APPROVED

RIVER MEADOWS HOME OWNERS ASSOCIATION
RIVER MEADOWS IMPROVEMENT DISTRICT
MINUTES OF SPECIAL BOARD MEETING
May 14, 2005

Board Members Present: Charles Arnest, Chris Kosydar, John Tuttle

Board Members Absent: Marilyn Hoblit, Ben Simpson

Management Present: Bill Hayes, Property Manager; Hank Fairbrother, Bookkeeper

Owners Present: None

Guests: None

Call To Order: Meeting called to order by Kosydar at 9:00A.M.  A quorum was established.  Kosydar stated that purpose of the special meeting is to review twenty-year reserve studies prepared by BK for RMSO (Sewer Corporation), RMID (Water Corporation) and HOA (homeowners Association).  Purpose of Board review is to determine if rates currently being charged by the corporations need to be adjusted to meet future financial obligations of the corporations.

Meeting consisted of review and discussion of the items and amounts reported on the reserve study for each corporation.

Motion made by Arnest for Board Resolution that all System Development Fees are to go into replacement reserves on the basis of 2 parts to HOA, 2 parts to RMSO, and 1 part to RMID.  Kosydar seconded the motion.  Discussion.  The motion passed unanimously.

Motion made by Arnest to raise sewer fees by five dollars per month effective 1/1/06.  Discussion:  Motion made by Arnest to amend motion to raise sewer fees by ten dollars per month.  Discussion:  Amended motion passed unanimously.  Original motion passed unanimously.

Motion made by Kosydar that RMSO establish operation reserves in an amount equal to one-half annual operational expenses, and that any excess in the operation reserves be transferred to replacement reserves.  Discussion:  Motion passed unanimously.

Motion made by Arnest that operational reserves for HOA be set at an amount equal to six months operating expenses, and that any excess in operational reserves be transferred to replacement reserves.  Discussion:  Motion passed unanimously.

Motion made by Kosydar that HOA dues be increased by five dollars per month effective 1/1/06.  Discussion:  Motion passed unanimously.

Motion made by Tuttle to maintain one-year operational reserves in RMID.  Discussion:  Motion passed unanimously.

Motion made by Arnest that the reserve studies for the three corporations (RMSO, RMID, and HOA) dated 5/14/05 are the basis of the motions made during this special meeting of the Board of Directors, and shall serve as the basis for future updated reserve studies.  Discussion:  Motion passed unanimously.

Board noted that it had not made any adjustments to the reserve studies presented to it for RMSO and RMID.  The Board did adjust the reserve study presented to it for the HOA by deleting from item 1595 an amount of $20,000 identified as RV site reconfiguration, and an amount of $53,352 for 2” asphalt overlay for RV storage area.

The Board acknowledges its appreciation to BK for the work performed in preparing the reserve studies and requests that the record so indicate its appreciation.

Motion made by Arnest to adjourn.  Meeting adjourned at 1:40 P.M.