim Ilecki; POA manager started a review of the Articles of
the Corporation and Bylaws, and CC&Rs in order to bring them into compliance with NRS 116.
They are about 40 % completed, and expect to be done with all of it by 10-14-00.They identified
three areas in which they could not change anything without the vote of the membership.
1) Change of board members from five to seven.
2) Change of quorum from what it is now to a lower quorum. Currently to quorum
requirements for the Annual Meeting is 50% plus 1. If no quorum is reached at the annual
meeting the quorum is lowered to 25%, however the meeting has to be rescheduled after five
days and not more than thirty days after the Annual Meeting. This would be changed to five
minutes so that Association business could be conducted with the establishment of the lower
requirements.
3) Language issues, not necessarily a comprehensive change, but some minor changes have
to be accomplished.
Todd also spoke with Joan Buchannen in Las Vegas, who is the person heading up the amendments
to NRS 116. She is trying to get a rider attached to a bill to get the Humboldt River Ranch statutorily
exempted as a non-resident homeowners association. Because of the notice requirements, without
exemption, it would cost the association $15,000 more per year to implement. Hence we are trying to
get exempted to save this money.

MANAGERS REPORT

Cabin Usage: End of August 207 Cabin Night Occupancies

597 Guest Night Occupancies
We will also be full for the weekends of September and October.
Signs have been posted stating NO PETS ALLOWED IN RESORT AREA: in smaller printexcept
in campgrounds We are hopeful that our members will adhere to these rules, or they will be
subjected to a ban from using the facilities.

2
Effective October 1, 2000, smoking or the burning of any other sort of product will no longer be
allowed in any of the buildings in the complex.

Roads
Lignobond 50 has been applied to the followings roads to test this product through the winter to see
what it would do as far as dust control; Walker Lake Rd., Woods Lane, Topaz Rd. and Topaz Lake
Rd. Different products will also be tested on Beaumont /Old 40 Hwy up Beaumont Trail across
whatever takes a mile. A seminar will be set up for October 17, 2000 at 1:00 P.M at the Humboldt
River Ranch, for all board members, and any one interested, to present different materials and how
they affect the ranch, with the weeds, and dust control. Lignobond 50, costs approximately $5,500
plus tax, per mile, whereas the Magnesium Chloride cost is $1,500, the other materials that are to be
presented is a little bit higher than the Magnesium Chloride at about $10 to $12 more per ton, but
much less corrosive the the Magnesium Chloride.

Weed Abatement

Gene Brinkerhoff, Todd Plimpton, and Jim Ilecki, met to discuss the price of chemicals to eradicate
the weeds. The price of the chemicals runs about $360.00 per mile, that times fifty-two miles of road
is approximately $19,000.00, which is a savings of about $60,000. To $70,000, a year based on
what we have been doing in the past. Mr. Luke suggested that with the savings, we invest in a decent
spraying setup since we will be doing it ourselves, rather than have Gene Brinkerhoff apply the
chemicals for us, henceforth the savings of $60,000 to $70,000. This suggestion will be discussed at
a later time.
The reserve study was completed on September 11, 2000. The results will be in from Statewide
Inspection Services by September 27, 2000. The cost of this study is approximately $1625.00.

Water Tank
The water tank is done but it needs to be painted, since its a bit rusty and an eyesore. The ARC
has been consulted as to the color of the tank, and it was agreed to paint it a sand color. The tank
will be filled with water either September 20th or September 21st, 2000. UNFINISHED
BUSINESS

Newsletter Production

A motion was made by Mrs. Sandi Houston to have the Newsletters out-sourced to Casey and Astrid
Mahaney; LaVelle Castillo seconded the motion. Motion as approved unanimously. It was
commented that the newsletter was very good and expectations that it would only get better in time.

NEW BUSINESS

It was suggested to repair the old truck, and have it set-up for basically snow plow use, since it would
be good to have two trucks during the time of need. The Board has also budgeted a new truck for
next year. They are considering weather to Lease or Buy the new vehicle. Jim Ilecki will be

3
checking prices on a Chevy, Ford, or Dodge, 3/4 ton, V8, four wheel drive vehicle that has the option
to be able to carry a snowplow. We will then compare prices to see what options are best for our
use.

Authorization to Transfer Truck Title

Dated September 19th, 2000, authorization letter transfers ownership of two water trucks one being
the white water truck (Fire-Truck), and the other a Ford water truck (Quick Response Vehicle), from
Humboldt River Ranch to Pershing County for the Rye Patch Fire Dept. The vehicle numbers, the
make and model and year number was included in the authorization. Board members signed two
copies. Jim Ilecki, as POA Manager also signed this authorization, and Bob Castillo the Fire Chief
of Rye Patch Fire Dept. will also sign this authorization, so that when it goes to the before county
commissioners they will be aware that everyone has been cleared off.

COMMENTS AND DISCUSSION BY BOARD MEMBERS

There was a brief comment about the electrification situation, but nothing has changed at this time.

Open Forum (2)

Shirley Hutzler has commented that the condition of the pool cues for the pool table are in need of
repair. The fact is that visitors to the Lodge are negligent in caring for said equipment. It has been
suggested that a 2nd key be issued to the adult responsible, when the original key is given for the
cabins. This common key would give access to a locked cabinet in the Lodge for the pool cues,
along with any other facility that might needed to be locked for expedience sake. The manager and
his associates will research this issue and make recommendations accordingly.

The next Board of Directors meeting is scheduled for Tuesday October 17, 2000 at 6:00 P.M,
at the Humboldt River Ranch.

There being no further business to come before the Board, the meeting was adjourned at 7:06 P.M.

s/Casey Mahaney, HRRA President

s/Sandi Houston, HRRA Secretary

Approved October 17, 2000