BOARD OF DIRECTORS MEETING

HUMBOLDT RIVER RANCH ASSOCIATION

January 25, 2000

MINUTES

The regular meeting of the Humboldt River Ranch Association Board of Directors was
called to order by President Bruce Luke at 6 p.m. on January 25, 2000 at the Association
property, 2205 Rye Patch Reservoir Road, Lovelock, Nevada.

A quorum was established with the following Directors in attendance: Mr. Bruce Luke,
Ms. Fanny Chan. Mr. Dick Ramsey was present by proxy. Also in attendance were Mr.
Jim Ilecki; POA Manager and Mr. Todd Plimpton, POA Attorney; Mrs. Lesley Luke,
Mrs. Donnarose Ilecki, Kathy Moe, Ms. Dottie Devinney, Ms. Lorna Russell, Mr. Andre
Brehaut, Mr. Rex Castillo, Red and Shirley Hutzler, Margaret Teixeira, Mr. & Mrs.
Daniel Castillo, Mr. Bela Svoboda, Casey and Astrid Mahaney and Mr. Jeff Toll were
also present.

A motion was made by Ms. Chan and seconded by Mr. Luke to accept the minutes of the
November 30. 1999 and December 9, 1999 Board of Directors meeting. Motion carried
with Mr. Ramsey's proxy vote.

OPEN FORUM NO. 1

Mrs. Castillo requested that Chimney Creek and Walker Lake roads be graded due to the
washboard like roughness that is now present. This item was deferred until the road
report later in the meeting by Mr Ilecki.
Mr. Luke notified the Board that Mr. George Kucera resigned from the Board and since
Mr. Mark Nicolet resigned at the last meeting, the Board now had to appoint two new
directors. (Marc Nicolet will continue to assist in writing the future budgets at no charge
to the POA). At the Executive session on December 9th, the names of Mr. Casey
Mahaney and Mr. Red Hutzler were nominated as new appointees to the Board.

At 6:02 P.M. this date the Board entered into executive session to appoint Mr. Casey
Mahaney and Mr. Red Hutzler as new Directors. A motion was made by Ms. Fanny Chan
to appoint Mr. Casey Mahaney and Mr. Red Hutzler as new Board members. Motion was
seconded by Mr. Bruce Luke. Motion carried. All accepted their new positions. Mr. Red
Hutzler nominated Mr. Casey Mahaney as Secretary and Ms. Fanny Chan as Treasurer.
The Board accepted the nominations by voice vote and approved the selections.
Executive session adjourned at 6:08 P.M.
HRRA BOARD OF DIRECTORS MEETING January 25, 2000 Page 2

Committee Reports

Road Committee
Mr. Ilecki addressed the open forum question on wash board roads and stated that the
intent was to apply decomposed granite (DG) on all flat surfaces by the end of this year.
This DG has been applied to Topaz Lake Road and seems to be working well. The
surfaces on old Highway forty was also raised as to the condition and who is responsible
for this road. Mr Luke reported that Pershing County is responsible for this road but
considers Highway forty to be a minor road and that it requires at least 250 cars per day to
upgrade its status. Since it is considered a minor road, the county will not fix it at this
time. The POA will fill the pot holes in it for now but will continue to apply pressure on
the county to fix this road properly. The road from the gravel pit on BLM land to old
highway forty was brought up and the Board will look into the whether this road is a
documented easement road and if it is crossing an owners property legally. Attorney Todd
Plimpton stated that if there is no easement in place, we should consider closing the road
so that an easement road is not grand fathered in permanently.

Electrification Committee
At the Pershing County Commissioners meeting of January 5th, 2000 all players were
present. A time line was established for the installation of power to Phases A, B, and C.
Construction is scheduled to start on 5/4/00 with completion is scheduled for 8/4/00.
Placement of telephone lines on the power poles was discussed. For Telephone lines the
poles are required to be no more then 250 feet apart as opposed to the 450-500 feet usual
power pole distance. If it is not possible to get the telephone lines in addition to the power
lines, it will not be re-bide, so that it does not delay the power project.

It was announced that since DEVCO is no longer selling lots here, Nevada Bell considers
us a community and they will include free trenching for the first 1000 feet. This means
that anyone within 1000 feet of existing phone service can get the phone lines placed for
free. The way it was reported, each home gets the 1000 feet free and if there is more then
one home on a road, the 1000 feet/home can be combined. This means if there are four
homes on a road, they get 1000 X 4, total of 4000 feet free.

Mr Mahaney reported that a Reno company is attempting to provide us with high speed
digital phone service in the near future. No dates where mentioned and research is on
going.

HRRA BOARD OF DIRECTORS MEETING January 25, 2000 Page 3

Fire House
The County Board of Commissioners is in the process of sending out bids for the erection
of the Fire House. The recent delay is due to the loss of the manual. It is required to
determine what should be in the bid. Mr Luke stated that erection should take no more
then 2 weeks once it begins.

ARC Committee
Mr. and Mrs. Francesconi are in the process of building their home. Mr. and Mrs. Clarke
have put a hold on their variance. Mr. Couturier has started leveling his lot in C-11.

Social Committee
The Christmas Party and the New Years Eve party were a success. All had a good time.
The Board and attendees commended Margaret & Clyde for a job well done.

Manager's Report
New trash container with covers are being placed in the campgrounds. The Madison
cabin will be moved to its permanent location as soon as weather permits.
No financial report was available for this meeting due to a POA office computer glitch.

