Deer Springs Ranch Annual Meeting 2005 Minutes

The meeting was called to order at 1:00 pm by President Dale Clarkson.

Dale White offered an opening prayer.

Phillip Hall read the 2004 minutes and they were approved as read by those in attendance.

A financial report was given by Shawna Cox, Treasurer. She indicated that the Ranch was short some money this year because several members paid their 2005 dues in the fall of 2004 to help with monies needed for the new water system. By her calculations, the Ranch Members currently own approx $10 million in common assets. She said that no ones wants to raise the assessments but we all want more and better facilities. She pleaded with those present to help come up with a solution to finance the many capital improvements needed. Several suggested the Ranch have special assessments to finance capital improvements. She was questioned why the financial report did not include the proceeds of $26,550 from the sale of lot #259. Upon further questioning, it was discovered that Dale Clarkson had held the check at his office for approximately eight weeks and that Shawna had the check at that time but it had not been deposited yet. There was a lively discussion on the matter. Shawna Cox agreed to deposit the check as soon as possible.

Larry Walters distributed his financial audit of the Ranch finances. (see attachment A) Nyle Willis also reported on the tax returns and concurred with Larry Walters report.

Barbara Button gave her managers report. The water system is State Approved pending the installation of the vault for the water controls next week. She reported that the pressure reducing valves, the mile of 4 inch pipeline, and the water tank retrofit were completed. This year we have spent $16,000 on the water system. Several members are hooking on to the water system now and more plan to connect on in the next few years. She has developed an emergency water plan and a source protection plan. There have been 11 cement culverts installed in Slide Canyon, two in Broad Hollow, and one in Pipeline. We have put a new roof on the Garden Cabin, painted all the lower cabins, and the laundry room, installed several new doors, installed a new stove in Cabin 8 and built a new entryway into the headquarters area. Lee Bellar donated the money for the stove and part of the entryway. 500 pounds of trout were put into the ponds this year. By Utah State Law she was required to notify all members at the annual meeting that our trout are infected with whirlying disease. It is not something to be alarmed about. Almost every pond in the western US has the disease. Just cook your fish well. She reported that next week will be a cross country motorcycle race sponsored by the Utah Dessert Fox Club and Frank White, a member of the ranch. Seven cabins are rented out to racers for $95 per night. Plus each racer pays the ranch $10 to run the trails. We are using the same trails we have previously used. She asked for a raise of hands of members that knew where the race trails were. Only four members knew where the trails were. She said that was good news. The racers and the management at the ranch had tried hard to make sure the trails do not become offensive to look at. The ranch will profit about $2900 from the race. Barbara then thanked many members for all their time and money spent helping better the ranch.

Dale Clarkson invited Kane County Commissioner Mark Habbeshaw to address the Meadow Canyon Road issue. He explained the county’s plan and had Lou Pratt report on proposed maintenance. He answered many questions from those in attendance. Brent Fullmer gave a presentation in opposition to the County’s Meadow Canyon Road proposal. Val Cram handed out material in favor of the Meadow Canyon Road proposal and explained his position.

Dale Clarkson then spoke on the proposed Bylaw and PC& R changes he was proposing. Phillip Hall addressed the proposed Bylaw’s and PC & R changes he was proposing. Dale Clarkson gave the pros associated with potentially accepting Kane Counties proposal to make the Meadow Canyon Road a public road and their offers to improve the road. Phillip Hall gave the opposing point of view on the Meadow Canyon Road and the legality and ability of Board to make decisions affecting the common areas of the Ranch. Val Cram expressed his views on common area uses and the Meadow Canyon Road proposal. He and Dale Clarkson were in favor of accepting the county’s proposals and Phillip Hall was opposed to it.

Voting on nominated Board members was conducted by Phillip Hall as DSROA secretary. The current Board members expressed their view and experiences for the past year while the votes were being counted. They were Dale Clarkson, Val Cram, Shauna Cox, Phillip Hall, and Candy Bosze. Lee Bellar was not in attendance. The results of the election results where as follows; Candy Bosze 127 votes, Larry Clarkson 121 votes, Larry Walters 128 votes. Proposal #1 Proxy Voting to continue 77, voting to discontinue 104 votes or 57 %. Therefore without a 2/3 majority of 66% in favor, the proposal fails. Proposal #2 to ratify the Clarkson amended Bylaws and Deed Restriction voting results were: 64 accept, 116 reject. Therefore the motion fails. Proposal #3 Ratify the Hall Bylaws and Deed Restrictions: 108 votes to accept, 67 votes to reject. The motions fails because 62 % were in favor but not 66% needed to pass. Proposal #4 Meadow Canyon Road Construction and Maintenance at Kane County Expense with Public Easement: 87 vote to accept 90 votes to reject. The motion fails.

Ron Maehl made a motion that Dale Clarkson be removed from the Board for the reason stated as conflict of interest. After some discussion there was a call for the question. Dale White made a motion that the matter be tabled so that Dale Clarkson could have time to prepare his defense. The vote was 49 for and 37 against. Therefore the motion carried to table the vote until the next special or regular meeting of the membership.

A door prize drawing and delicious dinner followed.

The meeting was then adjourned until next September, 2006.