PROPOSED

January 14, 2006, Minutes of Annual Meeting

Swain’s Creek Pines Lot Owners’ Association

Meeting called to order at 10:05 AM. Bob Runkle, Gayle Cromer, Alan Zellhoefer, Irene Briggs, John Ewing, Gary Decker, Robert Storie, and Cheryl Case were present. Manager Bill Rodreick was also present. Paul Hicks was not present.

Secretary’s Report – provided by Cheryl Case who stated there is an amendment to page 3, in the Open Meeting section. Motion by Irene Briggs to accept the October minutes as amended. Seconded by Robert Storie. Motion carried.

Treasurer’s Report – provided by Irene Briggs who stated the balance in the bank account is $18,429.14, the balance in the Reserve to Preserve account is $100,145.71, there was a positive cash flow of $22,882.58 for 2005. Motion by Cheryl Case to accept the Treasurer’s Report. Seconded by Robert Storie. Motion carried.

Nominate Temporary Chairman – Irene Briggs nominated Alan Zellhoefer. Seconded by Cheryl Case. Alan Zellhoefer was elected to act as Temporary Chairman.

Meeting adjourned and called to order. New board members Frank Pearce and Andy Osterhout, present. (Bob Runkle & Paul Hicks’ terms ended January, 2006.)

Nomination of Officers - Irene Briggs nominated Alan Zellhoefer to act as Chairman. Seconded by Frank Pearce. Gary Decker nominated Gayle Cromer to act as Chairman. Seconded by Robert Storie. Following a vote, Alan Zellhoefer was elected Chairman. Irene Briggs nominated John Ewing to act as Vice-Chairman. Seconded by Cheryl Case. John Ewing was elected Vice-Chairman. Cheryl Case nominated Irene Briggs to act as Treasurer. Seconded by Gayle Cromer. Irene Briggs was elected Treasurer. Irene Briggs nominated Cheryl Case to act as Secretary. Seconded by Robert Storie. Cheryl Case was elected Secretary.

Manager’s Report – provided by Bill Rodreick who stated he closed on October 31; the barn, trucks, restrooms, and pavilion have been winterized. He has been back a couple of times. The two water gates closest to the barn are open, the main gate is closed and will be adjusted as needed. Water deliveries for 2005 were 1,106 compared to 1,155 for 2004. In 1995 there were 795 deliveries, and in 1985 there were 375 deliveries. The October water tests were negative. Payment and a note were received for the damage to the runway. Danny Albrecht, from the fish hatchery, said he expected an increase in the cost of fish.

Committee Reports –

Budget – Irene Briggs stated we exceeded budget in a few areas in 2005. Irene reviewed the 2006 budget and stated a net positive cash flow of $16,175.00 is projected; a modification will be needed for the increase for fish. Motion by Robert Storie to accept the Treasurer’s report. Ken Cromer inquired about the proposed water system, and a decreased income from water deliveries. Irene stated expenses would decrease if water is not delivered. Buddy Madden inquired about private contractors hauling water. There was discussion regarding the water tank being turned over to the Kane County Water Conservancy District, and Mike Noel’s intention to build a new tank and drill a new well in 2006. Frank Pearce seconded Robert Storie’s motion. Motion carried.

Liens – Irene Briggs stated there are ten liens on property owners, plus two on JB lots. The total lien value is $6,185.00. Motion to accept lien report by Frank Pearce. Seconded by Gary Decker. Motion carried.

Reserve to Preserve – Irene Briggs stated $18,528.02 was deposited into the account for 2005. The balance over the life of assets, which is the year 2019, is $100,147.38 to fund.

Labor Day – Gayle Cromer stated Labor Day was successful. Bill Rodreick stated more volunteers are needed.

Water and Pond – Bill Rodreick stated the pond is iced over.

Insurance – Irene Briggs stated we have insurance.

Environmental & Fence – Paul Hicks was not present; no report provided.

Roads, Parking & Facilities – Bill Rodreick stated there are three snowcats, and no snow. Una Runkle stated people are ignoring the ‘no trailer’ signs at the barn over the weekend. Bob Runkle stated parking is still available at Highway 14.

Fire & EMS – Bob Runkle stated the defibrillator has not been installed at the barn. Irene Briggs stated she would talk to Kenny (Fire Chief). There was discussion regarding taking responsibility for the defibrillator. Irene stated she would talk with our insurance agent.

Newsletter – Irene Briggs stated Karen Kegley has agreed to continue the newsletter.

Elections – Gayle Cromer thanked the new Board members for serving.

Personnel Supervisor – Bob Runkle stated there are no problems.

Nominations – no report provided.

Architectural – Irene Briggs stated the lawsuit was served; a response was filed and our attorney recommends an executive session be held to review the response and determine where we will go; Paul Hicks needs to attend the executive session. Andy Osterhout stated John O’Leary has made some progress; about five trailer loads have been removed. Alan Zellhoefer stated the quonset hut needs to be painted; a letter should be sent. Irene suggested the letter be sent in May, with sixty days notice to paint. John Ewing suggested the letter include that the Association can paint it and charge the lot owner. Alan stated he would help paint. Bill Rodreick stated approval was given to Terry Nelson to build cabin next to the Briggs’ but the cabin being built is not the cabin that was approved. Irene stated she would contact Jerry Fitting. Frank Pearce stated there should be an official acknowledgement of approved plans. It was suggested the newsletter include a request that lot owners report the beginning of construction to verify that approval has been given.

