ARTESIA OWNERS ASSOCIATION

Minutes of the Annual Meeting

Held on May 8, 2010

At the Artesia Community Center

CALL TO ORDER

The meeting was called to order by Julia Snow at 9:00 am. A continental breakfast was served by the Social Committee and Jack Inman provided the invocation.

ROLL CALL

Julia Snow, Don Fraser, Mike Flanagan and Tim Hafen were present. Bob Winblad was unable to attend as he was out of state.

VERIFICATION OF PROPER NOTICE

Julia Snow moved to have the records reflect that in accordance with NRS 116.3108(3), the Board caused a Notice of the Annual Owners Meeting to be mailed to all owners not less than 15 days or more than 60 days in advance of the meeting. Mike Flanagan seconded the motion and it was unanimously passed.

PROOF OF MAILING OF NOTICE

Julia Snow moved to have the records reflect that in accordance with NRS 116.3108, the Board verified the mailing of the Notice to all owners. Mike Flanagan seconded the motion and it was unanimously passed.

APPROVAL OF MINUTES

Since NRS 116.3108(11) does not require a quorum to be present in order to approve the minutes of the prior year’s annual meeting, Julia Snow moved to approve the minutes. Don Fraser seconded the motion and it was unanimously carried.

ANNOUNCEMENT OF ELECTION INSPECTORS

Julia Snow advised the owners present that since one of the candidates had dropped out of the race, the two remaining candidates will fill the two vacancies. Congratulations were extended to Mike Flanagan and Ed Moy for their election to the Board.

ESTABLISHMENT OF A QUORUM

A quorum did not exist as only 253 lots were represented by their owners.

COLLECTION OF PROXIES

Julia Snow indicated that there was no official business that needed to be conducted that would require proxies. She did, however, state that owners who possessed any proxies should turn them in to the Secretary.

LOSS ASSESSMENT COVERAGE PRESENTATION

Jennifer Wade, Insurance Agent for American Family Insurance, provided an overview of the Loss Assessment coverage and its affordability. She recommended that all owners contact their homeowner’s agent to determine the costs of adding this coverage.

PRESIDENT’S REPORT

Julia Snow, who chose not to run for re-election, began by thanking the owners for giving her the opportunity to represent them on the Board. She has met a lot of people and learned a lot about the laws affecting the Homeowners Associations.

She also encouraged everyone to participate by joining a committee or running for the Board. She also reminded everyone that this is a working Board with members actively participating in the committees. All of the members of the Board live in Artesia and have a stake in maintaining the property values of the community.

Julia then mentioned the following accomplishments of the past year:

• Installed a gate on the north side of Fox to prevent ATV’s from driving into the area and creating problems for the residents,

• Installed a recycling bin which is being utilized by the residents,

• Painting of the wrought iron fence is almost completed, and

• Implemented a Resolution covering motorized vehicles, including ATV’s.

DEVELOPMENT STATUS

Tim Hafen reported that other than weeds, roads are always an issue. Currently, the developer is still responsible for maintaining the roads. He’s spoken to Nye County regarding taking over the maintenance of the paved section of the roads and letting the owners take care of the easement. The rocks placed there by the owners prevented erosion of the land. This did not occur in Phase IV where many of the lots have not been developed.

The road issue should be resolved favorably by Nye County. The evidence of the good condition of the roads is sitting well with the county. The bond that was put in place by the developer and expired a year ago is still in place. There are no plans to recall the bond.

There are no property sales and the number of foreclosures makes this an extremely sad situation for the people affected.

An owner expressed concerns regarding the quality of the patch work done on the roads following work on the water lines. A second owner questioned who made the decision to have the easements landscaped. Tim Hafen responded that while the owners are not required to landscape the easement, they are encouraged to do so. The resulting aesthetics certainly makes the development stand out. When the roads are accepted, the County may impose some restrictions of the size of the rocks placed in the easement. That issue will be addressed when it arises.

FINANCIAL REPORTS

In Bob Winblad’s absence, Mary Caraza-Lyons, reported that a total of $147,241.62 is currently deposited in both a money market account and a CD for the reserves to address the major components of the community. The owners were also provided with a current balance sheet.

COMMITTEE REPORTS

• Linda Merryman, Chairman of the Architectural Control Committee, indicated that the committee of seven reviewed 98 exterior improvement requests and approved 95. Of the three not approved, one was resubmitted and subsequently approved and the other two were withdrawn. The items reviewed included 23 front yard landscapes, 23 solar hot water panels by Valley Electric, 13 block walls and 9 sheds.

