Homeowners Association

Minutes Board Meeting

February 7, 2005

Present: Marianne Bishop, Doug Cameron, Robert Cohen, Linda Gregory and Ron Sorenson. George Jones, chair MC, was also in attendance. Prior to the meeting Bill Kerr, coordinator of the CERT (Community Emergency Response Team) gave a presentation explaining this program. The meeting was called to order at 9:20 a.m. and proceeded using the agenda as previously distributed.

1. Reading of the Minutes

The minutes of the January 3, 2005 Board Meeting had been distributed to the Board via email. Ron Sorenson made a motion to approve these minutes as distributed, seconded by Bob Cohen. All members were in agreement.

2. Officers Reports

A. Secretary

- Prior to January 15, the Secretary called all outstanding owners advising of the upcoming deadline. On January 16, three certified letters were sent, to which a $15 late fee was added. Two payments crossed in the mail. The third was postmarked January 19. This homeowner has been habitually late in paying dues. The Secretary was directed to write a letter stating that this is the last year the late fee will be overlooked.

- All dues have been received.

- Ward Williams made his desire known to run for the board, but unfortunately, it was after the January 15 cut-off date set by the nominating committee for being included in the proxy mailed to homeowners.

- The Annual Meeting Notice was mailed Jan. 23. Digipost and LMR continue to make mistakes by not following instructions. This time they did not include the postage paid envelope as requested. LMR offered to have Digipost resend the envelope at their expense. Because our return address was used, the perception was that this second mailing was done by SIV. This second mailing known as the Oops letter was sent to what appears to be a VERY old address file. Digipost has agreed to reimburse for postage charges for the address service requests for all of the mail being forwarded to non-residents. I drafted a letter of explanation which I requested be mailed to all of our homeowners having Digipost take responsibility and give a better explanation of the chain of events. I have also asked that Digipost no longer be used for our mailings. MLR has agreed to do whatever we want, even handling our mailings in-house.

- Three residents questioned our procedure for proxy voting. One came via the website from Marcia Lucas. I responded with a copy of my email to the board explaining the entire balloting process. Subsequently I spoke with damon Patton, Vernon Kliewer and Lewis Management about our procedure. They told me that corporations require a signature on the proxy. It was suggested that next year we more fully explain the proxy procedures to homeowners.

· Ninety-three proxies have been received so far, two of which were not put into the inner ballot envelope. One did not have a return address so therefore it had to be opened to determine the Lot number. This voided the proxy. The other one had a return address. The homeowner called asking if they could have it returned in order to insert it into the envelope. The Secretary asked for a ruling by the Board whether to include this envelope in the ballot process. All were in favor of allowing this proxy to be counted.

- There was discussion concerning what mark on the proxy or ballot will qualify as clear intent to vote for a particular candidate(s) at the annual meeting. Ron Sorenson made the following motion seconded by Doug Cameron:

I move that unless a proxy or ballot is voted by inserting an X in the proper box it is an invalid proxy or ballot.

After further discussion, a vote was taken. For: 2 Against 3; therefore, it was agreed that either an X or other clear mark inside the box next to candidate will qualify as being valid and will be counted as long as no more than three candidates are marked.

- The Secretary asked Lillian Byerly and Marcia Bengston to serve as tellers at the annual meeting.

Ron Sorenson moved that the appointment of Lillian Byerly and Marcia Bengston as tellers for the Annual Meeting be ratified and confirmed. Bob Cohen seconded. All were in favor.

- GVR advised that in 2006 all of the meeting rooms and auditorium at Desert Hills would be in by various clubs. The closest center available to us is Canoa Hills; therefore the Saguaro Room has been reserved from 8 am to Noon for the monthly board meetings. The 2006 annual meeting will be held on Wednesday, February 15, because the Saguaro Room is booked for Thursday February 16.

B. Treasurer

Paul Wildman, CPA, has been given all 2004 financial records as well as the first month of 2005. He has stated he will have the audit completed prior to the annual meeting. The Treasurer presented the Statement of Financial Condition as of 1/31/2005 (Attachment A). A motion was made and seconded to accept the report, subject to audit. The Reserve allocation was transferred to AG Edwards on January 3, 2005.

