2002 Annual

Meadow Wood HOA Annual Meeting

Meeting Minutes

October 5, 2002

Present at the meeting were:

Barbara & David Moss 420 MWC

Tom Logsdon 550 MWC

Vern Hedges 240 MWC

Christian Long & Natalie St. Denis 630 MWC

Rob Clark 636 MWC

Trula Daugherty 410 MWC

Andy & Adrianna Thomas 290 MWC

Rick Weinman 1080 RCM

Roxanne Fairchild 634 MWC

Dave Zimbrunn 235 MWC

Present by Proxy:

Nancy Roudebush 280 MWC (B. Moss)

Jim Shields 485 MWC (B. Moss)

David & Leonore Kreutzer 430 MWC (B. Moss)

J. Bauer 380 MWC (T. Logsdon)

Barb & Dan Browning 250 MWC (V. Hedges)

Austin & Dorothy Thompson 632 MWC (N. Long- St. Denis)

Others Present:

Mike Magliocchetti Key to the Rockies

Andrea Sonderfan Key to the Rockies

Open, Call to Order

Barbara Moss called the meeting to order at 9:06 A.M. at the Keystone Center.

Review & Approve Previous Annual Meeting Minutes

2001 Annual Meeting Minutes were reviewed and approved unanimously.

Review 2002 Year to Date Financials

Mike Magliocchetti reviewed the Year to Date Financials. The board and some members had expressed interest in separating the expenses of the homes and townhomes. Starting January 1^st, 2002, Meadow Wood Homes and Townhomes will have separate bank accounts and separate expense accounts. Since the homes and townhomes declarations state that they are one association, Meadow Wood will remain one association with one set of financials. The only difference will be the ability to ensure that the homes expenses are paid by the homes and the townhomes expenses are paid by the townhomes.

Some of the items that Mike briefly touched upon are as follows:

1200 & 1201 Working Capital

Working Capital has been split out on the Balance Sheet from the reserve account per the IRS. Working Capital is money set aside that may only be used in the case of an emergency and must be refunded as soon as possible.

4500 Other Income

The unbudgeted income generated in this account was from fines and late fees.

6150 Repair & Maintenance

Repair & Maintenance will be over budget by the end of the year due to the re-staining of 6 decks on the townhomes. Invoices from outside contractors are passed on to the association with no markup.

6330 Snow Removal

There is a $1,400.00 positive variance in the snow removal account since it was such a low snow year. There will be some snow removal expense in November and December.

6350 Phone Line

The account does not show any expense due to an error in billing. Thus far the phone line has been attached to a homeowners phone line and has not been charged to the association. This does not meet fire code and two dedicated lines will be installed for the fire alarm system per code.

6220 Water

The account for water is under budget because the East Dillon Water District has not charged for water usage on the most recently built 4 plex. They will start to bill us for the water on these units once the developer (Galipo) has paid for the meter installation.

The reserve assessment is for Capital Projects such as the residing or re-roofing of the townhomes. It may not be used for operating expenses.

Review and Approve Proposed 2003 Operating Budget

The budget was represented in three parts. The first form of the budget included the income and expenses from both Homes & Townhomes. The second form of the budget split out the homes income and expenses and the third form split out the townhomes income and expenses. There was some extensive discussion about whether or not to lower the dues for the townhomes and what expense account to lower if this was approved. This discussion will be expanded upon in the Townhome meeting section at the end of the meeting minutes. There was a motion to approve the homes portion of the budget. It was voted upon to approve the homes portion of budget as is and it was unanimously approved.

Election of Board Members

The board positions for Barbara Moss, John Fayhee, and William Logsdon were up for re-election. These will be for 2-year terms. Nancy Roudebush has resigned from board and the remainder of her term (1-year remaining) was also up for election. Barbara Moss, Tom Logsdon, Roxanne Fairchild, and Trula Daugherty were nominated and approved unanimously to the board. The board will meet in a few weeks to discuss who will hold what board position. Congratulations!

Architectural Board Review

Verne Hedges briefly reviewed what properties have been approved for projects by the architectural review board from 6/21/02 to 10/1/02. He has included an Architectural Review Application in the meeting packet. Key to the Rockies also has a copy of the Application for those homeowners interested in improvements to their home. If you need to speak with Verne about a proposed project, please call him to set up an appointment at 970-513-9534.

Old Business

No old business to discuss.

New Business

It was suggested by Tom Lodgsdon that a Construction Compliance Report and Reserve Assessment be acquired for the Townhomes. The Townhome owners would take on this expense. This would give the association some hard figures when complaining to the County about the construction done by Gallipo and would greatly assist in a lawsuit if such a step became necessary. The homeowners present agreed that this was a necessary expense. Mr. Logsdon will look into getting quotes for the reports. Some of the issues that are precipitating this action are the cracks in the foundation walls, leaks around windows, unfinished decks and the lack of landscaping. These seem to be the responsibility of Gallipo but he is not responding to any complaints.

