APPROVED

RIVER MEADOWS HOME OWNERS ASSOCIATION
RIVER MEADOWS IMPROVEMENT DISTRICT
BOARD MEETING MINUTES
September 17, 2005

Board Members Present: Charles Arnest, Marilyn Hoblit, Pat Schaeffer, John Tuttle

Board Members Absent:  None

Management Present:  Bill Hayes, Property Manager; Hank Fairbrother, Bookkeeper, Hugh Palcic, Community Development Officer

Owners Present:  Martha Kniesteadt, Ernest Kingsbury, Richard Braddock, Lonnie Chapelle.

Guests: None

Call to Order:  Meeting called to order by Arnest at 9:15A.M.  A quorum was established.  Arnest announced that an executive session was necessary to discuss contracts for BK and evaluation, RM support positions, legal representation, and financial reporting.  A motion was made by Tuttle to hold executive session.  Motion passed unanimously.

Agenda:  Agenda reviewed and approved without objection.

Approval of Minutes:  Minutes of 8/20/05 Board meetings were reviewed and approved without objection.

Community Development Officer Report:
Compliance: CDO provided Board with enforcement summary.  Copy of summary attached to minutes and incorporated by reference.

Miscellaneous: Discussion concerning winter projects for ACC.  Projects include developing approved exterior paint colors for RM

Sandy Stevens is a new member of the ACC.  CDO has also been approached by another property owner who is interested in becoming a member of the ACC.   CDO is pleased with the positive direction in which the ACC is moving.

Question from Board concerning proposal for constructing a three-story residence on Pony Express.  CDO responded that there are some design and code issues with respect to the proposed residence, and that the ACC is in the process of reviewing the proposal with respect to these issues and with respect to architectural compatibility with RM

CDO has not yet had the opportunity to contact the sheriff’s office concerning that offices response to disturbances in RM.  CDO will contact sheriff’s office prior to next Board meeting.

ACC has not yet had an opportunity to discuss terms of office for ACC members.

Height of Riley berm has been verified.

Pursuant to CDO and Board request, Michael Fridlund has enlarged the driveway at his residence to provide an adequate parking area to meet his parking requirements.  Discussion concerning currently unpaid fines previously assessed against Fridlund for parking violations.  Motion made by Tuttle to release the unpaid portion of the fines based on Fridlund’s compliance with request to enlarge the driveway.  Discussion included recommendation from CDO that fine be abated; additional discussions that the history of this action included some miscommunication between Association and Fridlund.  Motion passed unanimously, with notice to Fridlund and files to explain that the fine release is to promote good will, and that this action is based on the uniqueness of this specific case, supported by compliance by the owner, as well as past poor communications between the two parties (Association and Fridlund).       

CDO questioned concerning letter written to Martha Kniesteadt concerning installation of boulder at her property line.  Letter is not in the Kniesteadt file.  CDO will have a copy of the letter placed in the file.

Discussion concerning contract with CDO.  Contract is to expire at the end of September.  Motion made by Hoblit to extend the contract for one month.  Motion passed unanimously.

CDO reminded Board that a monthly newsletter is being posted at the mailbox area, and requested that the Board members notify him if there are any specific items they want to have addressed in the newsletter.

FINANCIAL REPORT:
Financial summaries: BK provided Board with financial summaries of the three corporations operated by the HOA.  These summaries are attached to the minutes and incorporated by reference.

Report that DSL may make high speed internet access available to RM in 2006.  A list is being kept of property owners interested in this service.

Pool house has been re-roofed.  Contractor has billed Association for substantially more than contract amount.  BK instructed to pay roofing contractor the contract amount.

Septic tank was pumped.  Estimated cost to pump was $4,000 based on pumping 20,000 gallons at a cost of twenty cents per gallon.  Actual cost was in excess of $7,000 based on actual pumping in excess of 35,000 gallons.  Discussion ensued regarding how to manage sewer system to reduce future pumping requirements and associated costs.

