Snake River Village Owners Association
Annual Membership Meeting
January 29, 2006
Meeting Minutes

I.                    The Annual Membership meeting of the Snake River Village Owners Association was held on January 29, 2006 at 9:00AM at the Keystone Center in Keystone, Colorado

Members Present were:

Others Present were:

Michael J. Mgliocchetti, Property Manager

Melanie Sedor, taking minutes

II.                 The meeting was called to order at 9:03 AM.

14 unit owners were present and with the proxies of those not present a quorum was achieved so the meeting proceeded as scheduled.

The meeting minutes of the 2005 Annual Membership meeting were briefly reviewed. After some brief discussion a motion was made by Mrs. Lammert to approve the minutes as presented.  The motion was seconded by Mr. Von Gerichten and passed. The minutes will become an official record of the corporate documents.

III.               Presidents Report

Mr. Papp gave the following summary of projects and activities that transpired since the last annual meeting. These items included:

Numerous changes and upgrades to the lawn irrigation system were made last summer throughout the project and more are scheduled for next summer. We also installed sod in the front areas around buildings one and two. Drip irrigation for the plant material was also repaired and enhanced throughout the property.

During the summer of ’06 the staff intends to upgrade the lawn irrigation around the spa facility in an ongoing effort to develop a more consistent turf and eliminate the need for garden hoses. This should also make the watering process more efficient.

Gutters, heat tapes, and downspouts were installed in several locations on most buildings. The goal with this project was to direct the moisture away from the buildings and to further protect the siding from moisture damage.

The spas had to be dis-assembled to repair minor leaking which was causing a regular loss of water. Supply and drain lines were resealed and the spas were better supported. The cost of this project was approximately $2000. It is expected that these repairs will extend the useful life of the spa.

The final phase of the exterior staining of the buildings were completed and turned out well. This project was done in accordance with the schedule outlined in the Reserve Fund capital projects. It is not expected to be done again until 2010.

Two rubber heated mats at the spa are being installed to replace the ones that have outlived their useful life.

Finally, several dead trees were removed throughout the complex and replaced.

Fortunately, we have not had to deal with any serious issues or problems at the complex last year.

IV.              Managers Report

Mr. Magliocchetti reviewed the financial condition of the Association and gave the following summary report.

The Operating Cash balance as of 12/31/05 totaled $6,833.36 Although Accounts Receivables were $3138.32 there are no members in arrears or delinquent accounts at this time. The Operating cash is used only to meet short term payables.

The Income Statement of Operations experienced a surplus of $2,478.69 for the fiscal year ended 12/31/05. This surplus is being held in the association funds to offset prior year deficits and will not be returned to the members. Retained Earnings through the end of 2005 after the surplus remains at ($3,951.68)

Significant Favorable and Unfavorable variances in several expense line item accounts were;

Common Area Custodial was under budget by $2152 because of savings achieved with utilizing different sub contractors for lawn care and snow removal.

Repairs and Maintenance was worse than budget by $1090 however there were only the usual expected repairs and some of the cost of the gutter and downspout projects were charged to this account.

The Insurance account was also worse than budget by $1,265.53 but this is expected to improve for ’06.

The Snow Plowing account experienced a favorable variance of $2291 however this is not expected to continue for this winter with all the recent early season snow we have been getting.

Spa maintenance was worse than budget due to the repairs identified earlier.

And finally, Gas and Electricity were slightly under budget for the year.

The Reserve Fund for Snake River Village for the year ended 2005 has a balance of $154,659. Contributions into the fund for this year totaled $29,250. Interest earned on this fund totaled $4,658. The fund is currently divided into 4 investment vehicles including CD’s, Money Market Funds and Passport Savings for liquidity. All accounts are insured.

V.                 Review and Approve the Proposed 2006 Operating Budget

Mr. Magliocchetti submitted the proposed budget to the group for ratification and gave the following explanation of changes for the upcoming year. The Board reviewed and approved the budget proposal at their December meeting. 

Total revenue from dues is projected to increase by approximately $1400 for ’06. This represents an increase of .82%

Some noteworthy changes to the budget proposal include:

Management Fees for Key To The Rockies are projected to increase by $600 or 1.96% if ratified by the members.

Trash Removal cost is also expected to increase by about 5.98% as a result of an increase by the Summit County landfill and extra pick-ups.

Insurance costs for property casualty and liability coverage are anticipated to go down to $8500 based on a current quote from our carrier. Repairs and Maintenance is also expected to decrease as a result of non-reoccurring maintenance charges.

No allowances are made for the upcoming year for transportation services as the Board has decided not to participate in the Vail Resorts shuttle service.

Several questions were raised about various line item accounts that Mr. Magliocchetti addressed. One was the allowance for snow removal and he felt we had adequate funds. After some further discussion a motion was made by Mr. Stiehl to approve the budget as submitted, the motion was seconded by Mr. Schultz, all were in favor and the motion passed unanimously.

VI.              Old Business

a.       Transportation

Mr. Papp addressed the group to solicit their input on the resort transportation services. As noted earlier there is currently no allocation in the ’06 budget for this service. He and Mr. Magliocchetti summarized the terms and conditions of the Vail Resorts bus program.

