POPE RESOURCES

PORT LUDLOW, WASHINGTON

 

MEETING WITH HOMEOWNERS OF INNER HARBOR VILLAGE

 

March 1, 1993

 

 

ATTENDEES:                          Robert Force               Truman Thompson                Ward Lawler

Howard Blackley         Fran Thornton                      Greg McCarry

Craig Jones                  Mary Corbett

 

 

The following are notes from a discussion concerning the turnover of the association to the homeowners.

 

1.        It is Pope’s obligation to turn over the association to the homeowners when 75% of

the units are sold or three years, whichever comes first.

 

2.         It is stated that Pope must commence all units within 4 years from the date of the

recording of the declaration, or forfeit the development rights on the remaining

portion.

 

.3.          The total dwellings/units to be completed are 50. There are 12 units not yet

completed; 4 each in building nos. 1, 11 and 12. Pope is also still the owner of 2

units in building no. 2, 1 unit in building no. 9, and 3 units in building no. 10.

 

4.         A copy of the plat is to be given to the Ward Lawler showing the building numbers.

 

5.         Pope will be responsible for sending out letters to all the homeowners regarding a

meeting for the transfer to the homeowners.

 

6.         The purpose of the meeting will be:

1.         To elect new officers, one of which may be a Pope Representative. Greg has

offered to accept this position.

2.         To elect a new Registered Agent. It was noted that Don Sahli holds this

position for another homeowners association.

3.         To vote on whether to have an independent audit of all the association

records.

 

7.         Craig Jones will submit a complete list to the association of the procedures of the

transfer as required by the Washington State Condominium Act. He went through

the procedures and said that we had 60 days to comply with all the requirements.

 

8.         It was requested that Pope guarantee that the remaining foundations be completed

within a reasonable time if not done within the 4 year period. Greg I s reply was he

cannot commit to completion due to the possibility of a shutdown. He did agree that

Pope will either complete the buildings or restore the lots to their original state.

Greg emphasized that he has no knowledge of what the future holds for the

residential market or the governmental impact on new construction if there were to

be a shutdown of new development.

 

9.         Greg stated that Don Sahli kept all financial records for the association. He said

that he felt the accounting was fairly simple and straight forward. To Greg’s

knowledge, the television cable was the only formal contract held by the association.

Other ongoing costs were for landscaping and general building maintenance which

is taken care of by Pope’s Maintenance Division now; and the garbage pickup by

Olympic Disposal. There is also a fee to Don Sahli. Tom Ringo has the information

concerning the insurance policy for the building. Greg said Tom had investigated the

insurance field thoroughly before choosing the current agent. He would be glad to

share his knowledge with anyone concerned with this.

 

10.       It was discussed that the Washington State Condo Act requires an independent audit of the records or a waiver by 2/3 of the homeowners excluding Pope Resources. Craig Jones suggested that a committee of the owners may want to review the books and make a recommendation for or against the audit. This recommendation may be submitted to all the homeowners before the meeting in order to vote at that time. If not, a second meeting may be held to get the required 2/3 vote (meaning 2/3 of the current 32 owners). Greg said that Tom Ringo gave him an estimate of $2000.00 for an audit. This cost would be borne by the owners.

 

11.       The new board may have from 3 to 9 people. Craig suggested that 5 is a good number, but however many they choose an odd number will be able to break any ties in a vote. This board will reign until the annual meeting in September when a new election will be held.

 

12.       There was a question of extending the term of the officers, or staggering their terms

for better continuity of transition. Craig said that by amending the by‑laws this can

be done.

 

13.       Craig said he would photocopy the Condo Act for the members to read through. He said the purpose is to cover every possibility for consumer protection.

 

14.       Greg mentioned that there were three main issues of concern to the Board:

1.         Maintenance of the grounds and units

2.         Issuance of Resale Certificates as needed

3.         Procedures for dues; the amount to levy, and how to collect unpaid dues

 

15.       At this time, Don Sahli is the one designated to prepare resale certificates. Pope has also established a formal procedure for collection of unpaid dues which is administered by Don Sahli. This procedure is to act within 30 days of any outstanding billings with a letter of notification, an interest payment calculated and an administration fee. If no money is received by the next billing cycle a lien will be filed.

 

16.       The mechanism for dues is as follows: The amount may be raised up to 20% per year for the first 5 years. This could be used to establish a reserve fund or for any contingencies which may arise. The lid after 5 years is based on the rate of inflation or 6%. It is up to the association to vote on this at their annual meetings. The board of directors has the power to levy an assessment up to 5% of the previous years budget. Any amount after that must have the owners approval. There was a general discussion of preference for a long term build up of a reserve fund versus a special assessment requiring a lump sum payment.

 

17.       There was a lengthy discussion of the maintenance issue. It was agreed that this would be the most time consuming. Greg and Craig mentioned there was a professional management group on Bainbridge Island that could be considered. Another alternative was the formation of a maintenance committee. Greg emphasized that the board members familiarize themselves with the declarations completely and be careful not to discuss anything which is outside of the document. One example is the addition of a heat pump. It is a concern of the board only from an aesthetic point of view. The running and maintaining of the pump is not.

 

18.       There was a question of whether a walk through should be done and questionnaire

sent to the owners. Greg said a walk through yes however a questionnaire may bring

up issues that do not impact the association financially. He preferred that issues be

brought up as they arise, and to look at whether it is a question of a pre‑existing

condition or normal wear and tear.