2007/2008 SPECIAL MEETING OF THE
HERITAGE RANCH OWNERS’ ASSOCIATION
BOARD OF DIRECTORS

M I N U T E S


DATE: Friday, August 8, 2008

TIME: Executive Session at 4:30 p.m., Open Meeting at 6:00 p.m.

PLACE: Recreation Barn

DIRECTORS: Bill Barker, Bob Bernier, Jeff Smith, Dan Prunk, John Allen

_______________________________________________________________________________________________

CALL TO ORDER

ROLL CALL (to establish a quorum)
Present: Bill Barker, Bob Bernier, Jeff Smith, Dan Prunk
Absent: John Allen
Also Present: Scott Baker, Association Legal Counsel


APPROVE/DISAPPROVE CONVENING TO EXECUTIVE SESSION TO DELIBERATE ON MATTERS ITEMIZED ON THIS AGENDA
Motion by Smith, second by Prunk to convene to Executive Session, unanimous approval

ANNOUNCEMENT OF ITEMS THAT WILL BE DISCUSSED IN EXECUTIVE SESSION

EXECUTIVE CONSENT AGENDA ITEMS

1. Executive Minutes – Approve/Disapprove minutes of the Special Executive Meeting of the HROA Board of Directors held on July 11, 2008
Approved

EXECUTIVE BUSINESS TO BE CONDUCTED

2. Property Owner Request – Giles, to waive $500.00 tenant deposit (4:45 p.m.)
Required to pay

3. Property Owner Appeal – Myers, $10.00 Late Fee, Lot 86 / Tract 721 (5:15 p.m.)
This item was tabled at July 11, 2008 Board Meeting at the request of the property owner who could not attend

Waived


4. Property Owner Request for Payment Plan – Kincannon (6 month review) (5:45 p.m.)
At the February 8, 2008 Board of Directors meeting it was agreed to provide Kincannon six months to get account current. Review of the Board to be conducted at the end of that six months if not current.

No action, payment made in full


5. Property Owner Appeal – Lopez, Citation #8500, 8510 and 8554, $75.00 Parking of vessel on lot (use letter)
Upheld

6. Property Owner Appeal – Szymanski, Citation #8147, $25.00 Parking violation/vessel (use letter)
Motion by Prunk, second by Bernier to change to a warning, unanimous approval

7. Update on Litigation
Review summary provided by General Manager (See #21 below)

Approved to distribute (free copy in office)

8. Cattle/Sheep Contract
The cattle contract with Mr. Weyrich will not go forward as Mr. Weyrich has decided to sell his cattle off. A new contract is proposed between HROA and J.B. & Sons.

Discussion, with agreement to have association counsel write a proposed draft contract

9. Approve/Disapprove to add Curtis Currie to the Unauthorized Guest List
Tabled

10. Approve/Disapprove to add Nick Steck to the Unauthorized Guest List
Tabled

ADJOURN TO CLOSED SESSION

RECONVENE IN OPEN SESSION AND ANNOUNCE ANY CLOSED SESSION ACTION
(Estimated time to be 6:00 p.m.)

PLEDGE OF ALLEGIANCE

MEMBER COMMENTS: All members are invited to speak on non agenda items at this time. Each speaker will be limited to three (3) minutes with a maximum speaking period of thirty (30) minutes. Please raise your hand to be recognized by the Chairperson, at which time you should step forward and state your name, lot and tract #.

OPEN MEETING CONSENT AGENDA ITEMS

11. Approve/Disapprove minutes of the 2007/2008 Fourth-Quarter Meeting of the HROA Board of Directors held on July 11, 2008
See below

12. Approve/Disapprove, by resolution, a final-payment of $8,632.00 to Solarponics for the Equestrian Park Pool
On May 9, 2008 the Board of Directors approved to purchase replacement solar panels for the small pool at Equestrian Park for a price not to exceed $10,789.00. On June 13, 2008 a 20% down-payment was made of $2,157.00. Over/under budget = $0.

See below


13. Approve/Disapprove, by resolution, payment of $3,000.00 to Gregory J. Blackburn for decomposed granite installed at North Gatehouse
On December 14, 2007 the Board of Directors approved to have Blackburn purchase and install up to $3,000.00 worth of class 2 base along the exit lane at the North Gatehouse for purposes of creating an alternate and easier access for mobile homes to be brought into the Ranch (until this area can be paved at a later date). Over/under budget = $0

See below

14. Approve/Disapprove Bill Carley to be on the Election Committee
See below

15. Approve/Disapprove Bill Carley to be on the Finance Committee
See below

16. Approve/Disapprove Lloyd O’Connell to be on the Election Committee
See below

17. Approve/Disapprove Bill Hale to be on the Election Committee
Motion by Smith, second by Bernier to approve Items #11-17, unanimous approval

BUSINESS TO BE CONDUCTED

MEMBER COMMENTS: Time will be allotted during the business portion of the meeting for member comments on agenda items. Each speaker will be limited to three (3) minutes with the Chairperson determining the duration of member comments on each agenda item. When the Chairperson calls for discussion from the floor, please raise your hand to be recognized by the Chairperson, at which time you should step forward and state your name, lot and tract #.