The fee schedule that Vail Resorts charges for this service is $150 per bedroom per year. The entire association is required to participate. The service is currently not available to individual condominium owners within a condo complex. Based on the number of bedrooms in the Snake River Village property, the total annual cost to the association is estimated to be around $16,500.

Some of the relevant issues that came up in the course of the discussion were as follows:

Property owners who do not rent out their condominiums probably do not use the bus service and therefore do not see the value in paying for it. On the contrary, those property owners who do rent out their condominiums on a nightly or weekly basis view the service as a very important amenity which could have a positive or negative impact on the marketability of their units. Mr. Magliocchetti indicated that renters (mostly winter skiers) who arrive to the resort by shuttle, and rely on resort transportation to get to and from the mountain, now opt for other properties that have this service available to them. Canceling the service has caused some confusion among guests as they don’t understand the local issues surrounding the bus service and it has caused some guest dissatisfaction.  Since Snake River Village is not considered a property that is “walk to lifts”, the loss of rental income could eventually be significant due to the absence of this amenity.

Vail Resorts now requires that the rider present a bus pass (key card) to ride the bus and this has also contributed to the confusion. There has been some unauthorized use of bus passes.

Mr. Papp presented an alternative to the bus service which is Mountain Taxi that will accommodate 9 people at a cost of $5.50 per person. This service requires that the guest make an advance reservation. Mr. Magliocchetti indicated that between offering the guest this option, to a property that has free shuttle service that the guest will likely opt to rent the property with bus service.

A letter written by Mr. Mike Johnson, owner of unit 2802 expressing his opinion and support of the bus service was included in the meeting packet and read to the group at the meeting.

In the course of the discussion, there were comments from the members that were both in favor of and against the service. Following the discussion, a motion was made, seconded and passed that the Board will solicit comments and opinions from the entire membership at a later date this spring to determine the interest level, and based on the results of that survey make a decision on whether or not to subscribe to the bus service in the future. 

VII.            Election of Board Members

There are 2 Board positions up for re-election for 2006.

Nominations were taken from the floor for the Board positions. The nominations were Carl Stiehl, John Gardner and Jeff Zalkind. A secret ballot vote was taken and Jeff Zalkind and Carl Stiehl were elected to the Board of Directors by a majority vote of the members.

The Board will convene a meeting at a later date to determine who will occupy the executive office positions.

VIII.         New Business

The next annual meeting date is set for the 28^th day of January 2007 at the Keystone Center in Keystone Colorado. Official meeting notices confirming the time and location will be sent out at a later date. The Board will meet separately to set dates for April and July Board meetings.

Mr. Von Gerichten raised the question about the idea of installing high speed internet access throughout the property. A discussion took place on the research that has taken place so far and the best package available to the association. After the discussion, a motion was made to direct the Board to research wireless internet access and make a recommendation to the membership. The motion was seconded and passed.

IX.              Open Discussion

Mr. Papp plans to investigate other options for banking of the association funds and intends to research electronic transfer of funds for monthly dues payments. With interest rates on the rise the Board will also look into other investment vehicles for Reserve funds in an effort to maximize the return on these monies.

Mr. Magliocchetti conveyed to the group that there have been numerous repairs made to boiler and hot water tanks in many of the units during the past year. Of particular concern is the discovery of the presence of corrosion of the galvanized aluminum exhaust vents that vent the boiler fumes to the outside. This corrosion is caused by vapor condensation generated in the boiler that builds up in the exhaust vent. If the vent rusts and deteriorates to the point where it collapses, it could result in carbon monoxide escaping from the venting system. There is no cause for immediate alarm, however this is a situation that should be monitored by the owner and management. If it should become a widespread problem it may be prudent to retrofit the vents sometime in the future to stainless steel. This material would be resistant to the corrosion and prevent this problem from occurring.

There have also been minor problems with supply and return lines of the Hotstow hot water tanks. Property owners should periodically inspect the tank for leaking around the supply and return lines. The red flexible tubing (Entran) that transports the hot water has been determined to fail over time and could crack and break.

As a precautionary measure, it may be wise to invest in a special hose available at hardware stores, for the washer water supply lines that can detect a drop in water pressure. In the event of a failure of the supply line, it would automatically shut off the water thereby minimizing or preventing any leaks or flooding.  

Mr. Papp mentioned that the hot water tanks in certain second floor units are inconveniently located behind the washer and dryer making it extremely difficult for access to service them. To correct this, he had an access panel constructed in a closet wall adjacent to the water heater to access his water tank and suggested that other owners with this situation may want to consider this solution to better access this area.

Finally, Mike reminded the members to visit the Snake River Village website located at www.kttrhoa.com for information about the association. It contains useful information that may be helpful to owners and realtors. Management also intends to post a list a subcontractors of the various building trades for the benefit of the members.

There being no further business to discuss, the meeting was adjourned at 10:45 AM

Respectfully Submitted,

Michael J. Magliocchetti

Property Manager    

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