Rancho Tehama Association

Annual Meeting

August 5, 2006

Approved 10/03/06

President Ann Marie Eversole called the meeting to order at 8:06 am and led the flag salute.

Directors in Attendance were Ann Marie Eversole, Bill Massey, Sadie Bentz and Karis Pierce

Ann Marie introduced Tim Elrod as our independent Inspector of Elections Tim said that they are now going to separate ballots from the envelopes and count the ballots. We do have a quorum for this election.

Marcia explained that Vivian White was opening the address envelope and giving it to Gloria Silva who opens the ballot envelope, then hands it to Tim Elrod, who takes the ballot out of the envelope and reads the vote out loud. Volunteers then mark the vote on the correct poster board.

2:02 the Business portion of the meeting started.

The Final Count was:

Agenda Additions/Changes: None.

Marcia announced the winners: Danny Murray with 292 votes, Jim Long with 278 votes and Bill Massey with 222 votes. The quorum needed was 461 votes. 653 votes were received. Tim Elrod will send an official letter to the Board announcing the winners. The election committee slit open the envelopes and marked the poster boards. The tabulation of ballots went very smoothly. Everyone involved did a fine job.

Budget vs. Expenditures: Karis brought the 1999 budget to compare with the current budget. Our assets have more than doubled because of the increased collections. Our gross income has been less than expected because the Development Fee was not started until 7/5/06 and it was planed to start at the beginning of the year. Legal costs are over the budgeted amount. Even though we have not had the Development Fee, we still had a net income of $10,917.04 over the first 6 months of the year. The Association is going in a positive way financially.

Office: Bill Massey Bill said the work in the office is going smoothly. The Davis-Stirling Act has been requiring us to have a lot more mailings than before. It has also required us to hire a third party for the election which has made this election more expensive than the others. The legal expenses from January 2005 until July 2005 were $9,814.33 and from January 2006 until July 2006 it was $54,295.68. This money has been spent to defend the Association in lawsuits brought against it. The money would have been better spent if it could go to roads or other things the Association needs, rather than giving it to the Attorney. But we have to defend the Association when lawsuits are brought against it. We have not lost a case. There are cases pending. If we could solve the problems in-house, we could spend the money on other things. We will have a grand opening and a tour when the new office is ready. Our only hold up will be PG&E getting the correct wiring to the new building.

Post Office: Karis Pierce The Post Office is doing fine. The new employee is doing well. Karis and Sherry are meeting regularly to try and improve the Post Office.

Maintenance: Sadie Bentz Sadie showed pictures of the graffiti on the Transfer Station and the Fire Station. They both had to be repainted. The vandalism is costing us money. It was $108.00 in paint to repaint the side of the Fire Station. The Transfer Station has been hit at least 3 times. Fawn Meadows has been hit 5 times. The Post Office has been hit 1 time and the street signs at least 6 times. There has also been vandalism at the churches in the area and private property. The roads are in bad shape. If we would slow our cars down a little it might help.

Airport: Bill Massey for Doug Dugger Caltrans came again to the Airstrip. We now have a special use permit rather than being considered a private-use airstrip. We have gotten a variance for the large Oaks along the airstrip. The fences will remain where they are. We are changing the Displaced Threshold, which shortens the landing distance available, but does not affect the take-off distance. This will require some paint. The airstrip is doing well. Doug has done all the mowing on the strip this year. Budget wise we have spent less on the airstrip in each of the last 3 years than we spent on it in each of the previous 5 years.

Fire Station: Anders White In June there were a total of 29 calls, of that 23 were medical, 2 were traffic accidents, 3 were public assists and 1 was a report of fireworks. There were no reports of fires within the last 30 days. He will be visiting all the pumps, ponds and emergency landing strips on the Ranch.

Reserve Study: Karis Pierce All Associations need Reserve Studies per the Davis-Stirling Act. In 2006 funds of $5,000 were budgeted to get a Reserve Study done. It only cost about half of that, $2,460.00. We had Association Reserves Inc do our Reserve Study. They have offices in 7 states. Sean Kargari from Association Reserve Inc came here and looked at everything and took pictures. Karis read the 3 minute reserve summary. The state does not require Associations to fully fund the reserve. The objective of the study is to see where we are and to give us goals for the future. Fire ponds were not included in the study. We will have them included in the update of the study. We will have a public meeting to discuss corrections to the Reserve Study on August 26, 2006 at 10:00 am in the Rec Hall.

Transfer Station: Leslie Hedelius The Board voted at the previous open board meeting to allow one pickup load or equivalent per household per day. Recyclables can be combined. No recyclables should go in the compactor or the cleanup bin. We are charged less for the recycle bin and the metal bin. Architectural Committee: Dee Oliver She read the six month Architectural Report. She mentioned the car abatement program and explained it. Flyers will be posted when we have a date for the car crushing.

Election Committee: Marcia Rouse Recall Report - Marcia mentioned that since a petition was filed by 5% of the membership the recall process was started. Two items will be on the recall ballot, 1st we vote on whether or not a recall should occur and 2nd if a recall happens who should be on the Board. Everyone should vote for 5 board members whether or not they vote for the recall. The three board members that were just elected will take office in January, unaffected by the recall. The two additional needed board members if the recall takes place will be the two highest vote getters during the recall. Letters of intent to run for the recall are available at the office. They must be returned to the office by August 18, 2006.

Open Forum: Sheri Schultz mentioned that the By-laws state that the Board of Directors should have a meeting to elect officers after the regular Annual Meeting and that the new Directors should take office immediately after the election. The Board said they would look into it and report their findings at the next Open Board Meeting.

Lupe Green - We have to go by the old By-laws since that is what we have now. We need to find out which seniors we can survey to identify seniors' needs. Contact her at 585-2190 with the names of any willing seniors.

Adjourned at 4:04 pm

Respectfully submitted by: ____________________________ Janice Menzies, Corporate Secretary