ANNOUNCEMENT ITEMS
Nil

UNFINISHED BUSINESS
18. Approve/Disapprove to adopt training information supplement to the HROA Rules and Regulations Book as prepared by Association Counsel Scott Baker
On May 9, 2008 the Board of Directors adopted the HROA Rules and Regulations Book. On June 13, 2008 the Board of Directors approved additional corrections that were noted (for clarification and consistency). On June 13, 2008 additional approval for the training information provided by Association Counsel was tabled due to being incomplete.

Motion by Bernier, second by Smith to approve, unanimous approval

Motion by Prunk, second by Smith to provide one free copy to each member through the Association Office between October 1, 2008 and December 31, 2008, unanimous approval

Association Legal Counsel, Scott Baker left the meeting

19. Acknowledge and Accept receipt of Fourth-Quarter Treasurer’s Report for Fiscal Year 2007/2008 along with Revenue and Expense statement year-to-date
This item was tabled at the July 11, 2008 Board Meeting due to not being completed.

Motion by Smith, second by Prunk to approve, unanimous approval


NEW BUSINESS
20. Approve/Disapprove to purchase two replacement trucks for Maintenance
This item was requested to be added by Director Prunk

Motion by Prunk, second by Smith to provide a $20,000 budget / truck for Prunk to purchase two ½ ton replacement pick-ups for Maintenance, 3/1 with Bernier opposed


DISCUSSION ITEMS
21. Homeowners request to review financial records for purpose of determining how much money has been spent on legal fees
This issue is dictated by existing policy adopted by the Board of Directors on October 11, 2002 and current California Law including: Civil Code 1363, 1363.05 and 1365.2, and Corporations Code 8310, 8311, 8313, 8320 and 8333.

Any member may, upon request, inspect the accounting books and records of the Association.

On Tuesday, June 10, 2008 four property owners, one of whom was a former Board Member, made an appointment to review the financial records at the Association Office. HROA staff spent approximately four hours going through those records with them and answering all questions. The focus was litigation costs.

On June 13, 2008 this item was placed on the agenda by President Barker, and then tabled.

On Tuesday, June 17, 2008 three (of the four) property owners made a second appointment to again review the financial records. HROA staff spent an approximate additional four hours going through those records with them and answering all questions.

On both June 10, 2008 and June 17, 2008 all information was presented to the property owners in an organized manner and readily available for review (except the attorney bills themselves which are confidential) for the past three fiscal years. The property owners wanted a broader scope of information and after a third contact with one of the property owners, the General Manager suggested to provide a written summary from 2002 to current for better comprehension.

At the July 11, 2008 Board Meeting, where this was discussed during member comments, the General Manager offered to provide a written summary for the purpose of putting this matter to rest, which was informally met with support from the Board of Directors. The property owners had requested to have all litigations HROA has been involved in from 2002 to current itemized which is the format of Part I of the summary.

The General Manager also requested that legal cousel review the summary before distribution. The Board of Directors reviewed the summary in Executive Session of August 8, 2008 with legal counsel to determine if it appropriate to release for public distribution.

See #7 above

22. Response to Membership regarding litigation information published utilizing HROA mailing list
On August 4, 2008 the Advisory Committee voted to recommend to the Board of Directors that the Board of Directors prepare a response regarding the fictitious, unidentified “Committee of Homeowners for Responsible Change” and make that part of the official minutes.

Motion by Smith, second by Prunk to include the following statement in with the minutes: “Normally, the Board of Directors should not involve themselves in commenting on political campaign material. Due to the fact that the “WARNING” mailer was potentially damaging to the Association, attempted to provide information required to be disclosed exclusively by the Association, and utilized HROA’s mailing list to do so, the Board of Directors renounces that mailer as being factually inaccurate and of no merit.”


2/2 with Smith and Prunk voting in the affirmative and Barker and Bernier voting in the negative

Motion by Smith, second by Prunk to revisit Item #22, 2/2 with Smith and Prunk voting in the affirmative and Barker and Bernier voting in the negative


23. Review request for information on HROA mailing list
On July 25, 2008 a request was made from candidate Denise Roach to the Board of Directors to provide a listing of all members who purchased the HROA mailing list during the last two years. The letter also requested those members who purchased the HROA mailing list during the last two years be asked to confirm how and when the HROA mailing list was used and that the information then be compiled about this and posted on the HROA website and read at the August 8, 2008 Board meeting.

After receiving a copy of this letter, HROA informed Ms. Roach that she had the rights as a member to inspect the records of HROA to determine who purchased the mailing list, which she then did.

It would be up to the HROA Board of Directors to respond to the other items in the request.

Discussion, no action

ADJOURN
Without objection