Humboldt River Ranch Association

Board of Directors Meeting

Tuesday November 21, 2000

A regular meeting of the Board of Directors was held Tuesday, November 21, 2000 at 2205 Rye Patch
Reservoir Road, Lovelock, Nevada.

The meeting was called to order by President Casey Mahaney at 6:02 P.M. Secretary Sandi Houston
established a quorum. The following Board members were present: Mr. Casey Mahaney, Mr. Bruce Luke,
Mrs. Mary Lou Ashe, Mrs. Sandi Houston, and Mrs. LaVelle Castillo.

Others attending the meeting were POA manager: Jim Ilecki, POA attorney; Todd Plimpton, Dottie
Devinney, Fred Yotter, Gisela and Ken Francesconi, Lorna Russell, Lesley Luke, Donnarose Ilecki, Clancy
Hultgren, Edith Loes, and Frank Byrne.

The Board reviewed the minutes of October 17, 2000 Board of Directors meeting. Motion to approve
minutes was approved unanimously after two typos were corrected.

Open Forum (1)

Lorna Russell questioned how we would deal with the liability of the land purchased by the Association, in
case of some sort of accident. It was noted that our insurance covers the common grounds, and once the
purchase is completed, the rules and regulations will fall under the same rules as those now in effect for
the common grounds unless they are amended in the future. Ms. Russell also questioned why the
purchase of said land was not voted on by the entire association. President Casey Mahaney explained that
the board has the responsibility and the authority to make such decisions if it is beneficial to the entire
membership. The Board had previously discussed the purchase with several of the POA members and it
was the consensus of the Board that this was a wise decision. Mary Lou Ashe elaborated on the explanation
of C. Mahaney, stating that the purchase of the campgrounds and additional acres is to protect the assets of
the Association from future infringements, i.e. road between common area and campgrounds.

Edith Loes, mentioned the 4th of July week-end was very crowded. It was also noted that shower facilities
were at a minimum perhaps due to the fact the campers from the campground were using them at the same
time as the people staying in the cabins. It was commented upon that in the future we might want to make
additional campgrounds and look into more shower facilities.

Committee and Advisory Council Reports

ARC Committee
Dotty Devinney stated a master workshop was held on November 14th, 2000. The ARC Committee went
through ARC rules and regulations with the help POA attorney Todd Plimpton and POA Manger, Jim
Ilecki. Several recommendations and clarifications were given to Todd Plimpton to note when the CC&Rs
are updated.

Dottie also noted that the master well and septic system placement maps are in the mangers office for all
for homeowners to see.
Four plans were submitted to the ARC for approval.
1. The Mahaneys, for an extension to their front entrance with a roof and concrete porch. Approval was
given.

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2. Kathy Fox for a fence and plywood shed. The fence was approved, but with the suggestion that she
may want to use 4 strands of barbed wire instead of 3 to be in compliance with a BLM approved cattle
fence. The approval of the plans for the shed was put on hold until more information can be obtained
from Kathy.
3. The Lukes lean-to in the back of their garage and a porch extension with inclusion of a hot tub.
Approval was given.
4. The Patacsils have received approval for their modular home and garage. The ARC committee is
waiting the submission of the plot plan before final approval is given.

The ARC committee is putting together a packet for new homeowners, which will include a list of
contractors and vendors in the area. The goal is to have it complete by February. Casey Mahaney noted
that the ARC is really getting organized and doing an excellent job.

Social Committee
There will by a POTLUCK Christmas Party on December 20th, 2000 starting a 5:00 P.M. at the Lodge. Any
questions call Margaret at the POA office.

Nominating Committee
Clancy Hultgren is the president, vice-president is Donnarose Ilecki, secretary is Lesley Luke, and other
members are Shirley Hutzler, and Board members Sandi Houston and Mary Lou Ashe.

Elections for the Board of Directors will be held at the next annual meeting on July 14, 2001. Three
vacancies will exist. Current Board members who will complete their terms are Bruce Luke, Casey
Mahaney and LaVelle Castillo. The nominating committee is creating a notice to be put in the newsletter
for a call for nominations for anyone interested in running for the Board. A deadline was set for February
19th, for applications and biographical information to be submitted. The bylaws state that the nominating
process must be completed at least 95 days before the Annual meeting, therefore April 10, 2001 has been
set as the final date.

Financial Reports
2001 Budget has been approved, and does not involve an assessment increase. Copies of the new budget
were passed out to members present at the meeting. Copies were mailed to all other members on November
16th, 2000. After the completion of the reserve study, it was determined that $20,000.00 should be moved
from the Reserve Fund to the Improvement Fund.

