May 9, 2007 Meeting Minutes

Larry Velte called the meeting to order at 7:40pm. Present: Velte, Shinal, Messinger, Fredericks, Gorrell, Hovland. Absent: Meyer.

The April minutes were presented by Mary Hovland. Jim Messenger moved that the minutes be approved and Mary Hovland seconded. Motion passed 6-0.

Bernie Shinal presented the Treasurer’s report. The current balance is $41,321.94. Of that, $34,990.33 is in the checking account and the remaining $6,331.61 is in the reserve account.

Fred Fredericks announced his resignation from the board effective the earlier of June 30, 2007 or the date a replacement has been found to serve out the remaining year of his three-year term.

Preparations for the 2007 Annual meeting were discussed. Fred Fredericks indicated he would transform the excel sheet containing the membership list that RCS provided into a form that would be usable for sign-in sheets and proxy tracking. Fred said he would forward that document to Mary Hovland upon completion. Mary agreed to update the excel document with the proxy information. The nominating committee informed the board that three nominees had been identified for the three board positions up for election at the annual meeting. The names of the nominees were not included in the mailing to homeowners so as not to bias the outcome and to ensure that nominees from the floor would be on equal footing with the people nominated by the committee. Larry Velte indicated that he had a significant quantity of supplies that were left over from last year’s meeting that he would bring to this year’s meeting.

The board then discussed the proposed 2007-2008 budget prepared by Bernie Shinal and Jim Messenger. Fred Fredericks noted that the ending cash balance was several thousand dollars less than one year’s operating expenses, which was a guideline that the board had used previously to determine the annual assessment value. Bernie noted in response that the amount of the budget allocated to legal fees and court costs had increased to a projection of $6800 over the current year’s $1862 in actual expenses. Reason for this increase is to budget for lawsuits related to the set of liens that was filed in mid-2005 against homeowners who failed to pay their assessment that year. Those liens will expire after 3 years. The expiration of the liens does not actually occur during the upcoming fiscal year but rather the year following, so there is a strong likelihood that the only a portion of the legal budget will be used this year. The reason for budgeting the full $6800 was to allow the board flexibility as to when the legal actions were brought.

Fred also questioned whether the $5000 allocated for trees was sufficient, given that the board had already spent $5530 this year and had additional expenses upcoming. Bernie responded that while this current year had been heavy for tree expenses, the previous year had been $1600 and the year prior $2560, so it is reasonable to expect that next year’s expenses will be smaller than this year.

At conclusion of the discussion, Mary Hovland moved to, at the annual meeting, present a $40 assessment and propose the budget as Bernie and Jim presented it to the board today. Jim Messenger seconded the motion, which passed 6-0. The exact budget proposed is as follows:

Projected Beginning Cash Balance: $29,746.00

Income

Dues: $23,200

Interest: $20

Late Fees: $80

Total Income: $23,300

Expenses

Insurance: $4,350

Printing: $450

Postage: $690

Supplies/Misc: $300

Trees: $5000

Emergency Maintenance: $1000

Property Management: $6960

Accounting/Audit: $1800

Legal/Court Costs: $6800

Tax Preparation: $250

State Corporation Dues: $60

Reserve Account: $2100

Total Expenses: $29,760

Projected Ending Balance: $23,826.

The Board then discussed architectural controls and how to present them at the annual meeting. The conclusion is that we would like to have an open discussion but we do want to cover that we need architectural plans submitted and approved prior to commencement of any construction.

Persuant to a motion from last year’s annual meeting and in anticipation of discussion from the floor regarding the issue of the sign at the corner of Tapestry Dr. and Braddock Road, Fred Fredericks agreed to prepare some powerpoint slides outlining the county code regulations and the options for the sign, along with estimated costs. As Fred will not be attending the annual meeting, he will e-mail the slides to Larry for incorporation into the main presentation.

Larry provided an update on the Kings West Swim Club. Their president asked us to ask our lawyer to review a proposed contract between the club and the developer they had chosen to build on the land. Our lawyer indicated that he could not provide an opinion because he did not have enough background to know if the club actually owned the land in question, and because of the potential conflict of interest should the club ask our Association to annex or purchase some or all of the land.

A member communicated to the board regarding trees coming down on a pipestem off commonwealth. There was additional discussion of trees on the common land behind Catterick Court. Larry noted that our insurance had paid for the damages incurred when the tree behind Tapestry Dr. fell on a member’s deck because the tree had been a dead tree and Board had known of the hazard prior to the incident.

A homeowner on Ridge Court complained to Larry that there were two neighboring houses with unkempt yards. One of the two houses is a rental property that has been the subject of complaints in the past. Larry indicated that he would contact the owners of the two properties.

Mary Hovland moved to Adjourn and Dina Gorrell seconded. The motion passed 6-0.