Open Discussion

J. Bauer has requested that all Meadow Wood Home Owners be reminded that the forest service access is not off of the private cul-de-sac. The official forest service access easement is located off of Meadow Wood Circle between 350 Meadow Wood Circle (Lot 22) and 360 Meadow Wood Circle (Lot 23). J. Bauer requests that Homeowners please stop illegally cutting through the open lot off of the cul-de-sac.

It was requested that Key to the Rockies remove the construction trash next to the townhomes and attempt to bill Gallipo for the work. The black silt fence cannot be removed until all construction is completed, as it is required to be there to protect the wetlands.

It was suggested that the Better Business Bureau be contacted in regards to the poor quality of work that Gallipo provided.

Adjourn

Meeting was adjourned except for the group needing to discuss & approve the Townhomes portion of the budget. Homeowners not wishing to stay for this portion of the meeting filled out proxies so that the remaining members would have quorum in order to legally conduct business.

Present at townhomes portion of meeting:

Tom Logsdon 550 MWC

Christian Long & Natalie St. Denis 630 MWC

Rob Clark 636 MWC

Roxanne Fairchild 634 MWC

Present by Proxy:

Barbara & David Moss 420 MWC (T. Logsdon)

Vern Hedges 240 MWC (T. Logsdon)

Trula Daugherty 410 MWC (T. Logsdon)

Andy & Adrianna Thomas 290 MWC (R. Fairchild)

Rick Weinman 1080 RCM (R. Clark)

Dave Zimbrunn 235 MWC (T. Logsdon)

Nancy Roudebush 280 MWC (T. Logsdon)

Jim Shields 485 MWC (T. Logsdon)

David & Leonore Kreutzer 430 MWC (T. Logsdon)

J. Bauer 380 MWC (T. Logsdon)

Barb & Dan Browning 250 MWC (T. Logsdon)

Austin & Dorothy Thompson 632 MWC (N. Long- St. Denis)

Others Present:

Mike Magliocchetti Key to the Rockies

Andrea Sonderfan Key to the Rockies

Review and Approve Proposed 2003 Operating Budget

Christian Long, Natalie St. Denis, and Rob Clark expressed concern over what they considered to be the high cost of HOA Dues for the townhomes. They thought that since all of the money may not be utilized in 2002, there might be an opportunity to lower dues. Their concern was two fold. They would like their monthly expenses to be lowered and when the time came to resell their homes, they were worried that the high dues would turn potential buyers away. HOA Dues affect potential buyers in two manners. First, when a potential buyer is being approved for a loan, the amount of the dues is considered into their monthly expenses and therefore the may qualify for a lower loan then they would with lower HOA Dues. Second, higher dues may turn off a buyer from looking at a property.

In response to these concerns, Tom Logsdon stated that even though there may be a surplus in 2002, that money will be used to acquire a construction compliance report and a reserve study. Part of the reason for the surplus was the board’s request to limit expenses. For example, instead mowing the common areas weekly, it was done twice this year. This type of financial management allowed enough money to be saved to hopefully cover most of the expense for the construction compliance report and reserve study. Even if there was a surplus at the end of the year, it is Mr. Logsdon’s belief that there is not enough money in the reserve to meet future capital expenditures and any surpluses would benefit the HOA as a whole if deposited into the reserve fund. Roxanne Fairchild agreed that it would be better to plan for future expenses rather than continually having special assessments.

Mr. Logsdon also explained that generally a developer would under budget the dues so that units will sell and it is common for the dues to be raised after the first year anywhere from 5% to 50%. Another reason that the dues are as high as they are is due to economies of scale. Generally, the more townhomes there are to share common expenses, the lower the dues. Hopefully, when the other Townhomes are built, the economies of scale will kick in and help to lower dues.

Since 2003 will be the first year that the expenses will be monitored separately for Homes and Townhomes, it was suggested that the association approve the budget as is and review the feasibility of lowering the dues next year when there is more concrete knowledge of the townhomes expenses.

With this in mind a motion was made to approve the townhomes portion of the budget as is. There were 14 for and 2 against the motion. The motion passed.

Christian Long requested that if there was a surplus at the end of 2003, the board will consider refunding the homeowners. Tom Logsdon promised that the request would be taken under consideration at that time.

Meeting Adjourned at 12:30 P.M.

Action List

Review the Declaration and Bylows for the Rules and Regulations

Get quotes for Construction Compliance Report and Reserve Study

Clear debris from dirt pile near Townhomes

Send out letter to homeowners detailing the jumps in dues over 2002

Find out why Apex did not respond to alarm. What was wrong.

Set up dedicated phone line for Alarm System.