Inner Harbor Village Condominium Association

                                                   Meeting Minutes

                                                  September 9, 2005

Opening:

The regular meeting of the IHVCA was called to order at 3:10 p.m. on September 12, 2005, at the Bay Club, Port Ludlow by Acting President Gregg Hupp.

Board Members Present:

Gregg Hupp, Kees Bouterse, Bob Edelblut, Jon Olsen, Bev Rothenborg.

Absent:

Jack McKay, Pegi Graham.

Resident Guests Present:

Velma Farrar, Trix Bouterse, Pat Emery, Marianne Barber, Bob Force, Bob Graham, Dorothy Foust, Frosty Foust, Barbara Landi, Bruce Ehrhardt

President’s Report:

There have been two resignations from the Board of Directors due to the sale of their homes.  The resignees are Brett Oemichen and Mark Garcia.

Acceptance of Minutes

The August 12, 2005, minutes were accepted by the board.  It was agreed that we would not mention individual homeowner’s names negatively in the minutes; therefore, the homeowner’s name mentioned in the July minutes will be removed.

Financial Report:

Acting President Hupp presented and explained the report from information given him by Mark Garcia, former Association Bookkeeper.  Assets as of August 30, 2005, were:

Checking                      $6,553.12

Operational Savings     94,322.03

Reserves                       11,000.41

   Total                      $111,875.56

It was moved and seconded to accept the Financial Report.  Unanimously accepted.

Landscape Report – Kees Bouterse and Bob Edelblut:

Directors Bouterse and Edelblut agreed that Bestscape has made improvements albeit slowly.  The grounds are looking better.  They are communicating to Bestscape all the observations made by the homeowners of work that has not been done over the last several months which created a tremendous backlog.  They have asked Bestscape to present workplans but the response has not been as timely as they would like it to be.  They operate with a smaller work force than we would like.  Their invoices for June and July have been reviewed, but a change in their billing procedures has not been forthcoming.  A letter will be sent to them. 

Based on our dissatisfaction with their services, we will be requesting new landscaping bids during the first quarter of 2006.  There are many options for new services that the Board will have to thrash out during this period.

Maintenance Report – None

There was no report in the absence of Director Graham.  Director Rothenborg noted that she had seen Pegi and Bob Graham clearing the debris from the contractor doing work on Building 18.  They loaded it all into their vehicle and took it away. 

Next the contractor will be applying the synthetic coating to the stairs of the same building.  This is a “test” to see if the material will be satisfactory.

Insurance Report and Hospitality Report – Bev Rothenborg

There was one request for a Certificate of Insurance from a mortgage lender.  Our CAU insurance policy will be up for renewal on November 4, 2006.  Other bids will be sought before we renew.

Dan and Betty Quail, 41B South Keel Way, received a hospitality visit and a plant.

There will be an Inner Harbor holiday gathering at the Bay Club on December 7 around 5:00 p.m., to which all homeowners and/or tenants will be invited

CC&R Committee Report – Bob Edelblut

Director Edelblut reported that the committee met on August 24, 2005, with three members present.  They unanimously concluded that they would proceed with the amendment process since the majority of the homeowners who voted requested this change to make the association responsible for maintenance of the limited common areas.  Attorney Shattuck has advised them that if we limit the amendment process to only this item it should not be a lengthy or expensive process.  Each member of the committee has begun their individual rewriting of the sections to be amended.  They then will meet for a final draft.  At that point, they shall consult with Attorney Shattuck, and they will then come to the Board.

Motion:  Bob Edelblut moved that “the Board agree to hire Robert Shattuck to represent the Board in the amendment process and make available the funds to pay for his services.”  Seconded by Olsen.  Passed unanimously.  Shattuck has already identified the sections of the bylaws which need amending. 

Acting President Hupp reviewed a study bid from Association Reserves which offered a wide variety of plans to do a reserve study.  In addition, Bob Force has volunteered to do the study using software available through the Bay Club.   He recommends that to be more effective we should do a close budget spreadsheet at the same time  Force stressed that to get an accurate study will take a lot of effort on the part of the Board

Derrig & Associates has done several reserve studies and would give us an estimate; however, they want to know the scope of the study.

The Board directed the Committee to continue researching the reserve study process and give the Board their recommendations. 

