Minutes of
Annual Meeting for
Thousand Peaks Ranch Association
June 25, 2011

Meeting Opened at 2:00 p.m.
Board members present:  Dennis Kist, Eric Witzak, Ray Lyons
Absent: Rusty Evans, Lynn LaFleur-Dragon
Quorum present with 19lots represented by physical attendance, and the following proxies
Lynn Lafleur Dragonfly        15 proxies (proxied to Dennis Kist)
Sandra Hagan                1   proxy
Vern Wagner                        5   proxies
Rusty Evans                        1   proxies  (proxied to Dennis Kist)
Ray Lyons                        4   proxies
Eric Witzak                        3   proxies
Dennis Kist                        52 proxies
Nancy Austin                        1   proxy
Greg Kimsey                        1   proxy
Jory Rayton                        1   proxy
Invalid                                8   proxies

82 proxies sent in and presented to the Secretary.  No challenge was raised to the presence of a quorum.

Minutes of 2010 Annual Meeting.  M/S/C to waive reading of minutes since they have been posted on the internet for
owners to read and review.  M/S/C to accept minutes as posted.

Environmental Quality Improvement Program:  Vice President Ray Lyons reported:
We continue to work to improve the grazing capacity and quality of our ranch.
2 cattle guards have been installed to divide the ranch into east and west pastures.
Intend to develop sources, and work on the windmill on the west side.
The agricultural use of our ranch is of course critical to each of us from the tax standpoint as well as the ranch
improvement funding.
M/S/C to accept report.

Treasurers Report:  Presented by President Dennis Kist:

Treasurer's Report July 1, 2010 through June , 2011

Bank Account Status
              Checking Balance. June 23, 2011                                 $       313.02
              Savings Balance, June 23, 2011                                $ 39,615.70
                                                                      $ 39,928.72

Income                 Dues, Late Fees, Lien Payments                                 $34,937.50
              Cattle Lease                                                 $   3,100.00
              EQUIP Grant                                                 $   1,573.43

              Ranch Improvements                                        $   5,300.00
              Legal                                                                267.07
              Roads/Snowblower                                             8,741.48
              Miscellaneous                                                        339.00
               Annual Mailer                                                        268.30

• Taxes - Dues are tax exempt for non-profit organization.
Grazing revenue is NOT tax exempt

Two copies of the bank account statements for the past 12 months were made available to owners present to review.
When we receive the financials from the CPA they will (hopefully) be posted on the website

M/S/C to accept Treasurer’s report.

President’s Report: President Dennis Kist reported:

1.        Website.  The website, TPRACOLO.COM, needs some updating.  Since this is strictly volunteer work, I do the
best I can to keep it updated but sometimes that is not too current.  I did receive one complaint last year from a
homeowner who wanted to be able to put comments on the website, but I did not agree to do that because of the time
involved.   I still have to put the CPA report from last year on it, and I will try and do that soon.
2.  Cattle Lease
This has been a very difficult situation.  As you probably know, Vern Wagner, the lessee, has been charged by county
with animal cruelty due to the death of one calf off of Thousand Peaks.  He is also being sued by the State Agricultural
Department  due to the alleged death of over 100 cattle last year during our long and harsh winter.  He is also involved
with lawsuits with his former partners.
After last year’s annual meeting, the Board of Directors met with Wagner to see how he was going to catch up on his
overdue payments, which was then about 2 months late, and also how he was going to pay in the future.  Wagner
assured the Board that when he sold his calves in October or November, he would bring all payments up to date.   The
Board, based upon Wagner’s history of keeping current with payments and following through on other commitments to
the Board, accepted this assurance and kept Wagner’s lease intact.    During the fall however the State seized all
monies collected from the sale of the calves and deposited that money in the court in Fairplay.  So Wagner had no
money to pay on our lease or any of his other leases.  We were dealing with Wagner on trying to determine how he was
going to continuing operating, and Wagner advised that he was going to file for Chapter 12 reorganization in
bankruptcy court and we would be paid through that plan.  
The bankruptcy was filed in January 2011, but to date there is not plan accepted by the court to pay the creditors.  We
are currently owed about $24,000.00.   Wagner is still battling with his former partners, and claims that he is owed
about $250,000.00.  But that does not get us paid.
We filed a “feeders lien” against Wagner and the cattle so that we can try and be in a secured creditors position in
bankruptcy court, or if the bankruptcy  falls through, then to be able to try and get our money by selling some of the
cattle.  But nothing is for sure.
In April 2011, the Board met with Wagner and advised him that if he did not keep current, we would remove the cattle
from the ranch in accordance with the terms of the lease.  As of this date,  Wagner was current for April and May, and
then transferred title to a horse trailer to the Association for June and July.  And Wager will be reducing the number of
head from approximately 250 to about 60-70 at the end of this month. So as of now he is current from April through
July.  The bankruptcy covers the period from May 2010 through January 2011.  The board thought there was a better
chance of getting paid if we tried to work with him rather than just put him out of business.  But only time will tell.
In the meantime, in order to cover any shortfalls due to Wagner this year, the Board entered into a lease with Rafael
Esparza, who is leasing the west side of the ranch.  We have restricted Wagner to the east side of the ranch.  The
lease with Esparza is for 5 months and allows 100 head or 200 yearlings.  He has paid us $3,000.00 up front and will
pay the remaining $3,000.00 when he sells his yearlings.   We have had good reports that Esparza can be trusted to
follow through on his commitments.
3.        Budget.        Based upon our financial situation, the Board budgeted only $5,000.00 for snow removal last year.  
Fortunately we had almost no snow and did not have to remove any snow.   The lack of snowfall has not helped the
pastures however.
The board also budgeted $10,000.00 for road maintenance this summer.
M/S/C to accept report.

Road Report:   Presented by Eric Witzak:
Eric has contacted 2 road companies.  He is meeting with one this afternoon.   Will focus on the east side of the ranch
this year.   Hope to raise part of the roads to keep from flooding.
2 cattle guards have been installed

Election of Officers:

The floor was opened for nominations for the five seats on the Board of Directors:
Vern Wagner nominated the existing Board of Directors:
Dennis Kist…………………………………….Accepted
Lynn LaFleur-Dragonfly……………………...Accepted
Rusty Evans…………………………………..Accepted in writing
Ray Lyons……………………………………..Accepted (verbally)
Erik Witzak……………………………….……Accepted

M/S/C to close nominations.

Motion toinstruct Secretary to issue a white ballot in favor of the uncontested nominees and to elect them by
acclamation.  Seconded.  Carried.

Old Business.        None.

New Business.        None.

M/S/C to adjourn at 2:35 pm
Respectfully submitted,

Dennis Kist