Legal Reports
Todd Plimpton said that he would hand in the redlined CC&Rs document at the next meeting. Regarding
NRS 116, there are two Legislative bill requests that effect the HRRA. One of them will preclude
homeowners Associations that have less than 60% occupancy by owners. If this bill passes we will not
have to be in compliance for at least 10-15 years. Todd Plimpton will find out who is the sponsor of this
bill and will handle the lobbying for us.
Water Surveyor/Geologist, Mike Bushelman is on board as a consultant for our water use here at the
HRRA and will brief the State Engineers Office on all changes and water usage over the past 12 months,
and then project those changes over the next 10 years. We have 21 acre-feet of water allocated, though we
are only using 3-1/2 to 4 acre-feet at this time. We are taking steps now to hold on to all our water rights,
so that by total build out of HRRA we have sufficient water.

Managers Report

Roads: Chimney Creek and Shasta Road were reworked, and seem to be in very good condition now.
Park Valley Road still needs more work.
Seminar: On Magnesium Chloride and Ligonbond 50 will be on Dec 15th at 1:00 P.M., at 2205 Rye
Patch Reservoir Road, Lovelock, Nevada. All members interested are invited to attend.

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Dust Control: Soybean oil is being looked into as a method of dust control.
Weed Abatement; All roads have been prepared for spraying, and so far 5-6 miles of road have
already been sprayed.
Bids for New Truck: 5 estimates were reviewed and Jim Ilecki recommended the bid from DeLong
Ford of Winnemucca for the new truck as the best buy.
Signs: All the Stop and Dead End signs have been put in place.
Street Lights: Two extra street lights will be installed first thing in the spring, one at the end of the first
driveway on the corner between the RV Parking and the driveway, the other one will be placed behind
Cabin # 1.
Cabin Usage; Was 100 for the month of October.
Bulletin Board: A 2nd bulletin board will be put up next to the Post Office Boxes across from the TA
Truck Stop.
Paving; Estimates were given on paving the road. It came out to be approximately $194,000 per mile. At
this point it is not an option, since we do not have the population to consider it.
Surveillance Camera: Jim Ilecki obtained some estimates from Radio Shack. We need to better
identify what our needs are before choosing any equipment. Mary Lou Ashe volunteered to do some
further checking.

Unfinished Business

Electrification; The County has decided that they will take on the electrification in phases A, B &C.
We must now sell tax exempt bonds. 194 out of 814 lots in A, B & C have not paid all of their owed
property taxes. The bonds will sell if we can get down to 7-8% of lots in A, B & C who are eligible.
Henceforth we would like to get down to 65 out of 814. It has come to our attention that it might be to our
advantage to pay taxes on properties that have an outstanding balance under $20.00. Jim Ilecki will check
into the feasibility of this endeavor. Kermit MacMillan would like to sell the bonds by the 1st of December
2000.

Truck Purchase: Bruce Luke motioned to purchase the Ford truck from DeLong Ford at
approximately $23,000.00 the motion was seconded by Sandi Houston, the board unanimously approved
the purchase. It will take approximately 3 months for it to be delivered.

Land Purchase: Western Title will handle escrow, $10,000.00 has been tendered as intent money
down. Before closing, $40,000.00 plus any closing costs and survey fees will be paid into escrow,
$200,000.00 will be carried at 8% interest, payments $50,000 for five years, with a balloon payment on
fifth payment to cover any remaining interest.

Long Term Road Maintenance: Mary Lou Ashe did extensive research, and has come to the
conclusion that we can do several things:
1. Get bids from local firms and continue to have the maintenance done by contractors.
2. Purchase equipment and have our own maintenance people do the work.
3. Lease equipment and have our people do the work
4. Or a combination thereof
It was also mentioned that if we purchased the equipment we would need an experienced operator,
including insurance, to cover liability, etc. We need to do more research before we can make any decisions.
At this point we will stay with have the road maintenance done by Brad Quilici.

Additional Full Time Employee: At this time we will not be hiring another full time employee.
Fred Ramos will be employed on a seasonal basis from April through October and go from hourly to
salaried employment, and will be on call as necessary.

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Fire Department Update: There is electricity in the firehouse. The County is working on getting the
septic system installed and a well. They are also planning on insulating the firehouse and looking into the
possibility of obtaining a diesel heater.

Comments and Discussion by Board Members: Casey Mahaney has looked into
wireless telephone, and high speed Internet service. The service would be out of Reno. The system would
have a small tower capable of handling 24 lines. Cost is approximately $20,000.00 for whole system, with
a monthly fee of approximately $50.00. If anyone is interested let Casey know A.S.A.P.

Open Forum # 2

There was no discussion for the 2nd open forum.

There will not be an official Board Meeting in December. Because the road seminar on December 15th,
2000, the Board has decided that we will have a brief meeting after the seminar if necessary. The next
official monthly Board meeting will be held on Tuesday, January 16th, 2001, at 6:00 P.M. at the Humboldt
River Ranch Association.

There being not further business to come before the Board, the meeting was adjourned at 7:44 P.M.

s/Casey Mahaney, HRRA President

s/Sandi Houston, HRRA Secretary

Approved January 16, 2001

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