Discussion on HOA accounts receivable.  There is a lien on the Davis property.  Tuttle will contact attorney concerning filing lien on Fowler property.  Discussion on when a lien should be filed for past due amounts.  BK directed to contact LaHusen that the Association is on the verge of filing a lien on his property, and that the next quarter dues are due next month.

COMMITTEE AND SPECIAL REPORTS:
MANAGER’S REPORT:
RMID:
Booster Pumps: Discussion concerning need to update booster pumps due to inability of current pumps to individually keep up with peak demand at certain times of the year when RM population is high.  This results in a drop in water pressure and could result in damage to pumps.  On going investigation is being conducted to determine the best solution to this problem.

Water Tank Floats: Floats that control water level in steel storage tank have been replaced.  Old floats were not working properly and were allowing the tank to overflow.  The existing floats in the concrete tank are mercury floats.  The floats have been scheduled for replacement.   

SEWER:
Sewer Line Repairs: Discussion concerning sewer line repairs.   The engineer firm that designed the system and the contractor who installed the system have not responded to letter from RM attorney requesting that they be responsible for the repairs under ten year warranty.  Need to proceed with repairs while determining whether engineering firm or contractor are going to assume responsibility for repairs.  PM will proceed with having one offset joint repaired on time and material basis, and Tuttle will contact engineering firm and contractor to 1) identify if they received the letter from Kosydar, and 2) identify their intention to willingly accept responsibility for repairs and/or associated costs. 

Pump Station Revision and Improvement: Discussion concerning need to move the electrical junction box located in lift station above ground.  This is a safety issue because changing pumps requires getting into the lift station to change pump wiring.  Also, the junction box located in the lift station has become corroded over time.  Determined that junction box located in lift station is a safety hazard and needs to be moved to abate safety hazard.  Since this is a safety issue, cost of moving the junction box can be paid for from sewer reserves.  Schaeffer made a motion to authorize expenditure of up to $3,000 to pay for the expense of moving the junction box.  Motion passed unanimously. 

There was discussion concerning building a structure over lift station to protect workers working at lift station during inclement weather.  PM directed to get cost estimate for building the structure, and to then notify the Board by E-mail concerning the estimated cost.

Discussion concerning pumping septic tank.  The engineers original estimate was that the septic would need to be pumped in five to ten years at build out.  The septic has been in service for approximately five years.  Question of whether something upset bacterial decomposition in septic.  PM will check with engineer on this.

GROUNDS AND MISCELLANEOUS:
Dog Poop Stations: Three dog poop stations have been installed along the bike path.  One where the bike path crosses Stage Stop Drive at the entrance to RM, one opposite the marina entrance on the North side of Pony Express Way, and one where the bike path crosses Lost Rider Loop on the North side of the maintenance building.  The stations contain a supply of plastic bags that owners can use to pick up their pets droppings.

RV Reconfiguration Status: Review of bid to pave road for accessing and exiting RV parking area.  Bid amount is $12,949.5.  Paving is required by Deschutes County.  Board directed PM to proceed with scheduling paving. 

The revised RV parking area has 35 parking spaces.  Discussion concerning establishing a policy on what type of vehicles are permissible to be parked in the RV parking area.  PM will review minutes from January and February of ’04 to review if the Board has previously established a policy.

There was also discussion concerning the tree planting requirements and other issues.  Arnest will draft a response to the County based on discussion of compliance issues.

Willow Planting On Island: PM reported that he had received a request through a contractor on behalf of property owner on the other side of the river that willows be planted on the island adjacent to the RM boat marina.  PM directed contractor to first contact the RM owner who is building a house adjacent to the marina to see if that owner has objection to the planting of willows on the island.  PM has not heard any more on this request.  Discussion ensued regarding the responsibility (and authority) of owners or HOA to plant trees on island.  Various county and federal agencies may have to be consulted if this becomes a viable issue.

STATUS REPORTS: None

NEW BUSINESS:
Board Resignation - Kosydar: Discussion that Chris Kosydar had recently resigned from the Board and that she had made considerable contribution to RM including a considerable amount of pro bono legal work.  Also recognized that Kip Childs has made considerable contribution to the community and has not been recognized for his contribution.  Board authorized Arnest to spend and present $100 on gifts for Chris and Kip in appreciation for their past services to the community.

