Seven Springs Owners Association Minutes
October 16, 2000 ANNUAL MEETING
*** OFFICIAL, approved at 10/15/2001 annual meeting ***

Pat Swart, acting President, called the meeting to order at 7:03.

Pat initially covered the Rules of Conduct for the meeting and announced that the meeting could not be recorded. She also introduced the three existing board members and commented that there were a number of resignations throughout the year as a result of people selling their units. Pat advised those in attendance that a security officer was present in the event there were disruptive individuals. She mentioned that there were five board positions that needed to be filled.

The first item covered was the 2000/2001 Budget that was mailed to all owners advising them of an assessment increase and a special assessment for two years to properly fund the reserves. She mentioned that all owners were to submit smoke/fire alarm certificates twice a year to comply with City ordinance.

There was discussion regarding the use of television cameras to monitor activity in the community. At the same time, the security line item on the budget was discussed. It was intended to cover the cost of the hot-line, E-mail address and possibly security personnel. There was discussion regarding individuals disposing of oversize and improper items in the dumpster areas.

The importance of the smoke/fire alarms was emphasized when it was mentioned that there had been a fire in a unit within the past week.

An owner requested more details on the overall financial condition of the association. He was encouraged to attend the monthly meetings to stay abreast of the financial influences.

The budget line item for bad debt was discussed. One account represents nearly $16,000.00 of the allowance for bad debt.

The payoff of the mortgage on unit G-13 was explained. Until the large account receivable is resolved the board felt it necessary to keep the funds liquid in the event the delinquent unit had to be redeemed under the foreclosure action.

An owner mentioned that he could not understand why previous board members did not approve an increase in assessments previously. It was explained that the decision could not have been made until the reserve fund analysis was completed.

The costs of the audit were discussed. To perform a multi-year audit would have exceeded $20,000.00. An audit was performed for the previous year and the present year.

An owner made a comment that the By-Laws had been improperly changed to accommodate a special assessment. There was no supportive evidence that the action had taken place.

An owner argued that the corporation was not current with the Secretary of State. The owner was advised to check with the Secretary of State.

An owner requested that each owner be provided with a certificate of insurance. He was advised to contact the agent on the master insurance policy to obtain a certificate.

An owner argued that the association may not have taken the appropriate steps to protect against a bankruptcy by an owner. He was advised that the attorney for the association was capable of making that determination.

An owner suggested that the handling of the capital reserve funds was improper. He was advised it was consistent with the governing documents.

An owner expressed a concern that some of the comments in the newsletter could be construed to be slanderous.

Under nominations there were six nominees; Scott Gundersen, Dennis Severson, Randy Moore, Peter Disher, Deanne Drda and Paul Drda. Each nominee gave a brief overview explaining why they wanted to serve on the board. Upon a tally of the votes, Randy Moore received the least number of votes; the other five were elected to serve as Directors.

There was a short recess as the votes were counted. It was mentioned that the insurance and the Governing Documents for the association were under review by the attorneys; in particular, the issue of pets and maintenance responsibilities for the balconies. The new board will undertake revising and updating the Rules and Regulations.

The membership present wanted to be certain that a maintenance contract was in place for the boilers. The agent assured them that there was a maintenance agreement in place.

Members were reminded that the monthly Board Meetings were held on the third Monday of each month. They were encouraged to attend and observe the board transact the business of the association.

With there being no further business, the meeting was adjourned.

The Board held a short Executive Session to elect officers and confirm terms.
Pat will serve as President with two remaining years
Peter will serve as Vice President and will serve a two year term
Paul will serve as Treasurer and will have a one year term
Scott will serve as Secretary and will serve for one year
Deanne will serve At Large and have a three year term
Dennis will serve At Large and have a three year term