MINUTES OF THE MONTHLY BOARD OF DIRECTORS MEETING

SECTOR 2A AT SNOHOMISH CASCADE ASSOCIATION

7:00 PM WEDNESDAY OCTOBER 10, 2007

Call to Order/Approval of Minutes

1. Meeting brought to order by Bill Steenis at 7:05 pm. In attendance: Bill Steenis, Steve Yandl, Ron Lee, Allen Kerr, Jennifer Stout, John Patterson, Trina Coleman.

2. September meeting minutes reviewed. Motion made by Steve Yandl to accept the minutes as written. Seconded by Trina Coleman. All were in favor.

Treasurer Report

1. Accounts as follows: checking $33,367.00. Normal monthly bills were only things paid for the month. Check number 1939 for $429.00 check was paid to Silver Lake Water District. This check was mailed but not received at the District and had not been cashed. That specific check has not cleared, and a new one has been issued for payment.

2. This year we have spent what we have taken in. Year should end with an $18,000 excess, about equal to what we had last year. If Aspen tree removal project is initiated this year, estimated expense of roughly $5,000 would come from this excess.

3. If at year end the account does show an excess of $10,000 (give or take,) Steve Yandl proposed a vote to be done at a later time to move the excess funds to the operational reserve account.

Maintenance Report

1. Two sections of fence at North end that Town & Country has not completed. They should be getting this completed in the future.

2. New fence areas will have to be painted in the spring when things are drier.

3. Eagle scouts have chosen their projects so the only scheduled Boy Scout project for Sector 2A will be the mulch to the trails later on.

4. Damage to boat park – toy boat bubbles cracked. Need to be removed. Will be reviewed by John Patterson. Ideas to re-do these areas were discussed.

5. Last bid outstanding for the total of three bids planned for review for Aspen Tree removal. Tresland Tree Company is lowest bid thus far. Part of the contract is to include Sector 2A as an insured on their insurance. Motion made by John Patterson to accept the bid for Tresland Tree Company pending that the third bid is not less. Seconded by Allen Kerr. All were in favor. Cost for aspen tree removal along with one dead tree in the green belt to be brought down totaled roughly $4,200.00

6. Locator service to be called by Steve Yandl to locate underground wiring prior to Tresland Tree Company removing trees.

7. Quote from Skinner Landscaping for replacement trees requested.

ACC Committee Report

1. The ACC committee will be getting together to finalize new forms for homeowner requests to standardize process.

2. Question posed re: 6732 152^nd St. SE: that shed is not in compliance, siding incorrect. House had been up for sale; this was to be shared with the mortgage company should the house sell. A new letter would be sent by Allen Kerr to follow up with homeowners.

3. Allen Kerr shared discussion he had with HOA attorney, Sherman Knight re: pros and cons of changing the CC&Rs & the challenges of enforcing certain rules.

A. Enforcing CC&Rs – the longer something specific is not enforced, the harder it is to enforce and maintain similar new rules. Couple of options discussed:

1. Example being: Rv/boat issue – options: grandfather approval to current Homeowner, however upon sale, new owner would have to follow rules.

2. Allow for standard to be that boats/rvs are to be behind the fence for all people.

B. 75% required approval by all homeowners to change CC&R rules. Discussion re: ability to get the percentage required to change rules. Door to door impartial presenting of ballots to homeowners for completion is allowable, would be legal and would be recommended.

C. Renter issues discussed. All homeowners signed and agreed to the current list of CC&R rules and regulations as they currently stand. Due to this, Sherman Knight’s opinion is that a homeowner would not succeed in court regarding rental issues if it came to that.

D. Sherman Knight commented that our HOA has done much more than the average HOA regarding managing and following CC&R rules. The developer did approve many things clearly outside of the CC&Rs and now the HOA is left in a challenging place to decide how to best create enforcement and follow through in those areas. Recommended enforcement of CC&Rs in a timely manner.

E. Goal of board will be to try to clarify the CC&Rs – especially regarding boats and r.v.s . The homeowners will be given a chance to vote on how to best handle the CC&Rs in the future. One specific clarification would be of “open view” of boats and r.v.s , and then how to enforce as stated in 3.A1-2.

4. Entire meeting with Sherman Knight approximately one hour in duration. Allen Kerr will have one more meeting again in near future to discuss issues brought by board.

5. Jan 2008 a notice will be sent to the the homeowner that is currently renting a home in the neighborhood where the lease comes up May 2008. Reminder notice #2 will be sent at 3 month interval prior to end of lease time frame.

6. 15526 67^th Dr. SE still not up to neighborhood standards. Agency is not showing a good faith effort to sell house. Grass is not getting mowed regularly. New letter to be sent to household, fines are appropriate to be initiated.

Old Business

1. Follow up letter sent to attorney of Jason Warner. Bill Steenis has not heard back from this attorney, written, verbal or otherwise.

New Business

1. New budget for 2008 proposed by Steve Yandl. Motion made by Trina Coleman to accept the budget as written. Seconded by Jennifer Stout. All were in favor. The budget will be submitted to the homeowners with the 2008 dues letter.

2. Steve Yandl proposed that in the future the HOA will need to buy server space to host the domain name for the HOA web site.

3. Concern that HOA is underinsured. Two million aggregate, one million per incident is current insurance. HOA would like to increase coverage. Bill Steenis will check 2-3 quotes and get back to board. Steve Yandl has not heard back from current insurance company regarding increases.

4. Options to help slow down the traffic speed through Gold Creek 2A were discussed. Steve Yandl agreed to email public works to petition them to place medians in the North end of Snohomish Cascade.

5. Goal will be to submit to the homeowners CC&R proposed changes with the budget to be mailed out in December.

Meeting adjourned at 8:50pm.