Unfinished Business
The maintenance building was rebid due to increasing the size from 30 x 70 to 30 x 80.
We asked 3 parties for bids, only two responded. The two bids received were from Jack
Wagoner for $50,400 and Mike McGuinness for $55,200. Discussion of the changes was
instigated by Ms Chan. Mr Ilecki recommended we accept the Wagoner bid based on the
fact they where bid to the same specs and that the Wagoner bid was $4800 less. Both
contractors credentials where discussed and it was determined that they both are reputable
and have successfully done work within the HRR. A motion was made by Mr. Casey
Mahaney to accept the bid from Jack Wagoner and have him build the maintenance
building. It was seconded by Mr. Red Hutzler. Motion Carried unanimously based on
Todd Plimptons recommendation that we insure that the contractors license is for
projects over $50,000.
As of this meeting, there has been no response from Devco in regards to the repurchase
agreement. Ms Chan stated that Dick Ramsey is doing ongoing research on this and
motioned we delay any action. Mr Luke stated that DEVCO controls the decision on the
agreements.
As of February 2000 the POA will no longer be able to use to the big pump at the old
ranch as we have in the past. This pump will only be used for fires. After discussion, it
was decided to install a storage tank at the common area for watering down the roads. Mr
Luke stated that we presently have $10,000 budgeted for this water project. He presented
all board members with a quote from Humboldt Drilling for $4100. Discussion of HRRA
BOARD OF DIRECTORS MEETING January 25, 2000 Page 4
DEVCOs role in assisting us with this water tank included whether or not we as a POA
should give up our right to sue DEVCO in the future, if they would pay half of installing
the water tank. We would have to drop other items with DEVCO such as the swimming
pool issue (according to our attorney the only proof we have is an oral conversation,
drainage ponds, (whether they are constructed properly), french drains (informing the
affected lot owners) and electrification of D,E, F, &G. Sierra Pacific changed the power
pole placement in these phases. DEVCO claims that Sierra Pacific is back to the original
plan that the lots where sold on. Sierra Pacific will not comment.
After a great deal of discussion, a motion was made by Mr. Red Hutzler to purchase and
erect a storage tank behind the HRRA office to use for watering the roads not to exceed
$4500.00. Seconded by Mr. Casey Mahaney. Motion Carried.

New Business
Annual meeting is scheduled for June 10, 2000. Mr. Ilecki will look into having the
meeting at Sturgeons and report back at the next meeting.
The Nominating Committee was established. The Members include Shirley Hutzler,
Donnarose Ilecki, Lorna Russell, Mr & Mrs. Daniel Castillo. It was established that there
are two board positions up for re-election.
Mr Luke announced that due to new Nevada State laws, proxies are no longer allowed to
elect board members and that secret ballots will be used for the annual meeting instead of
proxies. Besides voting on new board members, it was discussed what the other issues on
the ballot should be. Voting on raising each POA members monthly dues was discussed
as a way to get more POA members involved and to vote. Lowering the quorum was
discussed in detail and it was determined that we as a POA need to identify why we want
or need to lower the quorum, and to what percentage if so. February 14 was established as
a deadline for feedback from all POA members to Mr Mahaney on what course of action
should be taken if any on lowering the quorum.A progress report will be announced at the
next board meeting. Writing of the Secret ballot was discussed along with the mailing
process. Jeff Tolle volunteered to assist in the writing of the ballot
A Master Internal Long Term Plan will be established with input from all concerned.
There will be a brainstorming session one hour before the next meeting.

Open forum #2
Mr Luke opened by explaining the purpose and rules of the Open Forum segments of the
board meetings. He stated that no action by the board may be taken on anything that is not
listed on the agenda at the meeting. Open Forum provide us with an opportunity to raise
issues that may be considered to be placeed on the agenda for the next meeting if it needs
action by the board, and to allow POA members to respond to the issue if they care to.
Mr. Tolle wanted clarification on the 50% rule on suing. Mr. Plimpton clarified it for
him. He reported due to the new NRS116 laws that the POA would need to have at least
50% of the membership agree to sue anyone before a lawsuit could be initiated by the
POA. The only exception is if it concerns the health and welfare of the POA.
HRRA BOARD OF DIRECTORS MEETING January 25, 2000 Page 5

Mr. Tolle also asked about cattle on the property. Discussion was held about six cattle
that Mr Luke said belong to Brad Quilici. Further discussion had Mr Luke report that the
District Attorney, Belinda Quilici, told him that we are officially open range. This
means that in order to eliminate our open range status we would need to fence in our 10
square mile border. Ownership of the cows was in question. Mr Mahaney clarified that in
the future we will likely want to eliminate grazing within our community, but at the
present this is not feasible. He states that as a board we are bound by the CCRs, By Laws
and the laws of the State and that we should inform POA members on how to deal with
the cattle (build a proper fence, drive carefully etc..) as opposed to focusing on
eliminating them from the HRR at this time.

Discussion of a second bulletin board on the HRR was discussed. Mr Luke said that there
were multiple problems with a second bulletin board (we need one official one, present
board is closest to center of community, etc...) and that we will continue to only have the
one. He recommended people drive by once a week to check it for new info. POA manger
Mr Ilecki, also stated people could call him for news updates.

Abuse of the bulletin board was brought up. One case of one POA member fraudulently
copying another POA members signature and then signing it to a derogatory letter has
been reported. Discussion was held as to how to resolve the abuse issue. It was concluded
that instead of signing your names to items posted, now just print your name.

The next meeting will be Tuesday, February 29, 2000 at 6:00 P.M. at Humboldt River
Ranch.

There being no further business to come before the Board, the meeting was adjourned at
7:45 P.M.

s/Bruce Luke, HRRA President

_________________________________________
Casey Mahaney, HRRA Secretary

Approved February 29, 2000