Land Donation – Irene Briggs stated there has been no response to the letter sent. Following discussion, it was decided another letter should be sent, certified mail, with a copy of the first letter.

Water Conservancy – Bob Runkle stated logs were removed, three piles plus a partial pile of limbs need to be removed. Irene Briggs stated the remainder of the piles is to be hauled out and chipped; she will contact Larry Reidhead; only one of the slash piles is on Swains Creek property. Gary Decker inquired about ensuring the fee will be $4,000.00 for the water system. Irene read letter from Kane County Water Conservancy District pertaining to $4,000.00 fee. Frank Pearce requested the committee get things in writing, including project managers’ names and phone numbers.

Security – Irene Briggs stated Bob Runkle was driving around the area with “security” signs on his vehicle; the Association was paying for his gas. An issue was raised that the insurance company would not authorize this. Irene stated she is researching this as she would like to see somebody riding around the area to report problems. Frank Pearce suggested a neighborhood watch program. John Ewing suggested asking the Sheriff to deputize someone. Bill Rodreick requested the speed limit be reduced to 15 miles per hour, except for the main road, and asked if new road signs would be included with the road improvements. Frank stated the County should provide the road signs.

Old Business –

Architectural Committee – was discussed above.

Architectural Violations – was discussed above.

New Business –

Manager’s Contract Adjustment – Irene Briggs stated Bill Rodreick would like to form a corporation and have Swains Creek Pines contract with the corporation; he would pay his own workman’s compensation, insurance, unemployment, and obtain a liability policy for $1 million listing Swains Creek Pines as the additional insured. Bill would continue to do the work of Manager, as described in his current contract. Irene stated Bill was paid $18,395 for 2005; payroll taxes were $4,048.91, for a total cost to the Association of $22,440.91. Irene projected the total cost for 2006 at $23,431.62. Motion by Irene Briggs to re-work Bill’s contract for 2006 to contract with Bill’s corporation at a cost of $23,431.62. The assistant (Tom Wells) would continue to be an employee of the Association. Frank Pearce stated our attorney should review this issue. Following discussion, Gary Decker moved to defer this matter until summer. Further discussion. Irene stated Ed Robbins, Esq., did not see any ramifications that were not covered under the contract. Frank requested a written statement from the attorney. Irene stated the insurance would indemnify the Association. Further discussion. Gary Decker withdrew his Motion to defer this issue. Motion by Gary Decker to have information sent to Board members related to liability and insurance issues, and that the Board member review that information and provide a mail-type ballot. Seconded by Irene Briggs. Motion carried. Gayle Cromer inquired about the time-frame. Irene suggested a vote by the end of February.

Acknowledging Status of Rudy De La Paz property – Irene Briggs stated Donn Covert’s property was referred to as lot 17, but it was not included in the Assocation. Donn paid dues for thirty years, but our attorney has determined that the property is not part of the Association. Rudy De La Paz and Cindy Allen have bought the 10 acre parcel, and have decided not to join the Association. Following discussion, Gayle Cromer moved to start dealing with Bruce Jenkins, Esq., to avoid any conflict. Seconded by Gary Decker. Irene amended Motion to clarify that the Association continue to use Ed Robbins for the architectural violation lawsuit, and use Bruce Jenkins for other legal issues. Gayle and Gary accepted amendment. Motion carried.

Committee assignments – Chairman assignments as follows:

Budget – Irene Briggs. Liens – Irene Briggs. Reserve to Preserve – Irene Briggs. Labor Day – Andy Osterhout, with Bob Runkle, Dee Ewing, and Gayle Cromer.

Water and Pond – John Ewing. Insurance – Irene Briggs. Environmental and Fence – Alan Zellhoefer, with Paul Hicks, Norm Case, Andy Osterhout, and Dee Ewing. Roads, Parking & Facilities – Frank Pearce. Fire and EMS – Irene Briggs, with Jayne Alcorn. Newsletter – Cheryl Case, with Karen Kegley and Irene Briggs. Elections – Gayle Cromer, with Una Runkle. Personnel Supervisor – Irene Briggs. Nominations – Cheryl Case. Architectural – Alan Zellhoefer, with Gary Decker and Ken Cromer. Land Donation – Irene Briggs. Water Conservancy – Frank Pearce, with Gayle Cromer, Gary Decker, and Andy Osterhout. Security – Irene Briggs.

Open meeting – none.

Next meeting – May 13, 2006, at 10:00 AM (Utah time) at the barn.

Meeting schedule – the following dates were selected for Board meetings: May 13, June 10, July 15, August 12, September 2 & 3 (annual meeting), October 7, and January 20.

Motion to adjourn by Gayle Cromer. Seconded by Robert Storie . Motion carried. Meeting adjourned at 12:05 PM.

Respectfully submitted,

Cheryl Case, Secretary