January 10, 2007 minutes

Meeting was called to order by Larry Velte at 7:37pm. Initially Present: Velte, Meyer, Hovland, Messinger, Shinal, and Fredericks. Gorrell arrived at 7:46pm.

The December minutes were presented by Fred Fredericks. Mary Hovland moved that the minutes be accepted, Joe Meyer seconded, and the motion passed 6-0.

Bernie Shinal presented the Treasurer's report. The current balance: $48,830.95. Of that, $44,610.70 is in the checking account and the remaining $4,224.25 is in the reserve account. The board also agreed that Jim Messinger should be added to the list of people who can sign checks and otherwise access the bank records as he has volunteered to take over Treasurer duties next fiscal year, pending election by the board in June.

After reviewing the aged receivables it was noted that one homeowner had an outstanding balance of $0.80 in late fees. Fred Fredericks moved that, per previous practice, the Board waive the $0.80 balance for this homeowner. Joe Meyer seconded, and the motion passed 6-0. Bernie Shinal agreed to communicate this information to Rod at RCS Management.

Larry Velte then presented a project plan for the annual meeting. In the past we have chosen the last Wednesday before Memorial Day as the annual meeting date. This year's meeting was set for May 23^rd. It was noted that due to expected turnout we could use the recital hall instead of the cafeteria, which should make it easier for us to get a room. Mary Hovland and Dina Gorrell agreed to serve as this year's Nominating Committee. The 3 members whose terms are ending this year are Larry Velte, Bernie Shinal, and Mary Hovland (who is serving out the remainder of Tom Coldwell's term). The Board plans to send a postcard in the February time frame to all households notifying them of the annual meeting and encouraging them to submit nominations, and submit an article to the Herald doing same.

Fred Fredericks delivered an update on the Kings West Swim Club situation. They have received proposals from two developers, and plan on putting the proposals to a vote of their membership on Tuesday February 13^th. Both proposals involve the building of townhouses on a portion of the lot, and returning the balance of the lot to a natural state, including planting trees. It is anticipated that the Swim Club will offer this portion to the Community Association. The Community Association will then be obligated, as decided at the 2006 Annual Meeting, to call a special meeting of the membership to decide whether to incorporate this portion into our common land. The KWSC board was interested in how to determine if any new homes were or could become a part of the HOA. We notified the KWSC President that if the lot for the pool was originally part of one of the the sections of KPW that were covered under our Association, then the homes built would automatically become part of the Association. If the lot for the pool was not originally part of one of these sections then we do not see any way to add the homes to our Association.

Larry Velte presented an e-mail from our attorney regarding recent questions of covenant enforcement and encroachment. In answer to the question of whether or not an Architectural Committee could exist given that there was a lapse of the Association and there would be no direct tie to the committee set up by the developers, our attorney responded that he felt that a court would allow us to create a new committee. Regarding the question of whether or not we needed a dedicated Architectural Committee in order to enforce the covenants, the answer was no, the ultimate responsibility rests with the elected board of directors, and we can take actions ourselves without creating a dedicated architectural committee. Our attorney was also asked if we lost the ability to take any action regarding architectural concerns because no actions had been taken while the HOA was inactive. The response we received was that the inactivity of the HOA did not automatically disqualify us from taking action regarding architectural issues.

Discussion followed as to how to best bring the Architectural controls, specifically that all alteration plans need to be approved by the Community Association , to the attention of the homeowners. Should we add a separate letter or flier flyer? regarding architectural issues to the mailing for the annual meeting? Should we survey the homeowners regarding architectural controls as we surveyed on other issues prior to the 2005 annual meeting? Do we want to try to define “Architectural Harmony,” the term used in our covenants? If so should we present this definition to the membership to get their feelings on it? Should we allocate a significant portion of our annual meeting to a discussion of how the Association wishes to proceed on these matters? No formal decisions were made as to the answers of any of these questions but this is an area for discussion at future Board meetings.

Larry Velte also presented information from our attorney regarding a draft letter to send to homeowners who are encroaching on the common land. The attorney provided us with some suggested edits.

Larry notified the Board that we had received notice from the county of a public meeting with the planning commission to be held on February 8^th, 2007 to discuss a proposed zoning ordinance amendment to deal with Residential Temporary Portable Storage Containers (a.k.a. “Pods.”) These containers are not currently dealt with under zoning regulations, and the county intends to pass regulations in this area.

Joe Meyer asked if we had any upcoming deadlines regarding filing of taxes since the calendar year had ended. Bernie Shinal responded that our tax filing deadlines are tied to our fiscal year, so the taxes are due 3 months after May 31. Bernie mentioned that we do not need to have an audit this year but we do need to conduct an audit review, and he said he would contact our accounting firm to inquire as to whether they could provide this service. While on that call, Bernie agreed to double-check that the tax filing deadline is not for several months.

The next meeting is scheduled for February 7^th, 2007 which is not the 2^nd Wednesday of the month. This change is being made to avoid meeting on Valentine's Day. Fred Fredericks said he would notify Greg Bishop to post this date on the website, as well as the dates of the March, April, and May board meetings and the May 23^rd annual meeting, so that even if the minutes were not ready until late in the month, a member visiting the website would not miss the date of an upcoming meeting.

Fred Fredericks moved to adjourn, and Jim Messinger seconded. The motion passed 7-0 and the meeting was adjourned at 8:57pm.