Miscellaneous:

Acting President Hupp wanted to know the status of the tree in front of Building 3 which was discussed for removal.  This has been recommended by an arborist.  Director Bouterse said that the lowest bid for removal was $450.

Motion – Director Olsen moved that “the tree be taken out.” Seconded and passed unanimously.  Bouterse will schedule the removal.

SBCA has approved the addition of a propane tank at Building 16A. Director Bouterse commented on the bright yellow pipes leading to the propane tank at Building 10.  Acting President Hupp mentioned that the tank at 16A is quite visible and suggested that plantings be added to shield it from view. 

Motion – Director Edelblut moved that “the installation of propane tanks at Buildings 16A and 10 be approved with the modifications to shield the pipes at Building 10.  Seconded and passed.

Acting President Hupp brought up the subject of past modifications to the common areas.  Director Edelblut asked for input about precedents in the past regarding this issue.  Buffer trees have been added in the past to common areas with Board approval.  The scope of the changes behind Building 16 have been over and above those approved in the past.

Motion – Director Edelblut moved that “the Board get together with the homeowners of 16A to work out a compromise as soon as possible with decision to be made at next Board meeting.”  Bouterse seconded.  Passed unanimously.

Acting President Hupp noted that Jack McKay suggested a meeting time change due to the fact he is not available on Fridays.  The Board agreed that the first Tuesday of the month at 9:00 a.m. would be a good time to meet.

Acting President Hupp asked for input into the quarterly newsletter within the next two weeks.

Former President Mark Garcia had drafted a letter to real estate companies to place their signs discreetly next to the garage, that they be removed within 3 days of sale, and to not put up any “for lease” signs. 

Motion – Director Olsen moved that “ we send a letter to all real estate companies requesting that they place ‘for sale’ and ‘for lease’ signs discreetly next to the garage and that the signs be removed within 3 days of sale or lease of the property.”  Rothenborg seconded.  Passed unanimously.

Rules Committee – Bob Force will e-mail copies of the most recent set of rules to all Board members for comment.

Limited Common Area Definitions – Acting President Hupp distributed copies of the paper identifying common vs. limited common areas along with a schematic from Jefferson County of Buildings 11 and 12.  Decision on accepting or rejecting these definitions was tabled until next meeting at the request of some directors.

It was reported that a letter, signed by approximately 13 homeowners, was submitted to the South Bay Community Association’s (SBCA) Architectural Review Committee (ARC).  The letter specifically addressed the change in the width of the slats for the railings on a few buildings.  Since the signees considered this a “design change,” they requested the SBCA ARC require IHVCA return to the original slat size in the future.  SBCA ARC declined to consider the request.

Motion – Director Edelblut moved that “we hire Linda Cook, a professional bookkeeper, to prepare our P&Ls, balance sheets, complete accounts receivable and payable and banking for a fee of $75 per month.”  Director Olsen seconded.  Passed unanimously.

During a discussion of whether or not to replace board members who have resigned, Director Olsen agreed to approach Dan Quail in this regard. 

Acting President Hupp gave a letter to Director Olsen, Maintenance Committee, from the Farrars, 10A, regarding the fact their stairs need attention.

Director Bouterse mentioned that a neighbor got a note placed on his vehicle regarding leaving his vehicle parked in his own driveway. 

Motion – Acting President Hupp moved that “the Board go into Executive Session after the Owners’ Forum to discuss personnel and legal issues.”  Seconded and passed unanimously.

Owners’ Forum:

Frosty Foust asked if flood damage was covered under our present insurance policy.  Marianne Barber answered, :No.”

Bob Force made a commitment to Maxine Holtman (21B So. Keel) that her deck would be repaired.  Since there is now a moratorium on repairs, Bob feels we owe her some kind of explanation.  Acting President Hupp will draft a letter and review it with Bob.

Marianne Barber questioned the proposed amendment to the CC&Rs and the relevance of the recent homeowners’ survey.  Director Edelblut replied that two separate issues are involved, and he hopes this will be clarified when the amendments are completed.  The discussions will include both common and limited common areas.  Bob Force explained that all can be included and then you could “strip it out” later, if that was the decision. 

As a new Washington resident, Velma Farrar questioned whether or not this state has a law requiring condominium associations to have a reserve fund.  The answer was, “Yes, there is such a law, but it does not specify the amount of the fund.”

The meeting was adjourned at 5:00 p.m.

Respectfully submitted,

Beverly Rothenborg

Acting Secretary