The committee drafted a recommendation for submission criteria for homeowner projects. The recommendation was adopted by the Board and mailed to the owners on January 29, 2010.

• In Sally Morrill’s absence, Julia Snow reported that the Landscape Committee has begun work on phase 2 of the conversion of the large park. Additional work will begin now that the rains have stopped.

• R.T. Jones, Neighborhood Watch Chairman, was out of town. Julia Snow reported that block captains have made their initial contact with the residents and that additional block captains are still needed.

• The Networking Committee headed by Anita Yunker was disbanded due to a lack of interest by the residents. We do have a list of resources and owners may contact the office if they are looking for a specific referral. The Committee may once again be reactivated if interest should arise.

• Vicki Gladsjo, Chairperson of the Social Committee, indicated that the committee is in need of volunteers. They had a successful Easter Egg Hunt which was attended by over thirty young residents. The Committee sponsored a free Chili Feed, an Artesia clean-up day as part of Earth Day and a successful Artesia wide garage sale. The committee also paid for the acoustical panels that have been installed in the Community Center to help with the reverberation problems.

Plans are under way for:

- A free Ice Cream Social in conjunction with a presentation on how a firework display is planned,

- Participation on the National Night Out of 2010,

- The annual Art & Craft fair,

- A free breakfast for the residents,

- A poker run,

- Breakfast with Santa, and

- New Year’s Eve Party

MANAGER’S REPORT

Mary Caraza-Lyons indicated that we still have 78 owners who have not paid their 2009 assessments as compared to the 30 owners reported last year. Artesia saw 16 foreclosures in 2009 (26 foreclosures in 2008) and 22 additional properties are in pre-foreclosure.

Some of the owners have complained for their perceived lack of action by the Board when it comes to non-compliance. In almost every case, action has taken place but is not always evident to the community. As proof of this, Mary reported that the Association received payment in fines of $400.00 from one owner for failing to display the home numbers of the property which caused this to be a safety issue. The major payment for fines was made by a lender for a property that has never been landscaped and that the owner refused to take down a temporary chain link fence. The total amount received was $12,414.29.

Mary Caraza-Lyons indicated the Nevada leads the nation in rules and regulations as they apply to a homeowners association.

Weeds continue to be a problem. The Association was forced to remove weeds from some of the empty lots. Although several invoices have been mailed, fourteen property owners have still not paid for these services. Weeds will again be a major problem this year due to the heavy rains in the first part of the year.

NEVADA STATE CONTRACTOR’S BOARD PRESENTATION

Although the Nevada State Contractors Board was unable to make the presentation, they did provide the Board with a power point presentation that was made available to the owners. The Association is not in the business of mandating that homeowners use a licensed contractor for any of their work. That is strictly a homeowners’ decision. Mary Caraza-Lyons reviewed some of the materials provided.

OPEN FORUM

Owners were then invited to present questions or concerns to the Board.

• Cheryl Gitter reported that kids are beginning to get bored. Her doorbell rang late at night and while nobody was there, evidence of bicycle tires were on her rock landscaping

· Geraldine Atkins requested that Board revisit the guidelines established for rental of the Community Center as owners are being penalized due to the requirement to have a security guard onsite as the Deputy Sheriff’s office did not respond to her request. She also had a hard time getting the closer to respond when her event ended earlier than originally contracted.

• Debbie Walsh also agreed that the board needs to address the rules as they apply to owners.

• Kathi Fraser was not aware of the possible early closing and indicated that perhaps this information should be passed on to the closer when it is known.

• Duane Trost reported that there are three broken blocks on the wall at Sandy and Sandpebble.

• Jerry Gerardot reported that cars are still parking in the easement.

• Ann Marie Hager indicated that lots need to be watered after weeds are removed. She felt that using a scraper was the cheapest and most effective way of removing weeds.

RECOGNITION OF VOLUNTEERS

Mary Caraza-Lyons recognized all owners who served on a committee this past year. Certificates of appreciation were presented. The Board thanked them for their willingness to volunteer and asked those present to please take the time to sign up for a committee.

RAFFLES

We had over fifteen raffles and the lucky winners went home with Artesia promotional products consisting of shirts and coffee mugs as well as promotional items received as samples from a firm specializing in various office supplies.

ADJOURNMENT

The meeting was adjourned at 11:05 a.m.

Respectfully submitted by Mary Caraza-Lyons.

Approved By: __________________________________

Ed Moy, Secretary