National Association of Royalty Owners
Rocky Mountain Chapter
Debra A. Anderson-Secretary/Treasurer
36023 Winchester Rd
Elizabeth, CO 80107
Email:
Phone: 719-661-7614
Call to Order/Neil Ray, President
Meeting was called to order on June 25, 2011 at 4:00pm at the Aspen Glen Club, Carbondale, CO by NARO Rockies President, Neil Ray. Board members present were, President Ray, Cristy Koeneke, Debra Anderson, Barbara Jefferies, Penni Compton, Michelle Smith, Irene Johnson, Herb Vasseur, Ron Leef, and Roy Savage. There being a quorum of members present, the meeting proceeded.
Minutes of Last Meeting – Debra Anderson/Secretary
The last known annual meeting where a quorum was present was at the 2007 national convention in Albuquerque, NM. The minutes of that meeting are not available to be read at this meeting. After discussion, Herb Vasseur made a motion to dispense with the reading of minutes, Chuck Sylvester, second; the motion was carried by voice vote. (These minutes have since been found and posted on internet.)
Treasurers Report – Debra Anderson/Treasurer
The board has hired Linda Kochevar, CPA of Grand Junction, CO. Records from the past accountant were not received until May 21, 2011. Linda is preparing the 2011 financial statement and will have it available as soon as possible. As of now there is $6,287.00 in the checking account, down from $18,924 on December 31, 2010. The reason the account is so far down is that the largest portion of the lobbyists fees are paid in the spring of the year. Looking ahead, expenses for the first five months of this year are about the same as they were in 2011 so if membership remains at 2011 levels we will collect about $14,000 in dues, and assuming expenditures are about the same there will be about $10,000 in expenses.
Presidents Report - Neil Ray
Neil explained the proxy tax. Lobbying expenses are non-deductible. A tax exempt organization must declare any lobbying expense. The IRS allows for a minor amount of expense before the reporting is mandated. He referred to the sheet included in the annual meeting packet. For the years indicated on the sheet the lobbying expense was not declared.
The IRS regulations allow a tax exempt organization to notify members of the amount of their dues that are non-deductible, calculate the result of that amount, and reduce the reported lobbying expense by that calculated amount. The remainder is taxed at 35 percent. This is called a proxy tax. It has not been paid for the years indicated since it has never been reported.
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For the years up to and including 2009, the National organization declared on its enrollment form that 15 percent of the member’s dues were dedicated to lobbying expense. If the IRS finds that its affiliation rules are applicable, this would mean that $3.75 per member could be applied against the Rockies lobbying expense. This falls far short of the total expense, and leaves the Rockies organization with the task of seeking a lenient resolution from the IRS for the taxes owed. The National organization’s officers have advised the Rockies to seek the advice of a tax attorney. This may be necessary as negotiations progress. And since the National organization’s policies and practices are being used to justify the manner in which the Rockies taxes were filed, it would be appropriate for the Rockies to ask the National organization to share in this expense. The Rockies officers and Board have sought the counsel of two independent accounting firms, and received informal advice from two different IRS agents concerning this matter.
Janice Bennett Good made a motion that the treasurer’s report be made by National meeting in Long Beach, second by Herb Vasseur, discussion followed.
Charlie Riebe made an amendment to the motion to provide the report by July 31, 2011, second by Marion Wells?, the amendment was rejected by voice vote.
Janice Bennett Good amended her previous motion that the secretary/treasurer ask that the report be as soon as possible but no later than the National Conference in Long Beach this October. Herb Vasseur second the motion; carried by voice vote.
After discussion of when the treasurer’s report will be available, Debra said that she will call Linda on Monday and request that she produce the treasurer’s report as quickly as she can.
Jane Kay made a statement that the disruption of the meeting is detrimental to the organization. The organization can be made stronger by moving forward, to solve the problem of the proxy tax, to work with second generation mineral/royalty owners’ and to create committees to assist the board.
Roy Wardell made a motion to end the discussion regarding the financial statement, second was made by ….. , the motion was carried by voice vote.
President Ray called for a vote of the membership to elect a Board of Directors. Ballots were distributed, (see below) and there were nominations from the floor. Janice Bennett Good was nominated by Steve Juhan from the floor, second, Janice accepted. Karen Latham nominated by Irene Johnson, Bill Hammerich second, Karen accepted nomination.
Candy Hammerich, Lucille Peterson and Donald Wickstrom volunteered to count ballots,
The chair recognized Cindy Bargell, Cindy made a motion to adjourn and complete, Cristy Koeneke second, carried by voice vote.
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Ballot for the
2011 NARO Rockies Board of Directors
Candidates proposed by the nominating committee:
□ Nominating Committee Slate: Check this box to vote for the slate of candidates selected by the nominating committee comprised of the people listed below, or vote for each candidate individually by checking the box next to their name.
□ Neil Ray
□ Cristy Koeneke
□ Debra Anderson
□ Keith Crichton
□ Sara Dodero
□ Ron Leef
□ Barbara Jefferies
□ Penni Compton
□ Michelle Smith
□ Irene Johnson
Write In Candidates:
□ Janice Bennett Good
□ Karen Latham
Vote for no more than eleven (11) candidates
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Results of the vote for the board of directors are:
· Neil Ray, President 53 votes
· Cristy Koeneke, Vice President 51 votes
· Debra Anderson, Secretary 57 votes
· Keith Crichton, Treasurer 54 votes
· Sara Dodero 49 votes
· Ron Leef 50 votes
· Barbara Jefferies 52 votes
· Penni Compton 51 votes
· Michelle Smith 55 votes
· Irene Johnson 53 votes
· Janice Bennett Good 42 votes
Votes tallied by Candy Hammerich, Lucille Peterson and Don Wickstrom