The cost for the audit had been approved by the board during January by email vote. Doug Cameron questioned whether more than one bid was obtained for the audit. Because Mr. Wildman had done such an excellent job during 2003 and was instrumental in saving the SIV $856.21 in back taxes, another accountant was not investigated for 2004. Ron Sorenson stated that having been in the law profession for 35 years, he is aware of how costly it is for firms to change professionals because they all have to establish their own baseline and all have to start from scratch. It is time consuming and costly to educate your professionals every year.

Doug Cameron made a motion that the board ratify the Operating Funds Project Request expenditure for the audit as presented (Attachment B). Ron Sorenson seconded the motion. All were in favor.

C. President

The president had no report.

3. Committee Reports

A Maintenance

George Jones presented the report. (Attachment C)

B. Architectural

Susan Trecartin was unable to attend the meeting, but sent her report, which was presented by Linda Gregory. (Attachment D)

The AC received two complaints about roof coating at 4887 Harvest Moon and they wrote a letter to the owner. A copy was subsequently sent to LMR for the lot file, noting that the property is in violation. The owner has moved and the house is being sold. LMR was to advise the prospective buyers of the situation.

The board will advise the AC that the paint policy must be reviewed and revised to cover roof coating as well as the newly approved trim color. This policy is distributed to all homeowners each year in the minutes of the annual meeting of homeowners.

C. GVCCC

Gorman Fisher said that GVCCC had a speaker from the Better Business Bureau (BBB). Items of interest included:

- The BBB refers complaints to the attorney general and, unless it is a flagrant matter, the attorney general will only follow up on gross issues because of their limited budget. Therefore, threatening to take someone to the Better Business Bureau really does not carry much weight.

- The BBB is going to hold a seminar about buying and selling on EBay. Sessions will be held Wednesday February 23, 2005 or Thursday February 24, 2005 and more information can be obtained by calling 888-5353.

- The BBB also offers arbitration services for $300.

D. Communications – Doug Cameron

If you see anything that needs updated on the web site, direct your comments to Doug Cameron and he will forwarded them to Marcia Lucas. There have been many positive comments about the website.

4. Continuing Business

A. Details for Annual Meeting – February 15, 2005

The secretary will handle obtaining refreshments. Linda and Gorman offered to find someone to help at the sign-in table. Gorman will take care of getting signs made for each of the entrances to the subdivision announcing the meeting. Time will be provided for committee reports after Presidents™ comments.

B. Bylaws Revision

Linda Gregory will ask for a non-binding show of hands at the annual meeting asking how many homeowners are in favor of including part time residents on the board. The board affirmed their desire to investigate changing the bylaws to accomplish this task. Ron Sorenson agreed to join the bylaws committee.

C. CC&R Revision

Section 1.15 was revised which defines a Member.

Section13.10 had two minor changes, adding the words œtree or other before the word vegetation in the first sentence.

The subject of the Association's responsibility to protect views was brought up by Doug Cameron as he read a portion of an email from Tanis Duncan in response to Linda Gregory's question about the subject. Ron Sorenson cited Section 15.1 C, which relieves the Association of enforcement of action if it would not be appropriate or in the best interests of the Association.

Ron stated that the present CC&Rs have a provision protecting views relative to private property and many homeowners have paid premiums for view lots. Ron also read Section 16.1 of the current CC&Rs regarding Enforcement.

Gorman Fisher made the following motion:

I move that the board present the draft CC&R dated August 11, 2004 to the homeowners for their approval after removing the new Sections 13.9 through 13.12. These Sections should be replaced with a new Section 13.9 containing the following statement taken from old Section 13.13 of the current CC&Rs which state: "All trees and other vegetation planted in the Lot shall be kept trimmed to a height which will not materially interfere with views from neighboring building cites. The Architectural Committee may forbid the planting or maintenance of certain plants, trees and shrubs or restrict the propagation of such plants, trees and shrubs to native or indigenous species."

The motion was seconded by Bob Cohen. There was no further discussion. A vote was taken: four yes, one no (Ron Sorenson)

Since there has been a change in the Planned Communities Act, Ron Sorenson will review the Act as it relates to presentation of the Amended CC&Rs to the homeowners.

D. Other Business

The board expressed their appreciation to Bob Cohen for his time of service on the board as well as their hope for his renewed health.

5. Adjournment

There being no further business to come before the board, the meeting was adjourned at 11:40 AM.

Respectfully submitted,

Marianne Bishop, Secretary