AMENDED & ACCEPTED1/14/06

October 8, 2005, Minutes of Annual Meeting

Swain’s Creek Pines Lot Owners’ Association

Meeting called to order at 10:05 AM. Paul Hicks, 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.

Secretary’s Report – provided by Cheryl Case who stated minutes now reflect either “proposed” or “accepted” at the top left portion of page 1; this should provide a better record if there are amendments to the minutes. Motion by Irene Briggs to accept the Secretary’s report. Seconded by Robert Storie. Motion carried. August 20, 2005, minutes accepted.

Treasurer’s Report – provided by Irene Briggs who stated as of September 30, 2005, the balance in the regular account is $49,552.53; the balance in the Reserve To Preserve account is $81,160.46; the petty cash balance is $300.00; for a total amount of $131,012.99. Motion by Gayle Cromer to accept the Treasurer’s Report. Seconded by Bob Runkle. Motion carried.

Manager’s Report – provided by Bill Rodreick who stated the October water test was turned in; this is the last water test of the year and the results have not been received yet. Both springs are running, the Harris spring is running slow, the main tank will be full and useable during the winter. As of yesterday, there have been 992 water loads, compared to 1045 loads last year, and 921 loads in 2003. The tree clearing has started in Unit 3, Heavenly road should be finished by Tuesday or Wednesday. They are waiting for the power company to drop some lines to access some trees. The Blackman Hills area will be next. They will bring a water truck to help control the dust. There was a discussion regarding the possibility of Bill watering the roads there if a water truck is not brought in. Bill stated a chipper will be brought in to do the slash pile. The runway was damaged by quads; the repair took two hours of rolling and the responsible lot owner has been billed. Irene Briggs stated a lien should be placed on the property if the bill is not paid timely. Bill reminded lot owners to leave valves open when closing for the winter. Bill stated the screens at the pavilion may be rolled up after the meeting.

Committee Reports –

Budget – Irene Briggs summarized the budget and expenses through September 30. Motion by Bob Runkle to accept the Treasurer’s report. Seconded by Cheryl Case. Motion carried.

Liens – Irene Briggs stated there are thirteen liens; two should be resolved soon, which would leave a lien value of $5,960.50.

Reserve to Preserve – Irene Briggs stated we are on target to contribute over $10,000.00 to the account.

Environmental & Fence – Paul Hicks stated some fence was repaired in Unit 1 this year; a lot of volunteers will be needed next year for additional repairs.

Roads, Parking & Facilities – Jayne Alcorn stated letters are still being sent to attempt to resolve the winter parking issue; Jeff Rybolt has agreed to plow the roads in limited areas but Lou Pratt has not issued a permit to plow. If Jeff and Russ Stevens plow, the approximately 15 year-round residents would pay and contract with Jeff to plow a limited area around the barn for year-round residents only. Jayne suggested the year-round residents register or sign-up. No trailers will be allowed at the barn. Jayne requested information be included in the newsletter, and signs be posted at the road and barn. There is still the option to park near the highway for nine days within a fourteen-day period. Jayne stated the Board is not affiliated with the winter parking issue. There was lengthy discussion regarding parking for vehicles, trailers, and access for lot owners. Parking on the runway is prohibited. Irene Briggs suggested Jayne contact Carla Johnson to get put on the Kane County Commissioner’s agenda; they would require Lou Pratt to attend and address the issue of a permit to snowplow. Jayne agreed. Jayne stated there is a small chance the Forest Service would not close the winter parking area as the Forest Service did not provide enough legal Notice of the closure to lot owners.

Fire & EMS – Jayne Alcorn stated propane tanks should be marked; lot owners should arrange for the snow to be shoveled off tanks, as they need to be vented to avoid a fire. Irene Briggs stated a Garkane representative recommended an a-frame or ‘tent’ be made to create a space to allow the fumes to escape. Jayne stated exposed pipe should be protected. Jayne stated there are currently three E.M.T.’s. Five additional people are taking final tests today.

Newsletter – Irene Briggs stated the newsletter has not gone out yet. Jayne Alcorn stated she has pictures of a recent fire. Irene suggested Jayne contact Karen. Bob Runkle stated he has not received confirmation of the place for the January Board meeting; it will probably be held at the same place as last year (Tony Roma’s in St. George). Irene stated Karen has the website running at swainscreekpines.com. There was further discussion regarding winter parking.

