Friday, April 27, 2012

March 25, 2012 Board Meeting Notes (Draft)

(Note: No corrections or comments offered as of 4/27/2012)

                  Board Members Present, via Skype:  Mary, Tim, Fred, Kiley, Gerry
                 Others Present:  Charley

       I.            Review notes from the January 22 meeting and adopt. 
A quorum of Board members reviewed and accepted the notes from the January 22, 2012 meeting with no corrections.

    II.            Financial update  (Kiley)
a.       Current balances
                                   i.      Checking $4,318 (Kiley had taken out $1119.08 out of this account on May12, 2011; this needs to be put into savings. Kiley said she would make that transfer.)
                                 ii.      Savings  $24,163.28 (This account needs to have the $1119.08 added back in.)
b.      Review of income and expenses for 2011
                                   i.      Expenses = 6,152.80
                                 ii.      Income =  9,389.23  

Discussion:  Fred noted that only $3,020 was collected from dues. (Figure from dues spreadsheet, since several dues and fees amounts were paid in 2012).  Kiley will send out the dues spreadsheet covering 2008 through 2011.

Discussion:  Tim said that he had paid off the Capitol One Credit Card on-line, on 9/24/2011 from his account at First Valley Bank, as a debit of $1,200 from the account with his name on it.  However, Kiley noted that a withdrawal of $1,242.91 had been taken from the Trust’s general account.  Kiley said that she has a copy of a check -  it did not come from First Valley Bank. 

Decision:   Tim will check with Capitol One and First Valley Bank.  He will obtain a statement from both and repay the Trust account.

Discussion:  Fred noted that one of the main conclusions from the review of the income and expenses from 2011 was that had there not been sales of several items the Trust would not have had sufficient funds to pay the taxes and utilities.  Gerry said he was hopeful that with more people involved in the trust more funds would flow in.  He committed to sending in $1,000 soon toward his dues.  (FC note: several of the ‘new’ people Gerry noted had been involved for quite a while -  some have paid dues all along.)

Discussion: Kiley and Fred noted that they had set up new checking and savings accounts, with those accounts tied directly to the Clark Family Trust.  The accounts themselves are a trust. Kiley and Fred are the signatories.  The general operating account and the Whitefish Credit Union savings account will be closed.
  
c.       Review of plan to send out notices of dues/fees history, current dues/date/

Discussion:  Kiley will soon send out the first letters notifying trustees and beneficiaries of their dues history, dues amounts paid and unpaid, current year’s dues, etc. along with a stamped envelope with her address for submitting funds.

d.       Review of plan to send out receipts for dues/fees received

Discussion: Kiley will send out receipts for all funds received.

Discussion:  Fred noted that the Board had made a decision in the June 11, 2010 meeting to provide consequences for trustees and beneficiaries (adult family members):

 “Board Decision: Each trustee is responsible for identifying their own family’s contribution.  If persons expected to pay annual dues do not do so,
I.        Individuals or Trustees will receive a letter from the Board that explains their infraction and the consequences;
II.     They will lose their ability to access the ranch as a whole; They will lose access to their family lot; the Board will assume control of the family lot. “

Fred pointed out that the decision had never been enforced, so perhaps the Board should revisit it at a future meeting.

Discussion: Fred noted that Gerry had said he would complete accounting for projects and deliver that to Kiley since we first started on the accounting in 2010.  The latest due date was February 15, and the Board has been waiting on it for over a year. (See, for instance, notes from the December 5, 2010 meeting; January 16, 2011 meeting; February 13, 2011 meeting; March 20, 2011; May 1, 2011 meeting)  Gerry restated his intent to get the accounting done on the projects he was responsible for, and to get that to Kiley soon.

 III.            Paying Taxes and Revising the Trust

Discussion:  Fred noted that the Trust is set to self-destruct.  That is, it is not in perpetuity.  It is designed to terminate “upon the day next proceeding the expiration of twenty-one (21) years after the death of the Undersigned and their issue now living. .  (quote added).  If we want the Trust to continue, we need a different instrument.  Gerry noted that it is a legal requirement that trusts expire.  Fred said that is correct, but the trustees and beneficiaries need to know that and be prepared.  One way to address it is to create a new Trust, one designed to operate how we decide it should be set up, and then transfer the title of the ranch and other assets to the new Trust. The advantage of doing this sooner rather than later is that we would have the benefit of a Trust designed for our situation.