Recruiting: Discussion on resignation of Kosydar leaving a vacancy on the Board.  Her term will expire after the 2006 annual meeting.  Board determined that it will limp along with four members until the next annual meeting and let the vacancy be filled by election at the annual meeting, unless a viable replacement candidate is identified before the annual meeting.

Discussion concerning need to get recruits for the ACC.

Board Election of Officers: Arnest submitted his resignation as Board President subject to election of a willing replacement.  Arnest made a motion that Tuttle be President of the Board.  Motion passed unanimously.  Arnest made a motion that Schaeffer be Vice President of the Board.  Motion passed unanimously.  Motion made to elect Arnest as Secretary; motion passed unanimously.

Legal Representation: Schaeffer reported on his investigation into hiring an attorney to represent RM.  He recommended that RM hire the firm of Karnopp and Peterson.  The firm represents SR and Black Butte Ranch, and they are very satisfied with the representation they get from the firm.  The fee schedule is $140 to $230 per hour.  Board approved the hiring of the firm to represent the association.  Schaeffer will contact the firm to determine how to proceed with the next step of having the firm as the association’s attorneys.

Financial Reporting: Hoblit gave a brief summary of current accounting procedures and there was discussion concerning revisions that should be made to accounting procedures.  A motion was made by Hoblit that financial accounting procedures should be revised to include requirement    that all checks contain the signatures of two Board members and that the bank and State Farm insurance agent should be so notified of this change, arrangements should be made to obtain checks that provide two lines for signatures, that all checks should be stamped “For Deposit Only” when received and endorsed when received, that cash should not be received by the business office, and that the Board should review all financial information and source documents.  Motion passed unanimously.  Based on current bookkeeping procedures, limited local feedback (local professional bookkeeper indicates their services are generally ‘bondable’ but not bonded; they do carry E&O insurance) and the newly implemented procedures, the Board determined that it is not necessary to have the bookkeeper bonded or insured for errors and omissions at this time.  However, the issue of the BK being bondable, bonded, and/or covered by E & O insurance remains an open issue; continuing financial analysis and review of accounting procedures will determine specific future requirements for BK. 

OLD BUSINESS:
Filing and Recording CC&Rs: Determined that there are no bylaws for RMSSO.  PM requested that someone else be responsible for filing amendments to CC&Rs.  BK will check with attorney who incorporated RMSSO concerning bylaws.

Fire Evacuation Plan: Discussion deferred to October Board meeting.   

Sewer Flows and Irrigation Requirements: Schaeffer reported that he had not yet been able to make a computation.  Will try to have something prepared for the October meeting.

Design Guidelines: Discussion deferred to later date.

Recreation Amenities Committee: Discussion deferred to a later date.

Paying For RV Reconfiguration: Discussion deferred until cost is known.

Meeting adjourned 12:00 P.M.

Action Items:

1.      Work on RV reconfiguration - PM

2.      Design and determine cost of cover over lift station - PM

3.      Get sewer line repair done - PM

4.      Have junction box at lift station moved - PM

5.      Review sewer flows and irrigation requirements - Schaeffer

6.      Complete fire evacuation plan – BK

7.      Filing bylaw amendments and RMSSO bylaws - BK

8.      Contact bank and SF on accounting changes - Hoblit

9.      Determine property booster pump upgrades – PM and Arnest

10.  Contact Tye Engineering and United Construction - Tuttle

11.  Get storage tank floats changed

12.  Get RV roads paved – PM.

Old Business:

1.      Recreation/Amenities Committee - Tuttle

2.      Sewer Irrigation Requirements - Schaeffer

3.      Fire Evacuation Plan - BK

4.      Filing bylaw amendments and RMSSO bylaws - BK

5.      Cover over sewer lift station

6.      Sewer line repairs

7.      Paying for RV reconfiguration