Personnel Supervisor – Bob Runkle stated a new contract has been prepared; Bill Rodreick and Tom Wells are both doing a good job.

Architectural – Bill Rodreick stated there are approximately six new cabins and at least four major remodeling projects, and there are seven new septic tanks. The total of cabins in our development is less than 300. Bill Voegel stated he had a silver roof; he painted it six years ago, after Barry McDermott told him a complaint was received from Dean Cochran. Bill stated he used muriatic acid to etch the surface, and used industrial enamel paint. Alan Zellhoefer stated a letter could be sent to Dean Cochran as his structure needs to be painted. Irene Briggs stated a certified letter was already sent and received. Irene provided a copy of a letter from Ed Robbins to Legal Wings regarding the Ablahani lawsuit; Legal Wings had lost paperwork and was provided with an additional set. If the papers are not served by October 28, 2005, another lawsuit would have to be filed. Jayne Alcorn stated John O’Leary contacted her; he will remove some items after October 17, and will try to paint the cabin.

Water Conservancy – Paul Hicks stated he spoke with Mike Noel yesterday; Mike is attempting to obtain additional commitments for funding. The County is pulling trees and widening roads; roads will be graded and have 6 inches of gravel. Harris Springs roads were not dedicated; he and Kurt Allen will meet with those lot owners. Upon clarification from Mike Noel, the Board does not have to send out another poll of the lot owners. Survey results are 455 for the project; 85 against. Strawberry contributed $100,000.00 plus water shares for their project; the Strawberry project is approximately 2/3 the size of the Swains Creek project. Irene stated the Reserve to Preserve items that are water related are: 45,000 gallon tank, 5,000 gallon tank, water pump, well, and the well pump; the total value in the Reserve to Preserve account for those items is $34,689.81. Following discussion, Bill Rodreick stated the newer truck should be retained. Following discussion, Irene suggested the barn be retained and modified to close the current pedestrian door, remove one roll-up door, and install a pedestrian door. Gayle Cromer stated Mike Noel may want $4,500 - $5,000 per hook-up instead of the original price of $4,000. Kurt Allen, of Sunrise Engineering, who works with the Kane County Water Conservancy, was present. Kurt stated the Swains Creek project is now estimated at $12 million, up from the original estimate of $7 million. The environmental study has been done. The County has committed $1.2 million for road improvements over a two-year period; road improvement has begun. Hopefully the pipes could go in next year. Mike Noel has been determined to keep all impact fees and connection fees at $4,000 through all developments. The final cost will depend on the amount of grants secured. Some grant funding may be affected by hurricane Katrina relief efforts. Currently road easements are 30’, 40’, or 66’ in Swains. Bill Rodreick stated some utility easements are outside the roads. Kurt stated ideally roads would have a 28’ travelling surface. Heavenly road and View road may be 20’. Cul-de-sacs will be widened to their fullest limit. Some switchbacks will be widened to the fullest extent. Gail Smith stated the letter sent out reflects the Board will conduct another vote next year. Paul Hicks stated Mike Noel has agreed there was an error; since Swains Creek is not a water company, another vote is not necessary. Irene clarified that we are homeowners’ association. There was discussion regarding options for those who want water, but will not sign on with the proposed project. Irene stated they could go to the 45,000 tank and haul their own water. Terry stated private contractors will haul water. Kurt stated ¼ acre-foot of water right is reserved for each lot; the location of water delivery will change from being hauled by truck, to being in a pipe in front of each lot.

Open meeting – Janelle Pearce stated she supports Jayne’s efforts to secure winter parking for the year-round residents, but she was disappointed that the Board has taken no position and has decided not to address an issue that negatively impacts a significant number of other lot owners who use their cabins during the winter. She also expressed concerns that Jayne will have no authority to enforce parking for year-round residents only. If parking of vehicles is allowed near the barn, it will be used by anyone who is able to drive in and find a space and we will have total chaos in both parking lots. There was further discussion regarding winter parking with no resolution.

Next meeting – will be held January 14, 2006, at 10:00 AM (Utah time) in St. George. Meeting will probably be held at the same place as last year (Tony Roma’s in St. George). Bob Runkle to confirm, and newsletter to inform lot owners.

Motion to adjourn by Gayle Cromer. Seconded by Irene Briggs. Motion carried. Meeting adjourned at 11:55 AM.

Respectfully submitted,

Cheryl Case, Secretary