However, before a new Trust can be set up, the tax liabilities of the current trust need to be resolved. Once the tax liabilities are taken care of, we can transfer the deed and any other assets to the new Trust.  There may be no taxes that need to be paid because of the small amounts of money involved, or because the balances of income and expenses, the tax forms still must be filed.  Fred noted that the April 17 tax day is just few weeks away.  The LLC is apparently not linked to the Trust. 

Decision: All agreed that the tax forms needed to be filed for all accounts that reflect the operations of the Trust.  Tim and Gerry will file the appropriate forms for the LLC; Tim and Kiley will file the appropriate forms for the Whitefish Credit Union.  Are there others?   (FC note:  I’d misspoken when I said the Trust needed a schedule C.  It is, I think, actually a Form 1041.)

 IV.            Reminder of recent new rules, outstanding assignments, and responsibilities.  Fred read through these paraphrased explanations for the benefit of the Board Members who had not reviewed the notes from recent meetings.
o   Four Board members are needed to make Board decisions, except for decisions to spend funds from the Trust Savings Account, which requires at least five affirmative votes.
o   All reimbursement for labor and materials can only be made by prior arrangement with the Board.
o   Family members are required to pay dues for the entire year in which they turn 21.
o   Visitors using Trust buildings/resources for a full day or overnight, or longer, must pay $10 per day, plus $2 per day for each additional individual.
o   Use of Trust resources off the Ranch can only be done with prior agreement with the Board, and with a fee.
o   Use of Trust resources on the Ranch for personal interest or income must be preauthorized by the Board, and may incur a fee.
o   The Board may rent out Trust buildings or resources, but there must be insurance in place before that is done.   Tim said he would discuss insurance with Gerry.
o   The bunk house move and restoration may only be done through concurrence by the Board.  (Everyone likes the project; we just need to have a plan and know what the expenses to the Trust will be. The Board decision in the January 2012 meeting updates the discussion started at the September 2011 meeting.)
o   No gun hunting shall be allowed on the ranch.  Hunting will not be allowed in the residential area or in the upper meadow.  Bow hunting only will be allowed in the lower meadow and south of the upper meadow.
o   Guns and ammunition must be stored in locations inaccessible to children and in locked containers when not in use.
o   Tim: move the gun safe out of his house to the cabin.
o   Kiley: send out current accounting spreadsheets to all adult family members.
o   Kiley: send out receipts to all who have made payments to the Trust (dues, water, other).
o   Kiley: send out individual bills for dues, water, etc. to all adult family members.
o   All: Over 2012, discuss privileges, expectations, and requirements associated with individual family lots.
    V.            New Business
a.       Gerry is looking for authorization from the Board to purchase tires and a new lift parts for the snowplow. The lift parts would cost about $125.  It was agreed to bring that up at a later meeting.  Fred asked if Gerry was still paying the insurance for the pickup out of his personal funds. Gerry said he is. Fred noted that the Trust should be paying that, since it is mixing personal and trust affairs.  
b.      Fred noted that he had called Joe and Henry to make sure they knew about the requirement in the Trust that to resign as Trustees they must deliver a written resignation to the beneficiaries of the Trust.  Fred asked them to have their statements notarized.  While not addressed in the Trust, Fred asked them to have statements assigning Kiley and Madona their responsibilities as Trustees.
c.       Fred noted that the Board decided June 11, 2010 that Tim and Gerry were mutually responsible for getting the donkey to make money for the ranch or sell it within two years. The two years is up in June.  Gerry said that he had finished a chute for breeding and would talk to Tim about partnering up to purchase the donkey.
 
 VI.            Next Meeting
a.       Fred will send out a note to arrange the next meeting.

VII.            Meeting Adjourned